What Financial Path Would You Choose in My Position (+ Life Advice Wanted)

L[Deactivated] on 16/12/2023 - 19:27
Last edited 16/12/2023 - 20:09 by 1 other user

Prefacing this post as I want to say that this is my first time posting in these forums so please be gentle :) Also please treat the poll as separate from the other questions at the end of my post.

I graduated uni this year and somehow completely lucked out (despite my grades and Atar) in securing a graduate job that pays very well. I have learnt from my coworkers that there is a significant pay bump if I perform well and get promoted, which is achievable within a couple of years. I made a spreadsheet and forecasted that if I go into complete saving mode for the next few years I can pretty much guarantee becoming a "millionaire" by 25 assuming I live like an OzBargainer and invest wisely. "Millionaire" in quotes because 1 million is not particularly many millions, but it still counts.

The thing is I just don't see the benefit of having that much money if I live like I'm poor the whole time and dont actually do anything with it. For what its worth I am very much interested in and passionate about personal finance (I actually asked my parents to make a brokerage account I could trade in their name with when I was underage in high school 😭) which is part of my motivation to hit this goal, but I feel like as soon as I reach it I will instantly start thinking about the next goal. Most of what is making this possible is that I can hit a 90% savings rate minimum with my current situation (living with parents and not a huge spender), which I know is an extremely fortunate position and am very grateful for. Although I could also very comfortably move out and get a decent apartment with how much I earn, only dropping my savings rate to maybe 70%.

I think I am aiming to FIRE, but not sure at what age I am aiming to do so at yet. And yet while I would definitely say that I am financially literate (I hang out here on OzB so duh), sometimes I dream about being completely fiscally irresponsible. What I am trying to say in a metaphorical sense, is that I feel like I would rather have a Lambo (as an example) in my 20s than 40s/50s/60s, but can't shake the feeling that this is extremely stupid and I should prioritise boring saving and climbing the corporate ladder. This is clashing with me wanting to save up a ton and FIRE early. As a side note, I'd almost definitely do something else with the money than a Lambo, along the lines of a huge expensive 6 month 6 figure holiday around the world or something similar. Although a really stupid supercar like that might be nice too, idk. I hear some even appreciate, although I would not shy away from throwing miles on one and incurring lots of depreciation.

I've read similar posts on ausfinance and the comments are invariably always split between "you will get a dopamine hit once you hit your goal and then soon after just want more, so spend while you are young and live life" vs "I wish I had saved more at your age and set myself up well for later". However unlike on ausfinance, I couldn't find many posts here on ozb apart from this one which wasn't really life advice, moreso investment advice. Whereas for me on the other hand, I know exactly what I'd invest in, but dont know if I should be going along that path at this point in time. The standout comment I took away from that thread was this:

George Best has great financial advice for you
"I spent 90% of my money on women, drink and fast cars. The rest I wasted,"

Which I thought was quite funny but not very relatable. I also saw this post, but my situation is pretty significantly different so that's why I still wrote this up.

I'd appreciate some anecdotes in the comments from people who decided to lean one way or the other with regards to focusing on hardcore saving vs having fun in their early 20s and whether you regretted it or not? Would you do it again? What advice you would have for someone that age?

life questions I have (unrelated to the poll and main post):
- when should I buy an apartment / house? ASAP, or wait a while?
As stated before, I live at home with family still so there's no urgent pressure to buy a place right now, but there are a bunch of first home owner incentive schemes such as FHOG, FHSS, and the CGT exemptions, so I have been considering this a lot recently. I quite like living at home, but I feel like there's a societal expectation to move out as well. The potential financial upside is nice too. Obviously property can go down too, but on a risk adjusted basis it's a chance I'd be happy to take.
- should I bother maxing super?
I am not totally sure where I am going to end up in life, and I don't know if super makes as much sense if I plan on FIREing at say 30 or 40 either since I can't access it "early". If I retire in the US for example, super isnt recognised as a tax advantaged account. Also I value the flexibility of taxable accounts. I know I could do a SMSF at some point but it's a lot of hassle apparently.
- would it be worth moving countries to save up lots of $$$ even faster?
I will have the option to move to the US, Europe (well just London if I want the big $$$), or potentially even a place like the UAE which all come with huge raises in pay. Apparently if I move to the states I'll double my disposable income. I figure that if I'm willing to dedicate the next few years to saving furiously, I may as well optimise where I live to earn the most possible? Wondering if anyone on here has done this.

I apologise if this is not 100% relevant, but I don't have any mentors outside of work apart from my parents, and I am looking for some external advice / wisdom. Feeling a little lost in life as honestly I was in high school not so long ago and still feel like a child. Have no idea what I want from life right now or what to do with myself really.

I have been writing and editing this for long enough now so I think I have included everything but please ask me any other questions for things that are unclear. I did omit some details in the name of anonymity but am happy to clarify anything if necessary. Will check comments and reply periodically over the next few days :)

What Financial Path Would You Choose in My Position?

Poll Options expired

24
I would prioritise getting to $1m in NW by 25yo
14
I would prioritise living life, drive supercar in 20s, save after 30yo
187
I would choose the middle ground, say $1m by 30yo with some holidays in between

Education & Work

Comments

- [Deactivated] on 17/12/2023 - 14:19
  
  -3
  
  I have forecasted my salary (post tax) + discretionary pay with the ~12% annual return of the S&P and I can reach $1m at 25yo if the markets don't do a covid 2.0. The math is sound.
  - Drakesy on 17/12/2023 - 14:21
    
    +11
    
    the ~12% annual return of the S&P and I can reach $1m at 25yo if the markets don't do a covid 2.0. The math is sound.
    
    Oh dear…
    - [Deactivated] on 17/12/2023 - 14:27
      
      Including the return it takes me well over actually. If I hide in 5% fixed income, I barely scape over the line. Either way is doable, but I have always preferred the "riskier" route. I don't see any issue with this, so care to elaborate?
      - Drakesy on 17/12/2023 - 14:28
        
        +4
        
        @[Deactivated]: Also i'm not sure if you've factored in CGT
        * Actually i know you haven't.
    - Hugh G Rection on 19/12/2023 - 09:35
      
      please share the drugs you are taking, we want to feel good too.
  - Briefcase Mong on 17/12/2023 - 14:47
    
    +2
    
    You should remember nothing is guaranteed. Past performance is not indicative of future performance.
  - No ONE on 17/12/2023 - 16:19
    
    +1
    
    You do realise that "~12% annual return of the S&P" is the average of over long term (say 10 year investment) and not a yearly compound like interest rates.
- Optimistic Goat on 17/12/2023 - 19:58
  
  +3
  
  I'm pretty skeptical of the $1m at 25 claim too, but if he's managed to get into Investment banking and can stick it out for 5 years, it may be possible. I can't think of any other career path that will get you to $350k+ in your mid-20s. MBB consulting may get you close, but I've never heard of anyone making principal/associate partner by 25.
  
  Assuming a generous 8% return compounded monthly, with HECS fully paid off and private health insurance paid out of the 10% consumption:
  Year 1: Salary $150k, after tax and 10% consumption $96k, total accumulated = $99k
  Year 2: Salary $200k, after tax and 10% consumption $126k, total accumulated = $234k
  Year 3: Salary $250k, after tax and 10% consumption $147k, total accumulated = $401k
  Year 4: Salary $300k, after tax and 10% consumption $170k, total accumulated = $604k
  Year 5: Salary $350k, after tax and 10% consumption $192k, total accumulated = $846k
  
  With some initial savings or parental gifts, an extremely successful IB graduate could reach $1m by 25, but even then, it will require an insane level of skill, hard work, and luck.
  - bobbified on 18/12/2023 - 12:17
    
    +1
    
    Investment Banking might get someone a big salary early and your calculations might work in theory, but a big part of the job requires socialising (that is, spending money) too so it's almost impossible to leave the office at 5pm and stay home to save money. If you're young and disappear straight after work, you'd get nowhere in the company.
  - [Deactivated] on 18/12/2023 - 13:07
    
    You are almost spot on with those numbers, outside of the career area. I'm surprised at how close you are actually. One of the few people in here to not just claim its completely impossible. I am impressed.
    
    I saved a fair amount from interning as well so I'm not starting from 0.
    - bobbified on 19/12/2023 - 21:18
      
      +1
      
      I saved a fair amount from interning
      
      What sort of intern gets paid $150K in their first year that then jumps to $200K in the second year?
SydBoy on 17/12/2023 - 12:58

earn as much as you can while time permits and then have super holidays once enough is saved and built your own home without mortgage .. !!!
mrvaluepack on 17/12/2023 - 14:10

-1

Buy house as investment property asap and continue to live with parents.

Yes, if you see yourself retiring in australia.

If you are single and to work, yes but to live and retire SEA is better.
Phattattak on 17/12/2023 - 14:22

So if you've graduated Uni at 21, and can be a millionaire by 25, that time frame is 4 years? Let's say 5 years….

If you save everything for 5 years, that's putting $200k away a year. Taking into account tax that would mean a $320k a year job on average? And that's not including any living expenses (and greated no passive income from investments). I'd love to see the spreadsheet.

The only way to achieve those financial goals is to spend nothing, save everthing and invest wisely living to an idealistic spreadsheet model. Unfortunately life doesn't always align to the simulation, jobs come and go.

My advice if you are earning that amount is you certainly have the income to live gaining more life experience then sitting in your bedroom in your parents house for 5 years. I'd suggest taking $15k of your $200k a year and travel for a few months. The world is a big place and with lots of knowledgable, wise people to meet and growing experiences to be had. That kind of experience counts for a lot more later in your life and career.
- RefusdClassification on 17/12/2023 - 16:10
  
  That's an annual $300,000 a year income. Is everyone on OzBargain / Whirlpool / AusFinance from the "top end of town"?
  
  "In 2020, if your taxable income was $131,501 or higher, then you earned more than 90 per cent of other Australians. If you earned more than $253,066, then you took home more than 99 per cent of taxpayers."
  
  "The median Australian employee earned $65,000 in 2022".
  
  Where are all the poor Australians, the people who aren't in the top income decile? I want an OzBargainer job. I want to be paid half a million a year for sitting behind a big desk and going to meetings.
muppet on 17/12/2023 - 14:47

+1

If you can reach 1M NW in the next 4 years, do it! Make that your priority. That ability/option is not always going to be possible so make hay while the sun shines.

Travelling and enjoying life can be done later, and much more comfortably.

The added benefit is that your 1M will start appreciating earlier.
siresteelhell on 17/12/2023 - 15:34

another brand new account.."give me advice post"….
SpicyStew on 17/12/2023 - 16:13

+4

tldr; stop wasting time posting useless posts.
if you are so inclined to create content, at least get paid for it.
- [Deactivated] on 18/12/2023 - 13:51
  
  +1
  
  It's not useless to me actually. There have been some very valuable and insightful comments in-between all the vitriol. I have always been data driven, whether it be anecdotal or statistical, and this post has allowed me to collect some extremely useful advice.
  
  I have no inclination to become a "content creator".
  - SpicyStew on 18/12/2023 - 15:34
    
    you should be on a site how to make money, not a bargain site how to spend money.
    
    you want data driven? not even 5% reach lambo wealth working for someone else, the rest are plebs paying off debt.
    
    motto is, time is money, stop regurgitating nerdy technical jargon and get hustling.
Luminary on 17/12/2023 - 16:36

+1

I graduated about 10 years ago and during covid I had the "this can't be it" thought. The thought of working for another 40-50 years absolutely terrified me and made me think about FIRE as well. One question my mentors asked me is "how do you want to live?". For my partner and I, we didn't want to spend more time with our boss than our future kids and have other people raise them. We want to be able to buy one-way tickets overseas and not have to wait until we have enough annual leave or ask for permission. Additionally, we also want to be able to pay it forward and help others create more flexibility in their lives which is what fuels our entrepreneurial/FIRE journey. Our goal with retirement is not to sit on a beach drinking cocktails or just buy a ton of materialistic thing (no judgement if you do), but to create more time freedom and flexibility and be able to give back. I would ask the same question to you.

I would suggest thinking of where you want to get to in terms of point B and what kind of timeline you want to do this in. This will give you direction and allow you to start figuring out what steps you need to take to get to point B on time. I would then find mentors who have the results you want and live the life that you want. Life never goes according to plan and has a lot of distractions so having someone to guide you will help keep you on track and focused.

Feel free to reach out if you want to chat further. Always happy to share my perspective if it helps others and may even be able to connect you with my mentors if that is something you're looking for.
- [Deactivated] on 18/12/2023 - 12:46
  
  I will message you sometime this week with some questions :) thank you for the offer.
  - dajiska on 18/12/2023 - 22:57
    
    +1
    
    To add what Luminary mentioned above this is similar to what my partner & I also started on this journey…….. first try to figure out where do want to be within 20-40yrs from now. What is your main goal in life! some say I want to travel the world, some say I want to retire before 30/40yrs, some say do needful things in life…… there are many possibilities but you need to find the correct mindset and direction to lead your life to that goal with the help of correct mentors along the way
    You can also reach out if want to chat further & hope some of my 2cents helps others :-)
Eeples on 17/12/2023 - 16:44

+2

I think you should move out of home and experience more things. These experiences will better inform you of the path you want your life to take. Or, more likely, those experiences and subsequent ones will be your life.

The sooner the better.
- CanadaAye on 17/12/2023 - 17:53
  
  Do this and save at the same time as you suggested. It sounds like your thinking is lacking balance. Everyone is different but I'd say for your overall enjoyment and the meaningful richness of your life you'll want to have someone to create memories and potentially a family with.
Ace26 on 17/12/2023 - 17:38

+1

Firstly congratulations.
Here is my 2cents

It's all about balance, don't overdo anything. Life is shorter than you know (time flies) so make most of it. Save for future but live in the moment too.

Also, write down what you want to achieve and why, you might find the answer you are looking for.

Good luck
SlickMick on 17/12/2023 - 18:21

+1

Just try to make good, sound financial decisions, and when you grow up don't be too embarrassed by this post.
npnp on 17/12/2023 - 20:30

+2

Not even sure this is a serious post TBH (I'm referring to OP). Grad student even at the most prestigious course is unlikely get to millions in a matter of a couple of years (unless of course robbing a bank is also part of the agenda). Even if this is some extremely rare unicorn case, how on earth such a guy relying on ozbargain community to show his way.. lol
- AsSeenOnTv on 17/12/2023 - 22:03
  
  I think he means he can be worth a million which with low costs, decent salary and smart investing is possible.
  - npnp on 18/12/2023 - 08:10
    
    Using a similar logic, me going to the moon is 'possible' with a suitable rocket, call from NASA and improving my IQ with some upcoming technology to that of an astronaut level.
- [Deactivated] on 18/12/2023 - 12:52
  
  +1
  
  People seem to think I am not allowed to like scoring deals as a student, but I've lurked here for years.
  
  I was expecting this sort of reaction (not yours, but some of the other comments) if I posted on ausfinance, but thought maybe people here would be nicer. But to alleviate your concerns, I am very serious. AsSeenOnTv's reply to your comment is correct BTW, and I would say if I take the path of prioritising saving, it's "probable" more than just "possible".
AsSeenOnTv on 17/12/2023 - 22:02

+2

Time is more valuable than money but the two are very closely linked.
I would try to do all the things you want to do in life like traveling, having a sports car and retiring early, but do it on the cheap.
Everything is a trade off so consider can I get a cheaper option or delay by one year etc.
As someone who is close to 50 now it really does feel like yesterday I was in your situation, so don't waste time. I don't mean hurry up I mean time is valuable and goes faster and faster the older you get so don't waste it.
daclaw on 17/12/2023 - 22:24

+2

1) Don't count your chickens before they hatch
2) Burnout is real, prioritise your mental health over chasing coin
Alley Cat on 17/12/2023 - 23:27

+1

If your goal in life is to build wealth, you will have to put your money where your mouth is. If your goal is to enjoy the journey, you will again have to put your money where your mouth is. Everything in life that is worth something, costs something.

My understanding of money is it is a game of trading time. You trade your time to build wealth, then you spend the wealth to buy someone else’s time. It’s very simple, at least to my observation.

Does your time in your 20s worth more to you than say your 50s? From a career building perspective, if you are a grinder, it definitely isn’t. But that doesn’t have to govern or reflect your internal values.

Being financially independent and retire early is a nice thought, if you believe the ends justify the means. You can never have 17/12/23 back once it’s gone, make sure you spend it wisely. Life is about trying to pick the ‘right’ experiences but live through whatever actually takes place. There’s no such a thing as a bad experience, only you can alchemise all your tragedies into comedy 😇😆🤣
EnergicAU on 18/12/2023 - 00:38

+1
travel the world & prioritise experiences over things

don’t have kids (haha)

watch income creep

prioritise health and low stress (you don’t earn good coin without giving something away .. time/effort and as you are an employee, they will want their pound in flesh)

choose a right partner who isn’t going to take half your shit

get insurances in place (income protection/trauma/life/tpd) for the unexpected things

Assuming career in finance/IB or tech. Just make sure you’ve calculated what your after tax pay is as although the number looks high, it doesn’t feel it sometimes (refer to income creep haha)

Life advice: you’re starting your life out now, enjoy it because you never know what’s around the corner. I’ve seen too many people work hard their whole life and not able to enjoy the fruits of their labour
- [Deactivated] on 18/12/2023 - 12:55
  
  I quite like and agree with all of your points. Never wanted kids and still don't, but who knows where I end up. You are correct in your career assumptions, although they are quite broad :)
  - EnergicAU on 18/12/2023 - 16:41
    
    +1
    
    Finance and law couple and DINKWADs and enjoying life to the maximum we can. We spend way too much on travel but we justified if because that’s what we would have spent on kids. Am I a millionaire at 30s? No. But if I died tomorrow, do I have any regrets.. also no. Could I have paid off my mortgage by now if I was strict and tight, probably. Very much a #yolo life haha
Newozbargainuser on 18/12/2023 - 03:02

My two cents - travel can be done very cheaply (and it’s far more fun) in your 20’s through hostels etc. This option disappears (or certainly the social side) as you get older, and is a great way to see the world. You can do this using annual leave, so shouldn’t impact your earnings. The other one - depending on your living situation, I always wish I moved out sooner when I was younger. You could trial this and return home if you found it didn’t deliver a lot of value for you (it is a material cost, but can be a lot of fun).
Trying2SaveABuck on 18/12/2023 - 08:58

wtf is this post
GuitarXXX on 18/12/2023 - 10:21

What ChatGPT summaries for TLDR

The author recently graduated from university, secured a well-paying job, and anticipates a significant pay increase through promotions. They created a spreadsheet projecting a millionaire status by age 25 through disciplined saving and wise investments. Despite being financially literate and interested in personal finance, the author is conflicted between pursuing financial independence and retiring early (FIRE) and indulging in more immediate, potentially extravagant experiences.

The author seeks advice on whether to prioritize hardcore saving and climbing the corporate ladder or to enjoy life, possibly making more impulsive and enjoyable expenditures in their 20s. They are also pondering life questions, such as when to buy a property, whether to maximize contributions to their superannuation fund, and if moving countries for higher pay is a worthwhile option.

Ultimately, the author feels a bit lost in life and is looking for external advice and wisdom. They share a desire for anecdotes from individuals who faced similar decisions in their early 20s and seek guidance on various financial and life-related matters.
- Hangryuman on 18/12/2023 - 13:09
  
  'Ultimately, the author feels a bit lost in life'
  
  ah - thank you ChatGPT - 'not drowning, waving !'
May4th on 18/12/2023 - 11:28

how is the job security and factor that into your trajectory
rayray78 on 18/12/2023 - 12:55

A few points to consider which probably has been covered already above.
When you are in your 20s you have more energy then 30s and 40s so you can use this energy to work hard and travel. Consider if you want to have kids, are you family guy. Having kids earlier when U have the energy might mean you want to save up so U have the time to spend with the kids. Don't underestimate the time and energy needed for raising kids and teach them well. If you can afford to have more time with kids then that's a blessing. Also can consider aging parents and if you want to stay close to be with them and family. Also with high income comes more stress and responsibilities? Healthy and happy is most important
charkwayteo on 18/12/2023 - 12:55

+1

You've barely started working - why not actually do some work for the next few years and see if you even come close to your spreadsheet net worth trajectory.

When you're 25 with a million then think about what you want to do, right now you're just dreaming.

25 is not old so don't assume you'll be 'missing out'… I had about 170k at 25. Didn't get to a mil until 31 (34 now)… currently have house no regrets didn't need mummy and daddy still travel with paid annual leave, I'm not rollin in it but I consider myself lucky.
- [Deactivated] on 18/12/2023 - 13:48
  
  When you're 25 with a million then think about what you want to do
  
  Yes, but to get to this point will require some discipline, which is why I am thinking about it right now. I could amble around till I'm 25, but then perhaps I'd have wasted my time and regret it. There's no harm in making plans for the future (which is how I managed to get where I am right now actually), so I'm just trying to weigh up the pros and cons of each path I could take.
  
  Purely out of curiosity, if you hit 1m at 31, how much have you grown it by in the three years since then? Did you slow down with your saving once you crossed the line, or decide to further accelerate your wealth accumulation with the extra passive income?
  - charkwayteo on 19/12/2023 - 20:24
    
    A decent chunk but not as much as from 2019 to 2021. I had more free cash to play with then and got fairly lucky in the market. Now most of it is tied up in the house. It’s all cyclical.
    
    Different stage of life I’m not thinking about bucks since having the house.. spending time with son and keeping healthy and exercising are priorities . If health stays good I’ll work for as long as I can - job is enjoyable and not physically or mentally taxing for me anyway.
Hangryuman on 18/12/2023 - 13:06

+1

for easy returns, it's hard to go past maximizing salary sacrifice to super

as you get 'FREE MONEY' to the value of your marginal tax rate

lemme try to remember (I'm old and have been retired for 7 years) …

salary sacrifice/concessional contributions to super I think deduct 15% tax instead of your marginal tax rate - 32.5% over $45Kpa, 37% over $120Kpa, 45% over $180Kpa

which is like getting 17.5%, 22%, or 30% FREE MONEY - BEFORE GROWTH

I have my super in international shares choice, which I saw yesterday showed 15% growth last year, or an average of 11.4%pa over the last 10 years - if you multiply that by 1.175, 1.22, or 1.3 above, that gives you 13.4%, 13.9% or 14.8%pa average growth over the last ten years - that's better than a smack in the mouth with a wet fish !

Looks like max contribution is $27,500pa - https://www.ato.gov.au/individuals-and-families/super-for-in…

The rule of 72 for doubling - 13.4%pa or 14.8%pa would double your money in 5 years or a bit over, so that would be my suggestion for a good safe savings suggestion for your long-term and retirement.
- Hangryuman on 18/12/2023 - 18:28
  
  oh yeah - and also - super earnings/growth is taxed at 15% in accumulation mode (before age 60 when you can move it to a tax-free income stream account) - again less than growth outside of super which would be taxed at your marginal income tax rate, e.g. 32.5 to 45% - so again it's like FREE MONEY.
  
  Not saying for all your savings of course as not accessible until age 60 - but for an excellent destination for your long-term savings, I reckon it can't be beat.
pablomoon on 18/12/2023 - 13:10

I’d highly recommend this book and wish I had been able to read it at your age.
https://missionpossiblebook.com.au/
- [Deactivated] on 18/12/2023 - 13:37
  
  I read the blurb and from what I can gather the book is about conveying to people that financial independence is possible, which I am already aware of. Is there much more to it than that?
  
  I will return the favour and recommend that people read this book at any age if they can be bothered: https://www.goodreads.com/book/show/2118114.Sway
  
  Its fascinating.
Hangryuman on 18/12/2023 - 13:23

'millionaire' today does not have the same import as it did a hundred years ago - today's equivalent would be 'billionaire' - those who live a rarified life that most of us never experience and can only dream about.

basic advice - spend less than you earn - save first, then spend what is left, allowing always for pleasure and regular treats - I'm old, retired with more than I'm likely to spend, and my daily luxury is a 15-minute hot shower I've estimated to cost about $1.50, and occasional Mickey Dees soft serve ice cream cone, which used to be 30c but may have leaped to an outrageous ? 80 CENTS !?!?!

the happiest family I ever saw was living on the dole in a shack next to the railroad tracks - they spent all their time with their small kids, and everyone I saw was simply glowing with happiness

increasing affluence tends to increasing individuation - the more money you have the more you're likely to isolate - billionaire celebrities need to pay bodyguards to keep them safe and protected from paparazzi when they go out to a restaurant for a meal - Tom Cruise booked a whole floor of a restaurant so he could enjoy time with his new girlfriend - yesterday I saw a comment 'it's so tiring looking like an influencer' (female needing makeup and wardrobe choice before being seen in public)

and when you can finally afford first-class airfares, you realize your peers have private jets - so skip the hedonic treadmill of the FIFO problem of increasing your spending to match your increased income - if you get hit by a bus tomorrow the lifestyle of you and the loved ones you support can all come crashing down if you can no longer afford luxury house and car repayments …
xrayed giraffe on 18/12/2023 - 14:17

So you weren't good enough to secure a job straight out of uni, but you are now good enough to expect to perform well and get promotions?
Maybe the initial interviewers were on to something, and you shouldn't base your life on succeeding so spectacularly since you've not don't that so far.
- gimme on 18/12/2023 - 14:25
  
  +1
  
  dumb comment… that's how promotions work. Noone is CEO from day 1
- [Deactivated] on 18/12/2023 - 16:07
  
  Except I literally did secure a job straight out of uni. I got "lucky" getting a great internship, where I worked hard, and they decided to extend an offer.
Exorcist on 18/12/2023 - 15:28

How old are you?
- [Deactivated] on 18/12/2023 - 16:13
  
  -1
  
  Younger side of early 20s
  - borrisz0r on 18/12/2023 - 17:01
    
    Lol.
    
    Are you sure you don't want to be a politician with responses like that?
onesandtwos on 18/12/2023 - 17:45

+2

First off, congratulations. I'll reiterate points from others about prioritising your health, as everything can come crashing down quite quickly, even though that person insists it's only for a short time etc or they can handle it. Looking after yourself is about risk management, if nothing else.

Some of your questions appear binary but they don't have to be, so this is why balance is important. I think given your situations, you can try to do a few things all at once. I'm not sure what the point is being hyper focused on getting to $1m by 25, if you still lack major direction in your life. I mean it's a very 'productive' use of your time, and you are maximising your opportunity for investments and promotions etc… But there is nothing stopping you from establishing more sense of purpose and self knowledge.

Are you a person who wants to experience something first before they know it's not for them? Or are you naturally intuitive about what you want and enjoy being introspective? Travel, moving out, romantic relationships etc are excellent for gaining life experience but at least 2 of these can be done with very limited impact on your savings goal (at least two weeks of travel per year is a great taster, just don't do resort/cruise type holidays if you expect any life experience).

Since you have the opportunity to, I think you should move to a different country but do so with the intent of trying to make the most of a different culture and ability to explore, learning to be relatively self reliant and establishing friendships as an adult.

To hedge against the crappiness of Australian real estate, I personally would buy a property with potential for capital growth, in an area you can see yourself living in the short/medium future. Moving back to your parents after establishing independence is not fun, and neither would dealing with the madness of being a renter if you can avoid it.

As you mature, you should hopefully be able to develop a very good radar for decent/honest people, and be able to connect meaningfully, and that skill is transferable to romantic relationships later, so you don't get suckered into an incompatible one simply because you find them attractive and the two of you have good timing/ready to settle down.

Meet people via dating apps, keep it low key and comfortable e.g. A drink or a coffee, if they want to push for more from you, then move on (unless you're fine with it). Don't think of it as trying to meet your future partner, but it's an interesting way to learn to be comfortable with anyone, no matter who they are, whilst learning about yourself and what you value/want in a partner. Although, if you don't have time/energy to meet up, then ignore this advice, dating app pen pals are a huge waste of time, unless you're wanting the fake validation of someone's 'attention'.
- [Deactivated] on 18/12/2023 - 23:03
  
  Thank you v much for this comment :) lots of good stuff in it
  
  I’m curious, would you argue for / against a central CBD apartment, or a property on private land only?
  
  I was considering moving to a european country and trying to learn the language at some point for a few years too (like dutch or flemish maybe). Definitely will move eventually.
  
  I never considered dating apps tbh, it’s interesting that you explicitly recommend them. I figured they were pointless for a multitude of reasons. Usually preferred meeting people organically, but I guess thats not the fastest way of doing so, so might give them a try at some point.
  - onesandtwos on 19/12/2023 - 21:55
    
    Since this is not purely for investment and house/land is generally much more expensive in a desirable than apartment, then it's not a simple decision. How much and how long do you anticipate your money to be tied up? Given the tight rental market, leasing won't be a problem if it's in a desirable location, so on top of all of the financial variables, you have to picture yourself living there. You won't know for sure what circumstances you'll be in coming back from working overseas, so the question you're asking is how much 'peace of mind' you're willing to invest in, to know that you've got a foothold in a competitive real estate market?
    
    Of course you prefer meeting organically, but other than having already met via friends/school, then at this stage, it's more likely to be through work or maybe hobbies. I generally wouldn't want to date someone via work, in case it doesn't work out, or generates gossip. If you're as methodical as you seem to be, then as long as you're clear on what you'd like to learn, communicative and open minded when you're using it, you learn a lot. Don't confuse the dating apps as anything other than an easy/convenient way to meet people, it's different skill sets again within a romantic relationship. However, if you leave finding someone and learning how to navigate being a partner too long, without any experience, by the time you suddenly feel ready to settle down, you might fall for the first person that ticks some idealised boxes and later realise those boxes are not that important to you. Or you might not have the requisite capabilities to maintain a loving and happy relationship.
JohnSy on 18/12/2023 - 19:52

From a tax perspective, it would be wise to max out your deductible super contributions every year if you can whilst your income remains less than $250k. (https://www.ato.gov.au/individuals-and-families/super-for-in…).
- [Deactivated] on 18/12/2023 - 23:05
  
  Well from a tax perspective it makes most sense to leave the country :)
  - JohnSy on 19/12/2023 - 01:05
    
    +1
    
    Perhaps, but then you would no longer be living at home with your family, so your living expenses would increase when you have to pay for rent, food, utilities etc.
    
    I can see your point though - and I have had similar thoughts myself in the past.
    
    If you do decide to stay in Australia, as for SMSF information consider looking at www.esuperfund.com.au. Lots of information regarding self-managed super fund rules etc. You probably need at least 150k+ in there to justify its existence and running cost. Just don't set up an SMSF and then decide to leave Australia for an extended period as you would likely need to wind it up.
tomfool on 18/12/2023 - 20:33

Your time here is short make the most of it and try an balance future security without compromising you youth. Invest a % of your income and start building a passive income but also enjoy the fruits of your work. Travelling when you are older becomes more expensive as you are less tolerant of you environment.
GourmetFoodie on 18/12/2023 - 22:37

+2

You’re getting an little ahead of yourself.
Slow down.
Why do I say this?
I was you.

Do the job first for a year and then re-evaluate where you are at. You might find you hate the job or you get an evil boss/colleagues or your division gets restructured (I had all 3 happen to me lol!). Even if you’ve done internships, working full time can be very very different. You really get to see the politics. Focus most on working your ass off and delivering your KPIs.

Meanwhile, do the basics, save, don’t blow it all disposable crap but also don’t be afraid to buy yourself a nice suit or pair of shoes or have a few nights out on the town.

At the end of 12 months you will have a clearer vision as to what is realistic.
pollambo on 19/12/2023 - 06:18

+2

Op's career is at a HFT firm/trading in finance/sales and their savings will likely exceed $1m by 25. I know guys who are on 7 figures in mid 30's but the stress level is quite high.

I would definitely say buckle down and do it. This particular industry is high stress and you can burn out. Take the opportunity while you can and ignore the haters on this forum who think you are trolling.

By 25 when you have a first million, building wealth will be significantly easier.
Hugh G Rection on 19/12/2023 - 09:42

+3

whatever you choose, remember you are a human and not a machine. don't just work, work, work, work, work, then die. many people work there whole life and attempt to enjoy it at the end, but its too late. too late as in they have health issues, too old to travel everywhere and do things. i golf a lot with wealth seniors mid day since everyone is working that is around my age. best advice is to have lots of kids and enjoy life when you are young. obviously don't buy 20 ferrari's, but be sensible. give yourself breaks, don't just stack up all your holidays and never use it. have a few days here and there to recharge and take a break. remember money is only a vehicle that provides you with options.

you can always make money, but you can't buy more time. Enjoy being 20,25,30,35, etc… years of age. young, healthy, and still capable. life is but a vapor, it comes and goes away before you know it. when you are young you think you have lots of time. when you get older and wiser, you realise you missed and losses a lot of opportunities.
MrFunSocks on 19/12/2023 - 17:15

-1

OP was sold a lie about his earning potential and/or OP is lying to us. If you're going to be earning 500k+ a year then you wouldn't be here asking if you should buy a lambo, you'd just buy one because you're rich.
Jammar on 19/12/2023 - 17:37

Advice to all young man and woman, the money isn’t yours until it shows up in your bank balance and cleared not pending.

Save whats been cleared, treat pending or future money property of others.

What Financial Path Would You Choose in My Position (+ Life Advice Wanted)

Prefacing this post as I want to say that this is my first time posting in these forums so please be gentle :) Also please treat the poll as separate from the other questions at the end of my post.

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