Yellow Feathers
Norm Smith Medallist
Nah, the interest is way too high on that. I just use it to buy things.
Saving
- Thread starter freddy mercury
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Nah, the interest is way too high on that. I just use it to buy things.
Saving is very difficult unless you set yourself some goals and have a realistic plan.
However before you set some goals you need to look at expense planning. This is at a basic level but break your expenses up into three categories, fixed, fun, future.
Your fixed expenses are your non-negotiables, those expenses that must be paid (i.e. rent, mortgage, food etc).
Your fun expenses are your lifestyle expenses. Determine how much do you need on a monthly basis to have a satisfying lifestyle. And be realistic here, donlt go to small or too extravagent otherwise you're plan will never work.
Then you have what leftover is basically your realistic savings capacity.
So set yourself a spending and savings plan and STICK TO IT. Best way to stick to it is to track it on a weekly basis. Easiest way to do that is via moneysoft.com.au
Let me know if you want further details. I advise clients in this area with amazing results.
Its all about starting small but starting now. Think of it as Getting Rich Slow.
However before you set some goals you need to look at expense planning. This is at a basic level but break your expenses up into three categories, fixed, fun, future.
Your fixed expenses are your non-negotiables, those expenses that must be paid (i.e. rent, mortgage, food etc).
Your fun expenses are your lifestyle expenses. Determine how much do you need on a monthly basis to have a satisfying lifestyle. And be realistic here, donlt go to small or too extravagent otherwise you're plan will never work.
Then you have what leftover is basically your realistic savings capacity.
So set yourself a spending and savings plan and STICK TO IT. Best way to stick to it is to track it on a weekly basis. Easiest way to do that is via moneysoft.com.au
Let me know if you want further details. I advise clients in this area with amazing results.
Its all about starting small but starting now. Think of it as Getting Rich Slow.
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Power Raid
We Exist To Win Premierships
I work with a wide range of people and note that generally those that get rich quick tend to get poor quick too.
Getting rich slow isn't an accident but a discipline to see your opportunities but remaining within your risk limits.
A part of seeing your opportunities is also being in a position to execute, which generally means saving young.
Max Power 83
All Australian
Hey mate,
That moneysoft.com.au looks interesting. However, the Mrs is a bit concerned about third parties having access to our accounts etc.
Can you let us know a little more about how it works, and in particular, how secure it all is?
Thanks.
I already do this in a way. Get paid monthly pay my rent straight up and some other bills, place 30% in my savings live off the rest for a month. Sometimes if I have alot on I pull a bit of cash outta my savings in the last week of the month, not always. Do we all think 30% is a reasonable savings goal?
- Moderator
- #156
Perhaps if you single its a decent aim, even then its a big call as far as opportunity cost for what you miss out on. Are you including compulsory super in that?
Different story if you have a partner, children or other dependents. You'd have to be on a serious wage to save 30%, that or be very frugal
In my experience excluding super and mortgage payments and defining savings in terms of something that won't be spent for at least 5 years.
Single and in your 20s: 10%-15% of salary, 20% if your a high earner. Too much life to be lived in your 20's to go overboard.
Married with family: If the average earner can save 10%, their doing well.
Good question though, curious to hear other peoples thoughts.
Will maybe answer this better after work, but I am talking 30% of my net income after alsupwrannuation and tax. I live in Geelong and share a house with the gf so my rent ect is lower than most I imagine. Also no kids ect.
- May 5, 2006
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I don't count super and tax as income.
If you earn say a $110k package then you really earn $100k which is about $70k in the hand, give or take. That amount is what you need to save from.
On average I reckon I probably save 25% or so each pay. Some months more, some months less, some months in the negative.
If you earn say a $110k package then you really earn $100k which is about $70k in the hand, give or take. That amount is what you need to save from.
On average I reckon I probably save 25% or so each pay. Some months more, some months less, some months in the negative.
Rusty Crow
All Australian
- Apr 13, 2014
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30% is great saving, I doubt you can keep that up during your working life though other things tend to get in the way.
Reading through this thread I see their is now options to try to match SMSF in investment options. I have taken my small balance out from the fund managers and into SMSF, I don't save in fees but I do now have it growing in value and the dividends cover running costs which fund managers never managed to do. It is not for everbody though.
If you have trouble saving and leaving money sitting in a bank some managed funds let you have a savings plan with automatic deductions, if I wasn't forced into early retirement it would of paid out enough to buy a reasonable house in Adelaide.
Income protection Insurance was offered it as a new produst and thought I would never need that and then soon after broke enough bones to retire. You soon learn to pare back needs to basic items.
I will admit my tastes have become more expensive as I have aged and I like a days rest between partying but I still live like a 20 something as long as income is greater than expences.
Definitely won't be able to, when I purchase a (mortgage) house then my savings will turn to paying that off, so I think it looks good now but really is only because I don't have any major debts to repay
- May 5, 2006
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Do you pay rent now?
If you say earn $1,000 a week now, pay $200 in rent and save $300 then I wouldn't be taking on a mortgage that eats up $500, particuarly when interest rates are low.
I'm a lo
I'm a long way off purchasing, also it would be joint with my gf, so the income stream to repayment ratio would be doubled
I've always been waste full with money.
Now i've started saving putting $50-100 in a money tin a fortnight.
Over the last year i became addicted to betting on horse racing.
I'm on a very low income but if i stick to my plan and stop gambling.
I could save 2-3k by Xmas and 10 -15k by the time im 31 (25 now)
Excited
Edit - Actually it's more like 1.5k by xmas
6-10k in 5 yrs
Miscalculated
Now i've started saving putting $50-100 in a money tin a fortnight.
Over the last year i became addicted to betting on horse racing.
I'm on a very low income but if i stick to my plan and stop gambling.
I could save 2-3k by Xmas and 10 -15k by the time im 31 (25 now)
Excited
Edit - Actually it's more like 1.5k by xmas
6-10k in 5 yrs
Miscalculated
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I was far better at saving money 10 years ago than what I am now. My habits back then were still odd (would purchase a combination of dvds and video games EVERY WEEK, did this for years from the early 2000's even continued it in the mid to late 2000's as well). In this time putting away extra money was simple for example I created a PS3 fund in the lead up to the console's release - within a few months I wound up saving enough to buy several of them (at $1,000 each). The console got delayed, instead of waiting I took advantage of another situation - got a 360 for free and blew most of the ps3 fund on X360 games and accessories.
Over the last few years I have not purchased many games or dvds (maybe a few every couple of months). My addiction instead is buying clothes, I seem to buy a new shirt or shorts nearly every week. A lot of the time it's to wear in advance (I prefer to get around in 2XL and that is a size that's hard to buy for so I buy in preparation for when my current clothes are too worn out to keep wearing).
Anyway a friend showed me something at the start of the year, like a time table / schedule to save money. I set myself a budget of $600 over the Christmas and new year period..... I spent over $2000
So my aim with the saving guide is to put money away each week for the end of year sales (that way I use that money and only that money). The "soft" goal (following the guide) is $1368 - at this point in time I should have saved $81 (the basic guide starts at $5 and you increase the amount every week). I currently have put away $200. It looks like only $100 per month thus far but as the weeks increase, so will my increments, If I stick with it, I'll end up with $2500-$3000 spending money. I am hoping to be a bit more daring and may save up to $5000. The amusing thing will be then deciding what to spend it on - small items, one big one, or KEEP it and save it for a rainy day (never know I might get hit by a bus and need it!). I am doing this while still easily accounting for day to day expenses, bills etc.
- Feb 2, 2009
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I've always been good with money. I'm 22 and been working since I was 18, on a low full year income of $30k. Set myself a goal to move out by 21, didn't get there, but I'm hoping to buy a house sometime in the next 6 months. I've accumulated $53,000 in about 3.5 years. I bought a $10,000 car in that time, went on an overseas holiday, and lost $8,000 on a shitty share. I make sure I don't limit myself socially either.
I couldn't tell you how I did it though, it didn't seem hard but my friends are impressed so I must have been doing something right.
Sent from my iPhone using Tapatalk
I couldn't tell you how I did it though, it didn't seem hard but my friends are impressed so I must have been doing something right.
Sent from my iPhone using Tapatalk
You done very well, I'm 25 and I've never had close to that kind of money.
Bad life choices, spent 18-20 yrs old as a pothead.
Moved out of home when I was 18 though....
Anyway that's in the past, life goes on.
I thought of a few things I can cut down on to save my money.
- I like to game every now and then, I have accumulated a sizeable collection over the years.
I really don't need to buy the latest release all the time, so I decided I won't buy ANY more games until I literally have nothing to play.
- Cut down on alcohol consumption, when I do drink buy a carton instead of grabbing a six pack every couple of nights.
- Cut down on eating out/takeaway foods.
- Don't spend just for the sake of it, think about is it really worth parting with the cash.
- Once I've put money in money box each fortnight, the leftover money is everyday money to spend on what I need but to spend wisely.
If there is any leftover from that next pay put it into my netbank saver account and do no touch.
Sorry haha just thinking out loud over here.
- Jul 23, 2010
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rough numbers that works out you have spent $200 a week for the last 4 years.
that is very frugal.
Lethality
Most successful team in your lifetime
- Oct 23, 2014
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- #169
Why don't you get an ING account and set up an automatic saver? It automatically puts aside a certain amount of money for you into an ING account . . . this ensures that you will maintain a saving pattern and this won't just be another resolution that you fail to keep. You also get some interest although the amount is negligible, something like 2.5%
Well I bank with commonwealth and I have a high interest net bank saver.
Is this the same thing?
I know I posted in this thread last year, but very serious this time.
I have a 4 year old and another baby on the way to think about.
Oh yeah you're right, that's the introductory offer.
I made a new saver account the other day so I would get that rate.
I had a saver before last year, but I wasn't commited/able to save due to my employment at the time.
So since I didn't put money in it they closed it.
I've wrote down on paper and planned out my next 10 paydays and exactly what I need to pay out (including at least $50 fortnight in savings)
Hardest part for me is being paid monthly, hard to stop spending in the first week, then the last week I am broke as hell unless I withdraw from my savings, aim to put away 1000 a months, always pull from this in the last week though
