How much savings do you have?

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Scotland said:
When you have enough money you can do whatever the hell you want. Want to buy an old 1950s car and spend the year doing it up? Do it. Want to go sailing around the world or driving around Australia? Do it. Just sitting around doing nothing would drive you nuts but not having the stress of money would be give you plenty of freedom.
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People like being the big dog steering the ship mate.


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Savings are OK if you lose your job/get sick etc

What you need is an income stream long term you can pay for or

the above but are able to finance the debt while you work.
 
sabre_ac said:
I'm curious, how you pull the equity out of your house without selling it, taking out a reverse mortgage or some other bank facility that incurs interest?
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You buy a house for 500k in 2010. In 2018 it’s worth 1m. Assuming you paid 100k deposit on interest only you now have 600k equity. You ask bank to withdraw max allowed and they agree to give you 80% of your equity.

600*.8 = 480

Bank agrees to loan you another $480k.
 

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The Edukator said:
You buy a house for 500k in 2010. In 2018 it’s worth 1m. Assuming you paid 100k deposit on interest only you now have 600k equity. You ask bank to withdraw max allowed and they agree to give you 80% of your equity.

600*.8 = 480

Bank agrees to loan you another $480k.
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But that comes with interest, what interest rate would it incur?
 
The Edukator said:
You buy a house for 500k in 2010. In 2018 it’s worth 1m. Assuming you paid 100k deposit on interest only you now have 600k equity. You ask bank to withdraw max allowed and they agree to give you 80% of your equity.

600*.8 = 480

Bank agrees to loan you another $480k.
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The amount of people struggle to understand that concept! Then are to nieve to want to try to understand and want to argue it! :)
 
The Edukator said:
that would be negotiable
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I think there is a danger in assuming that the equity pulled out of your house where you pay interest is your money, you're still effectively taking out a loan. Which can be a good move if it is invested in appreciating assets, the issue is a lot of people use this "loan" to pay for things like cars, home renovations etc thinking there is no price to pay in the future.
 
I've worked from age 18 (and studied) and one point my savings got to over $30k.

I went travelling, moved out, did all that s**t and the past 2 years have been basically been working to live - I'd save but I'd spend it on more travel.

I'm 27 now and have been much more conservative with my money this year and earning a much better wage - managed to save about $15k since December.

One week before Rd1 of footy I did my ACL, MCL and Meniscus. My health insurance was bronze level so covered me for SFA of the surgery. Costed me about $9k upfront with getting $3k back. So I'm back down to about $8k or so.

I've used my recovery time to look into my Super, spending habits, other s**t and realistically I've been pretty irresponsible with my money so I'm a bit annoyed at myself but also grateful I've picked up on it all now rather than 10 years later.
 

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$30k and slowly climbing

Definitely could have more, but I don't really budget. If I'm hungry, I order food. If I see a game I want, I'll buy it. I want to get better in that regard.
 
I've always been a decent saver but lately based on my stage in life (kids, mortgage etc), I'm finding it much harder to save.

It's an obvious suggestion, but setting up a savings account with a different bank to your regular one and designating a fixed amount to be withdrawn at each pay cheque is a wonderful and relatively pain-free way of accelerating savings.

It's always a satisfying surprise to see this other account growing every couple of months when I log in, the big surprise is how seamlessly I survived off a lower cashflow when I genuinely thought I'd be raiding that account constantly. I think most people underestimate their ability to get by happily with less.
 
It works for some people but I've never seen the point in having multiple accounts.

$500 in one account I can access and $500 in another I can't is the same as $1,000 in one account to me, but if people need that barrier it's good that it's available. I know some people that earn a fair chunk more than I do and manage to spend every last cent.

I reckon I've probably hit a good peak for saving. When I started working full time after uni I had SFA in the bank so saved hard earning not much, then over the years I've had a few ups and downs. Right now I don't really need to spend any more than I do to maintain a comfortable life and save a bit each pay without focusing on it. Happy with that for the time being as the future will no doubt throw up challenges of some sort.
 
Scotland said:
It works for some people but I've never seen the point in having multiple accounts.

$500 in one account I can access and $500 in another I can't is the same as $1,000 in one account to me, but if people need that barrier it's good that it's available. I know some people that earn a fair chunk more than I do and manage to spend every last cent.

I reckon I've probably hit a good peak for saving. When I started working full time after uni I had SFA in the bank so saved hard earning not much, then over the years I've had a few ups and downs. Right now I don't really need to spend any more than I do to maintain a comfortable life and save a bit each pay without focusing on it. Happy with that for the time being as the future will no doubt throw up challenges of some sort.
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I have one account that actually gets interest, but only if it has no withdraws. The other is the one I live off and get paid into, periodically transferring a few grand to the interest earning account. Now, however, I have a mortgage; so the interest earning account will probably be closed and the remaining funds used to pay that down.
 
At current interest rates I reckon any kinds of savings account is a waste of time personally. An ING Savings Maximiser account will give you a whopping 2.8%, so if you manage to put away $20,000 in a year which is good going for most people they'll give you $560. Better than nothing but if you have a home loan then it's a no brainer to have an offset facility instead.
 
When I got a 25k raise end of last year I allowed myself to raise my discretionary spending weekly budget by $50 only. Too many people spend more than they need because theyre used to spending a % of their income instead of a bottom line figure all too often. Logging every dollar I spend helps me save and using cash instead of my cc is also a great mental trick that hurts more than tapping a card. Highly recommend both techniques.
 
Scotland said:
At current interest rates I reckon any kinds of savings account is a waste of time personally. An ING Savings Maximiser account will give you a whopping 2.8%, so if you manage to put away $20,000 in a year which is good going for most people they'll give you $560. Better than nothing but if you have a home loan then it's a no brainer to have an offset facility instead.
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Yep, looking at Term Deposits and high interest savings accounts now. Hard to find anything about 2.8%. Ridiculous, better off at the casino.
 
I think it's an inappropriate question. I believe that the "money subject" is a very personal one, and it mustn't be talked about in public. It's very okay to have a saved amount of money in case of an emergency. I call it plan B. I always think about my future, and I try to create opportunities about saving some money. I can advise you to play games for real money. There is a list of games that pays you while playing them. It's a very interesting and great way to make some extra cash. I cash out like 10-15$ per day. And for me, it's a great economy.
 
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