Kids don't have to be that expensive in the first couple of years. It's more that families are usually cut down to one income. They are way more expensive as they get older.
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What???
Kids don't have to be that expensive in the first couple of years. It's more that families are usually cut down to one income. They are way more expensive as they get older.
What's the issue?
Assuming full time work paycheques are the same week to week. Expenses aren't. If you say 'Well I get $1000 a week so can only ever spend $800 so I save 20%' that's simplistic. What if you get a $100 a week pay rise? Do you then spend an extra $80 a week and save $20?
I get paid fortnightly and have bills monthly, two-monthly, half-yearly and yearly plus ad-hoc expenses. Around the middle of the year I'd be lucky to save anything as the annual bills come in. Other times I might have no bills coincide with a fortnightly period so will save heaps. I don't set hard and fast targets each fortnight because I know roughly how much money I earn and spend in a given year and the sort of lifestyle I can and cannot afford.
People who aren't good with money will look at a pay period with a heap of bills and stress out that they aren't going to save their x% and eat two minute noodles then get to the next pay period and go shopping because they're ahead on their budget. I've seen it.
Save what you can, but if you can save more, and still live, do so.Depends on your priorities and stage in life.
I still remember my first full time paycheque and it was less than I got working heaps of hours over the Christmas period in a supermarket but still way more than I was used to seeing on a regular basis as a uni student. Fast forward a decade and that paycheque wouldn't cover my current expenses. I'm not rich, but I'm not 22 either. I could live in a share house forever and drive a car that may die at any moment etc. and save like a mad kent but I'd prefer not to. Life's there to live.
I'm a firm believer in saving when you can. Saving a set x% of your paycheque each week is for people who can't manage their money. I just spend what I need and save the rest. If I got a 10% pay rise tomorrow I probably wouldn't spend any more each week because at the moment I don't need to.
Planning is great. Always good to map out how much you're going to need, and what you can and can't afford etc.Yeah, got to say I'm similar. I'm a bit older I think and with kids so feel the need to plan. Also been lucky with a few things. The forced Super in Australia is a good thing. We don't have that here.
We save a % of each of our incomes and it works perfectly for us. Different strokes for different folks.
Save what you can, but if you can save more, and still live, do so.
We moved into our place this month and our mortgage repayments are $1910/month. We put $500 a week on them. We've already made $3000 worth of repayments because we received some of our stamp duty back that we didn't expect, and additionally we gave my mum $3000 back we owed, and put more away into another account for an engagement ring.
People look at saving as a bad thing. I think it's one of the best things you can do. Get yourself into a great position financially and things are much easier.
Attempting to save X amount of dollars is a good way of doing it. Some weeks it's not going to possible, but most of the time it should be, particularly if you put money onto your bills each week/fortnight etc.
anyone that doesn't do this is silly. total interest paid will decrease as your pumping payments in more regularly and funny enough you actually put in more payments fortnightly than monthly. ( Fortnights in a year =26; 12 months* 2 weeks =24)Tip: pay your mortgage fortnightly
You'll pay it off faster
What if you have an IO loan with interest calculated daily and charged monthly?
Why would you have an IO loan other than for an investment property
Tip: pay your mortgage fortnightly
You'll pay it off faster
funny enough you actually put in more payments fortnightly than monthly. ( Fortnights in a year =26; 12 months* 2 weeks =24)
52 weeks / 2 = 26 fortnights?gonna need a source for this
https://www.amp.com.au/personal/new...ake-my-loan-repayments-fortnightly-or-monthlyAs some months have 30 or 31 days, over the course of a year, these ‘additional days’ make up two fortnights. So, by repaying your home loan fortnightly, you make 26 payments—the equivalent of 13 monthly repayments.
If you can afford to do it, it’s a simple yet effective strategy to drive down the cost of your loan.