tech/a
No Ordinary Duck
- Joined
- 14 October 2004
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If you put it away until your 60's you could have a million dollars to do all that.
In 34 yrs (When the poster is 60) a million dollars will be like $395K now if inflation over the last 34 yrs is a guide.---not a lot---hardly a deposit on a decent home in 34 yrs!
View attachment 42224.
If the Property thread is anything to go by most will STILL be waiting for property to become--"affordable"
If you put it away until your 60's you could have a million dollars to do all that.
A friend of mine the other day said something often heard. " I've saved all my life to afford the things only the young can enjoy".
Blue chips can also go down. Nothing guaranteed there, look at a 2 or 3 year chart for any of them. I don't own ANY blue chips.
And you also don't get much if any dividend yield.
This was said with respect to blue chips.
Seems a peculiar comment when you consider that most of the banks, with franking included, offer around 8 - 9%!
The phrase "both require attention if you want to ensure the end game meets your expectations" is so true.So property goes up over time roughly proportionate to input and inflation the same as all other assets. They just do the same thing, but differently. Both require attention if you want to ensure the end game meets your expectations, and neither gives you a free ride or a theoretical better outcome when you project 34 years into the future.
So true, and the point I was trying to make earlier.A friend of mine the other day said something often heard. " I've saved all my life to afford the things only the young can enjoy".
So you need to strike a balance as a lot of people my age did enjoy their youth and now cant afford good dental,medical etc without even thinking travel, a new car or luxury foods.
I know what you mean. These internet posters that claim they are young with X amount must have very well paid jobs at their age. My first year wage was $110/week.I would like to ask where is money come from?
As you can earn $50K as you are so young, then you must have more plans to invest those money. If I have, I will establish my own business
It is possible with hard work and making sacrifices though too.
I had $4k around this time last year starting my first graduate job on an average graduate engineer wage and now have more than $50k.
I said 'you' as in Nokia...Nokia doesn't own any blue chips or to my knowledge any light blue chips....so there fore doesn't get much if any dividend yield.
I know what you mean. These internet posters that claim they are young with X amount must have very well paid jobs at their age. My first year wage was $110/week.
Wow, that seems a lot for a young single person to spend on food. Are you including meals out in this?spend ~ 150-200$ a wk on food.
Wow, that seems a lot for a young single person to spend on food. Are you including meals out in this?
If you're a part time worker then you might be able to save 100 bucks per week. So maybe 5000 per year saved if you use newspaper to wipe your botty.Compound interest and exponential growth is your friend.
I'm a 22yo uni student, and i work whenever i can, especially during the holidays.
I still go out, enjoy a few drinks with mates, buy a few things, and spend ~ 150-200$ a wk on food.
I just don't blow money on useless things.
Reason so high is due to recreational sport, so i have a very high calorie requirement.
Lately iv been able to get to down to $100 from buying in bulk. So that saves a fair abit.
Like some people say, avoid hobbies - save money lol.
Jason.
Probably buy a productive small business.
Develop a few APPs.
I'm in pretty close to the same position, i'll give you a run down of where I am at and some small suggestions that may help you also. Not sure if you are working or a student either but will assume that your working.
I'm 24 yearsn old. I have only about $3k in the bank, however i've just finished paying off a car worth about $16k, I have $67k in shares however $35k of that is owing on a margin loan. I pay a portion off of this margin loan each pay (fortnightly) and as it reduces, if I see any more opportunities in the stock market I buy again and extend on the loan again. Note this is not a strategy for everyone, however I work in the finance industry, understand the risks and lucky enough to still be mooching off the parents hehe. Theres a couple of other bits and pieces i've got but nothing else of any significant value.
The first thing I would 100% suggest in regards to superannuation, is that if your annual income is low enough throw $1,000 into your super each year so that you maximise the government co-contribution. This is just money for jam and you will be absolutely amazed at the difference contributing $1,000 of your own money and getting even a $600 co-contribution for the next 5 or so years will make to the compounding of your superannuation assets through to age 60.
Other options depend largely on your personal situation, my sister doesn't have much against her name but has seen europe, new zealand, thailand and bali. I've only been to Thailand and will probably do the rest later in life, its all personal preference, but don't be afraid to put $5k to the side and give yourself a holiday with mates.
If your looking at buying a home in 4 years time then the first home saver account is a viable option, but i'd suggest you do some in depth research to some of the fineprint in regards to the account. i.e. you have to contribute $1,000 at least per year across 4 financial years to gain access to the funds and many other small parameters. If you'd like more details feel free to PM me and i can try help out.
If buying a home isn't on your radar just yet, or you'd like to take the more aggresive route like me, then investing in shares has the potential to be very rewarding, but also has the risks attached as well. Do some research, learn the ins and outs, and work out what type of investor you'd like to be as there a many niche's, combinations etc etc. I learnt the hard way that you can't just buy willy nilly and that having a strategy in place really helps.
I don't think anyone can tell you exactly how to split the $50,000 but in basic terms this is what i'd look at if it was me:
$5k ready for a holiday or any other personal luxuries i decide on at a later date
$10k in high interest bank accounts (take your $1,000 super contributions from this annually) and also contribute some of your pay to this as well.
$35k in shares to build funds toward a home with the possibility of also having an additional $20k markin loan if you can handle to risk to try build these funds at a faster rate and for the tax advantages (i'd also add money to this each pay to help build faster)
Hope that helps, feel free to PM me to discuss further. Its good to hear others in their 20's looking to secure some of there future, not just throw cash around partying and travelling.
Josh
My average expenses is about $50 a week (not including bills, rents, fines, cars, random important crap)
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