Sustain Posted March 25, 2016 Share Posted March 25, 2016 Do you have savings? How much do you think people should have as a buffer? How much do you have if any? Can people actually afford to save these days?? I wonder if there's any difference between Australia and UK and ability to save? My 13 year old has saved close to $18k over last 18 months/78 weeks, I have sort of matched it to make $38k 2 part time jobs - job one $68 per week, job 2 $170 per week Using her bike instead of car $250 per week (my contribution) Quote Link to comment Share on other sites More sharing options...
JockinTas Posted March 26, 2016 Share Posted March 26, 2016 My 13 year old has saved close to $18k over last 18 months/78 weeks, I have sort of matched it to make $38k 2 part time jobs - job one $68 per week, job 2 $170 per week Using her bike instead of car $250 per week (my contribution) What jobs does she have? My two lads started working a couple of evenings after school and in school holidays from age 14 as that was the legal age in Australia back then. One saved his pay the other blew the lot. Quote Link to comment Share on other sites More sharing options...
Sustain Posted March 26, 2016 Share Posted March 26, 2016 What jobs does she have? My two lads started working a couple of evenings after school and in school holidays from age 14 as that was the legal age in Australia back then. One saved his pay the other blew the lot. Delivering pamphlets/flyers and cleaning/washing dishes for friends cafe Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 My 13 year old has saved close to $18k over last 18 months/78 weeks, I have sort of matched it to make $38k 2 part time jobs - job one $68 per week, job 2 $170 per week Using her bike instead of car $250 per week (my contribution) bloody hell! Quote Link to comment Share on other sites More sharing options...
Sustain Posted March 26, 2016 Share Posted March 26, 2016 bloody hell! She wants to buy a flat for university (I agreed to pay 50% matching her dollar for dollar) She intends to then have her flat mates rent contribute towards her living costs. So she graduates debt free and mortgage free Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 She wants to buy a flat for university (I agreed to pay 50% matching her dollar for dollar) She intends to then have her flat mates rent contribute towards her living costs. So she graduates debt free and mortgage free This is how I encourage savings with daughter and partner...match them 50/50. Hard for them to save at all but my thoughts are just give me $50 a week you won't miss it if you hand it over on payday Quote Link to comment Share on other sites More sharing options...
Parley Posted March 26, 2016 Share Posted March 26, 2016 Is your daughter pregnant Happy Heart ? Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 Is your daughter pregnant Happy Heart ? Yes she is:) Quote Link to comment Share on other sites More sharing options...
Parley Posted March 26, 2016 Share Posted March 26, 2016 Wow. That is big news for you all. Quote Link to comment Share on other sites More sharing options...
Parley Posted March 26, 2016 Share Posted March 26, 2016 Can I call you Granny now ? Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 Can I call you Granny now ? Sure! Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 Wow. That is big news for you all. Yes. Very happy. New chapter. Big changes. A new life and all it brings. Reason to celebrate Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted March 26, 2016 Author Share Posted March 26, 2016 Reason to save..... Quote Link to comment Share on other sites More sharing options...
Parley Posted March 26, 2016 Share Posted March 26, 2016 Congratulations. It will be a wonderful blessing for you all. Quote Link to comment Share on other sites More sharing options...
Wa7 Posted April 8, 2016 Share Posted April 8, 2016 $10k is a good middle of the road amount to have as a buffer then just see if you can keep adding to it without it impacting your day to day life and not being a total Scrooge lol. Offset mortgages are brilliant if you got the discipline but they do tend to have a slightly higher interest rate ?? But rates at the moment are low so probably a good time to have an offset. Quote Link to comment Share on other sites More sharing options...
noworriesmate Posted April 8, 2016 Share Posted April 8, 2016 I've been interested to note how many people are choosing to pay their mortgage off early. I've always thought that and been told to do it by everyone until recently when I spoke to a financial advisor. They pointed out that if instead of making overpayments on my mortgage I put it into super instead, I would be 1000's of dollars better off because any payments made into super are only taxed at 15% instead of the 30% (or more) if you use taxed income to pay your mortgage. The advice I was therefore given was to put the extra money into super and then draw it down when i'm 60 to pay off the mortgage - in my case I will be around $30k better off then paying the same amount directly off my mortgage. They put me onto this government calculator to see the difference it makes (if anyone else is interested) https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-vs-mortgage-calculator NWM Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted April 8, 2016 Share Posted April 8, 2016 I've been interested to note how many people are choosing to pay their mortgage off early. I've always thought that and been told to do it by everyone until recently when I spoke to a financial advisor. They pointed out that if instead of making overpayments on my mortgage I put it into super instead, I would be 1000's of dollars better off because any payments made into super are only taxed at 15% instead of the 30% (or more) if you use taxed income to pay your mortgage. The advice I was therefore given was to put the extra money into super and then draw it down when i'm 60 to pay off the mortgage - in my case I will be around $30k better off then paying the same amount directly off my mortgage. They put me onto this government calculator to see the difference it makes (if anyone else is interested) https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/super-vs-mortgage-calculator NWM The first dot point note on that page is the one to be fully aware off. money into super is locked away until preservation age (some exceptions apply), so if there every arises a need for quick cash one may be stuck. also if you are ahead with your mortgage you can better ride out any short term income loss (redundancy or ill health). But overall investing in super is good and in fact many people did (and still do) increase their mortgage to invest in super/shares and property. Quote Link to comment Share on other sites More sharing options...
Wa7 Posted April 8, 2016 Share Posted April 8, 2016 Very valid point, but from a savings perspective you have no access to your super if the need arose, a bit of both would probably be the way to go. Quote Link to comment Share on other sites More sharing options...
noworriesmate Posted April 8, 2016 Share Posted April 8, 2016 Very valid point, but from a savings perspective you have no access to your super if the need arose, a bit of both would probably be the way to go. That is probably true for people just starting out, but for many people it will be a number of years of holding a mortgage before they have spare money to start paying extra off. Therefore in many cases (such as my own) there is already some equity in the house which can be drawn down in a real emergency. In my personal circumstance, I have been making extra payments on my mortgage for the past couple of years and the advisor has suggested I now switch to putting that money into super. In saying that, I can't get what I have been told all my life out of my head and have decided to continue overpaying my mortgage with 25% of the extra money and the other 75% I now put into super. NWM Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted April 8, 2016 Share Posted April 8, 2016 That is probably true for people just starting out, but for many people it will be a number of years of holding a mortgage before they have spare money to start paying extra off. Therefore in many cases (such as my own) there is already some equity in the house which can be drawn down in a real emergency. In my personal circumstance, I have been making extra payments on my mortgage for the past couple of years and the advisor has suggested I now switch to putting that money into super. In saying that, I can't get what I have been told all my life out of my head and have decided to continue overpaying my mortgage with 25% of the extra money and the other 75% I now put into super.NWM Prudent move there NWM, I know what you mean about having it driven home to me about reducing debt too. Salary sacrificing is indeed a very efficient way of saving and even after tax savings into it too, I would say the younger you are the better time it is to start putting into super, a little late for me to get any great advantage but I am still doing it to maximize over the short term I have left. The thing also is that you can stop/adjust this at anytime just need to watch and assess the markets a little and if it looks like things are not too good switch these payments into your mortgage repayment. In very simple example terms - in Super you EARN 10% whilst in mortgage you PAY 5% - that is 5% difference in your favour, whilst ever this difference is in your favour it is worth considering. Quote Link to comment Share on other sites More sharing options...
noworriesmate Posted April 8, 2016 Share Posted April 8, 2016 In very simple example terms - in Super you EARN 10% whilst in mortgage you PAY 5% - that is 5% difference in your favour, whilst ever this difference is in your favour it is worth considering. Although hopefully your property will be going up in value which will negate some if not all of that difference. The big difference is the tax break of 15% that I mentioned earlier. NWM Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted April 8, 2016 Share Posted April 8, 2016 Although hopefully your property will be going up in value which will negate some if not all of that difference. The big difference is the tax break of 15% that I mentioned earlier. NWM All part of the risks of investment, property prices up/down/ stagnant. Shares up/down. interest rates up/down. Super rules not changing. The tax break is only on salary sacrificing into super. When I first salary sacrificed $125 per week it only made $97 difference to my take home pay where else can you get a return of that magnitude per week? and all this compounds week on week, year on year............wish I was younger with an older wise head on! Quote Link to comment Share on other sites More sharing options...
noworriesmate Posted April 8, 2016 Share Posted April 8, 2016 All part of the risks of investment, property prices up/down/ stagnant. Shares up/down. interest rates up/down. Super rules not changing. The tax break is only on salary sacrificing into super. When I first salary sacrificed $125 per week it only made $97 difference to my take home pay where else can you get a return of that magnitude per week? and all this compounds week on week, year on year............wish I was younger with an older wise head on! Yup, thanks for the clarification - I am salary sacrificing as you describe - makes a huge difference. Daniel Quote Link to comment Share on other sites More sharing options...
Guest Kristine May Padolina Posted May 18, 2016 Share Posted May 18, 2016 I saved some money before coming here in Australia. I had t pay the agency that brought me here. The visa and stuff until my citizenship. Quote Link to comment Share on other sites More sharing options...
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