Advice on how to save $10,000 fast?
- Thread starter kristy77
- Start date
Now that we've paid off most of our bad debts, we want to save for our first IP. We can save $700 / fortnight. What do people suggest for best/ quickest way to save (ie; savings account with high interest, stocks, etc)???
Savings account will help, shares will not if you're talking such a short term.
Go through EVERYTHING you spend. Literally. Every newspaper, every cup of coffee, every meal, every bag of chips. Then cut ANYTHING that you don't need to live.
Alex
Once you have done what Alex says this will tell you what you need to live on.........put that in a bank account that gives you easy access. Put the difference in a high interest account such as ING direct, which from memory is offering 7% on deposits at the moment.
See if you can have your pay office split up your salary and deposit the amounts for you........so you never SEE the money going into your high interest account
See if you can have your pay office split up your salary and deposit the amounts for you........so you never SEE the money going into your high interest account
10k / 350 a week = 28 weeks too long for you?
If you want to speed it up, increase your income, reduce your costs.
If you plan on using the money as a deposit I wouldn't buy shares as the transactions costs would almost certainly be less than gains vs cash in 28 weeks.
The easiest way would be ring your bank, get an online saver, go online and setup an automatic transaction every fortnight. Then get used to living on less money.
If you want to speed it up, increase your income, reduce your costs.
If you plan on using the money as a deposit I wouldn't buy shares as the transactions costs would almost certainly be less than gains vs cash in 28 weeks.
The easiest way would be ring your bank, get an online saver, go online and setup an automatic transaction every fortnight. Then get used to living on less money.
Just to clarify. Buying shares is NOT saving. It's investing. With all the inherent ups and downs. While in general you will make gains over the long term by buying shares, the investment horizon should be at least several years.
By comparison, saving is NOT a long term strategy.
If you say 'I want to save for my first deposit as soon as possible' and someone mentions shares, run away.
Alex
By comparison, saving is NOT a long term strategy.
If you say 'I want to save for my first deposit as soon as possible' and someone mentions shares, run away.
Alex
totally agree - i made that mistake (another one!!) many many years ago.
put several tens of thousands into a high risk, high performing share for the period of 1 month - needless to say the shares went down in value (not by much) and by the time i paid entry and exit costs i lost money.
man, the mistakes keep coming!!
28 weeks = just over 6 months. not long. cut your expenses and put it in ing
Kristy, property in most capitals is going up faster than you can save.
So I'd recommend if you have equity in a PPR, that you talk to a MB quickly about using that to buy a house before you try and save a deposit.
Buying an IP within 4 weeks rather then in 6mths time will be the better way to save.
Apart from that, I'd seriously consider putting your kids to work if old enough and getting second jobs. I bet in Blackwater there's people wanting lawns mown, cars washed, laundry done, child minding, sewing, houses cleaned. Doing something different as a second job can be relaxing in itself. The advantage you have up there is everyone is well paid but work long hours so must be lots of opportunities.
Some further suggestions to tighten the belt....
- if you or family are overweight or eat junk food, put a total ban on it. The greatest waste of money possible.
- stop drinking alcohol. it is a total waste of money. there's healthier forms of recreation.
- take up calisthenics and walking as a form of free exercise. (no equipment or gym needed)
- cut your car trips. get used to recreating at home.
- if two cars, sell one and buy used bicycles. Blackwater is flat enough to go to the shops
- for entertainment, share DVD movies with friends.
- if your house is suitable, get a boarder in. I understand there's a shortage of accomodation. even consider buying a used caravan and renting it out.
- save power.......insulate your HWS with packing foam. and buy an auto timer and turn it on for 2*2 hour stints a day. The water will stay hot enough for showers. Keep showers short. HWS for 2 adults and 2 kids can cost $30-35pw pre tax.
- wear your clothes and use towels and bedsheets just a little longer before washing...saves money on powering w.machine.
- if you don't drive a lot and can manage without a car for a few mths, consider letting go of comprehensive car insurance. do your own grease and oil changes. don't break the speed limit and save petrol and wear and tear.
- get rid of mobile phones, or at least buy prepaid rather than plans.
- see if you can get cheaper internet access.
- eat less meat. eat more legumes and grains. big cost savings here.
- have a garage sale to get rid of unwanted stuff.
So I'd recommend if you have equity in a PPR, that you talk to a MB quickly about using that to buy a house before you try and save a deposit.
Buying an IP within 4 weeks rather then in 6mths time will be the better way to save.
Apart from that, I'd seriously consider putting your kids to work if old enough and getting second jobs. I bet in Blackwater there's people wanting lawns mown, cars washed, laundry done, child minding, sewing, houses cleaned. Doing something different as a second job can be relaxing in itself. The advantage you have up there is everyone is well paid but work long hours so must be lots of opportunities.
Some further suggestions to tighten the belt....
- if you or family are overweight or eat junk food, put a total ban on it. The greatest waste of money possible.
- stop drinking alcohol. it is a total waste of money. there's healthier forms of recreation.
- take up calisthenics and walking as a form of free exercise. (no equipment or gym needed)
- cut your car trips. get used to recreating at home.
- if two cars, sell one and buy used bicycles. Blackwater is flat enough to go to the shops
- for entertainment, share DVD movies with friends.
- if your house is suitable, get a boarder in. I understand there's a shortage of accomodation. even consider buying a used caravan and renting it out.
- save power.......insulate your HWS with packing foam. and buy an auto timer and turn it on for 2*2 hour stints a day. The water will stay hot enough for showers. Keep showers short. HWS for 2 adults and 2 kids can cost $30-35pw pre tax.
- wear your clothes and use towels and bedsheets just a little longer before washing...saves money on powering w.machine.
- if you don't drive a lot and can manage without a car for a few mths, consider letting go of comprehensive car insurance. do your own grease and oil changes. don't break the speed limit and save petrol and wear and tear.
- get rid of mobile phones, or at least buy prepaid rather than plans.
- see if you can get cheaper internet access.
- eat less meat. eat more legumes and grains. big cost savings here.
- have a garage sale to get rid of unwanted stuff.
Send the little ones up the chimney, love, we can't wait 6 months to buy a house!
Kristy
Don't take Winston's advice re:
get used to recreating at home
as it could cost more in the long term!!
All the advice to date is good - actually it is similiar to part of the financial literacy workshops the government has been encouraging. One of the workshops was to work out how to save $10 a week - when brainstorming most people came up with cutting out just 3 latte's on their way to work each week.
Good luck with your project
Chris
Don't take Winston's advice re:
get used to recreating at home
as it could cost more in the long term!!
All the advice to date is good - actually it is similiar to part of the financial literacy workshops the government has been encouraging. One of the workshops was to work out how to save $10 a week - when brainstorming most people came up with cutting out just 3 latte's on their way to work each week.
Good luck with your project
Chris
Chrispy, re the above, are you talking about the 'if I'm going to entertain at home I'm going to need new stuff' sort of thing?
Alex
An option to increase saving ...?
Take advantage of salary sacrifice options - if available from your employer. Perhaps even reduce super contributions? Guess it depends on where you work, but I did this to free up extra cash ...
Take advantage of salary sacrifice options - if available from your employer. Perhaps even reduce super contributions? Guess it depends on where you work, but I did this to free up extra cash ...
HG, thx for reading what I post....incidentally, I didn't mean Dickensonian ....
I meant if the kids are old enough, they should get some part time work. I had a part time job 2 weekday afternoons and worked most of Saturday from the age of 14.
IMHO, it is hard for kids to get a clear understanding of the value of money unless they also learn work for it. and as for sending them out to work to help buy a house, those not born into money have to do what they have to do. You ought to read up on what Aussie first generation immigrants have done to get ahead in one generation. Might open your eyes beyond your computer screen, and your mind beyond your own life experience. Surely you have walked into the odd convenience store and oft times been served by the first gen immigrant proprietor's 10 year old daughter/son?
Crispy, yeah you had me guessing what you were getting at.
re-creating is the etymological root of recreation.
I presume you are referring to procreation......which has a different etymological root.....creating with a pro.....
I meant if the kids are old enough, they should get some part time work. I had a part time job 2 weekday afternoons and worked most of Saturday from the age of 14.
IMHO, it is hard for kids to get a clear understanding of the value of money unless they also learn work for it. and as for sending them out to work to help buy a house, those not born into money have to do what they have to do. You ought to read up on what Aussie first generation immigrants have done to get ahead in one generation. Might open your eyes beyond your computer screen, and your mind beyond your own life experience. Surely you have walked into the odd convenience store and oft times been served by the first gen immigrant proprietor's 10 year old daughter/son?
Crispy, yeah you had me guessing what you were getting at.
re-creating is the etymological root of recreation.
I presume you are referring to procreation......which has a different etymological root.....creating with a pro.....
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Forget all that crap, here is a short cut...get a $10,000-$15,000 personal loan. Then approach a finance broker and ask them for a non-conforming lender, who will lend you 95% WITHOUT the need for genuine savings. While this will cost you more in interest, its a quick foot in the door. You can always refinance later...as we did.....our lender was Liberty Finance, bloody rip offs, but well worth it now. They loaned 90% without having to show genuine savings..speak to a broker....
I think Winston gives fantastic advice but I'm biased as I took his advice (via quite a few emails and also telephone converstations) and now I've just bought my first property! I met him via Somersoft.
However, he did recommend getting rid of the second car and I'm still coming to terms with that (although he's right). Just have to get a job close enough to home so I can ride a bike, which I plan to do!
It's about prioritising for me. I wouldn't even call doing without a few things sacrifices as I don't see a new car, Foxtel, a plasma tv or a restaurant meal etc as sacrifices (although all would be good to have).
When Winston writes a post about property I'm all ears (or eyes in the case of an internet forum). His advice on a whole range of property-related topics has been invaluable for me.
Cheers,
Mark
I met him via Somersoft.However, he did recommend getting rid of the second car and I'm still coming to terms with that (although he's right)
. Just have to get a job close enough to home so I can ride a bike, which I plan to do!It's about prioritising for me. I wouldn't even call doing without a few things sacrifices as I don't see a new car, Foxtel, a plasma tv or a restaurant meal etc as sacrifices (although all would be good to have).
When Winston writes a post about property I'm all ears (or eyes in the case of an internet forum). His advice on a whole range of property-related topics has been invaluable for me.
Cheers,
Mark
I presume you are referring to procreation......which has a different etymological root.....creating with a pro.....
lol WinstonWolfe!!! I enjoy your sense of humour!
Regards Jason.
Thanks guys!
My kids are all under 7 years old, so can't work. However I do agree - my parents made me go out and work from age 14 for any non- necessities I wanted (the latest fashion clothes etc). I was brought up by parents who didn't have much money, so I have learnt the meaning of budget. I still buy the cheapest brands, my family and I only go out to dinner once a fortnight and spend under $30 including drinks. We also homeschool the kids - which I've discovered with the internet and library costs pretty much nothing! As we have a diesel 4WD which gets 800kms for $85, we only fill once a month.
We don't have a second car and most of the kids clothes are hand me downs, and my hubby and I rarely buy clothes - if we do it's only the specials or op shops.
I probably sound a bit stingy with our money, but it was the way I was brought up, and I don't want our kids thinking money grows on trees (like the other kids in this town!!!). We also don't drink, and my hubby is trying to quit smoking (he only smokes at work about 3-4 packs/ ftnt).
Hubby did just get a pay raise, and I can't work as I'm homeschooling (and love being at home with the kids).
We have nothing to sell either - other than clothes, which I am selling on ebay.
However, I would like to hear what other people think about the Personal Loan idea.
My kids are all under 7 years old, so can't work. However I do agree - my parents made me go out and work from age 14 for any non- necessities I wanted (the latest fashion clothes etc). I was brought up by parents who didn't have much money, so I have learnt the meaning of budget. I still buy the cheapest brands, my family and I only go out to dinner once a fortnight and spend under $30 including drinks. We also homeschool the kids - which I've discovered with the internet and library costs pretty much nothing! As we have a diesel 4WD which gets 800kms for $85, we only fill once a month.
We don't have a second car and most of the kids clothes are hand me downs, and my hubby and I rarely buy clothes - if we do it's only the specials or op shops.
I probably sound a bit stingy with our money, but it was the way I was brought up, and I don't want our kids thinking money grows on trees (like the other kids in this town!!!). We also don't drink, and my hubby is trying to quit smoking (he only smokes at work about 3-4 packs/ ftnt).
Hubby did just get a pay raise, and I can't work as I'm homeschooling (and love being at home with the kids).
We have nothing to sell either - other than clothes, which I am selling on ebay.
However, I would like to hear what other people think about the Personal Loan idea.