Just finished my last day of work yesterday. Have moved out of my flat in London, sent all my stuff (and a sorry lot it is: when I had to fill in the insurance form there was a section saying 'list any items >£250' and I couldn't find any) by ship and will be leaving for a 2 month holiday to the US and Asia with my girlfriend. No job, no rent to pay, nothing. Just us, two suitcases and a plane ticket. Plenty of time to sightsee, see family and friends and just relax. I plan to read a lot during this trip, observe property markets in the places that I visit, and generally THINK a lot about property. So that when I come back to Sydney in June, I'll have a plan all ready to go.
THIS is the sort of thing that becomes possible with some decent money management. THIS is what all the saving, reading, dealing with agents, paperwork and accountants creates. CHOICES. I can choose to quit my job, just drop everything and take some time off, knowing that even though I'll be spending savings and not earning a salary during this time, my shares and property are making money for me.
Just received my Telstra 3 dividend which is 7% tax free AND I'll be getting the franking credits back when I do my Oz tax return this year. My last payday is in the new UK tax year (which ends 5 April) so that pay will probably be tax free (as I can use the 07/08 tax threshold for the UK). However, since the Oz tax year ends 30 June, all of it still falls under 06/07 for Oz so I pass the 91 continuous overseas employment rule and none of it is taxed further in Oz. Something for the UK forumites to consider if you plan to leave in the future.
Since I'm returning in June, the earliest I'll start work would be July 07, which would be the new tax year in Oz. I'm looking forward to 07/08 as I will be paying almost no Australian tax due to all the tax losses I've accumulated (the depreciation was 'free', but of course the losses from cash expenses I've been making up from savings) over the last 6 years overseas.
My colleagues all want to do the same, but they're too weighed down by their mindset and past decisions. They have too much PPOR, no investments and are WAY too emotionally attached to their jobs (even though they complain about it all the time) and the 'security' it seems to provide. If they ever became unemployed, they would crumble emotionally, not so much because they like their job but their FEAR of not having an income would be too much for them.
My girlfriend called her parents to tell them that I've quit and we'll be travelling, and her father's first question was 'Uh, how is Alex paying for all of this?' We didn't bother explaining the investments part, just that I saved money from my job. They would probably have a heart attack if they knew how much debt I have.
Alex
THIS is the sort of thing that becomes possible with some decent money management. THIS is what all the saving, reading, dealing with agents, paperwork and accountants creates. CHOICES. I can choose to quit my job, just drop everything and take some time off, knowing that even though I'll be spending savings and not earning a salary during this time, my shares and property are making money for me.
Just received my Telstra 3 dividend which is 7% tax free AND I'll be getting the franking credits back when I do my Oz tax return this year. My last payday is in the new UK tax year (which ends 5 April) so that pay will probably be tax free (as I can use the 07/08 tax threshold for the UK). However, since the Oz tax year ends 30 June, all of it still falls under 06/07 for Oz so I pass the 91 continuous overseas employment rule and none of it is taxed further in Oz. Something for the UK forumites to consider if you plan to leave in the future.
Since I'm returning in June, the earliest I'll start work would be July 07, which would be the new tax year in Oz. I'm looking forward to 07/08 as I will be paying almost no Australian tax due to all the tax losses I've accumulated (the depreciation was 'free', but of course the losses from cash expenses I've been making up from savings) over the last 6 years overseas.
My colleagues all want to do the same, but they're too weighed down by their mindset and past decisions. They have too much PPOR, no investments and are WAY too emotionally attached to their jobs (even though they complain about it all the time) and the 'security' it seems to provide. If they ever became unemployed, they would crumble emotionally, not so much because they like their job but their FEAR of not having an income would be too much for them.
My girlfriend called her parents to tell them that I've quit and we'll be travelling, and her father's first question was 'Uh, how is Alex paying for all of this?' We didn't bother explaining the investments part, just that I saved money from my job. They would probably have a heart attack if they knew how much debt I have.
Alex
