Savings Goal - Deposit

[Easton]

Forgive my ignorance it may be the late hour, but if you earn $70k gross how the heck did you save $55k nett in 8 mths?

Sorry I know it's a bit confusing! I didn't explain it fully. I didn't save 55k in 8 months, I just had 55k after 8 months

Because i'm freelance my income fluctuates, I go through quiet and busy cycles, and the past 8 months is an inaccurate snapshot of my true annual income. I also had shares which I recently sold (and were worth a lot more before the bloody bust!) in anticipation for another IP purchase, but I bought the shares 12 months ago. But they all add up to help with the new IP deposit.

Finally - 70k is a close but still a rough figure since i'm ultimately self employed.

In other words, I can't sustain this level of saving

 

[Alex P Keaton]

I am nearing the $15,000 mark in savings, plus I also have $3500 in my other (expenses) account

I went to the bank and renewed my term deposit. I added another $8000 to my TD, a total of $13,100 invested for 3 months.

Ecstatic to have saved $8000 in just 3 months.

My running total now is $22,000. I will keep updating my sig every month, it'll be exciting to see as I get closer to my goal of $80,000. I have a $15,000 gift. So my total as at June 2008 is $37,000 saved for first ip.

$43,000 to go!! yey nearly half way there


How is everone else going?

 

[Chris.R_WA]

How is everone else going?

Urgh, weddings are expensive...not saving a brass razoo at the moment. Once thats out the way in Nov, it will be full steam ahead!

Chris

 

[Alex P Keaton]

Urgh, weddings are expensive...not saving a brass razoo at the moment. Once thats out the way in Nov, it will be full steam ahead!

Chris

ouch

congrats btw

 

[Chris.R_WA]

ta

........

 

[Perchy]

Managed to save 30K in about a year on a 45K base salary - once I decided a goal on buying 1st property (whether it be ppor or ip is still undecided) - did as much overtime as I can, sold shares at the height of the all the hype (bought years ago after the dot com bust) made about 300% profit on shares. My budget is pretty much $50 - for food (make my own lunch), petrol & spending money. Everything else goes into savings & to cut my CC down.

Anyways believe it or not 30K doesn't help buying property in Bris with a single income. Worst is trying to keep my savings @ $30K - do you know how hard it is not to want to go on a shopping spree?! *feels a nervous twitch coming on*.

Anyways once my savings hit 30K I'm not saving as well (but minimising my debts faster). Changing strategy and seeking a FA for investment advice (hope I don't get charged an arm & a leg for it though) - Any1 had much experience with planners? Great value? Good Advice?

I notice Kim5 (congrats on the savings!!!) put her savings in term deposits, I hear index funds, shares (prices has dropped to the level years ago, feeling that nervous twitch coming on) - what other forms of investments are other people putting their cash in during these times of uncertainty? I currently having it sit in an online savings acct - quick access for when those twitches come on strong...

 

[The_Bludger]

Good on ya Dave. Sounds like you're doing great, and 22 is still a very young age to start with the investments - you'll do well. A lof of people are still spending every cent of their pay cheques on cars etc at 32!

Nothing wrong with that. As long as they are happy and live comfortably, what's the issue?

No use investing every cent and being miserable.

 

[The_Bludger]

Guys, don't forget to live life too.

Life is short, enjoy it now and later, otherwise you may live to regret it.

 

[Gentle_Chief]

Life is short, enjoy it now and later, otherwise you may live to regret it.

Never heard anyone say "I lived wisely & frugally and have built up my wealth, today I am rich, geez....I regret it, should have spent it all when I was younger"

 

[ianvestor]

This isn't really a savings goal, but a method I started using in order to save for the little things.

Basically, I got a money box and decided that I was no longer going to spend any silver coins. Any silver coins I'd get as change throughout the day would go into the money box. That meant that even if I had the exact change to pay for something, I wouldn't use the silver, so by the end of the day I'd have quite a handful.

Well that was a few years ago, now I save both types of coins So now whenever I spend cash, I never spend coins. Any coins I get throughout the day are instantly designated as savings. So even if I've got a huge pocketful of coins, I'll still break a $20 to pay for gum. Of course the strategy works best if you always pay cash for stuff (lunches, groceries, the more you physically use cash, the better).

Consequently after 9 months worth, I can barely lift my money box with one hand (I'm not joking, it probably weighs near 20kg). I'm guessing there's approx $600-$700 in there coz those 2's really add up. So while it's not the story of the house deposit, it's a good little kitty for a weekend in Sydney or something. I know it's getting eaten away by inflation, but if it were in the bank I might just spend it, so the 4% per year is worth it.

Hmmm, maybe now I'll stop spending fives

-Ian

 

[RedStar]

^^

I do exactly the same thing, have done for ages, never carry change apart from what I've got during the course of the day.

So far this year, $707.95 in the piggy bank...

 

[santaslayer]

I do something similar. But I only save the gold coins.

 

[Alex P Keaton]

Posted April 2008

I am nearing the $15,000 mark in savings, plus I also have $3500 in my other (expenses) account

Post your savings efforts here

Ok, so a year on and I have saved nearly $30 K in total. Thats around $10 K. I'm thrilled with saving such a large amount of money in just 13 months, because I have had a few expenses since moving into my ppor in January including a huge electrical bill of $1300 K.


To those saving madly for a deposit so they can buy their first ip, how have you gone over the past year??




Looking forward to hearing some inspiring stories

and

To those who are just starting out on their savings plan and are itching to invest like me hang in there, it is worth it, learn to be patient all good things will come to you soon. Also remember everyone had to start in this position, we were all newbies once.

 

[Electro]

Jun 07 - Savings = $0 - Started first professional job after uni
Nov 07 - Savings = $13k - Going well...
Dec 07 - Savings = $0 - Bought $40k car ($27k loan)
Dec 08 - Savings = $20k - and $10k remaining onloan (hey this is getting easy)
May 09 - Savings = $50k - and $5k remaing on loan (I can't stop saving)

Looking to buy first IP ASAP!!

I don't do anything out of the ordinary to save - I go out, I spend but naturally my first instict is to save.... and it could have been so much more if it wasn't for that car!!

I guess living at home and having no dependants makes things easier...

 

[tbinvestor]

23 & 2 IP's

Im 23 years old and have 2 IP's, I turned 21 and said to myself its time to start planning for my future, I have always loved Houses so i invested in somthing i was interested in.

IP#1 was bought at the age of 21
IP#2 was bought at the age of 22

I'm not interested in spending money on things i dont need, i save as much as i can, own a Daihatsu Charade worth nothing/cost nothing, but i save quick and i am a middle income earner. Middle if next year i will be looking for IP#3.

I have a goal and i am passionate about reaching it, so there is nothing i enjoy more then looking at my savings grow

 

[craigb]

Good to see people saving,
I remember our first sving efforts, dinners were, chicken & rice, lamb &rice, mince & rice, every thing was rice, but the rest is history?
Now we can afford Beef and rice

 

[craigb]

Jun 07 - Savings = $0 - Started first professional job after uni
Nov 07 - Savings = $13k - Going well...
Dec 07 - Savings = $0 - Bought $40k car ($27k loan)
Dec 08 - Savings = $20k - and $10k remaining onloan (hey this is getting easy)
May 09 - Savings = $50k - and $5k remaing on loan (I can't stop saving)

Looking to buy first IP ASAP!!

I don't do anything out of the ordinary to save - I go out, I spend but naturally my first instict is to save.... and it could have been so much more if it wasn't for that car!!

I guess living at home and having no dependants makes things easier...

Money on a new car very dumb!!!!!!!!!!!!!!!!!!!!!!! the young ones ? they say they get it ?but the penny has not quite droped for them?

That new car may have stoped you earning 80k in equity from 07 to 09, and guess what whats the car worth now, 20k perhaps, lesson????

 

[Alex P Keaton]

Money on a new car very dumb!!!!!!!!!!!!!!!!!!!!!!! the young ones ? they say they get it ?but the penny has not quite droped for them?

That new car may have stoped you earning 80k in equity from 07 to 09, and guess what whats the car worth now, 20k perhaps, lesson????

I'm hoping my 13 year old car will last another 5 years or at least until after I have bought my first ip. I have had no probs with it which is great.

 

[Alex P Keaton]

Jun 07 - Savings = $0 - Started first professional job after uni
Nov 07 - Savings = $13k - Going well...
Dec 07 - Savings = $0 - Bought $40k car ($27k loan)
Dec 08 - Savings = $20k - and $10k remaining onloan (hey this is getting easy)
May 09 - Savings = $50k - and $5k remaing on loan (I can't stop saving)

Looking to buy first IP ASAP!!

I don't do anything out of the ordinary to save - I go out, I spend but naturally my first instict is to save.... and it could have been so much more if it wasn't for that car!!

I guess living at home and having no dependants makes things easier...

Do you think you would do things differently if you had your time again... buying that $40 K car? But good work on saving the $50 K. Good effort!!
Are you on a high salary, wow I see you saved $30 K in 5 months. I'm jealous but I just remind myself I will become wealthy through ip like others however it will just take me a bit longer to do so!

 

[Alex P Keaton]

Im 23 years old and have 2 IP's, I turned 21 and said to myself its time to start planning for my future, I have always loved Houses so i invested in somthing i was interested in.

IP#1 was bought at the age of 21
IP#2 was bought at the age of 22

I'm not interested in spending money on things i dont need, i save as much as i can, own a Daihatsu Charade worth nothing/cost nothing, but i save quick and i am a middle income earner. Middle if next year i will be looking for IP#3.

I have a goal and i am passionate about reaching it, so there is nothing i enjoy more then looking at my savings grow

cool, off to a great start!! well done

Do you know how many fully paid off ips you want to hold when you retire?
My goal is 10.