Wage increase

It would be a good ride but far out the hangover would hurt going back to "normal" wages!

Story time...
young dude working fifo parties hard in syd with the girlfriend when back in the city staying in hotels the works. Work finishes up moves back the city and within 12 months keeps living the lifestyle or close to and now has a 50k debt!

Family all living together in gladdy getting the big bucks, all good, holidays every second weekend with the kids to all sorts of places. New york for new years eve cause thats what you do. having a chat "we would never do fifo"..... gladstone doesnt have the schools etc so want to move to bris. instead of going back to reality wages, its fifo and rent in brissy. sell glad house a few months ago to buy the next place. nothing saved, all week to week living!

Drove through emerald (and surrounds) about 6-12months ago and the highway is a car/boat/jetski/motorbike yard!! all the toys are for sale now!!
 
My weekly 'spending/walking around money' is very similar to my weekly income of my first trainee job before joining the bank (around $350p/w)

That's well done Brady - Kudos.

My first job I was earning $2,000net/month. I could save regularly $400/month.

As my income has increased so has my spending, though not in proportion. Im still not sure I could get back to that $2,000/month now if I tried (even adjusting for inflation). However, my rent back then for a 3x1 was $100/wk and I rented a room out for $70/week.
In saying that though, like it or not life is different now. And I wouldn't really want to live off rice and noodles now - which was a perfectly acceptable diet for me 10years ago.

Blacky
 
If we are talking stories I could write a book.

J - a 35yo working equal time single and no family. Has an idea to buy enough property to replace his salary. Perfectly achievable when your annual income equals the price of a local property (he is from the UK). He can live a low cost lifestyle as 6months a year everything is paid for by the company. Instead he buys a Aston Martin DB9 (financed). However, as he doesn't want to put too many kms on the clock (while he is home for 6months a year) - he purchases a second car - a Land Rover (top of the range no less) - fully funded. He now owns about $300,000 worth of cars, for max usage of 6months/year and has so much debt he cant get a mortgage. He now cant sell the cars for what they are mortgaged to, and doesn't want to be repaying debt for assets he doesn't own.

K - Life long rotator. 30+years as a contractor earning 3-5x the average salary (again UK). Now pushing 60 and still working to pay off his one and only mortgage. Has about $50,000 USD in cash waiting for the exchange rate to fall in his favor - then he has about 2more years and he is done working. To go back to the UK and live on the pension.

T- 30 year old guy (Canadian) retired this year with 5properties owned outright, and is heading pay to pay cash for his PPOR.

Blacky
 
I used to be a lot more disciplined re expenses than I am now but I'm comfortable with that. All major expenditure is done out of a % of profits, be it a big holiday, car etc so I'm always still going forward.

I've got a few changes on the way though so planning on dropping my expenditure by about 30k for the next FN. The last 18 months have been pretty expensive, but I've got some big things on the horizon in the next 12 to 18 months so once I cash out my expenditure can go up again as will what I spend on investments.

I think as long as you pivot and keep the big picture in focus extreme penny pinching is unnecessary
 
honestly, I struggle to comprehend how some people, especially those on decent incomes without a mortage, just rent, and no toys, manage to spend so much money!

I have male friends on $150k salary, no investments, no expensive hobbies or toys, fairly high rent, but only seem to save $10k per year,

it absolutely astounds me sometimes....... and yes sometimes im very very jealous:p
 
honestly, I struggle to comprehend how some people, especially those on decent incomes without a mortage, just rent, and no toys, manage to spend so much money!

I have male friends on $150k salary, no investments, no expensive hobbies or toys, fairly high rent, but only seem to save $10k per year,

it absolutely astounds me sometimes....... and yes sometimes im very very jealous:p

For women the answer is shoes...

A friend of mine was earning similar amount. She lived at home for 5+ years to 'save' a deposit. We all wondered why it was taking soo long. We helped her move house and quickly discovered the answer... in shoes.

We didn't count them but I would estimate there were 300pairs of the bloody things. Every space held another pair (or 3).

Blacky
 
honestly, I struggle to comprehend how some people, especially those on decent incomes without a mortage, just rent, and no toys, manage to spend so much money!

I have male friends on $150k salary, no investments, no expensive hobbies or toys, fairly high rent, but only seem to save $10k per year,

it absolutely astounds me sometimes....... and yes sometimes im very very jealous:p

It's not that hard to imagine. I spend over 100k a year atm and have no kids, it's pretty easy to do.
 
Oh, come on! Not ALL women are obsessed with shoes! Some of us are obsessed with property.:cool:

Sheesh! Enough with the cliches, ok?

Like skater says, not all women are into shoes... I've got fewer pairs of shoes than I have properties :D (not quite... but close)
 
I would either put it towards another IP or start a share portfolio.

A lot of people I know would probably spend it on a combination of the following:

1. buy a car
2. buy the latest tech tech (camera, phone etc)
3. big overseas holiday(s)
 
Something similar happened to me recently. I immediately went and bought a fancy Swiss made watch.

Put the rest in offset and paid off credit card.
 
put it in a offset and build up a deposit ( alternatively if I had no non deductible debt) i would invest it in a portfolio.
 
When my husband got a substantial pay increase I was straight to my broker to find out how much more we could borrow. When his pay settles back to his normal we should have a few good CG properties under our belt.
 
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