saving for...? (3 Viewers)

[iambored]

so, what do you save for?

it seems pointless trying to save for a house or something that big, because it would take years, but i suppose you have to start somewhere. so is it worth saving for something big like that at this age?

or should you save for smaller things like travel?

with anything, when you spend it you'll be right back to where you started - with no money. so what do you people do?

 

[yenta]

Once I get a new job with more shifts than I'm getting now, I'll start saving for things. My list in order of preference are:
1. At least $2000 that I can by shares with
2. Pay my dad back the 3 grand I owe him
3. Save for a holiday somewhere good for at least a week (atm all I can afford is a trip to melbourne for 2 nights)

The shares thing is so that I can start investing early, gradually grow it and keep adding to it to help start me off for a house.

 

[LeftrightOut]

Save for a rainy day, I always try and have at least 3-12 months worth of living saved up in case the job dissapears. So almost all of my money is being saved to survive as long as possible without steady income and to build a little passive income stream.

Most of the time I would just get my pay, put W into a seperate account that I don't touch, put X into investments, Y go to living expenses and then Z into a slush fund to buy stuff I want. Splitting it up straight away makes it harder to think "wow I have all this money" and accidentally blowing it all on a new computer because you thought you had your expenses covered but didn't really.

 

[braindrainedAsh]

I save to pay my HECS and to afford uni in Sydney. If I wasn't saving for that I would be saving money to travel.

 

[Generator]

I save for the sake of saving, just like Ebenezer Scrooge.

But you never know when you may need the cash for rainy day, too.

 

[laney]

i just want a really cool guitar.

other than that, i'm saving so i can go to melbourne once each year.

 

[Collin]

Property investment. Pay a deposit on property and lease/rent it out. Since you'll be paying back the banks on your loan, you won't be making much net money in the short term, but it's a long term financial initiative.

 

[Collin]

I owe my parents about 8k...lol sad but true. But 4k of that is HECS, but they agreeed to pay that anyway for my first year, so i dont really owe them that....
But i have to save up for my first semester next years HECS fee's, car insurance and rego

Oh natty natty.. why not just defer?

 

[choco]

i've always wanted to invest in shares..but really don't know how to go about it..(any tips?)
apart from that i guess i like to save for travel.

 

[LeftrightOut]

i've always wanted to invest in shares..but really don't know how to go about it..(any tips?)
apart from that i guess i like to save for travel.

Get a trading account with a broker. There are a large number out there, some are full service (they give you advice on what to buy and are more expensive) others are discount (they just buy what you tell them to and charge less).

Decide on the service level you want, what kind of stuff you want to trade in, how you want to be able to do your trades (over internet or over phone) and then visit this place http://www.infochoice.com.au/investment/onlinebroking/default.asp and tick the boxes and see what you end up with. Google any of the terms you don't understand.

Personally I have a HSBC account, they're not as cheap as commsec per trade but they have a better cash account to store your funds in which is 4.5% compared to commsec 3% and have a smaller start up amount required. Plus you get an eftpos card and 5 free withdrawals a month from any ATM Australia wide.

 

[theone123]

Property investment. Pay a deposit on property and lease/rent it out. Since you'll be paying back the banks on your loan, you won't be making much net money in the short term, but it's a long term financial initiative.

not always, investment property is declining for profit nowdays.

u know how much land tax u pay?

haha i know ppl with tons of houses and are losing, wanting to sell

 

[theone123]

i've always wanted to invest in shares..but really don't know how to go about it..(any tips?)
apart from that i guess i like to save for travel.

shares = high risk = high returns

online savings account = low risk = low returns

so remember this

 

[neuro_logik]

iBook and money to go out

ohhh yeh and for hookers and booze.

 

[LeftrightOut]

shares = high risk = high returns

online savings account = low risk = low returns

so remember this

For the large part of the population this is true, for those who don't just go put it all on black an investment in shares can be considered quite low risk depending on their portfolio spread. I have shares, if the market goes under tomorrow I don't care because I will be buying more at a great discount until the correction eases off and it's back into bull mode.

It's like saying open heart surgery is high risk, sure if you don't know what you're doing

So remember that

 

[mossup]

i'm saving for an eletric piano to put in my flat.

 

[LeftrightOut]

not always, investment property is declining for profit nowdays.

u know how much land tax u pay?

haha i know ppl with tons of houses and are losing, wanting to sell

In general perhaps, but I would hazard a guess most people who own "investment" properties bought them for the negative gearing aspects and waiting for a capital gain on it, they hardly ever buy cashflow positive properties. Which is their right I guess but kind of silly. Look at all the people who get conned into buying Gold Coast properties that are way over market value, or those who buy timeshare as investments.

Land tax and almost every other cost is tax deductible, if you have a diversified plan then you can get it to equal out gains elsewhere while building up your asset base for the future.

 

[jayz]

In general perhaps, but I would hazard a guess most people who own "investment" properties bought them for the negative gearing aspects and waiting for a capital gain on it, they hardly ever buy cashflow positive properties. Which is their right I guess but kind of silly. Look at all the people who get conned into buying Gold Coast properties that are way over market value, or those who buy timeshare as investments.

Land tax and almost every other cost is tax deductible, if you have a diversified plan then you can get it to equal out gains elsewhere while building up your asset base for the future.

sounds lyk u've been touched up by rich dad.

i am saving for travel and enough so i can take out a big loan from banks and run away with the money to the bahamas, then i'll start a internet casino which scams bank managers to give me more loan.

Investing and Share trading are totally different things, one is putting the money in a stable environment for the long term, the other in and out strategy.


Buying properties for me is a looonnng shot and probably for many other young australians 2, unless your parents fork out a few bank accounts you'll probably be around 28 before you even decide to take up a loan, after all in this day of age, saving is not the ideal behind enjoying life.

 

[johnson]

Save for a rainy day, I always try and have at least 3-12 months worth of living saved up in case the job dissapears. So almost all of my money is being saved to survive as long as possible without steady income and to build a little passive income stream.

Most of the time I would just get my pay, put W into a seperate account that I don't touch, put X into investments, Y go to living expenses and then Z into a slush fund to buy stuff I want. Splitting it up straight away makes it harder to think "wow I have all this money" and accidentally blowing it all on a new computer because you thought you had your expenses covered but didn't really.

oh wow, where do you put all the split money? do you have lots of different bank accounts or something?

personalyl I am trying to save up to go overseas for a year. I have earnt almost 30k in the past year, but sadly i have only managed to save a third of that amount. i impulse buy way too much, and because there is money in the bank account i feel like i have the luxury of blowing it on crap.

 

[jayz]

good tip if you really want to save, give the money to your parents for keeps

 

[johnson]

good tip if you really want to save, give the money to your parents for keeps

i've tried that once, gave 10 grand to my parents and i never saw it again