Hey everyone,
It was suggested that i post this in the aussie thread for relevance to our system.
MY SITUATION
I am 25 just finished university and have been working for 6 months. I am a contract engineer and project risk management co-ordinator for a major Oil and Gas Project. I live in Perth. I have 2 degrees, law and computer science. I worked in law first but changed after 3 months for more opportunities and I hated my previous work environment.
I currently save 40% of my weekly income into a bank account at 8% per annum
The rest goes to my living expenses.
I am trying to save up 3 months worth of living expenses and investigate money management in the meantime.
I rent. I do not have any debts except HECS below. I do not have a car and ride everywhere.
I have and shall not get any inheritance. I start with nothing.
student debt
My student debt is through the government in Australia and gets taken out of my wage with no interest on the amount. It is about $50k. about $100 is taken out of my weekly wage automatically but I can make an extra payment with a 10% discount on the total amount.
Your HECS debt does not attract an interest rate charge, however, it is indexed, so each year it will rise with the rate of inflation. While inflation is low, then the amount your debt increases each year will be minimal.
I guess that means that it is better to pay off my debt unless I can beat 10% return per annum?
Your thoughts please?
Property
My reticience to buy property is that I travel a lot abroad *on an island (working) and ride my bike as transport when I am around home. Both mean I am not in a good position to monitor, maintain and improve property rented out or for my sole residence.
*I shall be doing 4 weeks on, one week off fly in fly out work in about 6-12 months and am currently working in my city offices until then.
Your thoughts please?
Everyone Else
I know it not should be about the 'jones' but I cannot help but look around and wonder. I mean I get paid a lot and have little expenses. Nevertheless, i do not save that much or have that much (started with nothing). Surely other people are the same and if so, how can they waste money on fancy cars and consumerables?
Your thoughts please?
Currently
I was thinking of not having a place of residence and just travelling for that one week of the year. What do you think? I would sell my furniture I guess.
Your thoughts please?
thank you!