How much do you save?

While still living normally - Not really a saving as such, but 40% of my after tax income goes back into mortgage after paying off the interest.
Just try not to over commit with paying it down too fast and spludge a bit more on some useless iphone and fine dinning.
Such as life

 

for me at the moment just increasing my buffer due to my continued battle with the maintenance bills

 

Around 70% depends on whether there is unexpected spending for the month (i.e. IP maintenance)

 

And yet probably even more important.
Especially for the IP's.

 

Don't want to labour the point, but the ANZ product that I mentioned earlier lets you consolidate the transactions from various sources (including, for example, flybuys and QFF). Note: I am not affiliated with ANZ, but mention it because I'm happy with this product. There may be better products out there.

ANZ MoneyManager

 

Oh, I semi ignored your post earlier because I thought it was only for ANZ accounts. I might have a look at it. I know that CBA and St George had something similar a few years ago, but apparently they were pretty bad, but technology might have improved since then.

 

Hey Leo,

Was searching around old posts and found this one, interested to hear more about how this is going for you given the current lending environment and the mechanics of your strategy around using the equity i.e. are you increasing the loan from the equity increases and using this for living expenses/new purchases etc or simply leaving it as is and continuing to pay down the loans to deleverage and increase income?

Horses for courses (everyone has their own strategy and situation of course) although I'm curious how you're approaching it

 

HI @jefn89,

If I recall correctly, that post was just in reference to not needing to save for deposits as the equity every year is more than we needed to act as the deposit. With regards to our 'finance arrangements' for the last 18 months at least, we have been actively reducing our LVR with some of the profits from our ventures. and then using very large deposits with much smaller loans. Our LVR is quite low as it stands so we feel we have found a good compromise between expanding using minimal leverage and deploying larger amounts of equity to manage the overall risk and keep the LVR in check. We have also been engaged in a few JVs with creative arrangements which works well for us.

 

That's correct, yeah the post was specifically about saving rates although I got curious!
Thanks for letting me know, it's as I suspected with a lot of people once they build up their required number it's then about deleveraging, via lowering LVR's and therefore de-risking.. Awesome work on getting to the position you've gotten to and it's inspiring for people like me on the journey to keep on keeping on!

 

Thanks mate.

We are actually still expanding our overall base, just at a slower pace now due to using less leverage. We have built a very solid and diversified base in Australia so we are just adding to it when we are able to put really good deals together. Its definitely all about the quality of the deal now.

 

Sounds like an ideal place to be in/at!
May have met you at a meet-up before, have only been to the Western Sydney one once, although would love to have a chat and perhaps even buy you a beer if you go to any of them or a soft-drink if you're not of the beer persuasion haha!

 

Unlikely to have been me mate as i haven't made it to one yet. Cheers on the beer shout.

 

More incentive to come along then haha!

 

In the military atm so when im at sea im able to save 90% of pay.
But when im back at home i save 60%.

 

I think rather than saying a percentage, I think it'll be more hopeful to say the amount that you actually saved. I think once you earn $80k your spending will only decrease from 20% as your spending does not increase as much as your wage increase. We are into the six figures in terms of savings each year and will continue to increase as yields increases dramatically with Airbnb supercharging our savings.

 

Really, so are you saying that your rental income covers your expense? ;0

Below average Sydney wage? Nah that's pretty good!

 

Adelaide dude. Although this was a while ago, and I'm above average wage now. Still only 19% after tax goes to rent, 70% to savings.