Starting out when you’re almost 50 and missed the boom

im simply rewarding some of the comments here. Almost all would agree that to move forward, we need to pay ourself first. What most average person does it we get paid 100 after tax dollars, we prioritise to pay landlord 30, pay our fav restaurant 20, pay our fav petrol station 5, pay our fav utilities company 10, pay woollies and Coles 10 and pay Cinema 5, and pay car loan 10. So that leaves us with an extra 10 which I pay ourself last because all the others are more important that paying ourself.

However, from a very young age, when I get paid 100. i automatically pay let's say 50 to myself. So basically I only get to spend 50 . How do you do it? For most, the only way to get ahead is to do so.no other way round it . I just have to lower all expenses.
Hard to start from the above scenario and then downgrade, much easier to start from the below scenario and then upgrade.
Maybe start with maybe out of 100 income pay yourself 25 or 30 first . You need to see youselve to be more important than your landlord or the Favorite restaurant and pay yourself first rather than them.
Then you will start to achieve your goals.
Must have a strong WHY you want to achieve what you set out to do.

 

I think that salary sacrifice into Super is a great way of forced savings, you will make 18% on your money in the first day with zero risk, so if you are not already at your maximum limit you could look to increase this.

 

Apologise for the delay, only came across your thread today.

Firstly congratulations on taking the first steps and understanding what impact our life decisions have on our future.

Yes ideally it would be great if we started 30, 20, or even 10 years ago but we cannot change the past we can only change our future and really if you change nothing you will likely be having a similar thread but now with it being 60 instead of 50.

Keep working on the savings, I understand some people don't think $2,500 is a lot to be saving but at least we are going in the right direction. If you are able to cut back on additional expenses then great it will speed up what actions you take. Although it might not seem much but even if you remove say Stan for $10 p/m that's $120 extra for a year which might not seem like much but if you do it 2, 3 or even 10x you now have an extra $1,000 for the year saved which returning 4% is an extra $40 on income compounding .

Although at the same time make sure you live and give your children what you want to give them and not what they want (I am just starting to see their calls on wanting to buy things with our nearly 4 y.o. so I know it easy said than done .

Once you have worked out expenses I would keep saving and read the forum for a bit to get an understanding of what is happening. No one can really predict the market - if they could they wouldn't be here and they surely wouldn't reveal their secret. However understanding how markets are and that there are markets within markets etc but you also need to work out what works for you and your family situation. There are many strategies out there but only one you so you need to find the one that resinates with you.

Given where the market (my feeling/HTW also suspects the same - see image below) is you may want to look into rentinvesting if you want to get on the property market now and buy interstate and if/when capital gains appears then drawing and buying a house in Melbourne or at worst selling and buying in Melbourne - I have done the buy interstate part but it would depend on how comfortable you are with this strategy.

So now we have expenses looked at, savings looked at and education looked at it would then be looking at acquisition. Being near 50 it may prove to be a little harder to get the loan you may want, for example a 30 year loan for a 50 year old means they are paying it back until 80 so if you plan to retire at 60 (picking a number) the banks will be questioning how will you fund 10-30 years or 60-80 .

Don't be to dishearten I firmly believe if you work out your financial house and set goal + stick with them you can certainly achieve what you mentioned (PPOR ownership), for me I bought my first PPOR at before 25, I had to save the deposit on a much lower income and no way could I save 2.5k at that time - 5 years later we doubled our property holdings in both value and quantity. So there are sill options.

Like how to finish a marathon it is just one step at a time, might seem like you have a long way to go but if you never start you will never finish but ones you have started it becomes easier to keep going.



Best of luck

 

View attachment 24862

Best of luck[/QUOTE]
What hour do you think Geelong is at the moment? I cannot find it in the HTW chart.

 

Thanks. I agree. We made a decision a couple of days ago to max our super contributions (diverting some money from other areas)

 

Thanks for your response. My wife and I have had some good chats over the last week and come up with some plans. Budget has been adjusted. Super contributions will be maxed. Will keep saving the deposit for a little longer while deciding where to buy.

I’ve appreciated the number of responses. While I wish we were in a different place, we’re feeling pretty good about things given where we were a few years ago.

 

Which way did you decide to go?

Is maxing your Super contribution a right thing to do?
Are you buying in a future SMSF?



Best of luck,


No its ever to late and every one wishes they had hindsight