Alice_AU journal

Where are you and where are you going?
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Alice_AU
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Joined: Fri Aug 09, 2019 2:42 am
Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Since starting to learn basic woodworking, I've been having more fun than I had in years.
Two things make it possible: tools (modern-day tools that are accurate, affordable and make it easy even for someone without much physical strength), and youtube :-)
As as a person with desk-job who wasn't shown how-to by my father, grandfather, or friend - I learn entirely by watching free videos, thank you Youtube!

I started by putting together some simple workbenches:

Image

Sanded and re-oiled some old household items:

Image

Replaced a kitchen drawer that was falling apart:

Image

Made myself a more complicated garage workbench & tool storage chest:

Image

And - very ERE! (maybe Jacob won't kick me out after all? :-) ) - found an old Ikea bed at the kerbside and turned the wooden bedslats into a pretty side table with the tiled top:

Image

...now of course I ̶n̶e̶e̶d̶ want more tools...... having too much fun...

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Financials are ok.
I'm still very much focused on getting an investment property so most savings go towards it:

Sep-2020
1. Unsecured Debt: $7049- 71% of target
2. Housing: $23K deposit paid, further $23K saved - $46K total, or 6.1% of target. $9K saved for fees and taxes.
3. Pensions: $190K combined balance - 25.7% of target
4. Early Retirement: $17700 - 5.9% of target
5. Emergency Fund: $2000 - 20% of target

Zanka
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Re: Alice_AU journal

Post by Zanka »

Wow that is impressive. I also want to get into some woodworking once I have a house to live in. :)

Hristo Botev
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Re: Alice_AU journal

Post by Hristo Botev »

Wow! The woodworking is very inspiring!

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Alice_AU
Posts: 136
Joined: Fri Aug 09, 2019 2:42 am
Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Thank you :D

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Alice_AU
Posts: 136
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

EOY post.
2020 was OK.

I got quite in a low mood during COVID lockdown but got a wonderful new hobby as a result, not a bad tradeoff.

Financially, my biggest hope for the year - the plan to get an investment property - didn't work so far. The land registration that was meant to happen in August got delayed to October, then to December, and now to February 2021 - until this happens, the build can't be started. So I'm stuck with half of my savings sunk in as a 5% deposit I paid in 2019, another half sitting in a savings account meant for the further 7% deposit, tax and fees and not earning any interest, and no clear view of when things will finally start moving. When the build starts, it will be even worse actually - I'll begin to pay the mortgage but won't have any rent coming in yet, ouch...

What I'm quite happy is more knowledge and awareness I got this year - my 'play money' brokerage account is not large but I had a bit of practice buying index funds and tracking their performance, read a bit and generally understand more now than I did in the beginning of the year. Started to listen to Dave Ramsey on Youtube - not everything is applicable to Australian realites (yeah, if I wait to pay off $1m house before I start investing I'll never get to investing phase at all...) but he's got such a personality, doesn't he)))

I also increased my Superannuation contribution to 10%, and after much effort convinced my husband to do the same with his. Just hoping that he actually sticks with it.

Progress so far:

Start- Early 2019
1. Unsecured Debt: $24700 - 0% of target
2. Housing: $0, started saving for deposit
3. Pensions: $140K combined balance - 19% of target
4. Early Retirement: $5.8K - 2% of target
5. Emergency Fund: $0

Dec-2019
1. Unsecured Debt: $13588- 45% of target
2. Housing: $23K deposit paid, further $9K saved - $32K total, or 4% of target
3. Pensions: $183K combined balance - 24% of target
4. Early Retirement: $9.5K - 3% of target
5. Emergency Fund: $0

Dec-2020
1. Unsecured Debt: $8730- 65% of target
2. Housing: $23K deposit paid, further $32K saved - $55K total, or 7% of target. Plus $4K saved for tax and fees.
3. Pensions: $211K combined balance - 28% of target
4. Early Retirement: $22K - 7% of target
5. Emergency Fund: $2400 - 24% of target

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Alphaville
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Re: Alice_AU journal

Post by Alphaville »

im a little late to the party, but wow, nice restorations+conversion!

Kipling
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Location: London

Re: Alice_AU journal

Post by Kipling »

The investment property delay must be frustrating; but that EOY report nevertheless shows really substantial progress against last year!

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

I've been avoiding posting updates as the things are not great at the moment. But there's no rule to write about good things only, right?

The housing situation is driving me crazy. It is winter now in Sydney, and it's very cold in our $3000 per month rental house. The walls are thin, the windows are single-glazed in aluminium frame, no central heating, and no insulation anywhere. Putting the oil heaters or AC on just means we're paying $$$ to 'heat the street' as 5 minutes after you switch it off it is freezing again. If only I was a homeowner - double glazing and at the very least a roof insulation would be first things to do to the house. But...

House prices shot up again. One (older and just as cold and draughty as the one we're renting) just been sold for $2.6m couple of streets from us. No hope of getting one here, EVER. Even if I magically managed to save 100% of my take-home pay for 26 years till I'm 66 - the houses will just increase in price to $10m when I get there!

The IP that I paid 5% deposit for in late-2019 hasn't even started building yet. The land registration (originally Aug-2020) was delayed till October-2020, then again and again and is now planned for June-2021. We'll see...

Never again though will I consider House&Land package. Too much uncertainty. Plus reading and speaking to people made me realize other downsides like small lot sizes, overpriced 'new and shiny' build, too many investor buyers within the same estate, and so on. I'm kind of kicking myself for getting into this now, and wish that I didn't... Well, still keeping my fingers crossed that it will not become a complete disaster after all...

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

BAU stuff:

Watched a lot of Dave Ramsey on Youtube. Mainly for entertainment. Yes, I know... his math is wrong, his temper is not always in check, and the religious rantings aren't that cool either... but he's inspiring enough to overlook these (most of the time). So after a while I got the idea that getting rid of credit cards and having a bit of emergency fund won't hurt. Still have a bit of debt from last year's medical expenses and rather self-indulgently replaced an old broken laptop with $3000 'Alienware' one I paid for with CC, but plan to attack these asap and never go back into using credit cards after. Picturing 'uncle Dave' in my head screaming at the screen: "You know what you have when you don't have card, loan, and car payments? You have MONEY!!!"

May 2021 (and change since Dec-2020)
1. Unsecured Debt: $5818- 76% of target (- $2912)
2. Housing: $23K deposit paid, further $32K saved - $55K total, or 7% of target. Plus $10K (+$6K) saved for tax and fees.
3. Pensions: $248K combined balance - 33% of target (+$37K, now increased contributions from 10% to 15%)
4. Early Retirement: $30K - 10% of target (+$8K)
5. Emergency Fund: $3500 - 35% of target (+$1100)

chenda
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Re: Alice_AU journal

Post by chenda »

Looks like you're making great progress :) great job on the woodwork too...

Re the housing could you retire someone rural and cheap ? I remember back in the 90s (I know...different world then) you could thousands of acres of bushland plus cabin for next to nothing. Someone mentioned climate change which I agree should definitely be a key consideration long term in Australia. Maybe Tasmania or Victoria, deep in the south at higher elevation...?

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Yes, this is the plan. The IP is in Ballarat, VIC and is 'only' $460K (about 5 times less than the houses on our street now). Not likely to actually live there (too cold haha), but the intention is to aim to repay the 30 year mortgage in 20 years instead, then sell and buy something for the same price elsewhere.

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Just realised the mistake I made with my shares account.

I initially got it just to learn and 'for fun' as my main focus is getting a house.

But now the balance have reached $30K somehow so I'm taking it more seriously).

Anyway - opted into DRP (dividend reinvestment plan) from the start, without researching it properly first. Now learned that when the dividends are not enough to buy a whole unit, they just sit there indefinitely - until more and more added over time and eventually it becomes enough. The problem is that more than a half of my ETFs are too much per unit so I won't have any 'dividend reinvestment' for years... The worst one is australian IVV - I have approx. $4000, dividends are approx. $12 per quarter, one unit is $578.

If I cancel DRP, all money that were deferred so far (around $250) will go to 'charity of our choice' says Computershare share registry... bummed.

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

July 2021 - scraped every spare $ and repaid last remaining CC debts. First time debt-free in many years.

I better remember how good it feels!

Note to self: DON'T DO IT AGAIN! Just... don't!

...closed credit cards too. Left one 'just in case' but reduced the limit to $1000. Fingers crossed, I won't be tempted...

Biscuits and Gravy
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Re: Alice_AU journal

Post by Biscuits and Gravy »

That’s great! Good on ya!

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

I haven't updated my journal for a while.

Basically, was going through a patch of s***t and kept thinking that I will post an update when it is all over, when things are better, and I can then write a cheerful note from the top, from a position of victory, about how I have survived the storm etc.

Except it didn't happen yet. The rough patch lasted and lasted and is still going with no end in sight. So F*** it, I write an update anyway, as-is and from the middle of the shitstorm.

My builder gone into administration half way through the build, due to have taken on a large number of fixed-price contracts pre-Covid, and building costs skyrocketing. I now have $400K mortgage for a small patch of dirt with foundations and a roofless wooden frame rotting under the weather. Appointed administrator is looking to source an alternative builder, but no idea at this time when and how much it will cost in the end. I'm researching the options but remain a bit paralyzed from the stress and uncertainty.

Work has been manic all year, some days as crazy as 7am to 10pm, some weekends. Deadlines, staff shortages, whatnot. I have no energy to look for another job right now.

But biggest drain by far, both emotionally and mentally, is the home situation. Last year I told my husband that I want a divorce. This was difficult for both of us but differently - whilst he is experiencing a loss, including loss of control, I have to deal with being the one taking a decision, whether right or wrong, and accepting the responsibility for it. On top of the usual heartbreak from leaving a spouse after 20 years together. And accepting being 'the bad guy'. I'm not the bad guy really - believe me there are real reasons but I won't go into too much detail. Yes us women initiate the majority of divorces, but none of us do it for funsies. A lot of people will see me as a bad guy though, including his parents who I'm very found of, makes me sad but oh well...

Last year after I told him, he convinced me not to move out immediately. I was weak, disoriented, guilty, heartbroken - and agreed to sign a joint lease in the current house for another year. To continue living under the same roof and co-parenting our two teens as amicably as possible. Looking back, wasn't the best decision. We are amicable, there are no arguments, and I am quite good at keeping poker face for the sake of keeping appearances - but I find the whole set up SOOO hard. Emotionally, it is hell. When he was out of work for 4 month straight in a second Sydney lockdown and spent every waking hour in the same house - omg, I don't know how I survived. Set up my desk in the bedroom and was confined to it most of the time. Definitely not signing up for another year of this. Lease renewal is due in February, and I'm not signing it. Just not signing, end of story. Enough.

More shitstorm will follow when I tell him this I'm sure, more stress trying to find another rental as a single mum with two kids and two dogs, but I'm just repeating to myself 'Keep calm and carry on', 'There will be light at the end of the tunnel' etc etc. 'THIS TOO SHALL PASS'

Western Red Cedar
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Re: Alice_AU journal

Post by Western Red Cedar »

This sounds like a really tough situation. I don't have much to offer, but hope you take care of yourself as you are dealing with all of this.

chenda
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Re: Alice_AU journal

Post by chenda »

Sorry to hear of this Alice, I hope things start to improve for you soon. x

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Thanks guys

7Wannabe5
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Re: Alice_AU journal

Post by 7Wannabe5 »

Take very good care of yourself. I was in a similar set of circumstances around 15 years ago and it took me 3 around 3 years before my nerves settled down to the point that I could even read a book cover to cover. What helped was lots of walks with the dog through the woods, evening trips to nearby lake where I could just float, and fish oil capsules by the handful. My more positive note would be that after that relative low point I went on to have some of the most fun times of my life, and I bet you will too!

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU »

Thank you. Not being able to read a book cover to cover really resonates right now.

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