Alice_AU journal

Where are you and where are you going?
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Bankai
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Joined: Fri Jul 25, 2014 5:28 am

Re: Australian RE

Post by Bankai » Sat Aug 31, 2019 10:11 pm

Alice_AU wrote:
Sat Aug 31, 2019 9:45 pm
To retire at all, one needs a paid-off house. Australian government recommended retirement income for 1 person is $26K pa for "basic" lifestyle (pretty much bills and food, nothing else), and $44K for "comfortable" lifestyle (add visiting family, occasional cinema and a holiday every couple years). Both figures assume that the person has somewhere to live, and the mortgage has been paid off.
Quite a lot of assumptions. You don't need paid of house to retire, and you certainly don't need 1.4m house to retire. With 1.4m you can retire very comfortably in many places in the world with housing cost being fraction of that. As for any recommended by government spending level - it's tailored for average consumer. One can do much, much better than that and we have many examples here of people spending below so called poverty line.

Australia is certainly not cheap, although salaries are good. Its great place to accumulate assets for sure. Are you thinking of staying forever or is it just a chapter in your lives?

NPV
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Re: Alice_AU journal

Post by NPV » Sun Sep 01, 2019 12:00 am

Given how weak AUD currently has been (0.67 USD currently), Australia is hardly the best place to earn anymore. In most high paying fields you can get paid significantly more in the US, and taxes are higher in Australia. On the other hand, Australia has decent free healthcare, decent public schools (if you live in the right neighborhood), infrastructure etc. And when you multiply the prices (and salaries) by 2/3 to compare to USD, they don't look crazy high anymore either...

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

Re: Australian RE

Post by Alice_AU » Sun Sep 01, 2019 4:22 am

Bankai wrote:
Sat Aug 31, 2019 10:11 pm
Quite a lot of assumptions. You don't need paid of house to retire, and you certainly don't need 1.4m house to retire. With 1.4m you can retire very comfortably in many places in the world with housing cost being fraction of that. As for any recommended by government spending level - it's tailored for average consumer. One can do much, much better than that and we have many examples here of people spending below so called poverty line.

Australia is certainly not cheap, although salaries are good. Its great place to accumulate assets for sure. Are you thinking of staying forever or is it just a chapter in your lives?
Yes, I'm only in the beginning of figuring things out, so making a lot of assumptions. Some are:

- I'll stay in Australia. Unless one or both of my children move to another country when they grow up, I won't leave. I was an adventurous child myself, and left my birth country at 20 (my poor parents!) so all adult life was spent far away from my parents and siblings... now my mother lives in Bulgaria, my parents-in-law live in UK, they see grandkids once a year at best and I don't want the same for myself.

- Having a paid-off, almost paid-off, or at least half-paid-off house in retirement is a must for me. I worry a lot, about all things in life, and the idea of paying rent when retired and knowing the rents can grow unpredictably in the next 5-10-20 years would be too stressful.

- $1.4m house, on the other hand, is not a must. In fact, it is not even an option. I'll have to save $40K per year for 35 years to get that. Retiring at 75? - hope not!

- Now we are paying $700 per week rent close to CBD. In retirement, I would look to reduce it a lot. The cheapest but still livable places within 200-300 km are around $350 per week. This requires $455,000 invested, with 4% swr. If I had this much, I'd rather buy and not worry about rent increasing every year or landlord kicking me out. $455K gets you nothing in Sydney and suburbs of course, maybe a studio apartment. So I'll need to aim for somewhere rural, ideally within 2-3 hours drive from Sydney so I can still see my children regularly (assuming they'll live in Sydney).
Last edited by Alice_AU on Mon Sep 02, 2019 5:54 am, edited 1 time in total.

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU » Sun Sep 01, 2019 4:28 am

NPV wrote:
Sun Sep 01, 2019 12:00 am
Given how weak AUD currently has been (0.67 USD currently), Australia is hardly the best place to earn anymore. In most high paying fields you can get paid significantly more in the US, and taxes are higher in Australia. On the other hand, Australia has decent free healthcare, decent public schools (if you live in the right neighborhood), infrastructure etc. And when you multiply the prices (and salaries) by 2/3 to compare to USD, they don't look crazy high anymore either...
Hi NPV. Yes, US has higher earning potential. But they don't just let people in so easy. DV lottery, H1B lottery, spouse having no right to work on H1B visa... Immigrating to Australia was much easier. And now I got to know it and love it, I no longer submit my DV lottery entries every year :D

bigato
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Re: Alice_AU journal

Post by bigato » Sun Sep 01, 2019 12:40 pm

I moved a lot as a child, and I think it only contributed to make me more flexible and adventurous. It wasn't a bad thing for me at all.

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU » Sun Sep 08, 2019 3:55 am

First week trying to reduce grocery shop budget was a failure :-(

Spent $250 as I originally planned instead of the usual $300, but then ended up running out of staples (eggs, milk, bread, yoghurt, tomato paste) and spent another $40 in small runs to the corner shop. To add insult to the injury - cleaned up the fridge this morning and had to throw away a lot of leftovers which look old and inedible, items with expiry dates over 2 weeks ago, and rotten fruit:

Image

You'd think I'd be better at this after 20+ years experience of running the household...
Last edited by Alice_AU on Wed Sep 11, 2019 5:30 am, edited 1 time in total.

Zanka
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Re: Alice_AU journal

Post by Zanka » Sun Sep 08, 2019 4:01 am

Haha:)

Just plan 3-4 cheap meals for the next week and you will be fine. Panncake is one example, chili and lentil soup another. And go for food that you can freeze if there are leftovers:)

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Alice_AU
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Location: Sydney Australia

First $50 earned outside of the main job

Post by Alice_AU » Tue Sep 10, 2019 11:26 pm

Today I done my first ‘side hustle’ in many years. Last time this happened must have been in Uni. And today, after 18 years of relying 100% on full-time jobs, I got paid $50 for 30- minutes market research group. Feels so good! Can’t live on it but this is like a first glimpse of “life doesn’t end outside of day job” if this makes sense... I realise that I might be making way too much fuss over a very small sum of money but it’s somehow so exciting I almost want to frame it, or do something else very special with it :-)

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU » Wed Sep 11, 2019 5:33 am

Came home tonight to find a $600 cheque in the post. Totally unexpected! Insurance company told me 3 months ago they won't pay for my wisdom teeth extraction, so I paid and forgot, and now this. Completely out of the blue :shock:

Maybe they made an error and will ask for it back?.. meh, don't care... going to deposit it anyway...

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU » Fri Sep 13, 2019 3:41 am

Decided to do something really fun with the extra $650 I got this week. There is this new app my bank just introduced - CommSec Pocket. It is aimed at small investors, offers about 8 different ETFs and the annual fee is even lower than Vanguard. I decided that from now on any side money that are not from my job will be kept separately and this would be a good place. Just to encourage me to look for ways to find more side hustles I guess, and to keep track of how much these brought in.

I suppose I'm not taking this whole thing seriously, am I? Feels a bit like some kind of simoleon-collecting game :-D

Sabaka
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Re: Alice_AU journal

Post by Sabaka » Fri Sep 13, 2019 12:57 pm

I think putting your "side hustle" money away in a separate account is a good idea. It will help to incentivise you to keep finding different opportunities. Especially since a lot of side hustles can be quite boring, and therefore gameyfing (real word? :lol: ) should help to keep it relatively exciting!

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Alice_AU
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Location: Sydney Australia

Re: Alice_AU journal

Post by Alice_AU » Fri Sep 13, 2019 6:15 pm

Yes, that’s the idea - having a bit of fun)

On a less positive note, my mentality probably hasn’t adjusted yet, that’s why I don’t view the money I don’t intend to spend as “real” money so to say...

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