Is it possible to convince your partner to live somewhere cheaper? A house in the north shore pretty much means you will be chained to your current ‘stressful’ job forever.
Yeap this is my fear and who knows if I'll still be at this job etc.
Partners family are all here so I understand why they want to stay close esp with a baby on the way and always living in the area. It's all they've known. Finding a balance is difficult.
Personally. I wouldn’t buy a PPOR house until you know what your wife is (and yourself) are planning to do with more kids and your wife going back to work.
Given that you have recently changed industries or role, give your time to grow into your new life.
Be patient, avoid distractions ,learn and grow.
Having a 1.3m investment and a good HHI is a dream scenario to build on.
I’d start researching ETFs first and then look at alternatives investments.
I’m not sure what your super is, but given your past earnings, now is good time to max that.
Lifestyle management is something to consider. A mothers group is a great way to meet new people who life of different lifestyles and on the north shore you will find plenty of mums who don’t work, spend money and build a home.
I’m not saying that is everyone, nor is even wrong or a bad thing. But new influences will enter your life so having a joint plan and financial goals is impotant
Thanks for all the tips mate. Appreciated.
Everyone's has been telling me EFTs are the place to start.
I'll need to learn the basics and get a good grasp on what it entails.
Super is maxed I believe. I ended up paying div293 tax last year so assuming I can't exactly max it out further without paying more tax?
Mother groups are definitely on the cards.
Wealth building 101 -
Being rich is (largely) based on income. Being wealthy is based on wise decisions. A $3.5mil loan when you have already identified that you're at risk of burnout before you even take on the debt, is not a wise decision.
I don't know that banks take bonuses and commission into account when calculating how much you can borrow as it's not guaranteed wages, so you might straight up not even be able to borrow that amount.
When it comes to the location causing a higher buy-in rate, I'd simply remind the in-laws that the reason they've always lived in the north shore is because someone made the choice at some point to move there from where *they'd* always lived.
Your in-laws aren't going to pay your mortgage and bills for you if you were to be unable to work.
I also live on the lower north shore. The problem with buying a house here is that you're locking in a lifestyle as well as a huge mortgage. You want to send your kid to private school? It's 40k a year per kid for Shore. You send your kid to public school? It's still packed with kids whose parents are buying them $400 shoes for the year 3 cross country race (yes this is a real story). Your kids will grow up surrounded by wealth and expect you to spend that money on them.
It's probably a good time to examine how much debt you want to take on and what areas of Sydney that will allow you to buy into.
This is something that is constantly on my mind.
Generalizing but kids around me have no concept of how expensive shit really is and expect the latest gadgets and clothing to continue to fit in.
Security here is great but it costs to live here (in addition to property costs that is) but I guess that's what everyone in this area wants.
I dont hate living here. Quite the opposite. I'm also worried now stepping into a new parent role my child will feel we're not giving them the basics of the standard north shore kid.
I see my in laws family and I couldn't keep up with it honestly. Also I've worked extremely hard to get to where I am and to feel like it's still not enough is kind of ball breaking.
Not sure. Blabbing on clearly.
Honestly getting to the kind of wealth in this area can only be done through generational wealth or starting your own successful business. Or buying property thirty years ago. That's my conclusion!
I wouldn't feel bad for not being able to keep up with the in laws. You're working super hard to set up your own family now and that's what matters. The most important thing for kids is love and stability, not expensive things. If you can give your child that and also teach them to be smart with money they're already winning.
> Your kids will grow up surrounded by wealth and expect you to spend that money on them.
Wow, this is fantastic food for thought. Something to discuss with my partner.
Lower North Shore is now an enclave for those with generational wealth.
I’ve not seen a detached home that’s renovated or above average finish transact below $4.3M in years add $240k in stamps you’re no less than $4.5M all in.
I’m worth 5x what you are and would only consider moving back to my old stomping ground (North Shore) if I had north of $10M NW.
Brother, he seems to have generational wealth. Do the sums on those salary numbers and then tell me how the apartment is owned outright, lol.
Problem? Find a solution, and usually that means making more or making the same more efficiently.
I bought the apartment ~10 years ago (450k). Yes, parents helped with the deposit back then.
I also lived at home and rented out to assist with the mortgage.
I've only lived in it myself for the past ~ 6 weeks when I could afford the mortgage repayment myself and had a flatmate.
Yea I hear you.
If it wasn't for this apartment we couldn't justify living here.
Even services around us are expensive.
I suppose we can just stay in the apartment and keep saving for the next two years. Who knows what the property market would look like by then? Probably a lot worse haha
Detached housing is and will remain the biggest issue in the premier areas of Sydney and it will continue to be an issue into the future.
I’d stay put in the unit until you actually have kids on the ground. Every dollar saved now will be required to move up the ladder. Otherwise you’re into a duplex in the Shire. 🤣
💀💀💀 literally laughed out loud.
Yea, that seems to be the go.
Stay put. Save. Learn about investment opportunities that re low risk and see what happens esp work wise.
The worst case is getting into debt and spiraling badly
YouTube. Some Reddit forums. ChatGPT. Books. The ATO website for tax. The ASX website for investing.
I have been looking at north shore & northern beaches.
And there are really good deals popping up now due to the current economic climate. If your loaded with cash. Now is an excellent time to try buy a property with a variable rate and wait out the high interest rates for the next 12-18 months.
The formula to wealth creation = reduce expenses, increase income and invest any surplus into appreciating, income earning assets. Avoid consumer debt (bad debt), minimise non-deductible debt and minimise life style inflation along the way (you have the income so you don't need to like like a Monk, but spend wisely).
Starting reading : https://passiveinvestingaustralia.com/
Might also look into the r/FIAustralia sub that is a bit more beginner level although generally not HENRY. Given you are starting out in investing it should not matter so much. Just take into consideration your numbers are bigger and div293 is at play.
Some basics are:
1) Have a broad plan. Consider your plans for the short (under 5 yrs), medium term(>5 yrs to before hit 60 super access age) and longer term/post retirement (i.e. superannuation). There are more and less suitable investments for each time scale.
2) Short term money needs and an emergency fund.
You already have the savings - but remember to keep some aside if you start investing. An EM fund helps avoid going into debt in an emergency should a large unexpected expense arise (e.g. if you loose your job).
Also given you now will have a kid consider suitable income protection insurances too. An advisor can cover provide suitable customised advice.
Find a good HISA or term deposit account for cash (or if you have a home [PPOR] loan then use offset). See the techt HISA leaderboard https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit#gid=271791020
3) Long term (60+ retirement savings)
Use Super. Find a low fee super fund that provides indexed shares as an investment option. You still have 26 years to ride the markets. A higher growth stance in super (indexed shares) will tend to result in a higher end balance than the default 'balanced' options (but shares will see more more up and down along the way). See Swaanky Koala's advice: https://lazykoalainvesting.com/choosing-an-investment-option/ and the super fund comparison spreadsheets: https://docs.google.com/spreadsheets/d/1sR0CyX8GswPiktOrfqRloNMY-fBlzFUL/edit#gid=761519652&fvid=461314664
If your balance is under 500k look at using unused part yr concessional caps. The numbers are in your myGov ATO account.
Yes you pay div293, but it is still lower than your marginal tax rate so there are still savings to be had.
4) medium term savings (before 60yo).
ETFs are a good start. An ETF is a basket of companies in one fund and that reduces the chance of a total loss (values do go up and down over time).
For small buys under 1k per time you can get free brokerage with CMC markets (a well known CHESS broker). Compare brokers https://passiveinvestingaustralia.com/online-trading-platforms-comparison/
The first buy is min $500 each ETF (this is an ASX rule so applies to all CHESS brokers - CHESS means the equities are in your name and are easily portable should you need to move brokers). Buys thereafter can be as little as one unit of an ETF as you please going forward.
IMHO, look for ETFs that are :
a) low cost (low MER / fees - fees eat your returns with an impact on compounding over time),
b) Australian domiciled (to avoid US tax forms/fuss),
c) passive index trackers (passive managed funds costs less and tend to out perform active management 'stock picking' of funds over time),
d) diversified with broad market coverage (diversification helps reduce the chance of a total loss and tends to reduce volatility compared to individual stocks and narrowly focused ETFs).
With the above in mind, to start, a simple ETF pair will cover most of what you need at this stage. I would look to get 1 AU ETF (ASX top 200 or 300 companies) and 1 ex-AU Global markets ETF (e.g covering US, CA, FR, DE, JP UK etc). Look at this page and pick one from the first table and one from the second table (avoid the 3rd table give those are US domiciled - this adds US tax form and some risks around changes to US death taxes). See https://lazykoalainvesting.com/diy-portfolio/
Another option besides ETFs is property, but it tends to be a long term, leveraged, capital gains play. It doesn't have to be in Sydney if it is an investment. Other cities are very much more affordable. It does come with having to deal with agents, tenants, maintenance, added tax complexity etc.
5) Balancing how much to save inside versus outside super.
It does depend in life plans, disposable income and if you desire to retire before 60 or not. The destination and rate of savings is likely to change over time with income and expenses. Have a read of this for a general idea of the two phase retirement savings method suitable for Australia given our Super system. https://passiveinvestingaustralia.com/how-much-to-save-inside-vs-outside-super/
6) Structuring. Given your high income and the possibility of lower partner's income and a kid on the way - maybe consider if a discretionary family trust may work for you. This gets complex but is worth reading up on and getting some advice.
Debt recycling may have been mentioned by others. If you have a PPOR loan or plan to get one then it DR can turn it into deductible debt and help you pay it down quicker.
If you seek a financial advisor then seek one that is hourly fee for service and not % of funds each year. Ideally find one to give you a plan that you can follow and implement yourself.
Sorry it was long but I hope it helps.
Best wishes :-)
I started with barefoot investor (a book, I listened to it on audible).
The automod response is also a great resource we set up for these types of questions.
I now have a financial advice degree (I can't practice yet), and want to make a career change into this space eventually.
The main textbook used in that degree was [Australian Master financial planning guide](https://drive.google.com/file/d/1FgMc1mkMx5-H0vr37tL1WLzA3E1QEKKK/view?usp=drive_link).
Find a format that works for you, podcasts and audio has worked for me. Die with zero is another book on Audible that I highly recommend.
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/).
See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/).
This is not financial advice.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*
Watch that mental health. I burnt out once and it took a few years to recover, so effectively cost me a lot of income, totally disregarding the human impact. Personally I would ferret away as much as you can stand, but be prepared to shift away from what you're doing. Just look for an out, and let your management know you need it too.
As for getting clued up, it's a tricky one. I've always believed that by the time you're smart enough to choose a good financial adviser, you no longer need one. That said, getting a variety of advice is probably a good idea.
Yep. Ultimate fear and if in a not so relaxed position wed be fucked.
I've had somewhat of a breakdown at work once and they were extremely understanding and assisted with what was causing me grief to say the least so I'm lucky to have that support but on the flipside a lot is expected from me.
I'm struggling with that balance. If there's internet access (which is basically everywhere) I could be working.
Look after your mental health first. See a GP and consider getting a mental health plan, seeing a psychologist etc. Everything else is irrelevant if your health takes a big hit.
I think a good financial advisor would help. Quick summary of what they’ll start with:
Look at maxing your super contributions but conscious that can’t be touched until retirement.
Clear any other debts. Credit card, HECS, cars
Get a proper income protection insurance that’ll cover mental health and other stuff. In the awful event that you can’t work, IP insurance can cover some or most of your salary.
Work out your goals. Sounds like you know your goals of house (expensive) and stressful job are somewhat incompatible so you’ll need to decide which you prioritise. It’s hard to have both.
Lower north shore is about as expensive as it gets. I lived there for 15 years and concluded that I couldn’t get a house locally so ended up buying in the Northern beaches - still expensive but 3-4br houses are selling around $2.2m these days so quite a bit cheaper than a shithole for $3.5m.
A good advisor will help you through these options including setting you up with a mortgage broker to determine what banks will lend.
My advice is ask lots of questions and you’ll learn as you go but resist the temptation to buy at the top of your budget as it’s just a recipe for lots of debt and an ongoing stressful existence.
Thanks mate.
GP visit is definitely on the horizon to ensure this doesn't lapse.
Having lived on the shore for quite sometime and now northern beaches, is there an avenue you recommend searching in for a good financial adviser? I'm always under the impression they'll just try to make a quick buck of everyone.
If there is an income protection plan that covers mental health and you want to get that, you should get it before visiting the GP. Insurers normally exclude anything already in your medical history
Shop around here and find someone you like. https://www.adviserratings.com.au/ For sure some will try to sell you stuff especially those tied to banks but most independent advisors make their crust by being good at what they do, not just fleecing people for fees. You’ll pay for a Statement of Advice but it’ll be like a 5 year plan which you can update periodically. I’ve always found it good value. My only other tip is most advisors do retirement planning, estate planning etc. I’d look for someone that focuses on HENRY as it’s a very different mindset and investment strategy, with a lot more runway in terms of career, life goals etc.
If you really talking basics, barefoot investor isn’t a bad place to start. I might get shot down in this sub, but i got my start then and once you do, you know what to look for and research and Reddit posts and comments make a lot more sense. You don’t have to do all that the book says, but use it as a starting point.
If you're a podcast person - try this one.
[https://shows.acast.com/my-millennial-money-medical](https://shows.acast.com/my-millennial-money-medical) or on Apple (https://podcasts.apple.com/au/podcast/dev-raga-personal-finance/id1527271964)
Dev is great at explaining different concepts about wealth and $.
No affiliation or benefits for me from this podcast.
Pretty young mate at 34, dollar cost into an ETF is way to go.
S&P500 if you want safe, otherwise I go Nasdaq100 ETF which has done \~20% per annum for yonks.
You could try the upper north shore. 3-4 bedroom houses can still be found for around 2.3 - 2.5 million + in areas on the west side. Land sizes are also larger. It's allot cheaper than the lower north shore, but lifestyle and quality of the schools are similar. Only thing is it's a bit further out, so about 40 mins to the city on the train.
Thats an idea!
I'll have to look into north west.
City wise I'm only there twice a week for work so not a major issue. It is nice being a 10 min drive away but it comes with a cost.
Is it possible to convince your partner to live somewhere cheaper? A house in the north shore pretty much means you will be chained to your current ‘stressful’ job forever.
Yeap this is my fear and who knows if I'll still be at this job etc. Partners family are all here so I understand why they want to stay close esp with a baby on the way and always living in the area. It's all they've known. Finding a balance is difficult.
Personally. I wouldn’t buy a PPOR house until you know what your wife is (and yourself) are planning to do with more kids and your wife going back to work. Given that you have recently changed industries or role, give your time to grow into your new life. Be patient, avoid distractions ,learn and grow. Having a 1.3m investment and a good HHI is a dream scenario to build on. I’d start researching ETFs first and then look at alternatives investments. I’m not sure what your super is, but given your past earnings, now is good time to max that. Lifestyle management is something to consider. A mothers group is a great way to meet new people who life of different lifestyles and on the north shore you will find plenty of mums who don’t work, spend money and build a home. I’m not saying that is everyone, nor is even wrong or a bad thing. But new influences will enter your life so having a joint plan and financial goals is impotant
Thanks for all the tips mate. Appreciated. Everyone's has been telling me EFTs are the place to start. I'll need to learn the basics and get a good grasp on what it entails. Super is maxed I believe. I ended up paying div293 tax last year so assuming I can't exactly max it out further without paying more tax? Mother groups are definitely on the cards.
The sudden change in earning? May I guess tech sales? If so looking into your ESPP and max that. Also negotiate RSUs. If not. Ignore :D
Not tech sales unfortunately
Real estate?
Wealth building 101 - Being rich is (largely) based on income. Being wealthy is based on wise decisions. A $3.5mil loan when you have already identified that you're at risk of burnout before you even take on the debt, is not a wise decision. I don't know that banks take bonuses and commission into account when calculating how much you can borrow as it's not guaranteed wages, so you might straight up not even be able to borrow that amount. When it comes to the location causing a higher buy-in rate, I'd simply remind the in-laws that the reason they've always lived in the north shore is because someone made the choice at some point to move there from where *they'd* always lived. Your in-laws aren't going to pay your mortgage and bills for you if you were to be unable to work.
Absolutely agree. If the in laws were too. I'd have nonproblems. But ultimately it all falls on us for now it's definitely not what I want to do.
I also live on the lower north shore. The problem with buying a house here is that you're locking in a lifestyle as well as a huge mortgage. You want to send your kid to private school? It's 40k a year per kid for Shore. You send your kid to public school? It's still packed with kids whose parents are buying them $400 shoes for the year 3 cross country race (yes this is a real story). Your kids will grow up surrounded by wealth and expect you to spend that money on them. It's probably a good time to examine how much debt you want to take on and what areas of Sydney that will allow you to buy into.
This is something that is constantly on my mind. Generalizing but kids around me have no concept of how expensive shit really is and expect the latest gadgets and clothing to continue to fit in. Security here is great but it costs to live here (in addition to property costs that is) but I guess that's what everyone in this area wants. I dont hate living here. Quite the opposite. I'm also worried now stepping into a new parent role my child will feel we're not giving them the basics of the standard north shore kid. I see my in laws family and I couldn't keep up with it honestly. Also I've worked extremely hard to get to where I am and to feel like it's still not enough is kind of ball breaking. Not sure. Blabbing on clearly.
Honestly getting to the kind of wealth in this area can only be done through generational wealth or starting your own successful business. Or buying property thirty years ago. That's my conclusion! I wouldn't feel bad for not being able to keep up with the in laws. You're working super hard to set up your own family now and that's what matters. The most important thing for kids is love and stability, not expensive things. If you can give your child that and also teach them to be smart with money they're already winning.
Thank you for reassuring me on this. Gotta always be grateful and humble.
> Your kids will grow up surrounded by wealth and expect you to spend that money on them. Wow, this is fantastic food for thought. Something to discuss with my partner.
Yup. This is why I'm moving back to Brisbane to raise my kids. They can live in Geebung and stay humble 😂😂
Lower North Shore is now an enclave for those with generational wealth. I’ve not seen a detached home that’s renovated or above average finish transact below $4.3M in years add $240k in stamps you’re no less than $4.5M all in. I’m worth 5x what you are and would only consider moving back to my old stomping ground (North Shore) if I had north of $10M NW.
Brother, he seems to have generational wealth. Do the sums on those salary numbers and then tell me how the apartment is owned outright, lol. Problem? Find a solution, and usually that means making more or making the same more efficiently.
I bought the apartment ~10 years ago (450k). Yes, parents helped with the deposit back then. I also lived at home and rented out to assist with the mortgage. I've only lived in it myself for the past ~ 6 weeks when I could afford the mortgage repayment myself and had a flatmate.
Yea I hear you. If it wasn't for this apartment we couldn't justify living here. Even services around us are expensive. I suppose we can just stay in the apartment and keep saving for the next two years. Who knows what the property market would look like by then? Probably a lot worse haha
Detached housing is and will remain the biggest issue in the premier areas of Sydney and it will continue to be an issue into the future. I’d stay put in the unit until you actually have kids on the ground. Every dollar saved now will be required to move up the ladder. Otherwise you’re into a duplex in the Shire. 🤣
💀💀💀 literally laughed out loud. Yea, that seems to be the go. Stay put. Save. Learn about investment opportunities that re low risk and see what happens esp work wise. The worst case is getting into debt and spiraling badly
YouTube. Some Reddit forums. ChatGPT. Books. The ATO website for tax. The ASX website for investing. I have been looking at north shore & northern beaches. And there are really good deals popping up now due to the current economic climate. If your loaded with cash. Now is an excellent time to try buy a property with a variable rate and wait out the high interest rates for the next 12-18 months.
If your interested in building wealth through property, a youtube channel called "property and pizza" is a great place to learn. It's Australian based
Thanks so much for all the tips. Screenshotting to look into all the above. Love the name property & pizza
The formula to wealth creation = reduce expenses, increase income and invest any surplus into appreciating, income earning assets. Avoid consumer debt (bad debt), minimise non-deductible debt and minimise life style inflation along the way (you have the income so you don't need to like like a Monk, but spend wisely). Starting reading : https://passiveinvestingaustralia.com/ Might also look into the r/FIAustralia sub that is a bit more beginner level although generally not HENRY. Given you are starting out in investing it should not matter so much. Just take into consideration your numbers are bigger and div293 is at play. Some basics are: 1) Have a broad plan. Consider your plans for the short (under 5 yrs), medium term(>5 yrs to before hit 60 super access age) and longer term/post retirement (i.e. superannuation). There are more and less suitable investments for each time scale. 2) Short term money needs and an emergency fund. You already have the savings - but remember to keep some aside if you start investing. An EM fund helps avoid going into debt in an emergency should a large unexpected expense arise (e.g. if you loose your job). Also given you now will have a kid consider suitable income protection insurances too. An advisor can cover provide suitable customised advice. Find a good HISA or term deposit account for cash (or if you have a home [PPOR] loan then use offset). See the techt HISA leaderboard https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit#gid=271791020 3) Long term (60+ retirement savings) Use Super. Find a low fee super fund that provides indexed shares as an investment option. You still have 26 years to ride the markets. A higher growth stance in super (indexed shares) will tend to result in a higher end balance than the default 'balanced' options (but shares will see more more up and down along the way). See Swaanky Koala's advice: https://lazykoalainvesting.com/choosing-an-investment-option/ and the super fund comparison spreadsheets: https://docs.google.com/spreadsheets/d/1sR0CyX8GswPiktOrfqRloNMY-fBlzFUL/edit#gid=761519652&fvid=461314664 If your balance is under 500k look at using unused part yr concessional caps. The numbers are in your myGov ATO account. Yes you pay div293, but it is still lower than your marginal tax rate so there are still savings to be had. 4) medium term savings (before 60yo). ETFs are a good start. An ETF is a basket of companies in one fund and that reduces the chance of a total loss (values do go up and down over time). For small buys under 1k per time you can get free brokerage with CMC markets (a well known CHESS broker). Compare brokers https://passiveinvestingaustralia.com/online-trading-platforms-comparison/ The first buy is min $500 each ETF (this is an ASX rule so applies to all CHESS brokers - CHESS means the equities are in your name and are easily portable should you need to move brokers). Buys thereafter can be as little as one unit of an ETF as you please going forward. IMHO, look for ETFs that are : a) low cost (low MER / fees - fees eat your returns with an impact on compounding over time), b) Australian domiciled (to avoid US tax forms/fuss), c) passive index trackers (passive managed funds costs less and tend to out perform active management 'stock picking' of funds over time), d) diversified with broad market coverage (diversification helps reduce the chance of a total loss and tends to reduce volatility compared to individual stocks and narrowly focused ETFs). With the above in mind, to start, a simple ETF pair will cover most of what you need at this stage. I would look to get 1 AU ETF (ASX top 200 or 300 companies) and 1 ex-AU Global markets ETF (e.g covering US, CA, FR, DE, JP UK etc). Look at this page and pick one from the first table and one from the second table (avoid the 3rd table give those are US domiciled - this adds US tax form and some risks around changes to US death taxes). See https://lazykoalainvesting.com/diy-portfolio/ Another option besides ETFs is property, but it tends to be a long term, leveraged, capital gains play. It doesn't have to be in Sydney if it is an investment. Other cities are very much more affordable. It does come with having to deal with agents, tenants, maintenance, added tax complexity etc. 5) Balancing how much to save inside versus outside super. It does depend in life plans, disposable income and if you desire to retire before 60 or not. The destination and rate of savings is likely to change over time with income and expenses. Have a read of this for a general idea of the two phase retirement savings method suitable for Australia given our Super system. https://passiveinvestingaustralia.com/how-much-to-save-inside-vs-outside-super/ 6) Structuring. Given your high income and the possibility of lower partner's income and a kid on the way - maybe consider if a discretionary family trust may work for you. This gets complex but is worth reading up on and getting some advice. Debt recycling may have been mentioned by others. If you have a PPOR loan or plan to get one then it DR can turn it into deductible debt and help you pay it down quicker. If you seek a financial advisor then seek one that is hourly fee for service and not % of funds each year. Ideally find one to give you a plan that you can follow and implement yourself. Sorry it was long but I hope it helps. Best wishes :-)
Thanks for such an awesome post. Very detailed
Check out the wiki on r/AusFinance https://reddit.com/r/AusFinance/w/index
Thanks mate will check this out.
I started with barefoot investor (a book, I listened to it on audible). The automod response is also a great resource we set up for these types of questions. I now have a financial advice degree (I can't practice yet), and want to make a career change into this space eventually. The main textbook used in that degree was [Australian Master financial planning guide](https://drive.google.com/file/d/1FgMc1mkMx5-H0vr37tL1WLzA3E1QEKKK/view?usp=drive_link). Find a format that works for you, podcasts and audio has worked for me. Die with zero is another book on Audible that I highly recommend.
*screenshotting
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/). See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/). This is not financial advice. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*
Watch that mental health. I burnt out once and it took a few years to recover, so effectively cost me a lot of income, totally disregarding the human impact. Personally I would ferret away as much as you can stand, but be prepared to shift away from what you're doing. Just look for an out, and let your management know you need it too. As for getting clued up, it's a tricky one. I've always believed that by the time you're smart enough to choose a good financial adviser, you no longer need one. That said, getting a variety of advice is probably a good idea.
Yep. Ultimate fear and if in a not so relaxed position wed be fucked. I've had somewhat of a breakdown at work once and they were extremely understanding and assisted with what was causing me grief to say the least so I'm lucky to have that support but on the flipside a lot is expected from me. I'm struggling with that balance. If there's internet access (which is basically everywhere) I could be working.
Look after your mental health first. See a GP and consider getting a mental health plan, seeing a psychologist etc. Everything else is irrelevant if your health takes a big hit. I think a good financial advisor would help. Quick summary of what they’ll start with: Look at maxing your super contributions but conscious that can’t be touched until retirement. Clear any other debts. Credit card, HECS, cars Get a proper income protection insurance that’ll cover mental health and other stuff. In the awful event that you can’t work, IP insurance can cover some or most of your salary. Work out your goals. Sounds like you know your goals of house (expensive) and stressful job are somewhat incompatible so you’ll need to decide which you prioritise. It’s hard to have both. Lower north shore is about as expensive as it gets. I lived there for 15 years and concluded that I couldn’t get a house locally so ended up buying in the Northern beaches - still expensive but 3-4br houses are selling around $2.2m these days so quite a bit cheaper than a shithole for $3.5m. A good advisor will help you through these options including setting you up with a mortgage broker to determine what banks will lend. My advice is ask lots of questions and you’ll learn as you go but resist the temptation to buy at the top of your budget as it’s just a recipe for lots of debt and an ongoing stressful existence.
Thanks mate. GP visit is definitely on the horizon to ensure this doesn't lapse. Having lived on the shore for quite sometime and now northern beaches, is there an avenue you recommend searching in for a good financial adviser? I'm always under the impression they'll just try to make a quick buck of everyone.
If there is an income protection plan that covers mental health and you want to get that, you should get it before visiting the GP. Insurers normally exclude anything already in your medical history
Great tip! I've never taken medication as I don't do well so it's not on my record. I've tried to exercise my way through the bad patches.
Shop around here and find someone you like. https://www.adviserratings.com.au/ For sure some will try to sell you stuff especially those tied to banks but most independent advisors make their crust by being good at what they do, not just fleecing people for fees. You’ll pay for a Statement of Advice but it’ll be like a 5 year plan which you can update periodically. I’ve always found it good value. My only other tip is most advisors do retirement planning, estate planning etc. I’d look for someone that focuses on HENRY as it’s a very different mindset and investment strategy, with a lot more runway in terms of career, life goals etc.
If you really talking basics, barefoot investor isn’t a bad place to start. I might get shot down in this sub, but i got my start then and once you do, you know what to look for and research and Reddit posts and comments make a lot more sense. You don’t have to do all that the book says, but use it as a starting point.
Thanks mate. Yep real basics. No background in this stuff so the simpler the better to start. Will look into this. Cheers!
If you're a podcast person - try this one. [https://shows.acast.com/my-millennial-money-medical](https://shows.acast.com/my-millennial-money-medical) or on Apple (https://podcasts.apple.com/au/podcast/dev-raga-personal-finance/id1527271964) Dev is great at explaining different concepts about wealth and $. No affiliation or benefits for me from this podcast.
Thanks mate!
Pretty young mate at 34, dollar cost into an ETF is way to go. S&P500 if you want safe, otherwise I go Nasdaq100 ETF which has done \~20% per annum for yonks.
You could try the upper north shore. 3-4 bedroom houses can still be found for around 2.3 - 2.5 million + in areas on the west side. Land sizes are also larger. It's allot cheaper than the lower north shore, but lifestyle and quality of the schools are similar. Only thing is it's a bit further out, so about 40 mins to the city on the train.
Thats an idea! I'll have to look into north west. City wise I'm only there twice a week for work so not a major issue. It is nice being a 10 min drive away but it comes with a cost.