A few months ago, I decided to get back into investing. We had sold our apartment years ago and the proceeds had just been sitting in an online savings account. The fact that interest rates were getting lower and lower in Australia prompted me to look for alternative places for our savings and I had been reading up and listening on podcasts about exchange traded funds (ETF).
ETFs are investment funds that are traded on a share market, such as the ASX. In this post, the words “ETF” and “share” can be used interchangeably. When I refer to buying an ETF, I’m referring to buying a share of an ETF on the ASX.
While I had invested in a managed fund in the past, I had never bought shares directly before. This post sets out the steps I followed to set up my ETF portfolio. (more…)
As the regular readers of my blog will know, I’m about to turn 27 soon which means that I have been mentally preparing to turn 30 for the last 6 months. Part of this mental preparation involves ensuring that I get my financial house in order. My early twenties were about getting rid of consumer debt, developing basic financial habits such as budgeting and salary sacrificing into my superannuation to make the most of compound interest. My partner and I also bought an apartment last year and since then I have been trying to build up 3 months worth of savings again. I haven’t quite yet gotten on the investing bandwagon outside of superannuation, but I can’t get trauma insurance out of my mind. I know, it’s a weird thing for someone in their twenties to say. I also would like to start this blog by stating that I do not work for an insurer and this is not a sponsored post, I’m just a twenty-something who happens to be passionate about trauma insurance (this is concerning even to me). (more…)
So, I’m turning 27 in August which basically means I’m turning 30 in 5 minutes and it’s never been more clear to me that I’m well and truly on the bus to grown up town. For one thing, in my new workplace, I’m no longer the youngest employee in the department. I’ve worked full time in office environments for over 7 years, and I’ve always interacted with older employees only. This was something I tried to hide at first, starting out as an 18 year old and keen to earn the respect of those around me, and then entering my early twenties it was something I embraced. But now there are at least 3-4 people I interact with who are my age or younger, I’m finally amidst my generation in the workforce and it’s making me realise that we’re all well and truly ‘adulting‘. Another example of this is meeting with a financial planner who was my age. Call me an age-ist but we were both sitting in this meeting room having a professional conversation and in the back of my mind I was thinking, ‘wow, it’s like we’re both pretending to be grown ups, but he’s my age, he knows that I’m not!‘.
I don’t know about you, but I and the majority of friends my age don’t feel like we’re bona fide adults yet. There are things in life that shouldn’t have to change with age if you don’t want them to. For example, how much fun you have, how passionate you are about what you do, your hobbies and the time you spend with family and friends. However, the looming prospect of 30 does motivate me to get the boring and basics of being a responsible adult in order. Here’s my guide to feeling like a responsible adult who has their shit together. (more…)
It’s never too early to start being sensible with your finances. I am not the best example of this. As soon as I turned 18, I took out credit cards and a personal loan, racking up thousands upon thousands of debt dollars like there was no tomorrow. The economy was strong back then and the banks had no issues with lending out say, $10,000.00 to an 18 year old who is earning $32,000.00 a year. This behaviour continued well into my early twenties. It didn’t matter that how much more I earned as I progressed in different roles, because it was all feeding my credit cards.
Even at my previous job, where I was earning a reasonable amount of money, I was living from payday to payday, sometimes shortsightedly leaving myself with under $100 to last a few weeks. I was a professional. I had an office. I scrutinised cash flow statements and P&Ls all the time, yet there I was, 22 years old, 5 years of full time employment under my belt having sacrificed uni life and free time, yet nothing to show for it. The turning point was when I took a new job with my current employer. There was a significant pay increase and suddenly I had the means and mindset to right my financial wrongs. I should note however, you are always better off starting NOW. Do not wait until some future event. I was silly to wait that long, however I also feel incredible relieved that I saw the light. I’m now 25 years old and have saved the equivalent of 5.5 months of my current income.
I have personally found these tips most effective.