Source
r/AusFinance•
SpoonPD

23, with a little too much pocket money and not many brain cells

HELP/HECs debt: 60k

I have 30k in a term deposit that matures in may
savings account at the moment is at 22k
i also have an investment property.

From my part time job i make between 500 to 700 a week,my only responsibilities being $250 for mortgage repayments and i spend 100-200 a week.

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I'll have 40k at disposal as i want to keep aside 10k for travel and emergencies.

Would it be better to whack my current savings into a high interest account or invest into other things like EFTs?

Posted Feb 10, 2019, 5:53 AM UTC

316
cappuccino_lover•

23, investment property, term deposit...

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You have plenty of *brain cells* don't beat yourself up!

25
Xdeer•

If you have a mortgage why not put it all in an offset account?

6
SpoonPDOP•

and this is where the 2nd part of the title kicks in... not going to lie, just had to google offset account.

i think i will put a portion of the term deposit in after it matures.

5
spoofy129•

You should put it all in. You’ll get more of a return on a mortgage than a term deposit and it’s tax efficient.

8
[deleted]•

What I wanna know is how did you even secure a loan? Working part time with debts... sounds ludicrous to me but i guess scenarios like this are the reason we are seeing such a big down turn

6
SpoonPDOP•

long story short, my parents got a shady broker and bought a property with my name. if it makes you feel any better it was purchased when prices were high and a bad area so rent is low and now house prices have been plummeting ever since. If you cant tell i'm not exactly the most excited about having a loan to pay off for the rest of my life either.

7
[deleted]•

No offence your parents sound like money hungry assholes who didn’t care about ruining your finances, just cared about using your name as it results in less tax for them

12
SpoonPDOP•

oh there were way more mistakes made and i've lost a lot more money than imaginable and continue to do so, however this isnt a pity party, i just wanted some advice on what to do with my situation.

10
familymoneytravel•

You should post up your story sometime. I am sure a lot of people may have ideas to help. Also always good to hear different ideas and options

6
Jiinoz•

What’s your investment horizon? You should have a decent allocation to long term (long term is definitely shares, etf’s etc) and perhaps some in a HISA if you’re going to be using it soon (for house deposit, car etc)

Let us know what your intentions are over the next 10 years with this money and we can give better advice, as if it’s being used soon it’s a completely different story to if you want to save it for a lot later in life

2
SpoonPDOP•

bought a car and its been paid in full. im still a uni student hopefully finishing by the end of this year and graduating next. I plan of finding a full time job after graduating and dont have any intentions of buying a house for the next 5-10 years ( the investment property is a pain enough). Im saving a portion (10k) of my current savings to go to any travelling expenses and/or emergencies. my part time job is stable so i do have consistent income. I guess my question would be, how can i make my money make money for me?

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3
Jiinoz•

Okay well I’d definitely put that term deposit into stocks, something simple like an index fund (VDHG is a good start). A HISA for your $10k as you want quick access to it. I’d aim to keep a decent amount as regular savings until you get a steady job with a higher wage, because without high income security it’s harder to gauge what money you’ll need in the immediate future.

2
SpoonPDOP•

so, first step, barefoot investors? aha.

thanks ill read up on index funds asap, i've taken a look at the google doc with a list of HISAs and its a lot to choose from all with different conditions too. seems like both take lots of work and consistent effort which i lack the motivation for

2
Jiinoz•

Barefoot is for people who are very very new to investing. It sounds like it’d be good for you, but also pair it with some reading on the internet to expose you to more ideas.

Remember, simple is best at the moment, things like index funds are ideal, don’t try and start picking individual stocks until you’re confident in it all.

2