Life advise...
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| 1 | After some advice, don't have a mother/father or family to discuss with so i've had to be fairly self-sufficent in my life. I've been recently learning lending/mortgage terms and the process and before I dip my toes I need a shock or words of wisdom :) 33 Years old, single but looking, $90k salary job quite secure, Auckland based (could go region but this will mean salary drops a bit) $20k ish on vehicle loan, no other debt, no savings, $75k kiwisaver so far, no dependants. Im gonna say that the car loan is bit of a major right? I know I can afford mortgage and the loan but banks won't see it that way, so I assume the advice is along the lines of "sell the car" and "get a partner?" and then possibly move out of Auckland? I have no interest in large houses/property, i'd prefer something small/simple as my lifestyle is more outdoors/fishing/hunting etc. original_fatman - 2021-03-06 15:04:00 |
| 2 | original_fatman wrote:
Very interesting set of questions. Consider moving out of Auckland and living where you can indulge in the activities you most enjoy. A modest pay decrease will more than repay itself with the quality of life. Purchase a property once you know you want to put down roots there and in the meantime reduce the car loan. All the very best. Edited by johnston at 3:16 pm, Sat 6 Mar johnston - 2021-03-06 15:15:00 |
| 3 | Yeah get rid of the car loan. I have a rule about cars.....never take out a loan to buy one. Probably why I am still driving my ‘olden after 14 years....lol lakeview3 - 2021-03-06 15:20:00 |
| 4 | Yes lakeview3 is correct, as is johnston about moving nearer to the hobbies/leisure activities you partake in, if buying a property make sure it is close to public transport/ centre of town as these will be easier to rent out later if required, once your established on the property ladder you will have more options, don't be surprised if the house price flattens out for a while, they will in the end,think long term. msigg - 2021-03-06 15:38:00 |
| 5 | Take a look at how you are burning through $1200 a week and try to make it $700. I think you have to do some saving and look to try and generate more income. superdave0_13 - 2021-03-06 15:51:00 |
| 6 | superdave0_13 wrote: And the easiest way to create more income in the hand which is then channeled into savings or investment, is to reduce outgoings ie costs and debt servicing. brouser3 - 2021-03-06 16:26:00 |
| 7 | lakeview3 wrote: Edited by orphic1 at 5:07 pm, Sat 6 Mar orphic1 - 2021-03-06 16:58:00 |
| 8 | I would be more worried about having a 90k job and no savings. You should be able to get rid of the 20k car loan by the end of the year with the money that you earn and then start up a savings account for you house loan differentthings - 2021-03-06 17:38:00 |
| 9 | Perhaps OP has an expensive rental that he lives in by himself. That would chew through an amount of money pw. Having said that the KS amount is nothing to sneezed at and is making a good start on saving for retirement, with a diversion along the way to help with a house purchase. If you able, flat with someone Perhaps go to a budget adviser. You can make contact with one through the Citizens Advice Bureau. Budget advisers are used to seeing all sorts and types of people and helping them attain their goals. The idea that many say is everything in moderation including moderation. So looking at that the loan for a car stands out a bit. These helped when we were buying a house Bus, train or walk to work or car share. If you need to use your car for work make sure you get reimbursed for your expenditure and ask that it goes into your savings account and not into your spending account check your mobile, electricity broadband etc plans for the best ones.... See if there is anything you could sell on TM I would do these sorts of things, particularity the budget adviser, before deciding to move to another town. Without addressing spending and knowing how to tighten your belt you may find yourself in a smaller town, on a smaller salary and still not able to save to meet repayments. Best of luck OP PS Banks should not be saying 'get a partner' as a reason for concerns about ability to save or repay. They are not supposed to have policies that go against anyone because of their marital status,. Often when two apply the banks will discount part of one salary. It does make it easier when you can save one salary and live on the other while saving for a deposit. PPS Saving is not supposed to be a grind, if you can motivate yourself with a long term view that is what will keep you going and this is what a budget adviser will help you with. They might even be able to get a less onerous loan for the car if it has been taken out with a third tier lender. Edited by shanreagh at 6:13 pm, Sat 6 Mar shanreagh - 2021-03-06 18:05:00 |
| 10 | I would look at getting an apartment close to where you work. These are cheaper for a first step and also easy to "lock and leave" when you want to pursue your outdoor activities. Spend 6 months reducing your spending and saving as much as you can which will give your bank statements a positive thing for your potential lender. lyng1 - 2021-03-06 18:25:00 |
| 11 | original_fatman wrote:
When you ask for advice sometime you will hear things that you find unpleasant but if you want to get ahead and you are not now you are doing something wrong. Your lifestlye is to extravagent if you want to buy a house, I can run a house with me and my wife and one child on less than what you are spending on yourself, You need to cut back on expendature, there is no doubt than you can live on way less than what you are now and be saving a decent amount of money per week, the bank will likely want to see a savings history. curlcrown - 2021-03-06 18:33:00 |
| 12 | My observation is.. when a single guy gets a house (wins Lotto, inheritance, or just hard work) then shortly afterwards a woman moves in and changes everything. The mancave becomes a nursery etc. masturbidder - 2021-03-06 22:44:00 |
| 13 | masturbidder wrote: well he shouldn’t invite her to live there then.... Always the woman’s fault eh.... lakeview3 - 2021-03-06 23:24:00 |
| 14 | Don't buy an apartment. The body corp is a killer and keeps going up and up. It's too hard for young people to get on the property ladder now as more and more people are buying up loads of properties for rentals. You're probably paying some exorbitant rent right now, which is why you're probably not saving. I'd head overseas where your chances of home ownership are better. mazalinas - 2021-03-06 23:35:00 |
| 15 | original_fatman wrote: lythande1 - 2021-03-07 08:23:00 |
| 16 | lythande1 wrote: bryalea - 2021-03-07 09:08:00 |
| 17 | lythande1 wrote: Not necessarily - obviously depends on the details. If the vehicle is depreciating (as most are), then there will be a shortfall on the return to pay off the loan. It might be more sensible to divert as much money and just pay off that loan ASAP. And / Or depending on who the loan is with, look to refinance elsewhere. Retail vehicle finance rates can be 12%+, many finance companies offer 7% - 8% for car finance eg aamoney. Edited by sparkychap at 9:15 am, Sun 7 Mar sparkychap - 2021-03-07 09:14:00 |
| 18 | My two cents worth: Best finance advise i ever heard: no matter what your circumstances, get hitched young, stay hitched. zirconium - 2021-03-07 10:06:00 |
| 19 | Nothing against this person, good on them for asking for help. Can anyone explain though how our family and education systems are letting people get to their 30’s and not have any idea about running the financial side of their life? One class a week from primary school through secondary on budgeting, leverage, compound interest etc would probably sort out half the problems we have as a society. None of this stuff is complicated, in fact it is so painfully simple that I struggle to get my head around people not understanding any of it. As for the OP, you’ve been given good advice. Raise your income stream, lower your costs, clear your debt, save an emergency fund, allocate money to retirement, save the rest. Literally every dollar counts. If it helps have a look on YouTube at https://youtube.com/c/TheRamseyShow This guy is American but the fundamentals are the same anywhere. matt5209 - 2021-03-07 10:22:00 |
| 20 | Have a look at 2brm units in small blocks. pcle - 2021-03-07 10:56:00 |
| 21 | matt5209 wrote:
Matt I agree completely. Edited by shelleigh at 12:06 pm, Sun 7 Mar shelleigh - 2021-03-07 12:06:00 |
| 22 | superdave0_13 wrote: Years ago when I was facing redundancy I went over my budget and saved a lot of money by changing internet, power and insurance providers, or by threatening to change and being convinced to stay by "customer retention team". I sold my lovely V8 (no 20k loan on it though!) paid the small amount owed, and bought a more sensible car with cash. melagray - 2021-03-07 12:53:00 |
| 23 | original_fatman wrote:
Could you buy small and semi-rural, then rent it out for a couple of years and use the equity to buy where you want later? For some the first step on the property ladder is the hardest, and I'd consider getting on it any way possible and work from there. It worked for me. All open lines of credit may need to be paid off and closed for the best loan. Even unused overdrafts or "for emergency" credit cards can affect what a bank will lend you as they allow for that line of credit later being used, with the potential repayments being built in to the budget. I was asked to close an old Farmers Card account even though it hadn't been used in more than a year. It had a 3k limit, so the bank treats it as a 3k debt just in case. melagray - 2021-03-07 13:03:00 |
| 24 | Just a couple more from me: A budget adviser may suggest having an amount equal to 3 months of expenses, as a rainy day fund to tide you over if you get a sudden illness or are out of work. It might be a good idea to do this asap. You can then practise with this money learning how term deposits work. The rates are low but if there is money to be made, it is better being made on my account than anyone else's. Soon you will be earning interest on interest, what my dad used to call the 'magic of compound interest'. Making bulk meals can be a way of saving time and money...making up two or three meal lots of mince to go in risotto or pasta sauce. Also ordering groceries for pickup can save the cost of the treats that sneak in when you buy in person. There is a fee but I have found it is less than the cost of the things that jump into my trolley or basket. This is a good NZ website 'Sorted is a free service powered by CFFC (Commission for Financial Capability), the government-funded, independent agency dedicated to helping New Zealanders get ahead financially. You can learn more about what we do and why on the CFFC website, or contact us directly at office@sorted.org.nz.' Edited by shanreagh at 3:05 pm, Sun 7 Mar shanreagh - 2021-03-07 15:02:00 |
| 25 | melagray wrote:
Good advice Melagray...had forgotten about the store cards, even if unused. shanreagh - 2021-03-07 15:03:00 |
| 26 | matt5209 wrote: I reckon having a good job, and a desire to get ahead is pretty good for anyone. zirconium - 2021-03-07 16:34:00 |
| 27 | zirconium wrote: mowerman99 - 2021-03-07 17:27:00 |
| 28 | Will throw my 2 cents worth in, life is about forks in the road or crossroads as they say - at 33 a lot of people have sorted out their direction - you by the sounds of things haven't - making good coin - if you can control your spending and can figure out what you really want that would be a start - but with that spend life is probably pretty good at the moment. A bloke suggested earlier meet a woman young and stay together - yeah if it works it works. I'm in my mid 50s and thinking back no one I know that got married young are still together - not like my parents in their 70s. Some of the best advice i heard was from a mate - to a mate of his - he was in love with a girl he recently met as was wanting to get married - mate said " don't do it mate ", message wasn't heeded - didn't work out and years later he said I wished I had listened. My advice is be careful who you hook up with - it can make your life great or completely the opposite .. In saying that I have been with my partner for 20 years and certainly not whom was on my list so to speak and life couldn't be better - good luck mate .. ian86 - 2021-03-07 20:48:00 |
| 29 | zirconium wrote:
You’ve made my point for me again. It seems like a huge number of people are getting no guidance from their family. The education system seems to provide absolutely no guidance either. I’m not blaming this person, I’m pointing out that it’s just ridiculous that an adult in their 30’s has never been taught this stuff, let alone taught any basic life skills that would lead them to seek out this information by themselves. If only this person had been asking these questions ten years ago, let alone maybe when they were in their teens so they understood what life was going to require of them and what they could do to prepare. It’s great to see so many on this forum provide the basic and sensible guidance that is needed, but it really seems like this sort of knowledge is becoming less and less available. Anyway, it really is as simple as the advice that’s been given in here. No tricks to play, no quick route. Literally just stop spending every unnecessary dollar until you’ve figured out what your priorities are and what you are trying to achieve. Oh, and don’t borrow 20k to buy a car. matt5209 - 2021-03-07 23:07:00 |
| 30 | matt5209 wrote: I agree about the lack of financial planning and budgeting advice in schools. They should have compulsory courses in school regarding budgeting and handling money. This is a skill for life. megan109 - 2021-03-07 23:58:00 |
| 31 | megan109 wrote: schools are already having to teach so many things that there just isn't the time. annie17111 - 2021-03-08 07:56:00 |
| 32 | annie17111 wrote:
Be careful with those. Many have a hook at the end to get you to invest in shanreagh - 2021-03-08 08:37:00 |
| 33 | Maybe parents can take ownership and not just expect school to do it. sparkychap - 2021-03-08 11:02:00 |
| 34 | matt5209 wrote: sweetgurl108 - 2021-03-08 11:31:00 |
| 35 | The car loan at $20k, is more than likely a high quality or new vehicle. smallwoods - 2021-03-08 11:53:00 |
| 36 | shanreagh wrote: I was meaning more like this annie17111 - 2021-03-08 12:19:00 |
| 37 | sparkychap wrote:
You're absolutely right, which is why I said families first and schools second. Unfortunately I think both institutions are generally lacking in the ability to provide this. We see this sort of story almost daily, often its young parents struggling to find a home for their family. Now if they don't have the skills to arrange their own financial situation, what will they pass on to their kids in terms of knowledge? I agree with the other poster about it being hard to find time in the school curriculum, but if the kids aren't getting that info from family it has to come from school. Im ultimately being facetious of course because with education performance steadily declining I wouldn't hold much hope for that system to pass on the right knowledge anyway. There is always talk about the rich getting richer. What I don't think people get is that it is not necessarily true through the generations simply through wealth being handed down (yes there will always exceptions). What makes the rich richer generationally is that they are passing on successful life skills to their children. A kid is so far ahead if they have been exposed from day one to, amongst other things, financial literacy. Sure a kid can learn it on their own, many do, but most just aren't going to pick those skills up as easily. Heres an example. Our children each has an investment account that we trade on their behalf in index funds. We put literally a handful of dollars each pay into that fund and then we talk to them about what that means. Now at 5yrs and younger they don't understand a huge amount, but they know they are saving for something, and they know that they have a bit more money each time we talk to them about it. They are learning and developing their financial skills. Ultimately that is what will give them a head start over their compatriots, not any money that we may or may not give to them when we pass. matt5209 - 2021-03-08 13:50:00 |
| 38 | Some good advice here, just wonder if you should talk to a mortgage broker and see if you can get a long term plan going for you and goal setting. Good luck. asue - 2021-03-08 15:37:00 |
| 39 | matt5209 wrote:
Matt I know I've only quoted parts of your posts however these two paragraphs are so true. shelleigh - 2021-03-08 15:48:00 |
| 40 | shelleigh wrote: To teach that means the poor will no longer be poor. No longer needy on the state for support. Ergo, the state (Labour) loses votes. keys - 2021-03-08 17:30:00 |
| 41 | keys wrote: To teach that means the poor will no longer be poor. No longer needy on the landlords to provide rentals. Landlords lose their revenue streams. Ergo, the state (National) loses votes. sparkychap - 2021-03-08 17:49:00 |
| 42 | Good on the poster asking the questions - any time is a good time. I was not in a mindset to understand financial concepts too much at a school. It came in my 20's as part of growing up. A lot of it comes down to personal responsibility to manage your own future. With the drive to nanny state managing more and more of our lives, sadly this is an outdated idea. As far as Rich Dad Poor Dad is concerned - I thought it was an awful book, basically encouraging getting wealthy off other people's misfortune (hunting down mortgagee sales etc). Rather than striking fair deals. downsouth1 - 2021-03-08 18:10:00 |
| 43 | downsouth1 wrote: yeah and actually there is more to life than just being rich...... Health and love cannot be bought. I recently bumped into someone from my past, very wealthy now, but alone again......everything comes at a price huh? Depends what’s important I guess. lakeview3 - 2021-03-08 18:17:00 |
| 44 | lakeview3 wrote: This is such a crass stereotype. I know plenty of rich people who are healthy and very very happy. It just makes you feel better to try and perceive rich people to be unhealthy and unhappy. sparkychap - 2021-03-08 18:18:00 |
| 45 | sparkychap wrote: lol I bet you do! lakeview3 - 2021-03-08 18:21:00 |
| 46 | lakeview3 wrote: Yes, I do. sparkychap - 2021-03-08 18:23:00 |
| 47 | Health first, wealth second mowerman99 - 2021-03-08 18:41:00 |
| 48 | keys wrote:
So right there unfortunately Keys. shelleigh - 2021-03-08 20:26:00 |
| 49 | downsouth1 wrote:
Downsouth there was far more to the book than encouraging getting wealthy off other people's misfortune. A lot of it was very basic financial information than sadly too many people are unaware of. shelleigh - 2021-03-08 20:27:00 |
| 50 | shelleigh wrote: So why is the government actually encouraging teaching financial literacy in Schools then? sparkychap - 2021-03-08 21:01:00 |
