This might have been mentioned before, but consider drawing up a detailed budget to note down exactly where all your money is spent. Have a good ol' notepad in your pocket and jot down any expenses you make on the spot. Don't count on accumulating receipts and looking at those at the end of the day. Some purchases don't come with receipts, not unless you ask anyway.
Most people are results driven. So if you draw up a budget in this manner and start cutting back on 'non-essentials', you can easily see how much you've saved just because you decided not to buy a packet of cigarettes, or a slab of beer, or that expensive packet of potato crisps at the petrol station. When you see real savings, I assure you that saving and eventually even investing will become extremely addictive.
I understand what JacM has said about property versus shares. Things are volatile at this point. I'll be honest and say that I believe nobody is really qualified to advise you on what to invest in and each person has different views and past experiences. Current economic conditions will also play a major role. Personally, I started with a small amount of savings and jumped straight into shares, which got me some savings to put towards a deposit.
IMO the hardest part is getting started, and it already appears you have done that, so the rest will be easier, and I hope that's an encouragement. Also, hit all your local libraries with that insatiable desire to read everything on investing that you possibly can, and get a reasonable grip on tax either through reading, or better, through a suitable accountant. When you're more comfortable with one investing option over another, investigate further and start putting money in. There is also a wealth of info here, as you've probably discovered by now. Accumulate as much knowledge as you can, and the process doesn't need to be expensive. If you haven't read ANY books yet, start with these two commonly recommended ones: 'Rich Dad Poor Dad' by Robert Kiyosaki, and 'The Richest Man in Babylon' by George Clason. These were the books my dad gave to me to read when I was around 13 years old, and the very first books I read about the way money works.
if you have really bad credit, i have read that in order to fix it up – start small and get small credit cards, and pay them off. Also, get some term deposits, and start investing in them. Then show the lenders of your term deposits, and gradually grow your amount in the term deposit – and lenders will trust you more – perhaps using the term deposit itself as a security for a loan.
Start borrowing small, and pay it off to how proof of your credit worthiness
I am now 36, and have made some financial mistakes in the past. Currently i am re building as it seems you are.
Stable income is important, definately priority one i would think.
Become more money savy as i also need to, educate yourself and as others have suggested start learning good money habbits.
You seem to have a few areas of interest when it comes to investing and i agree that diversifying is important, however I have chosen one main path of investing, property. In which there are many options, renting, developing, capital growth. Maybe consider narrowing your investment options and focus one one area to start with.
Just remember this, if i had started to educate myself when i was 27 instead of waiting until 36, i would be much further along with my property portfolio. It is never to late to start no matter what has happened in the past.
You have made the first crucial step though, you are making a change. Become financially savy, save money as best you can, do your due dilegence and when you are ready, take the next step.
Oh by the way, when I try to save cash i find it difficult not to spend it so i use term deposits and i do put a little into shares through salary sacrifice.
I wish you every success with your future endeavors.
I read somewhere………. For things to change, first things must change…… Or something like that. Makes good sense to me.
Cheers
fWord – thanks for the great tips… I get paid on the 15th with my first pay check and have already drawn up a budget, opened a savings account, and am ready to roll
will be back here to ask more questions and share my progress… oh and started a “to read” list!mattsta – not sure exactly what my credit file looks like, so am ordering one when I get paid on the 15th… then the broker will let me know what’s going on… i managed to open an electricity account an account with telstra for cable internet… so hope that helps
Danny F – tomorrow is the end of my first week back at work and loving it… so should have the stable income covered as I don’t plan to leave that job anytime soon… it’s great to see so much support and feedback from the community here that if I didn’t save and invest i’d feel like i’m letting you all down! now just myself
ozlat wrote:fWord – thanks for the great tips… I get paid on the 15th with my first pay check and have already drawn up a budget, opened a savings account, and am ready to roll will be back here to ask more questions and share my progress… oh and started a "to read" list! mattsta – not sure exactly what my credit file looks like, so am ordering one when I get paid on the 15th… then the broker will let me know what's going on… i managed to open an electricity account an account with telstra for cable internet… so hope that helps Danny F – tomorrow is the end of my first week back at work and loving it… so should have the stable income covered as I don't plan to leave that job anytime soon… it's great to see so much support and feedback from the community here that if I didn't save and invest i'd feel like i'm letting you all down! now just myself Well, your positive attitude is really admirable. Wonderful to see someone take the steps towards improving their financial future. Let us know how you travel. As you've probably found, there's heaps of people here willing to help with advise.
Go Ozlat.
You’ve plugged into a great resource bank here, lots of experienced and successful investors with a great variety of skills.
Nothing quite like it. You have a successful attitude so you will be successful if you keep doing what you’re doing.
Good luck.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
would a rent to own senario be good for for OZLAT?
im in the same kind of situation on were to start i screwed up when i was younger but now have a goverment job and on a good income
what's the deal with rent to own and vendour finace
Rent to own and vendor finance are basically the same thing.
Instead of the bank playing decision maker on the deal .. the vendor supplies either a line of finance .. a condition of terms or a means of payment for making a property deal happen.
It means you have to impress the vendor as to your credit suitability for the deal.
For someone who doesnt fit the stricter terms that a bank might issue .. it presents a position of flexibility for possibly getting a property.
As finance terms go .. its an expensive option in that while you might get 7% (or close to it) from a bank or credit institution, you might be paying 9% or 10% (or higher) to get the same deal from the vendor. The vendor wraps a deal and makes a margin over bank interest, the buyer gets a property without dealing with bank restrictions, and it gives him a good footing into the property market.
If it suits your needs for getting onto the property ladder .. then the answer is .. go for it.
Read all the fine print on the deal. Its not unknown for vendor finance providers to add sticky clauses into the paperwork. Be warned.
xdrew wrote:Rent to own and vendor finance are basically the same thing.Instead of the bank playing decision maker on the deal .. the vendor supplies either a line of finance .. a condition of terms or a means of payment for making a property deal happen.
It means you have to impress the vendor as to your credit suitability for the deal.
For someone who doesnt fit the stricter terms that a bank might issue .. it presents a position of flexibility for possibly getting a property.
As finance terms go .. its an expensive option in that while you might get 7% (or close to it) from a bank or credit institution, you might be paying 9% or 10% (or higher) to get the same deal from the vendor. The vendor wraps a deal and makes a margin over bank interest, the buyer gets a property without dealing with bank restrictions, and it gives him a good footing into the property market.
If it suits your needs for getting onto the property ladder .. then the answer is .. go for it.
Read all the fine print on the deal. Its not unknown for vendor finance providers to add sticky clauses into the paperwork. Be warned.
thanks very much thats helpd heaps bye the way im only 22 and looking to start out a.s.a.p and threw my research and home work iv came across rto and vendour. this seems the best option for me as i have little deposit with an average credit history
cheers Daniel
Hi Daniel
I have answered your PM but as Andrew said make sure you get your Solicitor to read the small print of the Instalment Contract.
Depending on where you are looking to buy will dictate when you will receive the First Home Owners Grant so dont depend on that being available on Possession in every State. Secondly make sure you are entering the contract for the right reasons as so often with a bit of hard work we find that we can obtain traditional style finance for a client rather than having to the VF route.
In saying that of course i still hold a decent portfolio of VF properties so sometimes it can be the only route for a client to follow.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I also recommend you pay off all your debit and save up money before you start investing. because whats the point of having your stock go up 5% if you have credit cards with 10% intrest or more. second i recommended you start with at least 5k dollars and be prepared to loose money.
Hi Ozlat,
If your happy to wait your credit file is free through Veda just takes a bit longer also from someone with previous bad credit history (minor but hubbies wasn’t) sometimes getting the report is a relief as you know whats in it, how bad it really is and what to start fixing eg pay if not paid and have noted as paid.
Best place to start is at the bottom
cheers and goodluck
will be back here to ask more questions and share my progress… oh and started a “to read” list!
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