All Topics / Help Needed! / Save save save !

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  • Profile photo of emcdonaldemcdonald
    Member
    @emcdonald
    Join Date: 2004
    Post Count: 162

    Afternoon all,

    Just a question in regards to the ever-elsuive deposit i am trying to save for my IP. Does anyone have any stories about how they raised the money for their initial IP deposit(not including gift money or financial backing from family and friends) ? If you’ve got time i’d love to hear some of your answers as i am a terrible spender.

    cheers,

    e x

    Profile photo of geogeo
    Member
    @geo
    Join Date: 2003
    Post Count: 1,194

    Work out a budget – then have the bank transfer a certain amount of your income to a savings account on a weekly basis that you can’t touch and this amount is obtaining an interest rate of approx. 4%

    the option is to transfer automatically some of your funds/savings into a Savings Maximiser like ING that will earn you about 5.25%. This will help contribute to your savings for the deposit on your property.

    Kind regards,
    George.

    I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

    Profile photo of geogeo
    Member
    @geo
    Join Date: 2003
    Post Count: 1,194

    you can always get a student loan from the bank if your a student. You will be charged about 11% but if you get a property that is 14%+ your still winning.

    Kind Regards,
    George.

    I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612

    Hi Emcdonald,

    Get yourself the biggest, widest money box you can find….a 44 gallon drum (all dolled up) will do nicely [lmao] (just kidding) just any old BIG sealed container …and drop all your “gold” coins into it!!!!

    I tried that once for fun, thinking it would be interesting to see how much I could come up with; I started it on New Year’s Day and by the time 1st December came round (to my amazement as the coins hardly filled to quarter of the way) I had managed to save just over $1800; not bad for just emptying out my purse of its change each night!!!

    I was so pleased, the next year, I decided to do it again, only this time, along with the gold coins, I was decided to fold up notes, whatever I felt I could spare at the time…..so occasionally I’d fold and slip in a $5 dollar note, other times, I’d (begrudgingly)[glum2] put in a $20. Come December again, and hey presto shocked2] $2500…I was stoked!!!!

    Try not to see saving as a “chore”. After all, who said saving can’t be fun????!![juggle]

    Jo

    Profile photo of Supa FreakSupa Freak
    Member
    @supa-freak
    Join Date: 2004
    Post Count: 101

    YooHoo i’m with you Miss Mono,
    Did the same thing with a shoe box and saved for a family holiday.
    EMacca, i agree with geo, put some money away where you don’t have access to it via a card, so you have to physcially go into a bank to get it out. It is good you know your weaknesses

    Sf

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    emcdonald,

    Ask your accountant/pay officer at work, to deduct $150/$200 per week from your pay (or whatever you can afford), and put it into a savings account for you.

    I also used to make savings by still having HECS deducted, even after I had paid the debt off. Then at tax time, I’d just have a lump sum.

    I too am a spender (but I like to think of myself as a “good” spender, rather than a “terrible” one- hehe), and hence I like compulsory savings. It’s one of the reasons I first liked real estate- compulsory savings of paying it off. I still use RE as a form of compulsory savings, but it’s getting the deposit to begin is hard.

    I pretty much used tax returns as deposits.

    kay henry

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    Hi emcdonald,

    There are ways to buy IP properties with little or no money of your own. Yes but that doesn’t mean that you can keep spending your money.

    Good luck!

    Cheers
    PropertyGuRu
    [sultan]

    Mortgage Consultant

    Profile photo of emcdonaldemcdonald
    Member
    @emcdonald
    Join Date: 2004
    Post Count: 162

    thanks for the response – great idea about the hecs deduction…i think it’s about time i bit the bullet and went and saw my bank about a new savings account [biggrin]

    Profile photo of haggethagget
    Member
    @hagget
    Join Date: 2004
    Post Count: 5

    This might be a little extreme but I sold a car and bought a pile of junk just to minimise any outgoings(repayments) at the time. I was also lucky to land a job in the outback that limited my ability to spend anything at all! A bit extreme but it worked. I still empty all gold coins into a savings jug everyday to keep up the savings habit. Good luck e.

    hagget

    Profile photo of MJTMJT
    Member
    @mjt
    Join Date: 2004
    Post Count: 80

    Hi there emcdonald, we have an amount go each month from our pay to an A/C that has only fees when you withdraw from it and bonus interest (probably 0.0000025% added to nothing) for having a balance over $500(I think).

    For our first house we used a combination of the first home owners grant, refunds at tax time, $15000 personal loan and $4000 from the inlaws. We wanted to have 20% to avoid mortgage insurance.

    I thought it a bit dodgy to use the P loan but it worked.

    [pimp]

    Matt

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    emcdonald,

    you can probably also sell your car if you have one. If you live near work and public transport… ya don’t really need a car (mine sits in its car cage and I barely use it, but I’m too much [inlove] with it to sell it :)

    kay henry

    Profile photo of emcdonaldemcdonald
    Member
    @emcdonald
    Join Date: 2004
    Post Count: 162

    Thanks Kay, unfortunately my i need my car for my job (REA) i would like nothing better than to be able to sell it and use the money towards a deposit. Perhaps i could be the first running real estate agent??
    e x

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Check out ING Direct. High interest and no fees. Many of my clients use this to save a deposit in!

    All the best,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    NODOC Loan – 65% Loan – No questions asked!

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Sorry hagget- I didn’t see your post about selling off the car- mine was kind of redundant after that :)

    emcdonald, yes, RE agents require a car, don’t they? And a good car too. You can’t be showing people property in a datsun 120Y :) Maybe your agency will pay you to have their logo painted on to your car? Like a roving advertisement for them- dunno… it wouldn’t be usual, but it could be worth something to them.

    If you get any pay rises, you can also make sure you put that money straight into your savings.

    As a RE agent, wouldn’t you be selling houses and then get a big lump sum when each place is sold? You could just keep a few of those and voila! Massive deposit!

    kay henry

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    show an interest in invsting to your RE principal, ask for help from your work-mates, supprisingly, people are happy to offer advice and help (look at this forum)

    read “The Richest man in Babylon”…a “must” read for any investor.

    And get friendly with a mortgage broker..

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of emcdonaldemcdonald
    Member
    @emcdonald
    Join Date: 2004
    Post Count: 162

    Thanks Kay Henry and Redwing,
    I am thinking of salary sacrificing and taking a company car, the current one costing me an arm and a leg with repayments (though not a datsun :P )
    In regard to the Richest Man in Babylon, i own the book but haven’t actually sat down to read right through it atm, am currently going through Peter Spann’s latest ($10 million dollar portfolio).
    As for my principal he is going through a very bitter divorce right now so prob not best to ask him about investment strategies…anyway that’s what you guys are for!!
    thanks for the responses,
    e x

    Profile photo of CeliviaCelivia
    Participant
    @celivia
    Join Date: 2003
    Post Count: 886
    Originally posted by emcdonald:

    In regard to the Richest Man in Babylon, i own the book but haven’t actually sat down to read right through it atm

    I think Clason’s book was a really interesting read.
    Re saving: If I remember correctly, the advice given on saving by the Richest Man in Babylon was very simple: Spend no more than 90% of what you earn.
    Invest the 10% you save.

    Celivia

    Profile photo of MJTMJT
    Member
    @mjt
    Join Date: 2004
    Post Count: 80

    You won’t need time to read “Richest man in babylon” …it will follow you until you’ve finished. You will take it to the toilet, read in ads and at the stop lights!…..Classic story.
    Read it 3 times and couldn’t put it down each time.

    Kay, spekaing of logos on cars, I saw a business program where an ad company organised for your car to be painted with a businesses logo and paid you for the ad space. Good idea.

    [medieval]

    [medieval]

    Matt

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    sell more houses = more commission = more savings

    this is not an attempt at humour or sarcasm – focus on your core business and the money looks after itself, focus on the money and you’ll be a slave to it forever

    cheers

    Brendan Heagney
    Mortgage Broker
    0438 436383

    If you don’t ask, the answer is no!!

    Profile photo of PursefattenerPursefattener
    Member
    @pursefattener
    Join Date: 2004
    Post Count: 217

    Well, plenty of sound advise, but Kay. What is wrong with a Datsun 120Y ?

    Shawn

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