Remember To Water - Growing your personal finances
Happy Valentines Day! I thought I would do a valentines day post about something that is having its 50th anniversary on the 14th of February 2016. That’s right, on valentines day just fifty short years ago Australia made the switch to decimal currency. For everyone who helped make, or was part of the change I offer up a very big THANK YOU! I may not have been alive back then, but being a coin collector in a previous life, I have always been aware of the change. My father used to sing the song to me every time the topic...
After my last post on ways to waste your money, one of my friends came to me and asked about why I had not included fancy cars on the list. You could argue that a ride in a fancy car could come under activities, or that learning covers off car mechanics, but neither are really a justification for owning a fancy (read: expensive) car. There is a reason for that, I am not a fan of fancy cars. Or more specifically, I am not a fan of the cost implications of fancy cars. What’s Wrong With A Fancy Car? There...
I was out with my partner having a coffee a few days ago, and we decided to get an overpriced vanilla slice and a brownie. This is something I normally don’t do, or at least don’t do without a reason to celebrate. The idea of paying more for something I could make at home just doesn’t sit right with me. It’s a waste. At home, the total would come to about $5 (possibly less), but at the cafe it was $22.50. That’s a steep markup. I made the remark “at least it is a tasty way to waste your money”. One thing led...
I know this December net worth update is a little late, but given it is my first one since finding out I was an accidental millionaire, I hope I can be forgiven. My intent is to post updates at least every 6 months. The Australian tax year is from 1st July to the 30th June, so updates at the end of June and the end of December seem to fit perfectly. If anything notable changes I may post updates more often, but those two I intend to be a minimum. I also hope to start monitoring my passive income with regular...
I have never been one to set new year goals. Never one to set goals in general actually. My goals have always been things like “do better” or “save more”, however this year I thought some more specific goals may be in order. The realisation that we were accidental millionaires last year, along with paying off the house, have made me want to focus more on achievements. So these are my 9 new year financial goals for 2016. Increase Net Worth By $100k Initially I put $75k here, thinking that $100k was a bit too optimistic. However after I actually took the...
Ok, I admit it, the title “How We Made Our First Million Accidentally” is designed to sound as impressive as it can. I enjoy looking at things from both the best and worst perspective possible. In this case, that just happens to tip the scales over into that 7-digit territory. But I am really just an ordinary person with a normal job. If you are reading this and thinking “pfft, been there, done that” then I hope there may still be some tips you can pickup (or feel free to provide your own advice in the comments). If you are...
The Remember To Water Repayment To Rent Ratio score (RTW RRR) is a number designed to tell you how well you could (or should) be saving when trying to buy a home. Like all simplistic models it is far from infallible. But I believe it provides an interesting look at how you are, or could be, doing when it comes to saving a deposit and readjusting your rental expectations. What is the Remember To Water Repayment To Rent Ratio (RTW RRR)? Your RTW RRR score is the ratio between your minimum mortgage repayments if you had a 100% loan and the...
So how much do you really need for a house deposit? When I first seriously started thinking about buying a house I had no idea where to start. I knew you got a loan and then paid it off. I knew how to look for houses that I liked. I had been “house window shopping” for years already, but the technical details around financing and deposit requirements were all new to me. Lenders Mortgage Insurance Being a naturally inquisitive person who likes to learn, I found myself with financial institutions providing me with information that just posed more questions. I...
I will get to the ultimate low rate credit card in a second, but if you are like me, then once you have saved up a 20%+ deposit, found the right home, completed any inspections, and finally moved in, you want to start paying it off. In todays low interest environment, with home loans (in 2016) dipping below 4% in Australia and lower elsewhere, it is a perfect time to make some good in-roads into your mortgage. Nothing feels better than taking a chunk out of your debt – or at least not that I plan to talk about here....
