r/AusFinance • u/New-Channel-2773 • 23h ago
20yr old, seeking some advice
Hi guys, I was wondering if anyone had some advice as I don’t have anyone knowledgeable in my life to ask about this, I currently have around $31,000 in my savings account making 5.35% interest per annum (I live at home and pay board and other expenses but have a part time job (33hrs/week) and a casual job (around 10hrs/week)). I was wondering if anyone has any advice if I should move any of this into a term deposit or invest in stocks or ETFs? I have been trying to learn myself about how to manage money but it is a bit overwhelming. Any advice would be helpful, thankyou
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u/mjwills 23h ago edited 10h ago
Go to the library and borrow The Barefoot Investor.
Read Lazy Koala Investing .
Each week give yourself one small task.
For example:
Week 1 - read the book
Week 2 - find a cheaper mobile phone plan
Week 3 - find a better (cheaper) super provider
Week 4 - read up on FHSSS
Week 5 - decide on an ETF that you might choose to invest in, and sign up for an account (e.g. at Betashares Direct)
Week 6 - put into practice 1 or 2 things from the book
52 weeks of these small tasks, and you will be ahead of most 30 year olds (knowledge wise).
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u/No-Secretary8781 23h ago
Good on you kiddo, I wish I saved that much when I was your age! Keep on rockin, you are going to be killing it by the time you are 30. ETFS FTW
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u/New-Channel-2773 2h ago
Thankyou! I am really lucky and grateful I can live at home at the moment and try and save up. Although sometimes I feel like I am missing out on experiences and life as I don’t really spend any money I put aside for myself after groceries and board.
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u/simitydior 15h ago
Firstly good job! Awesome achievement at 20. Depends on your goal. Are you saving for a house deposit? Are you trying to retire early? Compare the interest income you’d get from the term deposit vs your high yield and see if that’s worth switching/mests your goals.
In the long run, you’ll make more from index funds income than you ever will from bank interest. My generationally rich in laws would tell you your money is collecting dust lol they don’t keep anything in savings accounts and invest absolutely everything for this very reason. But as someone who is very cautious with money and didn’t grow up with a lot, I have a safe buffer. For me it’s a $5,000 emergency fund and $5,000 free savings (to spend on what I want, holidays, new couch ect). Depending on what that is for you, you could realistically invest the rest but again depends on your overall financial goal
I’d recommend following and watching financial videos on YouTube. My favourite finance channels and people to follow are the financial diet, your rich bff and her first 100k
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u/rothki 19h ago
I'd say to buy a house as soon as you can. I purchased my first house at 19 with no deposit, just my parents as guarantor, im now 39 and live in quite a nice suburb with a minimal mortgage for this day and age, and nearly 240k in super, and live a full life too. The longer you stay in home, the less you strive to improve, in my view.
Houses are affordable these days, just as they have always been, you just have to be willing to start at the bottom.
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u/SivlerMiku 19h ago
>houses are affordable these days just as they have always been
Do you have fucking eyes?
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