commitments & percentage of your income

[5.0failane]

I think our mortgage is about 65% of our total household income... Thats why I've had the same car for 10 years haha

[DDXR6T]

Loan $95
Rent $80
Fuel $50
Insurance/Rego/Phone bill (one allotment - Always same) $70

Out of $600 a week - I don't know where the rest goes?! Booze and fast food perhaps?

[G6ET8U]

Single, 29yo still live at home but with a difference...

Mortgage 20% (shared equally 50% each)
Personal Loan 10%
All household bills 20% (shared equally 50% each)
Salary Sacrifice to Super 10% (I won't have the same issues as my Dad had...)

It's easy to sit back and say you should move out at 18yo, but everyone's circumstances are different. Both of my parents have been sick at some stage meaning no work, yet there was a mortgage and bills still to be paid. Mum was first, cancer, spent 2 years away from work. Dad was next, he went downhill because Mum was sick and has since developed diabetes and a raft of other problems. He can't work now, and has retired, he's only 60, and has now been retired for 4 years, he had very little super as he worked for himself for most of his life and money never went that far unfortunately.

I've never lived outside of the house I grew up in... do I regret it somewhat? Of course I do. But I have a level of independance that I think rivals living out of home, our situation is more of a housemate thing. I do what I like, when I like, so do they. They are adults and so am I, I treat them as such and they do the same for me. Easy.

But would I see my parents who worked so hard all of their lives to provide for me and my sister (lives overseas and has done for so 10 years) lose their house because of circumstances outside of their control? NO. And so here I am 29yo and still living at home.

I own my car, I owe $75,000 on my 50% share of 'our' 300k house.

When life throws you lemons, you make lemonade.

Jack

[MoreHPformyXR6]

24.5% of my income goes to my mortgage.
I have one credit card (I pay more than minimum but as a % of income I cant be bothered working out)
No personal loans own the car outright.

[BlueRaven]

I moved out as soon as I had a job for 3months or so. I never had a part time job, so you could say it was as soon as possible. I believe I was 18 at the time.

I never regret it. It was a shame I didn't stay at home for at least a little longer to get a good car....as such I've never really had a good car (my XB is getting there - its at least 40% of a good car now...lol) because of it. But I still don't regret it.

[V8falcons]

excellent work there guys some good replys it makes me feel abit better,my 46% commitment is on my base rate and with overtime it halves so its not too bad,but like every one else we want more and the house finish now.Just got a/c to finish off,gardens to do,and some more furniture,And we will be happy,the wife is about to go back to work so things will improve we expect.

As for the rest of the bills we set aside an amount weekly that usually covers all general living expenses.

well get there. : :

[Cruise]

Originally Posted by atec77

I tok a couple home . Mum got seriously upset about it
I bought a van

I used to have a laser liftback fold the back seats down and go for gold!! Never underestimate a hatchback!! but that car is now scrap metal RIP


Im 19 and just under 50% of my income goes to pay off my home loan and about 20% to bills and food and then i save about 20% and 10% just seems to disappear

[GXL078]

Home is paid off. Got married late (36) to a woman who owns a unit outright. Managed to conceive a child with her that is due next month. A SON!!! So no pink **** to buy, thank God. She doesn't have to work as she earns good rent from her unit. We have quite a bit of savings between us and she will be coming into decent inheritance soon as well.
I can go to Europe any time I like as my sister lives in Switzerland and its central to quite a lot of good places.
Cars are not high on our list of priorities. I like to have older cars I can tinker with. I leased a new car for 18 months and it cost me a bomb to get out of the lease but I had no option due to change of job. Wont bother with THAT again, you have to PAY to have the oil changed every SIX months, NO THANKS! My bought my wife a little auto Pulsar she can drive and I can fix instead.
Neither of us drink, smoke or gamble and we went for the $5 roast at Parra Leagues on Valentines Day.
Oh, and we got married in a registry office, by ourselves on the other side of the country, because why pay for a wedding when we already have two of everything? We had a really nice lunch ourselves on the day.

[DTFRMONT]

Originally Posted by xcgxl

Oh, and we got married in a registry office, by ourselves on the other side of the country, because why pay for a wedding when we already have two of everything? We had a really nice lunch ourselves on the day.

Sounds like a mate at work, instead of paying 10 grand plus for a wedding, he & his missus decided to spend the money on a trip to Europe & ended up getting married in a registry office in Edinburgh!

[Mechan1k]

^^^^^^^^^^^^^^^^^^^^^
Best way to go ... i just got married (after Bec wanted the full white wedding) ... after it all she said we should have eloped and had a massive holiday instead .... LOL

Now she says it .... grrrr.

These figures are just off my 1st job (only on base as well ... not inc. loadings or O/T)
approx 50% goes into home loan
10% phone bill
10% LPG
10% insurance/rego for both cars
20% Things for myself/home improvements

My other job depends on what time I have off between shifts ... and how much I really want to work inbetween ... also first job pay increases with loadings and Overtime (so the percentages change then) .... and I end up with extra in the end.

Wife works full time and earns fairly good money as well.

She pays for the groceries, electricity, home phone, internet, Foxtel, fuel for the other car ... and her hobbies and things for herself.

We also put extra aside at the end of the our pay periods that we have left over ... and it gets put in another account ... this goes to things that we need sometimes (council land/property rate ... cost of services needed ... home improvements ... materials needed for the property ... etc)

Always things to do at home and out on the property ... so we sink more money into pasture improvement as well as fencing as well. Save to put a few more horse shelters up and hopefully putting a sand arena in in the near future as well.

It never ends.

Some pay periods I find I need to watch the pennies a little ... it just depends on the bills/expenses at the time.

[GXL078]

Originally Posted by DTFRMONT

Sounds like a mate at work, instead of paying 10 grand plus for a wedding, he & his missus decided to spend the money on a trip to Europe & ended up getting married in a registry office in Edinburgh!

Hopefully they got one of the few days a year that it doesn't rain there. Billy Conolly tells a good yarn about his seaside holidays as a kid, standing on the beach with a bucket and spade in a raincoat, in July(summer)!!, LOL.

[4.9 EF Futura]

Originally Posted by Casper

Must be awesome taking the hot chick back home to your bedroom as "mums place" :

Moved out when I was 21.. and have stood on my own 2 feet since then. Even that was too late, should have started at 19, could have been 2 years further ahead now.

Lol, im prob the other extreme... moved out bity early, wasnt earning enough, still got a niggling debt as a result!

Just to throw it out there... based on the "old" way the banks used to assess ability to repay a loan, anything more than 35% of gross income going towards debt service is considered fairly aggressive gearing. But of course this measure not suitable for outrageous australian property values, so everyone moved away from the 35% measure to "surplus" income tests. Seems the Banks are happy for their customers to eat bugs to survive...

Lol, looking at a few posts... the money we p*ss against a wall on the weekend, mobile phones... these things are hardly commitments!!

Me... i rent, currently killing off a personal loan and HECS debt before i get serious about anything.

[gtfpv]

Originally Posted by XR6T8_U

Single, 29yo still live at home but with a difference...

Mortgage 20% (shared equally 50% each)
Personal Loan 10%
All household bills 20% (shared equally 50% each)
Salary Sacrifice to Super 10% (I won't have the same issues as my Dad had...)

It's easy to sit back and say you should move out at 18yo, but everyone's circumstances are different. Both of my parents have been sick at some stage meaning no work, yet there was a mortgage and bills still to be paid. Mum was first, cancer, spent 2 years away from work. Dad was next, he went downhill because Mum was sick and has since developed diabetes and a raft of other problems. He can't work now, and has retired, he's only 60, and has now been retired for 4 years, he had very little super as he worked for himself for most of his life and money never went that far unfortunately.

I've never lived outside of the house I grew up in... do I regret it somewhat? Of course I do. But I have a level of independance that I think rivals living out of home, our situation is more of a housemate thing. I do what I like, when I like, so do they. They are adults and so am I, I treat them as such and they do the same for me. Easy.

But would I see my parents who worked so hard all of their lives to provide for me and my sister (lives overseas and has done for so 10 years) lose their house because of circumstances outside of their control? NO. And so here I am 29yo and still living at home.

I own my car, I owe $75,000 on my 50% share of 'our' 300k house.

When life throws you lemons, you make lemonade.

Jack

good man , well done .

[Deadman]

Originally Posted by XR6T8_U

Salary Sacrifice to Super 10% (I won't have the same issues as my Dad had...)

This is just directed at that comment - I think everything you've done for your family is outstanding.

Looks like a good plan, but you're only 29 - you might want to get financial advice and see if you'd be better off using the after tax % of that 10% you salary sacrifice to make money and invest now. I've just turned 25 and was salary sacrificing - but have better plans in place now.

Really, early on in life, there can be better ways to make wealth for retirement rather than focusing on salary sacrificing in to super (even something simple like using the $ to make extra payments on your mortgage, reduce the interest payable and the length of the mortgage).

Anyway - just throwing it out there Of course everyone is different so salary sacrifice could be the best option for you, but could be worthwhile just having a look at other options just in case. Looks like you've got a plan anyhow, which is a lot more than a lot of other people under 30 Best wishes for your parent's health.

[Nappa]

Per Month
car 0%
Petrol 0%
Phone 4%
Rent 13%
Household bills 2%
Food and other stuff 28%
other 50% or so into saving

[james22]

Earn $476 p/w

$250 - Savings Account that pays for car loan's & insurance.
$50 - Savings
$50 - Petrol
$37 - 72 - Alcohol
$33 - Smokes

And any overtime generally gets saved.... occasionally.... maybe ...

[G6ET8U]

Cheers boys for the kind comments...

With regard to the salary sacrifice, I already pay an extra $80 a week of the mortgage and see that as my 'savings plan', at the minute I am making double repayments on my personal loan too, I will most probably up repayments again on both of these loans in the near future.

I'm quite happy salary sacrificing as I know it's going somewhere I can't get to it yet ;)

Cheers

Jack

[Mechan1k]

Originally Posted by Deadman

This is just directed at that comment - I think everything you've done for your family is outstanding.

Looks like a good plan, but you're only 29 - you might want to get financial advice and see if you'd be better off using the after tax % of that 10% you salary sacrifice to make money and invest now. I've just turned 25 and was salary sacrificing - but have better plans in place now.

Really, early on in life, there can be better ways to make wealth for retirement rather than focusing on salary sacrificing in to super (even something simple like using the $ to make extra payments on your mortgage, reduce the interest payable and the length of the mortgage).

Anyway - just throwing it out there Of course everyone is different so salary sacrifice could be the best option for you, but could be worthwhile just having a look at other options just in case. Looks like you've got a plan anyhow, which is a lot more than a lot of other people under 30 Best wishes for your parent's health.

This is what I have been thinking about lately as well ... do i put more into Super ... or do I starting adding more on top of the my mortgage repayments.

I am thinking that the best option is put more onto the mortgage ... and maybe just add a 2-3% onto Super as well ... not much more ... but just a little bit.

But I'd love to pay the house of early though and put my money into bricks and mortar.

[normxb]

Originally Posted by robjh80

We also keep two A4 size excercise books, one for each account.
We draw up 5 lines down each page with the following headings........Date, Description, Debit, Credit, Balance.

If we go to the ATM to draw out cash or make an Eftpos purchase we would then instinctively write the entry into the correct excercise book that the account relates to,........ ie: $200 would be placed in the "Debit" column with something in the "Description" column like "Cash Withdrawal ATM" or "New Tyres" or whatever the case may be and the "Balance" column would be amended accordingly.

We have done this for many years, it's a throwback to the days where we had a big mortgage and had to budget accordingly, we have simply just carried it on to this day and will continue to do so.

The benefits of course are that everything is tracked and accounted for, I don't need a bank statement to tell me how much is in each account and I can look back through the books to determine exactly when the next bill is coming in whether it be rates, electricity, car rego etc.

It takes a little discipline to start doing but once under way it just becomes instinct and we have found it very worthwhile..........have also managed to catch the bank out a couple of times as well when they send the bank statement out with incorrect withdrawals etc.

Can't recommend it enough to anyone losing track of where all their hard earned money is going.

Yep ,robjh80 , the wife does the same Re:- "her book is her Bible" , she can tell at a glance just how much we have in "kitty" . It's just automatic when she comes home from shopping (keeps all receipts) and updates her book .

Being on a Pension , sometimes my medication can be up to $80 -$90 a week , she HAS to know what we have left . Some people think because you're on a pension you get "all the lurks & perks" but sometimes we have only a couple of days notice to be in Canberra , Wagga , Shepparton or Melbourne and she does a brilliant job of budgeting .

I can't find the right word at the moment "Surprised" is not right , but so many people here have got their act together .

I know of "quite a number" of young couples who have been in trouble with Over Commitment , they have GOT to have a New House to start with , Oh! and Must have New Furniture to match , and the neighbours both have New Cars ! so we must too . Loans are so much easier and cheaper to get these days . (our 1st house in Sydney was 17 1/2% interest rate)

One friend did this ( $485,000 , 100% loan ) got into trouble and had to accept $350,000 for their house , needless to say , home ownership again is now a long way off . Our home is a "Real Bitsa" , middle part is Granite (built 1861) with bits added on all around , but at least it's a "roof over our head , food on the table and something we can afford" .

Enough of my rant.
Cheers
Norm

[GXL078]

My sister paid $1.7 million for 2 (big) bedroom 4 level terrace in Zug Switzerland with a view of the lake. They took out a 100 year loan and the interest rate is only 1.8%. They reckon they will have paid off 1/3 of it by the time they retire, then they will sell it. There is no incentive to make extra payments at such a low interest rate. They also kept 2 units in London which earn about 900 pounds a month each. Still most people they know there rent and spend their money on expensive cars, $10,000 wall units etc. All her stuff is from Ikea. Unlike me she does drink and has a 300+ bottle collection of wine in an airconditioned cellar. They go over the border into France to buy it because it's cheaper there. They even sell Margaret River wine there.

[4.9 EF Futura]

Originally Posted by Mechan1k

This is what I have been thinking about lately as well ... do i put more into Super ... or do I starting adding more on top of the my mortgage repayments.

I am thinking that the best option is put more onto the mortgage ... and maybe just add a 2-3% onto Super as well ... not much more ... but just a little bit.

But I'd love to pay the house of early though and put my money into bricks and mortar.

Seriously - that kind of question is one for a financial planner. There is a LOT of considerations, particularly in terms of tax.

As for super, the industry is now of the opinion that high income earners will have enough to retire on if they contribute @ 9%. For those earning below and up to $80k, it is generally considered that 12% - 15% is a much more appropriate contribution level than 9%.

[Scott]

Me:

Mortgage x 2 = 55%
Cars x 2 = 10%
Living (all others incl reg, food fuel etc) = 25%
Savings = 10% when it works out that way

[V8falcons]

good to see the post thread is still going,Im waiting for the wifes new job to start so that will allow us to get our needs and wants quicker,but the super questions are something to consider .

What about this 100 yeAR home loan???????

[TATT2]

Own everything, house, cars, bikes, only debt $150 on Visa

[V8falcons]

Originally Posted by TATT2

Own everything, house, cars, bikes, only debt $150 on Visa

MMM it would be nice,but give me 25 years or so
:hihi: and Ill be right next to you.

[dannyxm]

Interesting thread. Im 26 and still live at home. Im a solicitor and so is my girl friend. Being both of Ethnic backgrounds, her parents arnt letting her out till there is a ring on her finger lol.
I have a XC 2door, an XP and a EF XR6. I bought the XC and the XP way back when i was 16 - 17 years old, they wernt as expensive as they are now.
I bought the EF of my mum who got cancer and didnt need the debt as she took time of work. Its just her and i as she is a single parent.
shes ok now.
My girlfriend and i are saving like mad and hope to have a home by early next year.
Shes not a fan of the full on wog wedding, so i doubt it would cost that much money, but time will tell
If i had my time over? Id finish uni quicker and moved out earlier. But thats life..... :

[Gobes32]

I am now 23, I moved out when i was 19 with my fiancee and we both had good paying jobs. I was working and still am, at a car manufacturer in geelong We both worked full time and i was on night shift seven days a week clearing around 1200 a week!!!! She was around 550 a week. The next three years are a blur because for the life of me I don't know where all our money went. We bought a block of land but did not pay much more than the minimum. Don't get me wrong, we have no credit cards or personal loans and we bought the usual new couch, big t.v, nice cars etc. But until the start of last year we had no savings. We then started saving at around the same time I lost my overtime and at the end of last year i was taken off night shift due to reduced production. Me and my partner have 50k in savings and no debt, BUT, we want to buy a house and my partner is 10 weeks pregnant. We will probably spend about 270k for a house which is not extravagant but not a dump either. On my $700 clear a week our mortgage will be about $350 a week! With my partner looking after the child and no prospects of overtime till orion is released I am packing death!!!!! We are very fortunate to have both of our parents very supportive and would not let anything bad happen to us, but i still realise it will be very tough for the next 18 months.

[Scott]

Tough spot acosta but in the scheme of things atm you are in a pretty reasonable position compared to the millions who rent with no savings. Saving $50k is a great achievement - IMO you should just take the leap and buy a place. You have enough money there, don't tell the bank your wife is pregnant - whatever you pay in rent will be bloody close to paying for your own place. Even if you're renting you need to come up with the $$ every month.

If you were forced to move in with Mum & Dad, you can rent your house out to alleviate the costs so you only chip in a few hundred a month and move back into it when you are able. Get into real estate while you still can is my tip.

[xr8-200]

Well for the last few months my commitments have been about 130% of what I earn, it has hit the old savings pretty hard. I need a pay rise badly.

[mrnsx]

80% petrol 20% food.

great life ay?