When I was 20, it was the year 2000 so probably tell myself to buy Apple shares or bet on something from the Sports Almanac I’d give me.
However I was 20 and Apple was a joke, so I spent it on beer and traveled around the world.
Safe option, what rate is considered reasonable for a HIsA? I could and should probably do my own research but what banks would you say is the best for it?
Plenty of banks have HISAs with around 4.5-5.5% interest rates. Definitely do your research first - different accounts have requirements and therefore varying flexibility so it would depend on how contribute/withdraw from your savings.
yeah but ANZs 4.9% has no requirements meanwhile ING has you jumping through hoops for an extra 0.6%, like minimum $1000+ deposit from an external source and 5+ card purchases per month.
You make that sound a lot more complicated than it is?
5 card payments a month isn’t exactly difficult nor is having $1000 transferred to the ING account
I'm not really trying to make it sound complicated but rather pointing out the fact ANZ+ 4.9% is a set and forget HISA with no requirements and a competitive interest rate meanwhile INGs 5.5% has more requirements than most other HISAs out there but also a strong interest rate to back it, for some a 0.6% loss is worth it for never having to think about their monthly HISA requirements, and for others that 0.6% gain is worth it even though they must remember to do the requirements otherwise they risk not getting paid the high rate and just the 0.55% standard rate.
Yeah fair enough, I get your point.
I get paid to my ING account and have 5 auto-debits set up.
With a little setting up you can have ING as a set and forget as well while earning an extra 0.6%.
Why do people have to overcomplicate things so much? Baffles me that people piss and moan about the hoops. Put 1k/month in - should be easy unless you earn minimum wage. Don’t withdraw from savings until you need it (maybe leave 3k to 5k in your daily driver account as a small emergency fund). Get 5 coffees at some point in the month with the associated card instead of using your regular everyday account. It occupies so little brain space I don’t even think about it. Have had an ING saver for over a year now and prior to that, the Westpac 18 - 29yo saver with the bonus interest. Never missed a single month of bonus interest.
At 20 I was shagging,drinking and punching cones and owed nothing.I had nothing except a $500 shitbox.Remember to live.Then and prior were the best days of my life!!!!
dull expansion uppity treatment somber coherent elderly alleged paltry secretive
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Honestly, I'd go and spend time in Europe or do a round the world trip. Your 20s are formative years and it's the perfect time for doing that. It's not going to make a huge difference to your financial situation when you get old and you'll have a more rounded outlook on life.
Some people go too hard on investing and miss life completely. Live a little
Edit: just saw the last bit of your post about saving for a house. That's fair. I'd still use a chunk to travel now though.
Depends what your goals are, and what your savings rate can reasonably.
Yeah - put money into a high interest savings account for an emergency fund, and money for a house deposit (if that's your thing). Max out your super. Buy Rio Tinto shares.
Something to look into is logging into your ATO account online and seeing how much you have available as carry forward concessional super contributions.
If your main goal is long term returns then depending on your income level the tax advantages make super an almost impossible strategy to beat. IMO the main exception to that would be leveraged property but that route is unquestionably far riskier.
Split it 3 ways. Invest 2/3 of it and keep the other third as emergency cash. As far as investments go, there are a plethora of micro investing options available. Two i use are Plenti and Raiz. They work for me but I suggest you do your own research.
if i were 20 right now and had 15K? House deposit ASAP. Don't wait. Get the deposit ready as soon as you possibly can. Get the FHOG on it to boost it by 10K. If mum and dad can help then thats good.
Owning a home will only get more and more expensive.
I used that money to move cities to develop my career and have some emergency cash left over. Also used it to travel so that I had some experience and not be a total bore.
In your position, most important investment in your 20s is yourself.
Continue investing in stocks. Pick couple of ETFs and start contributing regularly. I am assuming you wouldn't require a huge emergency fund. So keep little amount in HISA and continue the investment journey.
I don't know what your circumstances are, but...
Honestly, at that age, I wouldn't have needed a massive emergency fund. I'd have put $5k in a high interest account but raise the minimum in the fund by $2k per year to $15k. By the age of 25 under that trajectory I'd have collected more savings than I actually did at 25 (I'm 27 now).
I would invest another $5k parcel into an index fund through someone like Stake and then aim to passively add $100 to $200 per pay to it over years. Me at 18 went through an expensive broker and invested in some bluechip shares that are still underwater 9 years later. Boo.
And then finally, invest that last $5k in myself. New clothes, upgraded phone, computer, furniture. Stuff that lasts and won't break and will be useful for study and recreation. Setting myself up for success was a great move I made, again in my mid 20s. Would've been even more effective doing that 5 years prior.
If you don't want to be bothered by doing heavy research into finance etc... stick it in an index/ETF with dividend reinvestment.
It's hard to beat the market, and if the market crashes, we'll all have much more issues too.
We love land in Australia, so looking to get a (decent) property quickly is not a bad idea. If mortgage really becomes too much, you can technically rent it out and then room share so you can cover interest and the room at least...
I wish I got a property earlier. I had enough for a deposit, but then when I wanted to, I changed jobs and wasnt able to get the mortgage.
If you are going to invest in HISA then don’t mess about, most banks have just dropped their longer term rates in anticipation of cuts, that may or may not happen, but if they start thinking cuts are definitely coming - saving rates will fall like a stone.
Try FHSSS to cashup for house.
HISA for definite return.
Once you have enough cash, buy the house taking all first home buyers schemes to your advantage.
I don't know what your circumstances are, but...
Honestly, at that age, I wouldn't have needed a massive emergency fund. I'd have put $5k in a high interest account but raise the minimum in the fund by $2k per year to $15k. By the age of 25 under that trajectory I'd have collected more savings than I actually did at 25 (I'm 27 now).
I would invest another $5k parcel into an index fund through someone like Stake and then aim to passively add $100 to $200 per pay to it over years. Me at 18 went through an expensive broker and invested in some bluechip shares that are still underwater 9 years later. Boo.
And then finally, invest that last $5k in myself. New clothes, upgraded phone, computer, furniture. A small trip overseas. Stuff that lasts and won't break and will be useful for study and recreation. Setting myself up for success was a great move I made, again in my mid 20s. Would've been even more effective doing that 5 years prior.
Finally, don't stress about money. Just put away a little at a time. I wish as a 20yo I'd worried about it more, but I'm also thankful I blew thousands travelling and living overseas. Those experiences are never free. Just steadily invest in emergency funds and the stock market while keeping enough to enjoy your early 20s. There will be plenty of time in your late 20s to save every penny.
I know what you mean, reddit isn't the best source of reputable/reliable feedback but sometimes monkey brains together strong, and I just wanted to see what people would do differently in their 20s.
At 20 the best thing you might consider doing is betting on yourself. Take a big swing, start a business or some other enterprise.
Your biggest advantage is a lack of fear over what you could lose (house, kids, relationship, etc)
If it all goes to shit then who cares? You would still be young enough to restart and you get to carry the education forward (you can learn a lot from failure)
Better yet, maybe it doesn't go to shit, maybe it works!
This is going to sound really boring and old man, but if you which at least a chunk of it into your super now, the growth (untaxed) you will see over the next 40 years would blow your mind…
take risks, any kinds of risks, starting a business, working in a field thats outside of your ed background just bc you are curious about it, investing in high risks stuff with potentially high returns ( im talking about real high risks and returns not those "high risk" etf with 20% return in 5 years or anything like that). you are young you can afford to start over. regardless what you doing, work hard.
What's your goal? What's your time horizon (when do you want to cash out)? How much risk are you willing to take?
Answer these three and you can find the assets that fit into those criteria.
A different take but use some of the money on the 3 things that touch the ground - quality bed, quality tyres for the car, quality shoes for both work and sports.
That's fantastic that you're starting to think about investing at such a young age! Here's what I can share based on publicly available information, but remember I can't give personalized financial advice.
**Considering Your Situation:**
* **Early Start, Long Time Horizon:** You have a huge advantage starting at 20. Time is on your side for long-term growth through compound interest.
* **Risk Tolerance:** You seem open to some risk, evident by your existing investments in AI/Tech and other emerging sectors.
* **Emergency Fund:** It's wise to have an easily accessible emergency fund before aggressively investing. Ideally, this would cover 3-6 months of living expenses.
* **Debt Management:** Since you have no debt and a paid-off car, you can focus more on investing your savings.
I had around 35k saved. Bought my self a brand new ford xr6 turbo. Could have probably bought an investment property and started my investment portfolio, I would have been a millionaire by now. But instead power!!!!! Turbo!!!!!
When I was 20, it was the year 2000 so probably tell myself to buy Apple shares or bet on something from the Sports Almanac I’d give me. However I was 20 and Apple was a joke, so I spent it on beer and traveled around the world.
at least the beer money wasn't wasted !
Reminded of that George Best quote 'I spent a lot of money on booze, birds, and fast cars. The rest I just squandered.’
What a coincidence, I dreamt about Grays Sports Almanac last night and now this. It's a sign. I'm Biff Tanen in another life.
When I was 20 my savings would have bought me maybe half a beer at the pub down the street so you did fine
Buy all of the property. All of it. Also NVIDIA shares?
You really don't want 20 year old me making these decisions for you.
Jugs of beer.
If that 15k is all you have then it should sit on a HIsA as an emergency fund. Invest what you save in future.
Safe option, what rate is considered reasonable for a HIsA? I could and should probably do my own research but what banks would you say is the best for it?
Plenty of banks have HISAs with around 4.5-5.5% interest rates. Definitely do your research first - different accounts have requirements and therefore varying flexibility so it would depend on how contribute/withdraw from your savings.
There's a table in the description of the sub, someone here is tracking all the savings accounts and lays out which options are best
I’m with boq they’ve been great at 5.5% and it’s got better criteria and security than ing or up bank
Put it all in ing every day and use the card. Get 5.5% risk free and can pull it for emergencies
Go for ANZ+ it's got a 4.9% interest rate.
ING is 5.5%
yeah but ANZs 4.9% has no requirements meanwhile ING has you jumping through hoops for an extra 0.6%, like minimum $1000+ deposit from an external source and 5+ card purchases per month.
You make that sound a lot more complicated than it is? 5 card payments a month isn’t exactly difficult nor is having $1000 transferred to the ING account
I'm not really trying to make it sound complicated but rather pointing out the fact ANZ+ 4.9% is a set and forget HISA with no requirements and a competitive interest rate meanwhile INGs 5.5% has more requirements than most other HISAs out there but also a strong interest rate to back it, for some a 0.6% loss is worth it for never having to think about their monthly HISA requirements, and for others that 0.6% gain is worth it even though they must remember to do the requirements otherwise they risk not getting paid the high rate and just the 0.55% standard rate.
Yeah fair enough, I get your point. I get paid to my ING account and have 5 auto-debits set up. With a little setting up you can have ING as a set and forget as well while earning an extra 0.6%.
that's pretty smart I might have go setting something like that up when I get a chance.
Why do people have to overcomplicate things so much? Baffles me that people piss and moan about the hoops. Put 1k/month in - should be easy unless you earn minimum wage. Don’t withdraw from savings until you need it (maybe leave 3k to 5k in your daily driver account as a small emergency fund). Get 5 coffees at some point in the month with the associated card instead of using your regular everyday account. It occupies so little brain space I don’t even think about it. Have had an ING saver for over a year now and prior to that, the Westpac 18 - 29yo saver with the bonus interest. Never missed a single month of bonus interest.
At 20 all my savings went to live music venues, pubs and drug dealers. I miss those days. Sigh.
Invest in the climate wars and try to seduce the will be local warlord
I volunteer as tribute.
Sigh, as usual everyone wants to be the concubine, not the warlord...
Oh, no I meant I wanted to be the warlord being seduced by OP 😅
Ooooh ok, nice xd
At 20 I was shagging,drinking and punching cones and owed nothing.I had nothing except a $500 shitbox.Remember to live.Then and prior were the best days of my life!!!!
Minimum of 5-10k should sit in emergency fund with any HISA paying off roughly 5% interest rate
Thanks for the advice, will definitely be on my top list.
Hmm I'd probably say "investing is for old people", go party and have a second think about it when I was about 38ish.
dull expansion uppity treatment somber coherent elderly alleged paltry secretive *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Thats interesting, will definitely try to look on upskilling.
Honestly, I'd go and spend time in Europe or do a round the world trip. Your 20s are formative years and it's the perfect time for doing that. It's not going to make a huge difference to your financial situation when you get old and you'll have a more rounded outlook on life. Some people go too hard on investing and miss life completely. Live a little Edit: just saw the last bit of your post about saving for a house. That's fair. I'd still use a chunk to travel now though.
Invest in yourself and earn more money
What if yourself is like BBOZ.
Then you are hitting a jackpot as market is at ATH and it’s certainly going down
Stop being so positive XD. Yeah hoping to buy the dip.
Depends what your goals are, and what your savings rate can reasonably. Yeah - put money into a high interest savings account for an emergency fund, and money for a house deposit (if that's your thing). Max out your super. Buy Rio Tinto shares.
Rio Tinto shares you reckon? They are opening up a lot of long term mines here is that one reason?
Something to look into is logging into your ATO account online and seeing how much you have available as carry forward concessional super contributions. If your main goal is long term returns then depending on your income level the tax advantages make super an almost impossible strategy to beat. IMO the main exception to that would be leveraged property but that route is unquestionably far riskier.
Split it 3 ways. Invest 2/3 of it and keep the other third as emergency cash. As far as investments go, there are a plethora of micro investing options available. Two i use are Plenti and Raiz. They work for me but I suggest you do your own research.
if i were 20 right now and had 15K? House deposit ASAP. Don't wait. Get the deposit ready as soon as you possibly can. Get the FHOG on it to boost it by 10K. If mum and dad can help then thats good. Owning a home will only get more and more expensive.
I used that money to move cities to develop my career and have some emergency cash left over. Also used it to travel so that I had some experience and not be a total bore. In your position, most important investment in your 20s is yourself.
Continue investing in stocks. Pick couple of ETFs and start contributing regularly. I am assuming you wouldn't require a huge emergency fund. So keep little amount in HISA and continue the investment journey.
I don't know what your circumstances are, but... Honestly, at that age, I wouldn't have needed a massive emergency fund. I'd have put $5k in a high interest account but raise the minimum in the fund by $2k per year to $15k. By the age of 25 under that trajectory I'd have collected more savings than I actually did at 25 (I'm 27 now). I would invest another $5k parcel into an index fund through someone like Stake and then aim to passively add $100 to $200 per pay to it over years. Me at 18 went through an expensive broker and invested in some bluechip shares that are still underwater 9 years later. Boo. And then finally, invest that last $5k in myself. New clothes, upgraded phone, computer, furniture. Stuff that lasts and won't break and will be useful for study and recreation. Setting myself up for success was a great move I made, again in my mid 20s. Would've been even more effective doing that 5 years prior.
If you don't want to be bothered by doing heavy research into finance etc... stick it in an index/ETF with dividend reinvestment. It's hard to beat the market, and if the market crashes, we'll all have much more issues too. We love land in Australia, so looking to get a (decent) property quickly is not a bad idea. If mortgage really becomes too much, you can technically rent it out and then room share so you can cover interest and the room at least... I wish I got a property earlier. I had enough for a deposit, but then when I wanted to, I changed jobs and wasnt able to get the mortgage.
If you are going to invest in HISA then don’t mess about, most banks have just dropped their longer term rates in anticipation of cuts, that may or may not happen, but if they start thinking cuts are definitely coming - saving rates will fall like a stone.
Try FHSSS to cashup for house. HISA for definite return. Once you have enough cash, buy the house taking all first home buyers schemes to your advantage.
I don't know what your circumstances are, but... Honestly, at that age, I wouldn't have needed a massive emergency fund. I'd have put $5k in a high interest account but raise the minimum in the fund by $2k per year to $15k. By the age of 25 under that trajectory I'd have collected more savings than I actually did at 25 (I'm 27 now). I would invest another $5k parcel into an index fund through someone like Stake and then aim to passively add $100 to $200 per pay to it over years. Me at 18 went through an expensive broker and invested in some bluechip shares that are still underwater 9 years later. Boo. And then finally, invest that last $5k in myself. New clothes, upgraded phone, computer, furniture. A small trip overseas. Stuff that lasts and won't break and will be useful for study and recreation. Setting myself up for success was a great move I made, again in my mid 20s. Would've been even more effective doing that 5 years prior. Finally, don't stress about money. Just put away a little at a time. I wish as a 20yo I'd worried about it more, but I'm also thankful I blew thousands travelling and living overseas. Those experiences are never free. Just steadily invest in emergency funds and the stock market while keeping enough to enjoy your early 20s. There will be plenty of time in your late 20s to save every penny.
[удалено]
I know what you mean, reddit isn't the best source of reputable/reliable feedback but sometimes monkey brains together strong, and I just wanted to see what people would do differently in their 20s.
Experiences. Many regret being young and having no responsibilities and not doing things.
Sat down and had a succulent Chinese meal cause that’s all I would have had in the bank.
Probably buy a bunch of houses when they used to cost like $2
Half in a copper stock I picked. Another half in a bauxite stock
Go on a holiday
Savings account are paying so well right now, 90% should stay there
At 20 the best thing you might consider doing is betting on yourself. Take a big swing, start a business or some other enterprise. Your biggest advantage is a lack of fear over what you could lose (house, kids, relationship, etc) If it all goes to shit then who cares? You would still be young enough to restart and you get to carry the education forward (you can learn a lot from failure) Better yet, maybe it doesn't go to shit, maybe it works!
Domino's pizza
There's nowhere cheaper to live in your area? Seems like a lot of rent. I suppose you live by yourself?
Just dropping in here to say… nice one, good job. Really fantastic place to be at 20 years old
Don't forget to live a little too!
Keep saving
$10k in high interest savings account for emergencies, $5k for a holiday to enjoy the hell out of being 20
I'll put it all on red and hope for the best.
This is going to sound really boring and old man, but if you which at least a chunk of it into your super now, the growth (untaxed) you will see over the next 40 years would blow your mind…
Get a vasectomy. My savings would be a whole lot better off if I didn’t have a child draining my bank account all the time.
take risks, any kinds of risks, starting a business, working in a field thats outside of your ed background just bc you are curious about it, investing in high risks stuff with potentially high returns ( im talking about real high risks and returns not those "high risk" etf with 20% return in 5 years or anything like that). you are young you can afford to start over. regardless what you doing, work hard.
What's your goal? What's your time horizon (when do you want to cash out)? How much risk are you willing to take? Answer these three and you can find the assets that fit into those criteria.
A different take but use some of the money on the 3 things that touch the ground - quality bed, quality tyres for the car, quality shoes for both work and sports.
Property. Constant and increasing immigration means it’s a never-ending gravy train.
Use your 15k to go see the world. I spent 6 weeks in South America when I was 19 and it was the best thing I ever did. Cost me about 12k
That's fantastic that you're starting to think about investing at such a young age! Here's what I can share based on publicly available information, but remember I can't give personalized financial advice. **Considering Your Situation:** * **Early Start, Long Time Horizon:** You have a huge advantage starting at 20. Time is on your side for long-term growth through compound interest. * **Risk Tolerance:** You seem open to some risk, evident by your existing investments in AI/Tech and other emerging sectors. * **Emergency Fund:** It's wise to have an easily accessible emergency fund before aggressively investing. Ideally, this would cover 3-6 months of living expenses. * **Debt Management:** Since you have no debt and a paid-off car, you can focus more on investing your savings.
This is literally a ChatGPT response
I would’ve loved to save but I wasn’t making much after rent and expenses. I don’t think it would’ve compounded that much
I had around 35k saved. Bought my self a brand new ford xr6 turbo. Could have probably bought an investment property and started my investment portfolio, I would have been a millionaire by now. But instead power!!!!! Turbo!!!!!
Your Super.
Im not sure 20 year olds with no assets and little life experiences should be investing in super.
Immediately start cracking into your Mom, as she likes them about this age ;-)
Start a business, rent a temporary kiosk in a shopping center and sell something, anything. This is a wealthy country with a lot of disposable income.
Allll on Red! It goes faster