Hi all - new to the forum and have decided to start getting serious about FIRE.
Any advice/feedback would be appreciated on whether I am on the right track and what investments I should be looking into. Ideally I would like to retire by 40-45yo and have a lifestyle of moving regularly between Australia and France (eg 6 months in Sydney, 6 months in Paris).
LIFE SITUATION
I’m 32yo, living in Sydney, Australia, with a 26yo husband and no children (no plans to have children either). We keep our finances largely separate except for a Vanguard index fund, and pay for everything 50/50. He is already way ahead of me with FIRE with no university debt, lower expenses, second job and generally better at saving.
We live in a sharehouse, don’t own a car and use a car sharing service, public transport, walking and bike to get around. We eat a largely vegetarian diet when cooking at home and reduce costs by shopping at Aldi a lot. We do long haul international flights every year as my husband is from Europe. My savings rate is theoretically 50% but I often ruin that on impulsive and unnecessary purchases. I am getting a lot better at this (cancelled my credit card) but still not perfect - plus my major weakness is eating out and wine. I have a rich person’s taste in these things unfortunately.
INCOME
Income from full-time job: $63,700 per year ($2012 per fortnight after tax)
I have salary packaging of $16,000 per year which reduces my taxable income.
EXPENSES
$200/fortnight to Vanguard index fund
$800/fortnight to emergency fund
Rent/bills (flat rate) $320/fortnight
Phone bill $25/month
Groceries $100/fortnight
Entertainment/eating out $350/fortnight
Physio $27/fortnight
Health insurance $18/fortnight (need this to drastically reduce the cost of physio and also to get cheaper dental and free glasses every year)
Spotify $4.50/month
Gym $43/fortnight
Car share $25/fortnight
Public transport $80/fortnight
Hairdresser $37/fortnight ($110 every 6 weeks)
ASSETS
50% of a Vanguard index fund VDHG ETF $9,000
$3,000 in Raiz (previously known as Acorns)
$2,500 emergency fund
$41,000 in superannuation (My Future Super). Superannuation is compulsory in Australia and I can’t touch this til I’m old. Employers have to contribute 9.5% of my income to it every pay. Fees are $93.60/year membership and 1.79% admin and investment fee. The return is 6-10% per year after fees and taxes.
DEBT
$90,000 HECS (University) debt. I don’t see it as a priority to pay this off as it just increases with inflation (sometimes even lower than that). Repayments come out automatically every year from my tax return according to income, and there is no incentive to pay it off earlier.
QUESTIONS
At the moment my main focus is building my emergency fund to $15,000. After that I plan to invest 100% of my savings. What should I invest in? How could I save more?
I know the most obvious solution is to get a higher paying job, however I am doing what I love in a field that is not generally well paid. I am a lawyer but in the community/human rights field. I am actively trying to negotiate a pay increase of $10k which is more reflective of my level of experience, and at the same time applying to other higher paid jobs ($75-100k per year).
Also, should I invest in property? I am interested in this but it is very over valued in Sydney (and prices are dropping) and I’m worried it is not worth it. Another option is in France (where we are both citizens) but maybe the taxes will be high and it will not be worth it. I’ll look into this more seriously once we have a deposit. My husband is generally against the idea of buying property but is open to being persuaded. Ideally I'd love to have an apartment in both cities but I suppose it's probably unrealistic.
What do you think?