Life Situation:
I'm male, 27 and about to start a new job and find a new house/room to live in and share with flatmates/housemates. I'm single, previously engaged and actively dating to find a compatible partner. I live modestly but splurge every now and then on experiences that I get lots of happiness from. I'm not materialistic at all. I've been interested in finance and investing for over a decade.
Gross Salary/Wages:
My new job that I'm starting in late January is $60k NZD. I've previously been on $54k for the past two years. My take home pay will be $46k after taxes and kiwisaver.
Pre-tax deductions:
I'm in a nationwide superannuation system called kiwisaver, which puts 3% ($1800) into annually.
Other Ordinary Income:
I get approx $600 dividends pre tax/$400 post tax annually from my share portfolio.
Rental Income, Actual Expenses, and Depreciation:
I own an investment property that is negatively geared approximately $6k annually. Most people will look on this as a very bad decision, but in Auckland where I live, practically no freehold real estate is neutral or positively geared. I could invest outside of Auckland, but I choose not to as I consider Auckland to be the hub around which New Zealand grows.
Adjusted Gross Income:
$40.6K
Current expenses (Monthly):
Rent: $693
Share of Utilities (electricity/water/internet): $95
Insurance (car): $14
Mobile Phone: $29
Food: $672
Petrol: $246
Car Related Expenses: $28
Health/Medical: $24
Clothing: $34
Dining Out/Restaurants: $43
Travel/Experiences: $112
Gym/Cycling/Hiking Costs: $94
Birthday/Xmas Gifts: $23
Total Expenses: $25k
Total Savings: $17k (40% of take home income)
Assets:
Investment Property: 750k
Stock Portfolio: $16k
Kiwisaver (accessible at 65 years old): 24k
Money in Bank Accounts: $400
Liabilities:
Investment Property Fixed Loans: $590k
Investment Property Flexible Credit Loan: $44k
I'm going to be taking home $3.4k more each year with my new job. My living expenses should stay the same or decrease this coming year. I can particularly cut down on:
- Eating out (these were going on dinner dates).
- Travel and experiences (included sky diving and a few other blow outs after my relationship ended).
- Clothing (which I required for new hiking boots and work clothing).
- People may say my food expense is really high for a single person, which works out to be $155 per week. However, I do 2-3 hours of exercise a day, so eat a lot of food. It's fruits, vegetables, meats, tubers, nuts, etc so not cheap packaged stuff.
My goals for 2016 are:
- Save 20k of my take home income of $46k (43.4%)
- Get my revolving credit mortgage down to 30k
- Beyond that I would like to buy another investment property or my own home (if I have a partner by then) in 3-5 years time based on forecasts for my income to grow and capital growth in my current property.
I feel like my next goal is to buy a second rental which is 3-5 years away so wondering what is next in terms of things to continually improve on. My long term dreams are to have enough income/assets to allow my future wife to stay home to raise children if she chooses to and also to be able to travel overseas in my 40's/50's when my future children are grown up as my parents have done.