Getting started

[Strawberrykiwi75]

Hi guys, I'm brand new to MMM! I live in New Zealand, 24 year old female. I really want to get financially sorted, but without compromising on my lifestyle- which for me, means being able to go out for dinner and drinks with my friends regularly (I know, not very MMM, but it's part of who I am), and travel. Here's what I'm up to so far:

I currently work as a junior banking advisor for a large bank in Christchurch. My income is around the mid 50k mark.

1. I have fully repaid my student loans (that felt good, about 24k all up!)
2. No debts, except a credit card which I pay off each month. I get rewards and free travel insurance, so I feel this is worthwhile. Plus of course, my money sits in a savings account in the meantime.
3. I have 2 superannuation schemes- one an employer one, currently earning 8.92%. I haven't been in it for very long. I put in 8% of my income, that then gets topped up another 6%. My other super is Kiwisaver- currently on a holiday from this, I put in just enough to get the tax incentives. It's currently earning about 3%
4. I have a savings account which I don't touch, it earns about 3.6% after tax. Trying to add $500 a fortnight, it's up to about 17.5k right now. That's only been for the last few months, or it would be much higher.
5. I put aside $200 a fortnight for travel, technology, clothes and fun savings into another savings account, earning 2.6%
6. I have a great Life insurance policy, with income protection, critical condition & permanent disability all covered.
7. I invest about $50 p.w. into bonds, these are currently just keeping up with the CPI but there is a sort of lotto aspect to them too. I'm thinking about stopping this and looking at other options for these funds.
8. I have about $900 AUD worth of shares for the bank I work at, these have good growth so I see them as long-term, and I intend to add to them.
9. I have about $130k worth of equity in a property worth about $800k left to me by my late mother. This property will be sold in the next few months and then I can utilise these funds (currently a family member lives in it and they own more than me, so I don't charge any rent but they pay the upkeep, insurance & rates etc)

The rest of my money goes on rent, car expenses (I drive an old banger, my friend's call it 'Denty', but I will probably upgrade this in the next few months to one worth about 12k. I tried to look for something more affordable, but cars are very expensive in NZ), ordinary living expenses and going out with friends.

What I'm wondering is, if anyone has any tweaks that I can make, or any suggestions (NZ relevant please)? I also wonder what people think I should do with the 130k? I was looking at buying an apartment to live in (worth about 250k), or investing it in a managed fund. I'm mentally ready to have my own place, and buying is definitely more affordable than renting a place small enough for myself. However, I am wary of the potential interest rates (I think rates are about to increase to 7-8%p.a.), whereas I could get a good return in a managed fund.

I want to retire at age 60- only slightly early. Having a great lifestyle and being able to travel etc is more important to me than retiring early, as I actually like working and think I'd be bored if I quit!

Thanks :-)

[marty998]

LOL I might be working for the same bank across the ditch.

Buy your own place with the inheritance, and then just smash whatever mortgage you have on it. I put a great value on piece of mind. If everything goes to shit, at least you will still have a roof over your head.

60? The very fact you are thinking about this means you will probably get there 15 years earlier.

[jbird]

Not much to add, since I feel I am just getting started too, but just wanted to say kudos to you for accomplishing so much already at such a young age. I'm sure you will be successful at reaching your financial goals! I agree with the previous poster who suggested purchasing a place to live with the 130K.

[gooki]

Welcome, great to see another person from Christchurch joining the growing in number on NZers on MrMM.

As for what to do with the $130k. What's your current living situation like? With the property market so overheated in Christchurch it's hard to make recommendations.

Pointers.

No way do you need to spend $12k on nice economical car. Two cars under $5k.
http://www.trademe.co.nz/motors/used-cars/honda/fit/auction-659729661.htm
http://www.trademe.co.nz/motors/used-cars/renault/lutecia/auction-658408787.htm
If they're not your style, just holla.

With the head start you've got you could be FI by 35 without sacrificing quality of life. That doesn't mean you have to give up working, but being in the position of not needing money opens up a world of opportunity. Like travelling for six months of the year. Choosing jobs based on passion not renumeration. Raising a family etc.

There are moderate fee passive funds out there, 0.75% or less. If your paying more than that shop around.

Avoid lifestyle inflation like the plague/be mindful of what you do choose to spend money on.

Shop around, especially for things like insurance, phones, internet.

[Moomingirl]

Hi Strawberry kiwi, good to see another New Zealander here. Congratulations on being so sorted at your age, I wish I had been that smart 15 years ago.

I second what Gooki says about cheap cars, they can be found here. However, I wouldn't choose a European car (like the Renault), because if it does go wrong the parts can be really expensive. I speak from experience, having had this issue myself. Japanese cars may (sometimes) cost a little more, but as they are more common over here it is usually a lot easier to get hold of the parts at a reasonable price.

With regards to the money from your house, I would buy something modest (and hopefully underpriced) and then throw everything you have at the mortgage, as interest rates are on their way up.

I know you say you don't want to retire until 60 or so, but you are in the very early stages of your working life, and you may well find you change your mind in ten or twenty years. If you follow the MMM path early, you will give yourself so many more options than most people have. You can still choose to keep working if you want to, but if you decide you don't want to you, you will already be set for freedom.  :)

[Strawberrykiwi75]

Thanks for the feedback everyone, I really appreciate it!

Thoughts:
Cars: I was looking at maybe a Toyota Corolla or Suzuki Swift or similar. My thought is to get a pretty mainstream car so that parts are easy to get. I also want one that's economical to run, about 1600cc. I wouldn't want to go much lower than that as I drive to the West Coast, Nelson & South Canterbury quite a lot. I want something that's going to last me well for say, 10 years? And that's why I'm willing to pay a bit more. I talked to my uncle about it and he thinks I shouldn't buy anything older than 2007, he knows a lot about cars and is also pretty MMM.

House:
I'm currently renting a room in a house of four. It's pretty good, and quite affordable- cheaper than most flats of this quality, we negotiated with the landlord. I don't mind living here, but ideally like to get my own place as I like being alone when I'm at home, and there's always people coming and going here.
I've been watching the market for a small one or two bedroom flat for the last few months, and the prices are ridiculous- even if I got a place to do up. I'll be lucky if I can get something decent in the areas I'm looking at for under 240k, and that's a unit with only a tiny bit of land. They're regularly selling for over 360k now, unless I want to live in the wrong part of town and have a long commute.

Insurances etc:
I get all of these through my work, and with my staff discount & package discount, it's very very cheap.
Other expenses like power get shared amongst my flatmates.

I'm aware that I spend far too much eating out, but I justify it to myself because I'm always with friends, it's mostly at cheap places, and I'm very frugal apart from that. I don't shop regularly, I don't buy jewellery, I get my clothes on sale, and staples from glassons etc.

Thanks everyone for all your kind feedback too, I feel like I still have a long way to go to being FI and MMM, but I guess I do have a good start behind me :-)

[jamface10]

Just wanted to say hi, and good luck. I'll be in Chch starting my career next year, so it will be interesting following what you're up to.

Gooki, when I'm looking for a car next year I'll have to message you! Like the look of that Honda Fit.

[stevewisc]

Sounds like a great start.  A couple thoughts.

First on the 2007 age for a car.  This seems overdone.  We have two Toyotas older then that and both run great.  The older one is a 2001 and has 280k km.  I've had a couple other Toyotas that lasted a long time as well and would really push that. 

From above "Avoid lifestyle inflation like the plague/be mindful of what you do choose to spend money on."  This is a biggie at this stage of life.  Hold on to the lifestyle you have now and the process of wealth building will go well.   

Finally with the $130k - interesting situation.  Sounds like it's a pretty expensive place to live. 
* Maybe wait to buy in case you decide to move in a couple years?
* Maybe change to a two person apt instead of the four.  Get's better but still 1/2 as much as by yourself.
* I might be pretty careful with buying a house/condo with it - you get locked in to a lot of costs and a specific location.  (Any chance you may want to move in the next 4 years?  If so I'd avoid this even more.)
- If you won a 130k lotto would you put it in real estate? 
* Maybe put a decent chunk into a global index fund to prevent you from getting too much house?

Sounds like you'll have a fun journey - best of luck!!

[synonym]

Hi Strawbs. Well done on starting early!

I went through a car choosing process in here New Zealand recently. I liked Toyota Corollas for all the usual reliability and cheap part reasons, but i found they sell at a premium for those same reasons (around the 12K you mentioned).

I settled instead on a recently imported Toyota Sienta which was quite a lot cheaper (around 8K) but mechanically pretty similar. Very cheap to run, and loads of space. If you want something smaller and cheaper you could look at something like the Toyota FunCargo.

Both these cars are not for everyone in their looks, but very Mustachian :)

[nz]

Greetings and welcome.
Here's a curly question that I think you need to answer for yourself extremely honestly. It's more about your character than finance.

Do you think you are the type of person that is able to resist touching  the $130k once it is invested? Good times and bad times?

If you can honestly answer 'yes' then life should turn out very nicely for you.....and you can invest in shares , property etc. with your eye on the long term. If,however , you know yourself to be vulnerable to whims like cheap holidays or Harvey Norman sales (like most people ) then perhaps locking it away into a house/ flat might be the best bet.

I was fortunate to have a large sum of money at your age ( crazy earnings in Japan in the 1980s) and I poured it into a house, best thing I ever did, set me up for life and early retirement at 49

[Strawberrykiwi75]

Just wanted to say hi, and good luck. I'll be in Chch starting my career next year, so it will be interesting following what you're up to.

Gooki, when I'm looking for a car next year I'll have to message you! Like the look of that Honda Fit.

Thanks Jamface! Christchurch is a great place to live, although very expensive, especially property- whether renting or buying. What sort of career are you starting? :-)

[Strawberrykiwi75]

Interesting thoughts from several of you regarding the house purchase question.

I have no major plans to leave Christchurch- even though I travel a lot, it's my home and I've lived here all my life. It has a lot going for it, despite the earthquakes! Also, there is such a demand for rental properties here that if I did decide to move, I could easily rent it for more than the cost of loan repayments, insurance etc in all likelihood.

I haven't considered renting a place of my own, even a two bedroom with a roommate- because there would still be a big increase in my costs compared to what I'm currently paying. For me, it's a matter of staying in a big flat and sacrificing quiet time, or buying.

I do quite like the idea of piece of mind of having a home too.

I'm pretty confident that if I chose to invest the 130k instead of purchasing, I wouldn't be tempted to use it. Perhaps I would increase my contingency fund a little, but I think I'd invest pretty much all of it. Because I have travel built into my budget, I would be pretty mad at myself if I had to dip into my capital in order to take a holiday!

The only exception to this would be if I went to the UK to see my niece & nephew, as they're more important to me.

[Strawberrykiwi75]

I wasn't expecting so many Kiwis to be around on MMM! I wonder what people think about ANZ bonus bonds? Waste of time?

[Moomingirl]

I've got a couple of hundred dollars worth. More of 'its better than blowing the money on the lottery' category than a serious investment choice. I have won twenty dollars so far.  :)

[nz]

Bonus bonds????? Slightly better than putting cash under your mattress
Do you work for ANZ by any chance?

[Strawberrykiwi75]

That's my thought too, I just see so many people wasting money on lotto tickets every week- and it's always people who don't have any money to spare.

I have about $1000 in them so far, haven't won any more than about $60 so far, but I know lots of people who did win big.

[Strawberrykiwi75]

Bonus bonds????? Slightly better than putting cash under your mattress
Do you work for ANZ by any chance?

Hahaha, no I don't :-) although I like the bank I work for and think we have some great products, I still believe in having more than one bank if you can't get everything you want in one place :-)

[gooki]

I think you have the right plan as far a housing goes. Personally I don't see prices dropping much for the next three-five years in Christchurch. Rental demand will remain high due to the large levels of construction still to be done. Even the IT sector is having to import talent (over 50% of all IT positions I'm seeing are being filled from out of town).

[Strawberrykiwi75]

I think you have the right plan as far a housing goes. Personally I don't see prices dropping much for the next three-five years in Christchurch. Rental demand will remain high due to the large levels of construction still to be done. Even the IT sector is having to import talent (over 50% of all IT positions I'm seeing are being filled from out of town).

Yeah, it's definitely a growth time in Chch for everything right now, and I think it's fairly unlikely that will slow down in the short-term. And I predict that housing will remain an issue for the next 10 years- I don't think the new LVR rules will change much.

On that note, the amount of lending the banks are doing right now is just huge. And even before the LVR changes, in my experience it was always the speculators driving the bubble. The rules have just closed the market to first home buyers really. Speculators are still not putting any cash down, they're just using equity from their existing homes.

[jamface10]

I am going into a small sector of healthcare (maybe a bit too small to say on the internet? :P). I am certainly looking forward to the increase in wages, my main problem will be suppressing any lifestyle inflation.

I'm a Chch girl myself and after being in Auckland for the last few years studying I am ready to get back down south. I'll be moving home to start with, but I'm hoping I don't end up too comfortable and stay there forever. I really big goal of mine is to own a house, so fingers crossed things cool down a bit in the next few years (haha not very likely).

[Strawberrykiwi75]

I am going into a small sector of healthcare (maybe a bit too small to say on the internet? :P). I am certainly looking forward to the increase in wages, my main problem will be suppressing any lifestyle inflation.

I'm a Chch girl myself and after being in Auckland for the last few years studying I am ready to get back down south. I'll be moving home to start with, but I'm hoping I don't end up too comfortable and stay there forever. I really big goal of mine is to own a house, so fingers crossed things cool down a bit in the next few years (haha not very likely).

Nice one, well I hope you enjoy the move home, and keep your eye on the FI prize :) if you do have a little lifestyle inflation, don't beat yourself up about it, just make sure it still works for your goals. I would be very surprised if anyone could say they didn't have any at all, even if its just one more coffee out a week. Make your MMM plan work for you :-) look forward to seeing how you get on!

[Strawberrykiwi75]

Update time!

So since I last posted, we sold the house! Legal fees, commission and a last minute debacle with EQC meant I got a bit less than I was expecting- $120k instead of 130.

I borrowed some money off a relative while the house was on the market and bought my own place- a 90sqm 2 bed unit. It has a little garden big enough for me to plant veges, a garage and lots of windows to let in the light! It was built in 1985 and hasn't been touched since- I've got a big job ahead of me updating it but I know I got a good deal. I bought it for 265k and the GV was 305k so pretty happy with that. Next steps are learning how to paint and getting some DIY skills going to get the bathroom done (currently I have a trickle of water pressure and different shades of brown floral wallpaper in each room). I'm excited to be in my own place and so much happier than I was flatting.

I spent some money getting good quality furniture as I essentially owned a bed and nothing else, managed to get the main stuff covered for $4300. That's fridge, washing machine, kitchen appliances, dresser, side board, tv, couch, two armchairs, a dining table and chairs, floor lamp, bedding. I still need to get (or build) a coffee table, bedside table, another floor lamp, bookcase and furniture for the spare room. I managed to score a spare bed for free- but no mattress as yet.
I was also given a large selection of pots for the garden, so that will be fun getting a herb garden established!

I just bought a little Suzuki Swift with only 35000km on the clock for about 9000, and just listed my old car on trademe. I have no idea how much it's worth- probably nothing as it has a lot of dents and I didn't really take any care of it to be honest. I just want it gone at this point.

My lending is about 207k at the moment, since I need funds for the renovation (this money is offsetting on my home loan so I still have some benefit) but I will be looking to reduce it drastically once I know what my renovations will cost.

I did decide to put aside 10k to travel next year to the UK to see my niece & nephew. I want to go for quite a long time and go to France as well which is why I put aside so much.

I've also reduced my costs of going out quite a bit since I moved into the house as I've become a partial hermit, preferring to stay at home and get settled in and plan. Still keeping up with my two Supers as well, stopped the bonds (waste of time, paying it onto the mortgage instead), not saving much to be honest- just increased my home loan repayments. I just want to have an emergency fund available in case it all turns to shit.

I'm also changing my role at work, switching to a lower stress, shorter hour role with the same pay but longer travel (20mins instead of 10), but it also means I won't be working weekends anymore which will give me more time to spend working on improving my house. I'm really excited about this move because my work load was getting a bit mental there and I think I need to prioritize looking after myself at the moment.

So that's pretty much what I've been up to! Oh, I did also take a trip to Bali, and I've just booked and paid for a trip to Vanuatu as well. Travel is my absolute passion and it is sooooo worth it! 

[SDREMNGR]

Sounds like you have a pretty good handle on things.  Only words of advice would be to spend less on drinking for many reasons but as a 36 yo with plenty of partying and socializing under the belt, I would give my right pinky to get back the probably $100,000+ that I've spent over the years at bars and clubs.  Not to mention the liver damage that I probably incurred.  Hanging out with friends these days means having people over for dinner and watching Game of Thrones together.  Much more social.  If meeting a potential partner is part of the reason,  then try online dating.  I don't know if it's caught on in NZ, but I met my wife on one.

Also, look into frugal travelling.  My friend spent a whole year abroad in SE Asia for $7000 in 2002.  So you can travel and do it cheaply and get more for your money.  When my wife (gf at time) and I were travelling in NZ in 2012, we had a rental Nissan Sunny and we stayed in a private room in a backpacker or small hotel, and tried to cook when we can.  We had a great time for not much money.  On our honeymoon, in SE Asia, we also often spent it in private rooms at smaller hotels for around $20-30 per night on most nights mixed with nicer rooms in the $50 range once in a while mixed with 3 nights at $200+ 5 star hotels on 3 nights from a wedding gift.  While the nice hotel nights were a nice change of pace occasionally,  they definitely weren't worth it and the $50 rooms were almost as nice.  And the cheaper travel meant we spent a month long honeymoon seeing 4 countries instead of a week on the beach.

Basic message is, every dollar and minute  spent cannot be taken back.  Spend wisely.  I'd say that if traveling is a passion, learn to do it smart and wisely.  Cheaper is not always better, but wasting money on things that you will regret later is not smart.

[jamface10]

Great to see an update, glad to hear things are going well. I'm pretty well settled into chch now, 3 months into working. I ended up caving and getting myself a slightly excessive 2006 mazda atenza, but fingers crossed it will last me a long time. How are you enjoying living on your own? I feel like my plan will almost be to live at home until I can afford a place, I'm not too keen to go back into a flat. Hope everything works out well with the change in role :D

[limeandpepper]

Wow, you've been busy! Your new unit sounds nice, congratulations! It's great to have lots of light, and your own little garden.  It will be so much fun harvesting your own edibles! And it sounds like a good deal too, if NZ prices are anything like Australia.

When is your trip to Vanuatu? I'd love to hear more about it. I've tried to convince my boyfriend it could be a fun place to visit, but he seems to think it's more for people who like cocktails by the beach. Though a conversation with some of his friends may have nudged him a little towards the possibility that there could be excitement off the beaten track, if one chooses...

[SDREMNGR]

Did you take on a roommate or considered it?  Renting out the spare room to someone you like and also can help you with things (fixing, watering garden,  etc.) On top of paying rent is a great way to save more money or get money to spend on things like travel.  However you look at it, it's extra money and usually pretty significant.  Picking a roommate should be as selective as you want.  Don't take on anyone that you don't like living with and do a short term deal initially so you can ask them to move out if things aren't working.

[Strawberrykiwi75]

Sounds like you have a pretty good handle on things.  Only words of advice would be to spend less on drinking for many reasons but as a 36 yo with plenty of partying and socializing under the belt, I would give my right pinky to get back the probably $100,000+ that I've spent over the years at bars and clubs.  Not to mention the liver damage that I probably incurred.  Hanging out with friends these days means having people over for dinner and watching Game of Thrones together.  Much more social.  If meeting a potential partner is part of the reason,  then try online dating.  I don't know if it's caught on in NZ, but I met my wife on one.

Also, look into frugal travelling.  My friend spent a whole year abroad in SE Asia for $7000 in 2002.  So you can travel and do it cheaply and get more for your money.  When my wife (gf at time) and I were travelling in NZ in 2012, we had a rental Nissan Sunny and we stayed in a private room in a backpacker or small hotel, and tried to cook when we can.  We had a great time for not much money.  On our honeymoon, in SE Asia, we also often spent it in private rooms at smaller hotels for around $20-30 per night on most nights mixed with nicer rooms in the $50 range once in a while mixed with 3 nights at $200+ 5 star hotels on 3 nights from a wedding gift.  While the nice hotel nights were a nice change of pace occasionally,  they definitely weren't worth it and the $50 rooms were almost as nice.  And the cheaper travel meant we spent a month long honeymoon seeing 4 countries instead of a week on the beach.

Basic message is, every dollar and minute  spent cannot be taken back.  Spend wisely.  I'd say that if traveling is a passion, learn to do it smart and wisely.  Cheaper is not always better, but wasting money on things that you will regret later is not smart.

Thanks for the feedback here, there's some good advice. I'm a pretty cheap traveller, but I do it in a way to maximise my experience. For example, last year I was in Thailand for about 3 weeks- in that entire time I think I spent about $700 NZD. Thats about the same price as a weekend away inside NZ, and we spent our money wisely- staying in comfortable but not flash hotels (the only pre-requisite being that they had a pool) and hiring private tours and things like so that we could control our own schedule and see everything. We spent several days out snorkeling by private speedboat too. We ate at cheap 'restaurants' and street food as it's usually better anyway. For Europe, my flights alone to get there from NZ will be over $3000- it ain't cheap living at the bottom of the world! I'll stay in backpackers and take trains and all that good stuff. I absolutely love backpacking (Thailand wasn't as the group consensus was that we wanted a little bit more stability), especially on my own as I've met some wicked people that way!

I don't drink during the week apart from maybe one or two glasses of wine. I only drink on weekends when I'm out on the town- which I have to admit, is very expensive. But I deserve a bit of fun after the last two years, I've had a really hard time. Weekends give me a chance to let my hair down and have a bit of fun with friends- and maybe meet a man. Online dating is still a bit of a taboo thing here.

[Strawberrykiwi75]

Jamface: Glad to hear you're settling in well to CHCH life, how's your new job and living with your parents? Don't worry about the car, so long as you paid cash and look after it it's worthwhile. Just make sure you got your dollars worth :-) I like those Mazda Atenza's, so I can see why you picked it :-)
I ABSOLUTELY LOVE living on my own. It's so nice to have my own space and the quiet is awesome! Not waiting for the shower every morning is cool too- and not having to worry if I want to use up all the hot water ;-) I know financially that I should get a flatmate, but I'm not struggling at all and I'm too happy to change my mind. For others it may well be different, but for me this is a good fit. I can always review at any time.

Limeandpepper: (yummy sounding name by the way) I've never been before but from what I hear, it's very different to the other islands. I've done some research, and we will be doing lots of activities such as: ziplining through a rainforest, snorkelling, paddle boarding, climbing an active volcano and cooking our breakfast on a steam vent, before sand surfing down the bottom. Just to name a few ;-) I'll keep you posted when we come back- although I'm flying on to Melbourne after for the JT concert first lol.

[Strawberrykiwi75]

Ok so another update on where I'm at!

....Which is actually not so good. I needed a bit of a mental break from work, so I took some unpaid leave. I was having a hard time with some personal stuff. Thankfully I was able to afford this time as my insurance wouldn't cover it. Then I had an holiday in Australia & Vanuatu as well (scheduled before I took the break).

I'm just getting back to work now, but it does mean I'm waaaay behind my FI plan for this year. My home loan is sitting about where it was as I went onto minimum payments during that time. Obviously my savings are down from not working.

Now that I'm back at work, I want to get back on track with my savings as well! This is what I hope to do:
1. Stop buying lunches. I intend to go to the supermarket in the morning and fill up the work fridge with cheap eats. I usually spend $9 on lunch each day. I'm going to aim for $5 instead.
2. Inviting people over for wine and nibbles instead of going out for tapas and sangria on Friday. This usually costs about $50
3. Staying at home! I spend a lot of time out with friends, but I have found myself a project to stay at home with: renovating my laundry. I have wallpaper to remove, wood frames to sand, plastering to do and paint.

That's all I've got so far. I'm sure there's heaps more to do but I hope these small things will set me in the right direction. Any encouragement/criticism is extremely appreciated!

[jamface10]

I hope everything is settled and you're back on track :)

[OutBy40]

Ok so another update on where I'm at!

....Which is actually not so good. I needed a bit of a mental break from work, so I took some unpaid leave. I was having a hard time with some personal stuff. Thankfully I was able to afford this time as my insurance wouldn't cover it. Then I had an holiday in Australia & Vanuatu as well (scheduled before I took the break).

I'm just getting back to work now, but it does mean I'm waaaay behind my FI plan for this year. My home loan is sitting about where it was as I went onto minimum payments during that time. Obviously my savings are down from not working.

Now that I'm back at work, I want to get back on track with my savings as well! This is what I hope to do:
1. Stop buying lunches. I intend to go to the supermarket in the morning and fill up the work fridge with cheap eats. I usually spend $9 on lunch each day. I'm going to aim for $5 instead.
2. Inviting people over for wine and nibbles instead of going out for tapas and sangria on Friday. This usually costs about $50
3. Staying at home! I spend a lot of time out with friends, but I have found myself a project to stay at home with: renovating my laundry. I have wallpaper to remove, wood frames to sand, plastering to do and paint.

That's all I've got so far. I'm sure there's heaps more to do but I hope these small things will set me in the right direction. Any encouragement/criticism is extremely appreciated!

It's funny how expensive social engagements wind up being.  Agreed about inviting people over instead of going out.  If you do this, also invite them to bring something over with them so you aren't footing the entire bill.  :)

[Strawberrykiwi75]

I'm feeling back on track now! Still a long way to go but I'm feeling like I'm back in control- or at least getting there.

I've been steadily working away at my little house, and have now finished the laundry, kitchen, dining room, & bathroom. I basically started from scratch, and even put in new plumbing, a new hot water cylinder and party re-wired. I've learned so much!! I even knocked out a wall, learned to plaster, hang new gib & wallpaper... There's new flooring & tiles too. I still need to do the living room, hall way and two bedrooms & I've set aside enough money to install new carpet too. So I'm pretty excited about all that.

I've saved an emergency fund of a couple months wages 'just in case' and tried to make up some time with my home loans, and paid off $4000 since I last posted. My two superannuation schemes are ticking along nicely and are up to about 30k between them.

My inheritance has pretty much gone on renovating the house and furniture, aside from the money I kept aside for my Europe trip next year.

And I'm about to go on another trip! One of my friends is living in Cambodia so I'm going to visit him over Christmas & New Years. Then when I come back I'll be focusing all my energy (& money) on the house to get it completed and keep paying off that home loan! Apart from my Europe trip I won't be doing any more trips so all my travel money can go to the house and investments.