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Financial advice for a student?
mooshoepork
Registered User regular
Registered User regular
Just some background, I live in Australia, I'm a full time student, I have two part time jobs, I live at home and have no real bills to pay.
At the moment, I'm on holidays so I'm working my ass off and getting a fair bit of cash.
With the current economic climate the way it is, I'm not really sure what I should be doing with it.
I mean, I have an account with I think...7% interest or so. Seem to be getting 20 bucks a month or so in interest (no fees because I'm a student) That's pretty much all I'm...doing...
I realise to invest in shares, I should be willing to lose that money, and also be willing to outlay a rather large sum (for me anyway).
So, any tips? Ideas? Should I just keep saving it? Am I doing it wrong?
At the moment, I'm on holidays so I'm working my ass off and getting a fair bit of cash.
With the current economic climate the way it is, I'm not really sure what I should be doing with it.
I mean, I have an account with I think...7% interest or so. Seem to be getting 20 bucks a month or so in interest (no fees because I'm a student) That's pretty much all I'm...doing...
I realise to invest in shares, I should be willing to lose that money, and also be willing to outlay a rather large sum (for me anyway).
So, any tips? Ideas? Should I just keep saving it? Am I doing it wrong?
mooshoepork on
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edit: Thanks!
I'm not too particularly worried about my parents financial situation. More mine. I don't think it's really hit here yet...I mean, everything seems fine at the moment. There have been some job cuts, but nothing on a huge scale just yet. I even recently got my second job. Which pays more than double the efficiency wage.
Do you have any debt? Student loans?
Do we have them in Australia? Never heard of them.
It's quite possible that your interest rate was 6.9% at one point before it dropped down to 3%. The interest rate on my checking account has dropped quite a bit over the past year and a half.
I would doubt they even exist. I have never seen them in the UK or New Zealand, and only heard of them when I came here. Along with my o_O when I found out just how low the interest rates are in the US for bank accounts (even savings ones). I expect that Aussie doesn't have them because their banking system is similar to the British one, where there are reasonable interest rates on the normal bank accounts, so the idea of forcibly tying up your money probably doesn't exist.
However, the general advice is good. Investigate long-term savings options. In the UK, we have a thing called an ISA, which is a tax-free savings thing. So Aus should have something similar, just an account where the interest rate is high, but it can be a bit of a pain to withdraw the money, so it's not there to be used as a current account. If you are able to save the money, do. I burnt through all the money I ever had as a student, and it was painful when I graduated.
This. While a CD or long-term investment is good as well, you should have a "safety net" of money. Yes, you're still living with your parents and not paying bills, but if you do move somewhere for a new job, you'll need enough money to get there, set up apartment/utility/etc deposits, possibly get new clothes as mentioned ...
Can trade TF2 items or whatever else you're interested in. PM me.
For now, keep earning the 3% interest. That's pretty good, given the economy globally. Once you're done with school and have a full time job that's pretty stable, you can start sacking away for retirement.