What would you do in my situation? Lump sum of fiat

Discussion in 'Wealth Creation & Management' started by Tuatara, Jun 4, 2014.

  1. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Think about what you just wrote!

    *You took 3 months to find a job.

    *You don't have a home.

    *You don't have a deposit for a home.

    *Your GF has a Uni debt which is attracting interest.

    *You want to go on Holidays for a couple of months and have no income stream.



    Enjoy your holiday. :lol:
     
  2. ultimacash

    ultimacash Well-Known Member Silver Stacker

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    Perhaps go on the holiday as having children later will make it harder to do, but I wouldn't go overboard on the spending as you have to think of the future also. But because you arent sure maybe pay some debit off first and save a bit more for the holiday.
     
  3. TingTing

    TingTing Member

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    You can't have it all. Re-think WORKING holiday, at the very least pay your way, dont go backwards. View travel as an investment in your financial education and future earning capacity.

    Hold the PM's, wait for the Super payout to clear the DEBT. As a couple now you can't afford a holiday, you are already in the hole before you have even left Australia.

    Plus you have a MORTGAGE on the NZ investment to pay while you are on this lovely holiday?

    Tell me you are taking leave from your current jobs and not resigning?
     
  4. Tuatara

    Tuatara New Member

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    Yeah took me ages, we were lucky we had an emergency fund back then to use. Aviation industry wasn't in the best shape back then let alone now!

    I also believe until your own home is mortgage free it really isn't your home anyway

    A deposit for a home is definitely on the to get list

    This is my main concern.

    Yes in a year or so. We aren't getting any younger. Of course we will be planning for no income during the travels and will hopefully be able to keep our jobs by using leave. And another reason why we don't want it to be a working holiday is that it will take up a whole lot more time. You can see and do a lot more when you don't need to be at work for half the trip. We want to get it out of the way so we can get back and 'knuckle down' with the rest of our lives.

    We have never considered using the lump sum as our ticket to splurge on an os trip. We will only be using cash that we will save. I guess its more a decision of what I put it into with the other options.
    Student loan, emergency fund, home deposit, pay down investment property mortgage(not an option as previously said).

    Like I said I'm a big fan of getting rid of her student loan, but then like the misses said once its put towards it we wont ever see it again. Is it more important to have no student debt or have an emergency fund?
     
  5. Abossy

    Abossy Active Member Silver Stacker

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    Dave Ramsey who I've been listening to alot recently says have $1k emergency fund first, pay off all debt and then maintain 3-6 months worth of savings to cover living expenses. I like it, but granted doesn't suit all situations.

    As a 32 year old now how has travelled when I was about your age, I would say yes do it BUT get rid of the debt first. Working holiday definetly and have a plan before you leave.

    I have a mate who went over to Canada on the working holiday deal when he was 26 and he has never left - he is a permanent resident now. I went last year for 3 months but missed home too much. Lucky I had my emergency fund and no debt cause it took me over 2 months to find a job!
     
  6. Mr Medved

    Mr Medved Member

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    At a similar age I traveled until I was broke multiple times, but I had a different set of circumstances.

    Personally I'd look to at least pay down half the debt (~10k), keep 10k for a rainy day, and use 5k for travel. it doesn't have to be an all-or-nothing type decision.
     
  7. trew

    trew Active Member Silver Stacker

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    I've done the short term working overseas stint and then travelling around as a tourist afterwards.
    My fondest memories are of the people I got to know and seeing ordinary everyday life in another country, not the touristy stuff.
     
  8. Dabloodymess

    Dabloodymess Active Member

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    I am still in the process of working hard and then travelling till I am broke, will be a pity when I have to grow up ;)
     

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