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

[Holdfast]

Wow thanks everyone for your input thus far, just finished work and came home to all your replies.

I should've explained a little better by the looks. Let me try clear things a little.

Rental property has a mortgage and we both pay a small amount into this each fortnight. Not sure I want to put any more than I have to in this as the other shareholders would have to match it and I don't think they're in a position to be able to do this.

Will eventually be wanting to get our own place and 'settle down' but I personally think (good chance of being wrong) that housing is in a massive bubble which will pop in the future so not too keen on buying just yet. Don't have a deposit for this yet also.

Her student loan is in NZ which if you are living in NZ then it is interest free, however if you decide to leave the country permanently you start getting charged interest. Btw I have already helped her with some cash towards her loan which does not bother me at all. I'm just glad I didn't go to uni and rack up student debt myself

By travel Europe I meant travel with no income for a few months. Maybe a little bit longer than a few months if we can but either way we have decided not to work while we are there. Reason being we found packing up and moving to Oz from Nz to be hard enough even with the Trans-Tasman mutual agreement. God knows how much harder it would be on the other side of the planet haha (again could be wrong on this, but took me almost 3 months to find a job here in my industry)

We are both well aware of our debts and want to get rid of them asap, and the extra costs of all the other life stages we have to look forward to. but at the same time we think now is the prime time to travel while we have our youth and our health. The longer we leave travelling the longer we start on those other life steps. Dam it why can't things be easy lol

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:

 

[ultimacash]

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.

 

[TingTing]

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?

 

[Tuatara]

*You took 3 months to find a job.

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!

*You don't have a home.

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

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

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

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

This is my main concern.

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

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?

 

[Abossy]

*You took 3 months to find a job.

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!

*You don't have a home.

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

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

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

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

This is my main concern.

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

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?

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!

 

[Mr Medved]

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.

 

[trew]

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.

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.

 

[Dabloodymess]

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.

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