University Savings

I read a lot of American personal finance blogs and the common thing for parents to do over there seems to be to pay for their children to attend college. Over here in Australia, things are a little bit different.

Back in the late 70’s, the Higher Education Contribution Scheme (HECS) was introduced. This was basically put in place so that everyone who wanted to could go to university. Basically, the government would pay for your time at university (tuition only) and you wouldn’t have to pay it back until you earn over $41 000. Even then, you only pay 4% of your salary toward it. It’s taken out much the same as tax is.

As such, most parents in Australia don’t scrimp and save in order to be able to send their children to university. Most kids just go to uni and take on a HECS debt. Of course, there are parents out there who probably do save up all the money to pay up front, but for the majority, HECS is the way to go.

I think this seems to be a better method than what occurs (or what I can understand) in America. Yes, you graduate with debt but you don’t have to pay it off quickly and you don’t have to battle high interest rates. Most people don’t even think about their HECS debt as it just seems similar to paying income tax.

What does everyone else out there think of the Australian system? I’m a little bias but I think it’s great.

Oh and an aside, I will graduate without a HECS debt, for which I am very grateful!

Weekend Spending

I had quite the un-exciting weekend! On Friday night I went to a university function which was actually not very fun. Due to being utterly bored, I didn't end up spending any money which is always a plus. My friend and I left early and went back to her room for a good catch up session before I went to bed. On Saturday, as previously posted, I bought a new phone. Or rather, I signed up for a phone contract and got my phone with it for free. I LOVE this phone, it is still giving me no end of enjoyment!

I also filled by car up which cost me $40. Because I live on campus, I don't drive very much, mainly just on weekends. During the week I usually eat on campus, study and hang out with friends on campus. So I sometimes manage an entire month out of one tank of fuel, which costs around $40 to fill up. This weekend however, I'm visiting my grandparents in a city a few hours away so will have to fill up again, but it's so rare that this happens, I'm happy to do it.

I also did my grocery shopping. I usually buy a box of Pepsi Max (I'm slightly addicted) that I keep in my room, replacing a can in the communal fridge each time I have one. I was due to buy another this past weekend for $14.95 a box. They had two for $20 though and I could not resist, as I know it is something I will buy again in the future. As a result, my grocery bill was a little higher than usual at $41. I also had to buy some back to school supplies for $12.

On Sunday I just tottered around at home, cleaning and doing my washing and ironing. I had soccer in the afternoon before heading home for a small dinner as I didn't feel like going to the dining hall. So Sunday was a no-spend day!

And that is my weekend spending report!

I got a new phone!

Well I bit the bullet and bought a new phone today. Or rather, signed up for a plan that came with a free phone.

But here's the good news. I love this phone! I think when making major purchases, if you don't remember where/when you bought it and if the thought of it doesn't bring a smile to your face, then you've wasted your money. Let me tell you, this phone brings a smile to my face! I'm so excited about it and will definitely be able to remember where/when I bought it!

Should I?

My mobile (cell) phone has started to play up. It's fine for the most part but it's not charging properly. I'm not under a contract so can't get it fixed without paying a hefty bill. For some time now, I have been considering going on a plan with my phone. As I don't live in the near vicinity of any of my family, I use it a lot to call home or to text my siblings.

Now that this one has started to play up, I'm considering it even more. If I go on a plan, I can get a new, free phone with it. But am I being silly with my money? Should I just bear with this phone until it dies?

I usually recharge with $30 credit. This does not always last me a month though, so I need to recharge again before the end of the month rolls around. If I were to get a new phone, I would have to go on the $49 plan and the one below that ($19) isn't enough. So this does sound like an extra $19 a month, but sometimes I spend up to $60 a month with my pre-paid... so maybe it's not too much. On the up side, on a plan I could call my sister for free and, as she still lives at home, can also use this to speak with my parents.

I don't really know what to do. Any advice out there?

Reality Check

I know I haven't been posting as frequently since I returned from my trip, and I do apologise. To be honest, I don't actually think I have any regular readers, but still, my apologies.

My final semester of uni started on Monday. I can't believe I am mere months from graduating! I actually think I am going to miss it! I've spent the past sixteen years of my life studying- I won't know what to do with myself once that's gone. Here's hoping the semester goes by without a hitch!

I have received my job assignment for the next three years. It's on the outskirts of a major city and is in a nice area. The actual job I will be doing is very high tempo, very stressful and involves long hours. I'm quite excited as I'll learn a lot. However, since finding this out, I've done some re-evaluation in terms of buying a home.

I still plan to save, research and look for a home next year, getting to know the area . However, my goal between now and the end of 2010 is to pay off my car. Until I have that debt out of the way, I feel like I would be getting in a little bit over my head with another mortgage. I think this is the responsible decision and, due to my low cost of living, I should be able to do it by the end of next year.

In other news, I submitted my tax return today and will be getting a $1500 refund. That, plus an extra $200 of my next pay cheque, will be going straight to my brother which will make me completely debt free to him! I'm very excited about that!

As always, if anyone is out there, please comment!

You Spent How Much?

Over the last Christmas break, I travelled to Europe for around three weeks. It was all paid for by my own money, I didn’t put any of it on credit and I had the most amazing time. One of the reasons I was able to afford such an amazing trip was that I had no plans to spend big while I was there. I was going there for the experiences, not to buy things!

I did set some money aside to buy myself, my older brother and my parents some art, but apart from that, I only picked up one or two small things for myself and my other siblings. However, then I went to Venice.

For those who have never been to Venice, they’re famous for their glassware and it’s everywhere! I found the most beautiful champagne flutes I had ever seen. I just had to have them. I did take the entire day to deliberate, but in the end, decided to buy them!

They cost me almost $400. This might not sound like much to people out there, but for a twenty year old student in Europe for the first time, this was HUGE!

However, I do not regret my purchase. Now, every time I use them, I think of my trip and what a spectacular time I had there!

My Trip

So I have recently returned from a two week work trip. It involved lots of boring briefings and then one or two "tests" for certain qualifications needed to do my job. Very dull work but necessary.

For who only knows what reason, it was held in a very remote locality. It was about a $30 taxi ride to the nearest town and none of us took our cars (logistics issues). I thought this would be fantastic, I would save a lot of money as there was nothing to do and nowhere to go.

I didn't save that much though as I spent far more than usual on eating out, both for lunch and dinner. I know I shouldn't have but I was bored and needed to socialise with some friends! Plus the food provided wasn't overly appetizing.

So yes, I spent more than usual but it was a two week thing so I don't feel too badly about it. I get paid this Thursday and will hopefully get back on track!

I'm Back!

I am back from my two week long business trip. It was an alright time, a little boring and had a lot of content. But it's good for my career, or at least that's what I'm telling myself.

I'm hoping to start regular posting again tomorrow, the first one being on how my spending went for the two weeks.

Check this space soon!

Off on business

I'm off on a business trip for two weeks. I don't think I'll have access to the internet (it's in a very remote location unfortunately). But once I'm back, I'll continue to post! Have a good two weeks!

My Car: No Regrets

In February of this year, I bought my first car. I bought a brand new Holden Barina sedan for $15 990. I had been planning to save for around six months before buying a car but soon became desperate and found a great deal. I’ll back up just a little.

Around mid-way through last year, my older brother was deployed to the Gulf with the Navy. It was a seven month deployment and, instead of leaving his car in a parking garage for that long, he gave it to me, with the understanding that I would keep it safe and running. I was eternally grateful! I had been managing without a car for two years and it was really beginning to get to me. I would often volunteer to be designated driver, simply so I could borrow someone’s car to do errands the next day. The city I live in is very small and only has a bus service- which is eternally unreliable.

Once I had my brother’s car, I was free! I couldn’t believe I had ever lived without one. I really enjoyed having it and it made life a lot easier. He returned home in January and thus, needed his car back. I spent two weeks back at uni and almost died without a car! I couldn’t stand it! Fortunately, I then went home for two weeks for the remainder of my Christmas break.

Whilst there, I went car shopping with my little sister. Not for me but for her. She was undecided as to what she wanted to buy so we went and looked at a number of different makes and models. She finally decided on a car, a Mazda 3, and left with my parents to purchase it. I stayed home with my younger brother, surfing my favourite PF blogs and watching a movie with him.

A few hours later, my sister and parents returned. My sister had in fact purchased a new car but it wasn’t the one she had set out to buy. Instead, she had bought a Holden Barina sedan. Basically, Holden were having a sale where you could buy the sedan for the same price as the hatch back. Both my sister and I disliked hatch backs but were appalled with how much extra it was to buy a sedan.

She was absolutely gushing as she showed me the brochure and talked about the car. I really liked the look of it, the features of it and the price. I seriously considered buying one. I thought it over for a couple of days and then, on the day I was flying out, I went down to the dealership with my mum and sister and test drove the car. And yes, I fell in love with it.

I filled out all the paperwork and bought it that day. I had quotes from both my bank and credit union for a loan but, as it turned out, the dealership dealt with a bank that had a much lower interest rate. It was one of Australia’s top five banks so I was comfortable financing my car through them. I know it seems like I rushed into this and it’s true, I did, but I definitely haven’t regretted it, not even for a second!

I read everywhere that you should never take a loan for a car and you should never buy a brand new car. However, this was my first ever car and to be frank, I didn’t have the cash. I plan to drive this car until it falls apart and I will buy my next used vehicle with cash. But for now, I refuse to regret my purchase, I absolutely love it!

Which bank?

I have read a lot of personal finance blog stories about the time kids were taken to the bank by their parents to open up their very first bank account. That never happened with me. My parents opened a bank account for me when I was just a few months old. I had a bank book as a child and would bank any pocket money or birthday money I received through that.

As a result, I have been with that same bank ever since. A few times I have considered changing but, as long as I’m a student (only another six months), I get a great deal with them. I did join my work credit union when I first got my current job, but that was more in order to take advantage of their credit card deal and also to have a branch on campus.

When ING Direct first came out- or rather when I first noticed it was out- I opened a few accounts. I currently have around seven sub-accounts in ING. I love it! Though the phenomenal interest rate that I received when it first opened has now all but disappeared, I still really enjoy it. I love that I can have the sub accounts and that I can arrange for money to go in there each pay without me lifting a finger.

So I basically use three banks, all to varying degrees. I find it easy to manage and helps me keep track of my different sorts of spending.

What about everyone else out there? How many banks do you use? Which ones?

July Goals

This will be my first time setting public goals for a month! I'm a little nervous- what if I don't achieve any of them? Anyway, here they are:

1. Save $1500 in my emergency fund.

2. Lose three kilograms.

3. Get my run time down to 12:30.

I honestly couldn't think of anymore. Here's hoping I can do it! I'll update at the end of the month.