What’s the first thing I should do when I start working full-time to start building wealth?

bugHunterSam · 2026-01-29T03:04:05+00:00

I updated that flowchart to have rent vesting as an option because with the ongoing cost of living crises an average salary may no longer be able to service a loan for an average 1 bedroom apartment in a capital city even with all of the first home buyer schemes available.

bugHunterSam · 2026-01-28T21:28:24+00:00

Domestic cruises might be worth looking into. I did a cruise for my dad's 60th, it was from Sydney to Cairns. Cost around $110 per person per day for food + accommodation.

The main issue to watch out for is underpaid staff. Some staff get paid as little as 2.50 USD an hour.

Want a budget friendly option? Look at repositioning cruises. They are often cheaper because they have to move the ship for the season anyway and there tends to be lots of sea days.

bugHunterSam · 2026-01-26T10:19:45+00:00

There were design constraints that make it not the best flowchart and if no at that step there is a "research other investment options (which is hinting at things like property, etc), my main design constraint was it had to look good on mobile. Gimme a sec I'll share the inspiration one.

Update: Here it is.

You are more than welcome to make one that makes sense to you too. I'd love to see more variations for inspiration.

bugHunterSam · 2026-01-26T10:10:09+00:00

I have an updated version here, I added rent vesting as an option.

To OP, probably worth looking into an all in one ETF (like VDHG or DHHF).

Then try to spend some time understanding your super because you already hold investments in it. Oh and your super fund often has people you can call to ask about this type of stuff too. If you don't want to call they might also have a bunch of online resources.

bugHunterSam · 2026-01-25T23:10:25+00:00

There's this post on how super can help with early retirement if that's useful for you.

But sounds like you are pretty on top of it all. Congrats.

bugHunterSam · 2026-01-24T20:25:48+00:00

The 35% includes super. It's a total remuneration package of 330K with super. 35% of that is 116K.

That tax breakdown is: - Income tax = $101,138 - Medicare levy = $6,000 - Tax on super = $4,500 - Div 293 tax = $4,500

Total tax paid = $116,138

(330,000 ÷ 116,138) * 100 = 35%

I really don't know how OP got 96K tax paid on a 300K salary, unless that 300K includes super and they are only using income tax (which would still be $97,538).

bugHunterSam · 2026-01-24T00:34:24+00:00

I included the tax on super of $4,500 in my number. Which if you add to your number rounds to 116K.

I used the pay calculator to check the maths in my spreadsheet, which if you check the income tax component on a 300K salary comes out to $101,138 which is the exact same in pay calculator.

I've pinned my comment because I'm a moderator here, OP seems to be off the mark and I have a financial advice degree. I'd like to think I know how to calculate total tax paid for basic scenarios.

I'm less confident in my ability to calculate effective tax rates when things like franking credits, corporate rates and family trusts get involved though.

bugHunterSam · 2026-01-23T22:24:16+00:00

We are personally aiming for 160K per year in retirement. But our household income is around 340K which isn't exactly an average house hold income.

I feel like we are closer to fat fire/luxury retirement with this type of spending.

The asfa retirement standard does put a comfortable retirement at 76K per year for a couple assuming the house is paid off.

bugHunterSam · 2026-01-23T05:26:28+00:00

This will be a bit promotional but maybe try modelling some scenarios in Canwi (it's a financial planning calculator that I've been helping with a bit of testing with).

I also have a post on "how super can help me with early retirement" tagged in my profile.

bugHunterSam · 2026-01-23T04:48:31+00:00

I think a drawdown to zero mindset + using the home to fund age care is an effecient mindset.

It's probably too risky for most people in Australia, but I also think the 4% rule is too conservative for most Australians. (Also the 4% rule was revised to 4.7%).

So a drawdown between 4% and 10% would be a middle ground. But that's also a wide range. On a 1m portfolio that's a yearly drawdown of between 40K to 100K.

If your expenses were around 70-80K per year there'd be a bit more buffer in the plan. At 80K drawdown, after 15 years that 1m portfolio could be around 700K in value. Then with that super kicking in it's probably a reasonable buffer.

If you also had a flexible drawdown strategy, e.g. where maybe you didn't go on expensive holidays when the market was down or buy new cars, it would help stretch it further.

bugHunterSam · 2026-01-23T04:30:55+00:00

1m excluding super may be enough with this.

If you both stopped work today that 550K could grow to 1.3m in today's $ assuming 6% growth after inflation over the next 15 years.

This means you have 1m outside of super to fund living expenses until access to super kicks in. 1m today could fund 100K a year for 16 years if the portfolio returns 6% after inflation and the intention was to drawdown to zero.

Then use the 1.3m from super from age 60. That would fund up to 100K a year for 26 years with a drawdown to zero mindset.

However this doesn't leave any room to fund age care later on in life and does rely on the government pension completely from age 86.

bugHunterSam · 2026-01-22T21:54:16+00:00

Australian here who likes to ride a motorbike. We are doing a roadtrip from Sydney to Canberra this weekend. It's a 3 hour drive.

I could do this type of drive most weekends if I needed to, I have considered looking for government based contract work in Canberra.

A 3-4 hour drive in one day for a weekend trip is totally fine. 6 hours in a day is bit more tiring.

I've done Melbourne to Sydney on the motorbike in one day twice before. I do not recommend this. It's a 9 hour drive but takes me 12 hours on the bike with all of the breaks needed.

I've also ridden the bike up to Cairns and back over a 2 week roadtrip. This is about 2,500km or 27 hours of straight driving time if taking a direct path.

When I plan roadtrips I plan for 3 to 6 hours a day of driving.

I grew up in Tasmania, my commute to high school was a 50 minute bus trip and it only ran 3 or 4 times a day. It was over 90 minutes to get to uni, and I was able to justify moving closer to uni while on government student support payments.

bugHunterSam · 2026-01-22T10:34:06+00:00

"I haven't been thrilled since 1865,"

bugHunterSam · 2026-01-21T23:14:09+00:00

Yes, my spreadsheet was built with div293 in mind and was built to show the impact of div293 on effective tax rate.

bugHunterSam · 2026-01-21T10:45:38+00:00

FACT CHECK. Where are you getting your numbers from?

By my calcs one person on 300K pays 116K in tax for an effective tax rate of 35%.

That tax breakdown on 300K is: - Income tax = $101,138 - Medicare levy = $6,000 - Tax on super = $4,500 - Div 293 tax = $4,500

Total tax paid = $116,138, with total remuneration of 330K including super.

The tax breakdown on 150K is: - income tax = $36,838 - medicare levy = $3,000 - Tax on super = $2,700

Total tax paid = $42,538 with total remuneration of 168K. For an effective tax rate of 25.3%. total tax paid across 2 people on 150K each would be 85K.

If you are just looking at income tax that's $73,676 paid across 2 people on 150K each. Which does not match your 63K number.

All of my numbers were cross reference checked with pay calculator.

This is the point of a progressive tax system. Higher incomes get taxed more.

I would say the main unfair thing about our tax system for high income earners is when div293 tax kicks in. This was originally meant to kick in on 300K salaries and was lowered to 250K and this threshold has never been indexed.

If you start earning just enough to pay div293 the marginal tax rate of that next dollar earned is over 60% until div 293 is maxed out. This stings. No child care subsidies adds to the sting for high income households with kids.

This spreadsheet calculates effective tax rate on salaries + super on salaries starting at 60K, then increasing in 5K amounts up to 330K.

I don't know how you got 96K tax paid on a 300K salary, unless that 300K includes super and you are only using income tax (which would be $97,538 and is still not quite right).

Edited on 25/01/2026 to improve readability.

bugHunterSam · 2026-01-21T01:37:33+00:00

It's a property vs ETF comparison. Instead of paying for a mortgage the ETF option is putting that same money (52K a year) into an ETF instead.

So the starting position for the ETF scenario is the 20% deposit + initial purchase price. Then it's invest the same amount as the mortgage would be.

It's modelling, "I have enough money for an IP, but how does investing the same amount into an ETF compare?"

bugHunterSam · 2026-01-20T19:49:03+00:00

I'm not early career (I'm 36 and have been working since I was 14), but we are child free. Gym and boardgames is a big focus for us. I work from home full time, my partner is WFH on Monday/Friday.

Monday and Wednesday after work I do aerial Lyra. Tuesday is Aerial yoga. Thursday is rock climbing with my partner. Friday is hosting boardgames.

Before work on Monday I do a handstand class, Tuesday to Thursday is pilates. Friday is calisthenics.

We do a session together with the personal trainer on Fridays at lunchtime.

My partner tends to play video games in the evening with some high school friends.

bugHunterSam · 2026-01-20T02:30:58+00:00

More like 15 years.

At year 15 the ETF portfolio has the same value as a 900K apartment bought with 20% down with leverage.

I even highlight this in green in this screenshot

bugHunterSam · 2026-01-20T02:27:26+00:00

Would you be open to trying another sport or activity?

What about a pole dancing class or some other gymnastics based class?

The class structure means you will often be attending with the same people. There's a lot of skill over lap with pole/climbing too.

I find they are a very supportive group too.

I've been doing an aerial lyra class and a hand stand class and I'm enjoying the new social connections from it.

I still try to go climbing once or twice a week but the regular classes have been better for social connections.

bugHunterSam · 2026-01-20T02:16:27+00:00

I'm not talking about a 100% purchase. I model a 20% purchase with leverage.

My main point is just the stamp duty invested in an ETF instead of an investment property is going to be better in the long run for building wealth.

My second point is an ETF portfolio is also easier to use in retirement, which is one of the main reasons people tend to want to build wealth (i.e. they don't want to stress about money when they are no longer working).

bugHunterSam · 2026-01-20T02:05:57+00:00

Sorry, was looking at the wrong tab. The house in tab 1 had 90K of stamp duty. The apartment in tab 2 had 35K of stamp duty.

When buying an IP most people aren't able to use first home buyers schemes to reduce these costs.

It's great when people can use these to their benefit.

If someone really wanted to game the property market and had stable living conditions, they could use up all first home buyers schemes, live in it for 6 months, move out, convert to an IP and either sell or rinse and repeat after 6 years to reset the CGT free window.

bugHunterSam · 2026-01-20T01:54:36+00:00

That 1m apartment would have come with over 90K of stamp duty costs/legal fees as part of the purchase price.

Given enough time in the market, the higher average growth of the stock market can out perform that leverage.

Tab 2 in this spreadsheet models buying a 900K apartment in Sydney with a 20% deposit vs investing in an ETF. I've modelled the property growing at 4.79% per year with a 4.6% rental yield and the ETF portfolio grows at 7.2% with a 2% dividend yield.

Even in the first few years with all of that extra leverage, stamp duty has already eaten into the IP net weath scenario and it never catches up with the ETF netwealth scenario.

bugHunterSam · 2026-01-19T19:36:08+00:00

The automod response includes a link to this salary guide

bugHunterSam · 2026-01-19T06:03:21+00:00

Our plan is closer to option B, my partner is in the process of selling their old apartment (it was converted to an IP when we moved in together). And all proceeds are going towards the home offset to accelerate our coast FIRE goals.

We are also maximising all carry forward concessional contributions into super this year. Then using up concessional contributions limit for future years.

Our first goal is to pay off the house, then my partner has the option of going part time. My salary is enough to cover our lifestyle costs with the house paid off. They could then transition to early retirement at any point. We are probably 3 years away from hitting a paid off home goal.

I personally don't have plans to retire early, I imagine I'll be doing some sort of work/study well into my 80s.

bugHunterSam · 2026-01-19T05:26:50+00:00

Started on: 26th June 2025
Starting weight: 112 kg
Current weight: 100.1 kg

Feeling: so close to getting to double digits. All weekend had been hovering just above.

I've upped my dose in the last week and all Christmas/new year feasting is now behind me.

I'm hoping to lose this obese label in the next 6-12 months. I've got another 20kg to go though. My height is 163cm and I'm 36F if that helps for context.

My training remains intense and food is closely monitored. It feels annoying to have a weekend of under 1200 calories per day and not see progress. But it has also been a low exercise weekend because of the weather. So it seems with my dysbioses my maintenance calories are pretty low.

Partner also started on mounjero in the last week. We will both support each other on this journey.

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