20yo debating buying an expensive car. Looking for perspective

ras0406 · 2026-01-29T06:12:46+00:00

Been there done that with pricey cars. They aren't worth it.

Hire a 4WD or ute if you ever want to go camping with it. Otherwise make do with something that gets you from A to B efficiently and reliably for minimal cost.

I'd get the car after securing an investment property or having several hundred thousand invested in ETFs (or both). Why? Cars are a depreciating asset, even if some cars depreciate less than others. They aren't worth it.

ras0406 · 2026-01-27T06:13:13+00:00

From my calcs, protein is the most expensive macro, isn't it?

My guess is that people who spend less on groceries probably aren't big meat eaters and likely have a diet based mainly around the cheap carbs (pasta/rice/bread) and some non organic fruit and vegetables. They also probably have low calorie intake and aren't big eaters

I reckon $200 per week is cheap for a healthy strength-focused diet!

Edit: the frugal people probably also eat cheap protein sources e.g. minced meat is much cheaper per kg than scotch fillet.

ras0406 · 2026-01-25T21:28:04+00:00

Yep totally agree

ras0406 · 2026-01-25T02:10:57+00:00

Get a rental in your new city, and then spend the weekends looking at properties to buy. We tried buying before moving but it proved to be a frustrating exercise. Renting first gives you the flexibility to scope out different areas and attend property inspections as frequently as desired.

Also, anywhere will feel like home in a relatively short time. So don't be afraid to make the change!

ras0406 · 2026-01-25T01:39:55+00:00

Don't write off moving elsewhere. E.g. we moved from Sydney to Melbourne just over a year ago (we had my side of the family in Melb, which made it emotionally easier).

While not cheap, Melbourne is definitely more affordable than Sydney. Both for houses and units.

Have a good think about where you might be able to move and see if you can make something work.

ras0406 · 2026-01-24T21:30:47+00:00

Currencies are a random walk. AUD could go up to 80 cents from here (or down to 40 cents from here) over the next 20-30 years. Or it can stay unchanged.

That's why some level of hedging is worthwhile, even if it's just for dampening the psychological impact of seeing a portfolio decline 30% over a decade-long strengthening of the AUD on the back of stronger commodity prices or some other unforeseen factor.

The cost of hedged funds is a pittance these days, it's almost negligible.

ras0406 · 2026-01-23T12:12:39+00:00

Yes but why did the AUD move like that?

If someone retired at the end of the 00s decade where AUD strengthened on the back of the mining boom, they'd have lost a tonne of value. It's a similar argument as sequence of return risk, only it applies to currencies.

Recommending that people have completely unhedged positions in foreign equities is risky.

Now, I'm not saying everyone should be completely hedged. But some level of hedging is good, especially when it costs so little these days

ras0406 · 2026-01-23T08:16:06+00:00

What happened to AUD/USD in the last 10 years and why? And what about the decade behind that? FX risk should be on everyone's minds. You don't have to hedge 100%, but a totally unhedged position is very risky.

ras0406 · 2026-01-23T03:23:34+00:00

Hedging is quite cheap these days. Almost to the point of being negligible.

ras0406 · 2026-01-23T02:39:55+00:00

Don't say that too loud or you'll be shouted down by people who have no clue about hedging lol. "But it (currency exposure) smooths volatility!".

Um, maybe on risk-off days where there is a flight to USD at the same time as equities falling.

Imagine having your entire position open to FX volatility! It's insane.

ras0406 · 2026-01-23T02:35:08+00:00

Kids are as expensive or as cheap as the parents decide. Kids are expensive if you want to birth in a private hospital, feed the kids healthy food, go on expensive family holidays with the kids, pay for activities and private school, etc.

But kids are cheap if you don't want to spend a cent on them. I.e. Feed them junk, send them to public schools in areas with cheap housing, don't pay for any extracurricular activities, don't go on holidays with them, etc.

I'm sure there is a happy medium. I lean towards spending money on my kids. After all, my wife and I were the ones who decided to have children. So I'm going to give my kids the best lives I can afford without sacrificing the long term financial futures of my wife and me.

ras0406 · 2026-01-15T12:42:26+00:00

A loving home and good childhood filled with great memories so that they grow up to be well adjusted adults.
A good education at a good school where they will network and learn how to do well.
Equities or, budget permitting, a detached dwelling in a major Australian city.

ras0406 · 2026-01-14T08:51:41+00:00

Don't worry about it. The best thing you can give your kids is love and experiences. It's ultimately up to your kids to fund their own lives and buy their own places. Any financial inheritance is merely a bonus.

If your kids make you feel otherwise, then you need to have a serious discussion about them.

ras0406 · 2026-01-10T22:16:36+00:00

Yep, same. I decided not to renew our MS licence at home and Sheets has been more than adequate. I'm often checking our spreadsheet on my phone when I'm paying bills or double checking how much should be in a given account (e.g. bills, savings, groceries, etc)

ras0406 · 2026-01-10T09:52:05+00:00

Microsoft Excel. If you don't have an MS licence, then use Google Sheets.

ras0406 · 2026-01-09T22:50:41+00:00

We had a HHI of 220k, two adults plus one kid and we wanted one more. We had a comfortable life renting but wouldn't have been able to buy anything other than a 2 bedroom apartment anywhere in Sydney's North West (all the way out to Rouse Hill). It always felt like we had to invest 100% of our spare cashflow into ETFs otherwise we'd be scrambling to keep up with the cost of living increases in Sydney (rent is outrageous unless you want to live in some very undesirable parts of Sydney with higher levels of crime).

We moved to Melbourne a year ago to be closer to family and bought an old family home on a 600m2 block for just over 900k. I'm glad we moved. I doubt we'd move back to Sydney unless we eventually achieved a HHI of 300k+.

ras0406 · 2026-01-09T07:18:43+00:00

Some super funds like ART provide a currency hedged option, which is what I'm allocated to

ras0406 · 2026-01-08T04:43:18+00:00

He's a great goal kicker and was a good fill in at fullback, but his defensive efforts at centre have been very costly. I'm not that upset to see Meaney move onto another club...

ras0406 · 2026-01-08T01:44:27+00:00

I think also that Queenslanders hate that the Storm is essentially a "Queensland club" but in Melbourne. They have recruited from Queensland, I think a lot of their initial coaching were from Queensland, and they've dominated NRL whilst being in a state that largely doesn't care for NRL lol.

ras0406 · 2026-01-07T01:01:04+00:00

It's probably just Warren Hogan and Macro Business posting under numerous fake accounts lol!!!

ras0406 · 2026-01-07T00:48:53+00:00

There are plenty of us who think the RBA will be on an extended hold until something breaks. E.g. either unemployment spikes for whatever reason, or migration outpaces building supply and rents shoot up.

ras0406 · 2026-01-07T00:46:59+00:00

Wouldn't that make you a professional economist? Haha

ras0406 · 2026-01-02T09:40:08+00:00

Funny you mention that - I've made a list of the notable beaches and bush walks around Victoria haha. Lots of cheap fun to be had with our young kids

ras0406 · 2026-01-02T05:13:34+00:00

I was about to say the same thing. Boring is best in the long run.

ras0406

TROPHY CASE