Should I be doing something with my savings?

[MeltingDog]

Hi all,

First time posting here, so I apologise for the total noob question. I am after a little advice.

Since starting my first post-college job I've found I have a little savings now - about $20k.

-I have a good job, earning around $52K a year, before tax.
-I have no debts
-I have never borrowed money and dont have a credit card
-I have no dependants and no major expenses
-I have no assets

Now, Im just not sure if I should be doing anything with it. I have looked into buying a house, but it is super expensive where I live (about $400K for a modest flat [in Brisbane, Australia]), and it seems to be more hassle then its worth, with loads of hidden fees and fine print (eg: insurance, lawyers fees, body corp fees, etc... the list goes on). I have also looked into the stock market and messed around with a small amount of money over the last 2 years (broke even). It seems too much a of a risk, like gambling.

Currently my money is in a long term savings account which returns, on average, 5.5%. So for that $20K I get about $800 in interest per annum.

Do you think keeping the savings account is good? Or should I be putting my money elsewhere?

Any advice is appreciated! Again, sorry if this has been asked before. I know I am not buying professional financial advice here, but I am only after opinions.

[MeltingDog]

Hmm kinda realaised this is a bad question with out any context such as the return of real estate value etc...

[humandraydel]

Hmm kinda realaised this is a bad question with out any context such as the return of real estate value etc...

Unfortunately, this is true - no context makes it difficult to make relevant suggestions. That being said, here is the generic personal finance advice (in order of importance):

1. Save enough for 6-12 months expenses in a liquid account (savings, CD, maybe short term government bonds)
2. Save 15% of gross income for retirement, invested in an appropriate mixture of stocks/bonds - for your age, probably either 80/20 or 70/30 stocks/bonds. Save first in tax advantaged accounts, then in taxable accounts.
3. Save for other medium term expenses such as house down payment, car purchase, college fund etc in a liquid account
4. Save more for retirement....allowing you to retire early, retire wealthier, or leave an estate.

Sounds like you've got #1 covered with your $20k. So, move on to number 2 and start saving 15% for retirement. Anything additional could be used for #3.

[MeltingDog]

Unfortunately, this is true - no context makes it difficult to make relevant suggestions. That being said, here is the generic personal finance advice (in order of importance):

1. Save enough for 6-12 months expenses in a liquid account (savings, CD, maybe short term government bonds)
2. Save 15% of gross income for retirement, invested in an appropriate mixture of stocks/bonds - for your age, probably either 80/20 or 70/30 stocks/bonds. Save first in tax advantaged accounts, then in taxable accounts.
3. Save for other medium term expenses such as house down payment, car purchase, college fund etc in a liquid account
4. Save more for retirement....allowing you to retire early, retire wealthier, or leave an estate.

Sounds like you've got #1 covered with your $20k. So, move on to number 2 and start saving 15% for retirement. Anything additional could be used for #3.

Awesome! Thanks! This is just the kind of advice I am after