How to Save 98% of Your Income

Hi Scott,

My mum and I always read your column, and it is one of few times we stop arguing and have great discussions. I am in Year 11 and interested in sports journalism and management. I have worked at KFC for 18 months and saved 98% of my pay, just over $3,000. Thinking ahead to next year when I get my licence, I will not be able to buy much of a car so I was hoping to invest some of my savings. Would be grateful for your advice. Oh yes, and I turn 17 soon, so your book would be a wonderful gift, don’t you think! 

Mark

Hey Mark,

First of all, congratulations on being a saver; it’s the number one habit of financially successful people.

However, the ‘11 secret herbs and spices’ on how you’re able to save 98% of your pay packet is … it’s your mother who’s picking up the tab. Finger lick’n good!

So what should you do?

First, put $500 into a Mojo account, so you can stand on your own two drumsticks.

Second, if you’re focusing on long-term investing, think superannuation. Just make sure you’re not getting screwed with fees on your super, and think about opting out of the expensive (and automatic) life insurance while you’re young and still living at home.

Third, start researching what wheels you can buy for around $7,000 (like, say, an early noughties Subaru Forester … rugged, urban, yet understated), and then apply your hard work and savings ability until you get it.

Oh, and if you’re saving 98% of your income, buy your own bloody book … better yet, buy one for your lovely mum!

Scott