A young finance guru has revealed the reasons why she always keeps $60,000 in savings – and how much she spends each month.
Queenie Tan, from Sydney, has a net worth of more than $502,000 with her partner Pablo and said she keeps roughly 11 per cent of that aside as a financial safety net in her latest Youtube video.
The 25-year-old said she and Pablo have three to six months of their $8,000 monthly business and lifestyle expenses saved to ‘fall back on’ during their upcoming travels and in case of any financial emergencies.
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Finance guru, Queenie Tan, 25, has shared why she always keeps $60,000 in cash aside and reveals she spends $8000 a month of business and lifestyle expenses
Queenie explains the various ways the content creator pair will utilise their saved $60,000 stating more than half of it is saved as an emergency fund.
Between entertainment, eating out and business expenses, Queenie and Pablo worked out they would need to set aside $32,000 to comfortably get by if they had no income whatsoever for four months.
‘It helps us sleep easier each night knowing that we have some money to fall back on just in case s**t hits the fan,’ she said.
Queenie explained keeping their financial independence is important to ensure she doesn’t have to ever borrow money and not worry about things like interest rate rises, inflation and stock market corrections.
The Sydney money queen has a net work of more than $502,000 with her partner Pablo and said she keeps roughly 11 per cent of that aside as a financial safety net
Secondly, as part of their plan to invest in worthwhile life experiences while their young, Queenie said they are planning a round-the-world trip.
Recently Queenie read the book Die With Zero by Bill Perkins which inspired her to invest in unique experiences.
Queenie said she’ll will travel around the world while she’s ‘young and able’.
‘One of the biggest lessons I learnt by reading Die With Zero is that the older we get, the less enjoyment we can extract from our money because our health declines with age,’ she said.
For example, Queenie said $10,000 in your twenties goes ‘a lot further’ compared to $10,000 in your sixties and older.
‘In order to ensure my money is spent wisely, I’m going to spend it on experiences I can do while I’m young,’ she said.
As part of their plan to invest in worthwhile life experiences while their young, Queenie said they are planning a round-the-world trip, all while staying on top of their finances
The adventurous pair are planning a three-month trip to cities all over the world including London, Lisbon, New York, Las Vegas and Paris but have ensured their stay on top of their finances while they enjoy their holiday.
‘Technically still be working during our trip but with our reduced work hours we estimate that we could earn roughly $15,000 during this trip and that is being conservative,’ the money queen said.
‘Since Pablo and I are self employed it’s really important that we do have cash on hand at all times to ensure that we can pay our taxes, we can pay for our accountants and we can also pay for our GST and our superannuation.’
With inflation rates rising in Australia and around the world, Queenie said some of the $60,000 she has set aside is to prepare for interest rate rises.
With inflation rates rising in Australia and around the world, Queenie said some of the $6,00 she has set aside is to prepare for interest rate rises
She explained a person with a $500,000 mortgage could see their monthly repayments jump dramatically if interest rates were to rise from 2 to 3.5 per cent on a 30-year loan.
‘Their repayments would be $1,858 per month however if interest rates rise from two per cent to 3.5 per cent, then this means that they would need to repay $2,255 per month which could mean an increase of $397 per month,’ she said.
‘This is one of the reasons why we have some cash on hand just in case something unexpected happens like this.’
Previously, Queenie detailed exactly what she invests in, the platform she uses and her strategy when investing during unprecedented times.
‘We automatically dollar cost average into a portfolio of ETFs (exchange traded funds or group of shares) no matter what the market is doing,’ Queenie said.
Queenie has diversified her portfolio by investing in ETFs – such as Asia ETF, ETHI, iShares Global 100, BetaShares FAIR and Vanguard Australian Shares Index ETF (VAS).
But there are a few individual company stocks on her ‘watch list’, including Google, Apple, PayPal, Etsy and AMD.
‘We haven’t invested in individual stocks in quite a while because they used to be pretty overvalued, especially in the tech space,’ Queenie said.
‘But since the market correction some of these technology stocks have dropped quite a lot.’
Queenie’s current net worth portfolio is comprised of her ETF holdings, stock holdings, home equity, cash savings, superannuation and cryptocurrency
Queenie uses the Australian platform Pearler to invest a certain amount into the stock market every month.
Dollar cost averaging is a popular strategy which involves making regular incremental investments over a long period of time rather than one lump sum.
This strategy aims to purchase stocks at an average price, rather than at a higher or lower rate.
Queenie’s current net worth portfolio is comprised of her ETF holdings, stock holdings, home equity, cash savings, superannuation and cryptocurrency.
What will Queenie Tan be investing in this year?
– Exchange traded funds (ETFs) – such as Asia ETF, ETHI, iShares Global 100, BetaShares FAIR and Vanguard Australian Shares Index ETF (VAS)
– Possibly single stocks including Google, Apple, PayPal, Etsy and AMD
– New tech equipment or her YouTube channel
– Life experiences and travel
– Personal activities – such as exercise classes
– A home cleaner and meal delivery kits