Yahoo Finance Young Aussie's secret to buying a property and travelling to 35 countries
Buying a home has made it harder for one Australian to fulfil her travel goals. But what if you could do both?
An Australian TikToker has gone viral for a video where she described wanting to travel but being unable to do so because “every cent” goes to paying her mortgage. The video may have been in jest, but it represents a common dilemma for young people who want to see the world.
One Aussie recently spent $50K on travel instead of buying a home, deciding to “live life to the fullest” while she could. But as house prices soar further out of reach, could chasing a travel dream ruin your financial future?
As it turns out, not necessarily.
Natasha Etschmann, author of How to Not Work Forever, travelled to 35 countries while in her late teens and early twenties, and still managed to buy an apartment on her own. Her secret? Travel cheap, travel smart, and earn extra money.
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'I never spent all of my money on travel'
The 26-year-old attributes her ability to travel and buy an apartment to the fact she pursued both goals concurrently and never spent all her money on travel alone.
“I had separate travel and long term savings accounts, so [I] was always saving for both simultaneously,” she told Yahoo Finance.
Affording to see the world while still saving for other things came down to making as much money as possible.
“I worked A LOT,” she said, rattling off a list of jobs she’d taken on to fund her financially savvy travels. Natasha explained that she “always had two to three jobs” to ensure there was “always an available shift.”
“I took on overtime and actively sought it out.”
As well as working a lot, Natasha maximised the money she was making by finding casual jobs that paid the most.
“I did a course to become a swimming teacher and doubled my hourly wage to $30/hour [and] found a support work job that did live-in shifts for 52-64 hours, and we got paid to sleep, too.”
Earn money, manage your spending, and set goals
Award-winning mortgage broker and founder of Penny Finance, Morgan Owen believes with the right plan, young people can travel and buy property, especially with government schemes making it easier to get into the market.
She echoes the value of earning good money.
“If you want to do it all, you'll also need to focus on your career and making money," she told Yahoo Finance.
But she warns that “more is not always better”, reminding Aussies to “get a handle on their spending” to avoid that feeling of there never being enough.
Ski seasons, hostels, and overnight trains: Travel on a budget
Natasha, an author and content creator, racked up a handy portfolio of smart travel hacks to keep her budget down and her first home fund still growing.
In some cases, this meant finding ways to earn money while travelling.
“Working a ski season meant I was able to save money while snowboarding most days [and] I became a divemaster to make dive travel cheaper," Natasha said.
“I always took the cheapest option, like overnight trains and staying in hostels [and] used Google Flights ‘explore’ feature to find the best deals.”
'You will need to make sacrifices'
Morgan agrees, saying that it “all comes down to priorities” but believes it is possible to travel and buy a property.
“You can have everything you want, just not all at the same time,” she added.
Mortgage brokers are excellent at helping you manage “conflicting priorities”, and can help you see what’s possible with your financial situation – no matter what stage you’re at.
Oh, and be wary of taking out debt to travel. “The travel memories will be short-lived and shadowed by the financial stress you'll come home to.”
Natasha described travel as “really valuable” and added that “it is possible to travel while saving for a house, but you will need to make sacrifices such as working overtime, getting a second job, being strict with your budget, travelling to budget destinations, [and] not staying in 4-5 star hotels.”
Natasha also warns first-home buyers to look outside of their “dream property” when it comes to affordability.
"An apartment a 40-minute drive from the city is a lot more affordable than an inner city townhouse," she said.
Natasha reminds people that enjoying life and securing your financial future don’t have to be mutually exclusive, but adds that “if you’re not buying a home, it is important to invest for your future in other ways, like buying shares or putting extra into your super.”
Natasha’s book, How to Not Work Forever, co-authored by Ana Kresina, is out now in all good bookstores.
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