Career advice

[JamesP]

Hi all, I'm currently 24 years earning $10 an hour in a pizza shop I graduated vce with determined goals and enrolled in a bachelor of electrical engineering and took leave out after a year due to ill health which I am still recovering from. I'm getting pretty impatient and at my age feel it's time to at least get something on the move.

Regarding my course I'd have to begin 2nd year and now wouldn't be out until I'm closer to 30, probably not earning a mid 6 figure wage until I'm closer to 40. While engineering interests me it's not my passion, and unfortunately not many of the high paying fields are. My passions would be closer to guitar, cars or one day possibly owning a top tier restaurant, and believe it or not investing in property. I really like the idea of growing capital ie buying a project property, putting a lot of my own work into managing/self renovating and one day building a portfolio in general.

I thought engineering jobs would be pretty safe which I guess they are but there's no guarantee I may even find good work and I'm starting to realize all the "real" 6 figure jobs are overseas/offsore FIFO type lifestyles which doesn't entirely sit with me. Mainly I like the idea of doing my own thing for my own reward and building something that I can look back on for all my hard work. My Uncle is retired with a handful of houses and he says he gets almost 80k a year in interest, that would be my dream I also have friends who left high school early, established a successful restaurant but have made most their assets from capital growth (and now own a block of 4 units and a beach-house).

Sorry if this is the wrong forum for such a question I was hoping for some experienced advice, most people have recommend uni to me however the most successful people I know left at yr10 in high school and built their career through capital growth and starting very small, something I'm hoping I have the potential to have a crack at right now if possible.
Ideally I guess I could do both and graduate uni and get into the property game when I'm in my 30's as realistically I'm not currently in a financial position to acquire my first home. Only 20k in savings and a 40k wage is a hard start, figure I'm out of my league here unless I buy a 110k 1 bedroom in ballarat/wadonga or the likes, and I don't see any grand potential for capital growth in those regions within the next 5yrs.. kind've unsure where to go from here haha but if anyone had any advice or pointers they would be greatly appreciated!!

 

[pinkboy]

I can't help you with your career stuff, but one thing drilled into me when I was your age:

Saving is finite, earning income is infinite.


You csn only 'save' a couple $$ per hour of your wage. You are much better off increasing your wage exponentially than trying to scrimp and save. $10/hr is below minimum wage surely, given your age. You should be able to double that income easily working somewhere else in hospitality, say at a hotel, bar, Bottleshop etc. Can you work more hours or a second job? Can you study part time while earning income so as to get the best of both worlds?

At $40k pa, on $10/hr, that's 76hrs per week. Is that what you are currently doing? If so, time to move on and challenge yourself a bit, possibly with a career move for the better.


pinkboy

 

[VYBerlinaV8]

You need a qualification and a better job. You've been out of school for what - 5 or 6 years? Time to stop stuffing around and get to it.

 

[DoAndroidsDream]

Hi JamesP,

Thanks for your honesty and sharing your story.

As others have said, it will be difficult for you to move ahead in your current position. Right now perhaps consider cafe work or another position (e.g. Hungry jacks pays at least $17 an hour for adults).

In order for you to qualify for a loan, you will need to increase your earnings. And to do that, you need to invest in your education. Think long-term, not short-term. It will be increasingly difficult for those who have just completed a high school certificate to compete in the labour market. More than half of your (our) generation will have some type of degree. The next generation, even higher and people with a degree generally earn 20k more than those who dont.

Although you might not enjoy engineering, my opinion is that it can take you further in your property and restaurant investment journey. But don't forget, of course, there are others degrees out there, so research University or TAFE courses if you really don't want to study Engineering (e.g. Consider Construction management, economics, business, accounting, architecture, hospitality, car mechanic). Most institutions will also provide you with a free meeting with a careers counsellor, might be handy. Your most important asset right now is not property but a job and you need to invest in it.

Its important to be realistic about where you are and what you want. There are many people (eg. musicians and artists) who pursue their passion and they accept the consequences of an unstable income. If you do also, thats great. If you don't, perhaps recognise that you can still pursue your passion on the side while you do your 'every day' job. You might even have two or three careers in your life but you need to make a decision now. Financial freedom will mean you have more options and you can go on to manage a restaurant and several properties, if you want.

All the best!

 

[weg]

My 15 year old earns just over $11.00ph and my 21yo is on around $50+ph on a 60 hr week (has no qualifications as he's deferred from uni after 3 years).

At 24 why are you not extending yourself?

Why years after leaving school are you in a pizza shop accepting $10ph?

Why are you asking others what you should be doing when you could have already been doing some of the more straightforward stuff long ago (like earning more and taking the first steps to investing like your friends)?

I think your answer might lie somewhere there... rather than with us telling you if you should go to uni or not.

Once you've worked out what's stopped you moving forward you'll be able to achieve some of those things you aspire to do.

 

[D.T.]

So what is your passion?

 

[Propertunity]

I agree with the others, at 24yr old time to stop stuffing around and work out what you want to do when you're a grown up

Suggest you do some personality profiling done like for example, http://www.humanmetrics.com/cgi-win/jtypes1.htm You can also do similar for careers that suit your personality and go from there.

 

[china]

How do employers get away with paying $10 /hr in Australia? I thought there were laws against that in this country.

I would stick with your university education so that you have some income stream to fall back on. At the same time, you can try other income generating activities and see whether they work out and can generate a sufficient passive income.

Myself, I have always enjoyed stock trading on the side. But only recently after about 15 years of trading have I managed to generate something close to supporting a year's of living from this side activity.

Best of luck.

 

[ok180]

How did someone on $10 an hour manage to register on here?

Somersoft is $100/hour or GTFO!

Guards, remove this man from the forum!

 

[Jamie M]

How do employers get away with paying $10 /hr in Australia? I thought there were laws against that in this country.

I remember earning a staggering $4.24 an hour at my first job as a 15 year old working in a pizza shop That job taught me a lot though.

Cheers

Jamie

 

[D.T.]

I remember earning a staggering $4.24 an hour at my first job as a 15 year old working in a pizza shop That job taught me a lot though.

Cheers

Jamie

I earnt 8/hr in my 1st IT job, kept my pizza job (which paid more) so that I could survive.

JamesP - why dont you become a mortgage broker? The forum seems to have a shortage

 

[Jamie M]

JamesP - why dont you become a mortgage broker? The forum seems to have a shortage

Now that's a plan - you just need to lease a German car, take out a mobile phone plan and borrow a laptop from someone and you'll be a success in no time

Cheers

Jamie

 

[topcropper]

So what is your passion?[/QUOTE


Guitars, cars, owning a restaurant and property investing we are told?


See yas

 

[wylie]

Only 20k in savings and a 40k wage is a hard start, figure I'm out of my league here unless I buy a 110k 1 bedroom in ballarat/wadonga or the likes, and I don't see any grand potential for capital growth in those regions within the next 5yrs.. kind've unsure where to go from here haha but if anyone had any advice or pointers they would be greatly appreciated!!

Our 25 year old son did 2.5 years of uni before deciding it wasn't for him. He grew up with us and his grandparents (my parents) doing renovations, ripping out kitchens and bathrooms and learning how to use a hammer. By late high school he lost interest in helping, even when offered money to help. I understand that, because I feel the same way, having renovated more houses than I care to think about.

When this son was close to 21, he really needed to get out of home, decorate his own place, do his own thing. When he left uni, he got a job in a real estate property management office. He was not doing the job of a property manager, but doing the office work. He enjoyed the work but was only on $38K per year with no savings at all.

He bought a unit. We guaranteed his loan to the limit of $50K in order for him to avoid paying LMI. We didn't give him any money though. He bought a unit at Greenslopes (Brisbane - 5km from city) in a six pack for $292K. It was tenanted, but the lease ended a month after the scheduled settlement, and though the bank knew he would be living in it, I believe they took the rent into account (but not sure of this).

If you look in my photo gallery you will see the poor state of the kitchen and bathroom, and he and his friends did some work days, and he continued working there doing the kitchen up without installing a new one, but gutting and redoing the bathroom, painted throughout and made a huge difference to the unit. It went from daggy (who would want to live here?) to pretty schmick, on very little money but a lot of elbow grease and good ideas.

So if you have $20K saved (well done), and you are earning $40K, with interest rates lower than those of four years ago, and house prices in many areas not having moved much higher (certainly the case for son's unit), you could look at working as a property manager, or any other clerk type job, buy your first unit or townhouse, rent it our whilst continuing to live where you live now, and have a tenant pay most of the mortgage for you.

You could look at (depending on parking available) renting the unit without parking (let them park on the street) and rent the garage as long term storage to increase the yield. You claim all the rent as income but also get to claim all the interest, rates, insurance etc against your income.

If our son could borrow $292K on his income of $38K then I would seriously find a better paying job. $10 per hour is robbery for a 25 year old who is capable of earning at least double that on a casual basis.

If you like the sound of this, then once you have tenants paying off your first unit, you can go to uni part time. If you enrol in uni now, as you rightly admit, it will be four more years before you can afford to buy anything. Why not have something growing for you during those four years?

I'm not against gaining a good eduction, but starting out aged 30 when you can get a better job now and study whilst working could be worth looking at.

Good luck!

 

[weg]

So if you have $20K saved (well done), and you are earning $40K

At $10ph it's more 20K per year for a 38 hour week.

Like another poster stated he would have to be working 76 hours pw to be earning 40K pa.

Why do that?

 

[wylie]

At $10ph it's more 20K per year... not 40K.

I see that pinkboy worked out the same figures in an earlier post, but I was quoting from the OP, so I'm guessing he either works long hours, or has more income, but perhaps he is just choosing a figure for a low paying job that he "could" get in order to buy something.

Either way, earning $40K now or finding an entry level job and earning $40K mean he could do as our son did, and buy something that means a tenant helps pay off the mortgage.

Question for JamesP... do you live at home? Do you actually earn $40K and do you actually have $20K saved. I would guess if you earn $40K now you still may not be able to borrow until your job is stable, though I'm a casual, and my loan broker tells me with enough evidence (payslips showing my casual hours are regular), I am capable of getting a loan.

 

[devank]

Saving is finite, earning income is infinite.

You csn only 'save' a couple $$ per hour of your wage. You are much better off increasing your wage exponentially than trying

I can see your point and that is how the mindset should be. However, the reality is not everyone is capable/ability like you.

 

[pinkboy]

I can see your point and that is how the mindset should be. However, the reality is not everyone is capable/ability like you.

I have no more or less ability than anyone else.

I am a uni dropout, barely passed high school and no desire to study when I was younger.

I started my own business with no more skill than grabbing a spray gun and throwing a few tiles in here and there. You can't tell me there is no scope for anybody to get out and increase their income because they don't 'have ability'.

Best way to increase income is to manage time correctly. Get the best bang for buck for every hour you earn income. You know this very moment in time that I write this post, my time is being charged out to someone. It's not my fault that the client I'm working for couldn't manage their time appropriately to get us started. I have 11men sitting around already for 5hrs so far today - add that up at $100/per bloke/per hour. I'm getting paid, while charging out my time to this client, while steadily organising another job for another client, and using 2 other staff calling around getting pricing and organising gear, and the other guys are maintaining gear and cleaning up our stuff so we can be more efficient at our job....very effective use of time.

It's not hard to do.

Saving is finite, earning income is infinite. Just gotta have a bit of nouse and drive to want it!

pinkboy

 

[cimbom]

Don't let age hold you back. You're going to turn 30 no matter what you do. Do you want to be 30 and have a qualification and a good job or 30 and still working in a low-paying retail or hospitality job? My husband is 28 years old and currently at uni. With his current plans, he'll be finished when he's 31-32 but when he's done, he'll be able to work in a job he loves and will get paid well too.

Think about what you really want to do and focus on that. Don't let other people's opinions distract you from your goals. Sure, some people may make comments on your age but I've found a lot of these people haven't really done anything exceptional themselves and are probably a bit bitter about it. I like the idea someone suggested about doing some personality profile type tests to see what kind of results you get. That might give some more insight.

Good luck

 

[Corey Batt]

I have no more or less ability than anyone else.

I am a uni dropout, barely passed high school and no desire to study when I was younger.

I started my own business with no more skill than grabbing a spray gun and throwing a few tiles in here and there. You can't tell me there is no scope for anybody to get out and increase their income because they don't 'have ability'.

Best way to increase income is to manage time correctly. Get the best bang for buck for every hour you earn income. You know this very moment in time that I write this post, my time is being charged out to someone. It's not my fault that the client I'm working for couldn't manage their time appropriately to get us started. I have 11men sitting around already for 5hrs so far today - add that up at $100/per bloke/per hour. I'm getting paid, while charging out my time to this client, while steadily organising another job for another client, and using 2 other staff calling around getting pricing and organising gear, and the other guys are maintaining gear and cleaning up our stuff so we can be more efficient at our job....very effective use of time.

It's not hard to do.

Saving is finite, earning income is infinite. Just gotta have a bit of nouse and drive to want it!

pinkboy

+1.

Earning $10/hr is completely underperforming, you obviously aren't valuing your time very well. There are a lot of knuckle dragger jobs out there which will earn you 3x that a minimum.

Work out a skilled profession that you're interested in and assists in helping you achieve your goals. Get the necessary skills/training required and then do it. No if's or but's.