career/life advice

[Fudge]

On the other hand I feel I am quite entreprenuerial, good at sales and have always wanted to start my own business importing/exporting goods from china. I have done a great deal of research on this and am at a stage where its pretty much a matter of travelling to china, buy a specific stock from suppliers ive found, and sell online/ebay/wholesale. (Yes it will not be nearly as straightforward as this and I do recognise the risk involved)

Thanks very much in advance - your advice is hugely appreciated!

What do want to import from China.

I was toying with the idea of importing my renovation materials accross. I Have reviewed some papers and there seems to be savings of up to $20k after everything considered (Obviously depends on size or how many renos).

Need to make sure if it is for the B&C Industry, you wiil need to ensure your supply chain and factories make goods to the AS. (Heaps of things to look out for. ie fire retardance of carpet underlays, timbers, etc, etc)

By going over their first hand is the best. Get some independent testing done as well and even get some factories to send over some samples and test results. Have heard this is quite a common request. Need to just make sure that the test report relates to the batch, as I have had some propblems with this on a different scale before.

Would be interested to hear what you are looking to source.

Cheers.

F

 

[Deltaberry]

So I'm not sure if I agree with Deltaberry's idea of a venture that requires minimal input.

I think there's truth to what you say.

My point was probably misunderstood. I guess what I meant was I'd like to find a venture where there is minimal ongoing time spent maintaining it, and it pulls in big bucks. Though I don't discount the effort to set such a venture up.

Is it possible to find these ventures? Of course.

I won't post any examples even though there are many examples (some who I know on a very close basis). Because last time I even dared to suggest examples, the doubters and haters came out in full force.

 

[Deltaberry]

You must've done extremely well in your analyst days!

Just timing and having a go.

I saved up most of my salary all these years (probably in excess of 95% since I was living at home). Also was a time when I did some side stuff that made good money (saved up all 100% of that). Hit some massive booms on the share market and came across several 3-baggers+ (as many would've in 2010) and got out in time (saved up 100% of that). Purchased and set up some property structures with proceeds to get the passive income flowing.

There were times when I worked hard, probably harder than most people ever have, hence I don't discount the benefits of working hard and trading time for money. But there comes a point in life where you want to make money with money. Not with time.

 

[MIW]

But there comes a point in life where you want to make money with money. Not with time.

That's the aim to create passive income or multiple sources of income but for me all this is worth if it buys me time to choose what I want to do with my life....
Congratulations on investing your $$ earned. I have many friends who work in the finance industry, earning HUGE $$, and yet do not invest at all (you know they have great lifestyles - houses, holidays, boats, holiday homes, etc...).
You see many people assume that great income implies great wealth, buy what if your income stops, what then?
So keep up investing Deltaberry and continue on you end goal.....

 

[Deltaberry]

Thanks MIW

That's right you're absolutely correct.

A pretty senior colleague who was presumably on a pretty good wicket (was the global head of a division) had an accident around a month ago, and he'll be incapacitated from working for life. I hear he has some young kids. I'm not sure if he had other things going on the side, but things like this put life in to perspective and people should really plan for 'what if' scenarios.

 

[Graemsay]

Deltaberry, I don't doubt that it's possible to create a business that generates income with minimum input. There is an argument that this should be the goal of any venture as it allows for it to scale and grow without being limited by the founder.

I've heard similar comments about the profligacy of finance professionals. One example was a banker whose living costs exceeded his basic salary, meaning that he was dependent on receiving his bonus.

People in the industry have commented that these are considered part of the salary package, rather than being discretionary, as a way of giving them flexibility to circumvent remuneration structures. It probably explains why the didn't disappear in 2009 to 2010, when the banks were being supported by governments in the UK and US.

Then again, if you earn a lifetime's salary for an average worker in a year, you probably don't foresee the need to put a little aside.

 

[MIW]

Then again, if you earn a lifetime's salary for an average worker in a year, you probably don't foresee the need to put a little aside.

What? We are ALL human, all people, we all can get sick, have challenges, problems....(have relatively bigger expenses too).
It all comes to having knowledge, not keeping up with joneses, and being honest to oneself. All wealth in $$ terms can be lost, don't you agree?
I think the only problem is when our ego takes over thinking that sometimes we are better than others.... But if we are true to ourselves we'll always have insecurities because we are humans after all.

 

[recruit2]

I got in early and got some good equity in the housing market when I was younger and worked my **** off both in the corporate world and stuffing around trying to start entrepreneurial companies and so on.

But I realised that I would basically have to invent something like facebook to end up earning more than what I can in my profession in the corporate world (200k package).

So now kind of like Delta, I enjoy running my side/hobby business for kicks because I love it and it earns me some token extra peanuts, but I have been realistic and stuck with the day job career because I can't think of a smarter/easier way to secure that kind of cash flow doing anything else. So I've learnt to make the most of it, put a tie on, wake up early and try to do a good job and enjoy it as much as I can. Because when I tried the entrepreneurial lifestyle, it was fking hard!!! I can see the benefits of just rocking up 9-5 and giving them my bank details to plonk the 200k package into. My job stresses me from time to time, but its not that bad. I can think of much tougher ways to make a buck. I'm selling brain cycles and I'm selling time, but its not that bad.

So now financially I've kind of become stupid and in limbo where I'm just living in my PPoR which has all the equity in it and I just lease a **** hot car using my job's income and I'm enjoying life.

Kind of financially stupid I know, I'm only paying the very minimum off the PPoR mortgage and a significant portion of my day job income just goes to the car lease. I can still comfortably survive on the leftovers no worries, but I'm not packing away extra savings or reducing debt very quickly.

I kind of know its stupid and I'm essentially just treading water, but on the other hand, I love my car, have a pretty good lifestyle and aren't too stressed. I don't know what else to do because I think all those days of houses just doubling automatically are well and truly over so its just all about cash flow and earning money now.

So I'm just kinda earning, driving my flash car and living life.

I do constantly wonder though, I'm not sure that I could sustain such a job when I'm like 50+ or something. So I feel like I don't have that much planning in place for the future. I do have a chunky income insurance policy in place though which is one good thing if I ever became sick(er) or injured etc. And my super will be huge if I just continue on the current path and retire at age 65. Life would be kind of boring just doing that though I reckon...!

 

[Graemsay]

MIW, I agree that putting money aside is a good thing. I was being a bit sarcastic about the attitude that some high earners have.

There are, surprisingly, a number of people who don't do that. I recall hearing of a senior politician who had significant debts and no savings. The story about the banker came from my older brother, who know him at university, and commented that he was the last person he'd entrust his money to.

I'd agree with Recruit2's sentiments about start-ups to a degree, and I'm in the process of trying to come up with a plan for a venture myself.

A lot of people have value because they're embedded within a particular corporate structure. Going back to finance, a lot of top traders do noticeably less well if they move from one bank to another, and it can take years to get back to where they were, if ever.

Edited to add: I don't have any problems with spending cash on cars if that's your thing. Yes, it's a waste of money, but if you're earning enough to cover current and future needs then what's wrong with enjoying it?

 

[Aaron_C]

Hmmm people seem to think that a 'banker' is someone who works at a branch and/or manages people's money. The high paid 'bankers' are the ones who work on corporate transactions - they are more 'advisors' rather than 'bankers'.

 

[MIW]

But I realised that I would basically have to invent something like facebook to end up earning more than what I can in my profession in the corporate world (200k package).

So now kind of like Delta........

I thought Delta is investing part of the money earned whereas you mention that you sort of live from day to day.....

So now financially I've kind of become stupid.....

Kind of financially stupid I know.....

I kind of know its stupid and I'm essentially just treading water.......

You've said it three times, so I hope being on this forum will trigger something in you to change your attitude and to do something about it.

So I'm just kinda earning, driving my flash car and living life.
I do constantly wonder though, I'm not sure that I could sustain such a job when I'm like 50+ or something........

Are you sure you can sustain such a living, unexpected things happen as Delta pointed out..... (I know most of us things won't happen to us.....)

So I feel like I don't have that much planning in place for the future. I do have a chunky income insurance policy in place though which is one good thing if I ever became sick(er) or injured etc. ........

I hope you have trauma insurance too, income protection does not cover all possibilities........)

And my super will be huge if I just continue on the current path and retire at age 65. Life would be kind of boring just doing that though I reckon...!

This is an assumption only not a plan though. You amase me with your laid back attitude though... What if I told you that by investing, and say in about 20 years time, you could replace your income with passive investment income instead.....(you would not have to work to generate income)
What if I told you that I didn't earn the money you earn and receive more than your current income from passive investments.
I suppose at the end it all comes to our wishes and wants and the attitude that life will be the same and constant if we wish to believe it....

 

[MIW]

MIW, I agree that putting money aside is a good thing. I was being a bit sarcastic about the attitude that some high earners have.

I understand, as I too have friends who earn collosal incomes, have nice things but do not invest (well some do into other things).

A lot of people have value because they're embedded within a particular corporate structure. Going back to finance, a lot of top traders do noticeably less well if they move from one bank to another, and it can take years to get back to where they were, if ever.

Gee I know the opposite, where some start on high incomes and earn greater bonuses in addition.
I suppose it all comes down to our values and attitudes. What we perceive we want and need and what makes us happy no matter waht we earn.
I have no problem with my kids buying expensive cars, but they know as they have been told that an income producing assets would have to purchase and support the car (they always laugh at that and say so how many properties we need before we can have that?)
Good luck with your endeavours.....

 

[Deltaberry]

My father always said and still says, it's ok to spend money as long as you know how to make money.

What amuses me are people who take on massive debts to buy a luxury car. If you can't afford it, don't buy it.

 

[MIW]

My father always said and still says, it's ok to spend money as long as you know how to make money.

What amuses me are people who take on massive debts to buy a luxury car. If you can't afford it, don't buy it.

Exactly!

 

[BMan]

id love to have a little side business generating me some extra pocket money but i just cant think of any decent idea that i could do
and then one that could expand if i ever wanted to become self employed

 

[Aaron_C]

id love to have a little side business generating me some extra pocket money but i just cant think of any decent idea that i could do
and then one that could expand if i ever wanted to become self employed

Hmm most people think that way and say that when they are 50 and still employed...

 

[Graemsay]

MIW, I'm not suggesting that people go off and buy flash cars, but rather that there's an attitude here on Somersoft of extreme delayed gratification.

I don't see it as being a sensible purchase, because the depreciation on luxury vehicles is eye-watering, and I agree that finance isn't clever. For the record I've never actually owned a car, though I currently have a motorbike, which I paid for in full with cash.

I think that it's a matter of balance.

 

[MIW]

MIW, I'm not suggesting that people go off and buy flash cars, but rather that there's an attitude here on Somersoft of extreme delayed gratification.

I don't see it as being a sensible purchase, because the depreciation on luxury vehicles is eye-watering, and I agree that finance isn't clever. For the record I've never actually owned a car, though I currently have a motorbike, which I paid for in full with cash.

I think that it's a matter of balance.

Perhaps I was misunderstood, I didn't think you suggested it I just gave an example that for everyone it's different it's their choice. So I am not condeming if someone wants a flash car. But for our family it's bad debt if it's bought with debt.
So if people want cars, castles, planes, anything they dream off, I am not judging, but I tell our kids that they can have it if it's paid for by an income generating asset, that's all.
And what's wrong with delayed gratification, I actually would be an advocate of that, isn't it up to the individual though?
At first we owned a $6K car, now we have 4, we made our sandwiches for many years to work, now eat out every week, and so on and on an on (I am not boasting here - but I believe there's something for something - give and take).
I think we all deserve the things we want but we must be wise enough to get them when we can afford them.
I don't see how people perceive delayed gratification, but let's say you wish to have the bike you now have, and let's assume you do not have the money for it (or even if you do have the money).
You see I would tell my kids, save up some money (or use the money you have), invest and/or borrow into an asset, delaying the purchase, and when the asset generates income into your pocket, then go and buy it with the income generated, while keeping the asset.
It's not that you really deny yourself everything and live below your means, but rather put off the other wants which may distract you from reaching the things you really want (the end goal - your bike).
I hope this makes sense.....

 

[Graemsay]

It makes sense MIW, and it's actually an interesting perspective. It certainly gives me something to think about.

There might be a few technical issues in trying to generate sufficient income through assets in what's a low(ish) inflation and yielding world. But that's an investing problem, more than anything else.

I don't have a problem with delayed gratification (I held off buying my bike for a year or two during the recession here, so I had the cash in hand in case of an emergency), and I'm not into conspicuous consumption. What I do object to is the holier-than-thou masochism where any discretionary spending is frowned on, and I think that more of a balanced attitude is healthier.

Of course, I'd agree that Recruit2's car shopping habits aren't exactly prudent, but he's probably enjoying his toys more now than he would in his dotage.

 

[Deltaberry]

Agreed.

I dislike the holier-than-thou attitude too. If you can afford it you should definitely indulge yourself in it be it cars or holidays.

First of all, we only live once. So if you've made it, go out and have some fun. Secondly, people don't rich off the back of living frugally. Frugality only gets you so far - it cuts the time required to make your first bucket of gold.