Financial quotient

[Truly Exotic]

Took me a few seconds....I believe BayView is referring to a Depreciation Schedule

We need a thread for the abbreviations used on the forum....what's a DH?

A dick head

 

[Fifth]

Took me a few seconds....I believe BayView is referring to a Depreciation Schedule

We need a thread for the abbreviations used on the forum....what's a DH?

Ah, of course, a depreciation thingamajig.

DH is dear husband... or...

A dick head

(always my first thought when I see DH)

 

[Angel]

In theory; yes.

Seriously; anyone on here has a much high financial quotient than most of the planet.

Just being aware of the existence of FQ, and what it means makes yours higher than Joe Thong.

Of course the women on SS are atypical, we have financial Q and we dont necesarily believe that watching Kath and Kim and Big Brother on the idiot box are the highlights of our lives.

 

[knightm]

Of course the women on SS are atypical, we have financial Q and we dont necesarily believe that watching Kath and Kim and Big Brother on the idiot box are the highlights of our lives.

How could you Angel! SS is Nice, Different and Unuuuusual

 

[knightm]

So: Thus far I am getting my head around how to...

1 make $
2 protect $
3 budget $
4 leverage $
5 gather good $ info
6 network with successful people


I think I can do that generally. The bit I am not sure how directly to tack is how to BELIEVE in the capacity of the above to generate significant wealth FOR ME. My past and the quiet doubting voices in my head sometimes lead me to question my choices and my resolve to follow the above path. Do I really want wealth if it means being judged by others? Do I really have what it takes to be a multi millionaire? Will I be able to get there without sacrificing my family or my values? I guess having the stubbornness to TRY things and follow the steps above despite my doubts might just be the core value that brings FQ to life (for me at least)

 

[MsAli]

So: Thus far I am getting my head around how to...

1 make $
2 protect $
3 budget $
4 leverage $
5 gather good $ info
6 network with successful people


I think I can do that generally. The bit I am not sure how directly to tack is how to BELIEVE in the capacity of the above to generate significant wealth FOR ME. My past and the quiet doubting voices in my head sometimes lead me to question my choices and my resolve to follow the above path. Do I really want wealth if it means being judged by others? Do I really have what it takes to be a multi millionaire? Will I be able to get there without sacrificing my family or my values? I guess having the stubbornness to TRY things and follow the steps above despite my doubts might just be the core value that brings FQ to life (for me at least)

Very well said. You have hit the nail on the head.

I'm confused. Too many opinions and too many choices (which is great). But what is okay? Some say Aussie market is dud for a while. Others say 'buy buy buy'. Is it too late? Or is it never too late? Can the success of some of the SS investors be repeated? I bet it can...but yes have the doubting voices there. Comes down to mindset shifts that are required

 

[redwing]

So: Thus far I am getting my head around how to...

1 make $
2 protect $
3 budget $
4 leverage $
5 gather good $ info
6 network with successful people


I think I can do that generally. The bit I am not sure how directly to tack is how to BELIEVE in the capacity of the above to generate significant wealth FOR ME. My past and the quiet doubting voices in my head sometimes lead me to question my choices and my resolve to follow the above path. Do I really want wealth if it means being judged by others? Do I really have what it takes to be a multi millionaire? Will I be able to get there without sacrificing my family or my values? I guess having the stubbornness to TRY things and follow the steps above despite my doubts might just be the core value that brings FQ to life (for me at least)

To quote some of the above, that's because the journey is as much about Emotional Quotient as it is about Financial Quotient

I've posted my thoughts before about this emotional journey, I'm sure I could add additionalk information now also. I hope the below gives more food for thought as you nourish the brain

Emotional as well as Financial Journey

An interesting acronym for FEAR That I’m sure many have come across is False Expectations Appearing Real

We’ve found that building the portfolio has been a massive emotional change as well as financial. Personal development and self study has been a large part of the process over the years. Maybe this is due to the fact that we didn’t receive any edumication about financial intelligence in our schooling years (though I didn’t make it to uni….do things change once there?).

FEAR over the years has been overcome with education and mixing with like minded individuals, and is soon replaced with excitement.

I well recall the sleepless nights of investing and still like to think about a big decision overnight in many cases, clarity can sometimes be found in rest (and good wine?).

We’ve found the following..warning long post

Your Property will rent out
-Sometimes you have to adjust your perception of the market
-You may have to drop the rent to meet the market

Interest Rates will go up
-And down (it’s the Circle of Life, Simba)

Everyone has an opinion on the Market
-but no one has a crystal ball
-Remember Economics is the only field in which two people can get a Nobel Prize for saying exactly the opposite thing.

You Must Manage the Property Managers
-A good Property Manager is worth their weight, they are evasive beasties though, and best captured on moonlit nights, at midnight, in the fields behind the dark forest
-As well as being evasive beasties, a good Property Managers may spoil you
-Keep in regular contact with your Property Managers and monitor your portfolio

Prices will Flatline and can even Head South
-Can you hold until a recovery is underway
-There are Markets within Markets
-And cycles within cycles

You will find better cheaper Property a day/week/month after your purchase
-Just as you buy a Holden Captiva and then they release the Holden 60 year addition with free extras (nope? Just me then)

Take Action
-You need to be “in the market”
-Take time to pause-reflect-readjust

Be a Contrarian
-Like the rest of us ;o)

Everyone is a salesperson
-The developer, the banker, the broker, the property manager, the insurance guy, the lawyer, the cleaners, the gardener, the guy who installed your garage door and the government all love it when you buy
-I love this quote “a good financial planner knows the benefit of a trailing commission”
-Pause-check-readjust, do your due diligence, nobody has a better vested interest in your money than you
-don’t invest on sales talk alone

The Rich Get Richer
-And the Poor get the picture?
-Life rewards performance and action
-There “is” a secret to wealth (hint…use the search function)
-The rich adapt to overcome
KERRY PACKER: Of course I am minimising my tax. And if anybody in this country doesn't minimise their tax, they want their heads read, because as a government, I can tell you you're not spending it that well that we should be donating extra!

Life and Investing moves in cycles
-Listen to your elders ;o)
-Ten years is a long time
-Last year was a short time

There is no Perfect Deal
-But I’ve read some pretty awesome ones on the forum
-Hindsight is a great thing
-Slight imperfections are a part of life
-Now is the perfect time
-There are many ways to skin a cat
-Procrastination can be a persistent and debilitating disorder

Cashflow is King
-It’s the lifeblood and Capital Growth the muscle
-Have a safety buffer
-Capital Growth exercised well, can leverage heavy objects

What is The Why?
-Why are you building the portfolio?
-For us its Lifestyle choices and Financial Freedom

What is your Strategy?
-Were amazed at Rixters (and others) pre determined and well thought out paths and plans


Lastly

Talk is cheap. Supply exceeds Demand.

 

[knightm]

To quote some of the above, that's because the journey is as much about Emotional Quotient as it is about Financial Quotient

I've posted my thoughts before about this emotional journey, I'm sure I could add additionalk information now also. I hope the below gives more food for thought as you nourish the brain

Emotional as well as Financial Journey

thank you redwing this is very helpful.

 

[M.Investigator]

I doubt academics are really 'bright' people. For the most part they are just full-time students who so happen to like doing research or just hate going out to work in the private sector. Nothing smart about that per se.

This instantly reminded me of a quote I heard today. It was from Mark Twain:

"Don't let school stand in the way of education."

I agree with it. Although I value school and university, I believe that real-life experience and other learning through informal means is much more valuable. Beyond the textbooks and theories, we all need to actually take practical actions in the achievement of our goals.

This is especially true of personal finances and investing. No use knowing "how to invest", unless you figure out how to get yourself to actually do it to succeed in your own life.

 

[Deltaberry]

Uni's a waste of time. Learn something to get a low-paying job, and rack up $150k debt in the meantime. Oh and did nothing for 3-4 years. Great way to start life.

 

[redwing]

Buffett (no first name needed) apparently said, "Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ"

From the Mensa website

You’ll find all sorts of people in Mensa. But Mensans worldwide have one thing in common: they’re bright. Mensa is an international society with only one criterion for membership: a score on a standardised IQ test higher than that of 98 per cent of the general population.

I wasn't aware until recently, but Mensa has an investment club the "M-Investment Club" as one of its special interest groups, one would assume that's one group who would do well in the financial markets, however the June 2001 issue of SmartMoney reported that over the prior 15 years, the Mensa investment club returned just 2.5% in comparison to the S&P 500's average annual returns of 15.3%

Another interesting story was that of the Long Term Capital Management (LTCM) Hedge Fund led by Nobel Prize-winning economists and Wall Street traders which tumbled from grace in the late 90's

Behavioral Finance, Financial Quotient, Emotional Intelligence it's all interesting reading requiring the wherewithal to overcome self defeating emotional responses

Warren Smith, an investor for 35 years, reported that his original investment of $5,300 had turned into $9,300. A similar investment in the S&P 500 would have produced almost $300,000. One investor described the strategy as “buy low, sell lower.”

Bad Investors: Single Men and Investing Clubs

Mensa Australia - Requirements

 

[oracle]

Buffett (no first name needed) apparently said, "Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ"

From the Mensa website



I wasn't aware until recently, but Mensa has an investment club the "M-Investment Club" as one of its special interest groups, one would assume that's one group who would do well in the financial markets, however the June 2001 issue of SmartMoney reported that over the prior 15 years, the Mensa investment club returned just 2.5% in comparison to the S&P 500's average annual returns of 15.3%

Another interesting story was that of the Long Term Capital Management (LTCM) Hedge Fund led by Nobel Prize-winning economists and Wall Street traders which tumbled from grace in the late 90's

Behavioral Finance, Financial Quotient, Emotional Intelligence it's all interesting reading requiring the wherewithal to overcome self defeating emotional responses



Bad Investors: Single Men and Investing Clubs

Mensa Australia - Requirements

Hence, I got the signature as I believe it's 100% accurate

Cheers
Oracle

 

[VYBerlinaV8]

Uni's a waste of time. Learn something to get a low-paying job, and rack up $150k debt in the meantime. Oh and did nothing for 3-4 years. Great way to start life.

Depends what you study. I started out as a graduate on about 60% of the average salary, but have increased 8 times over in the past 14 years.