How did you save your first deposit(s)
- Thread starter knightm
- Start date
For me, I had had enough of working 6 days a week for bugger all and ******* what little I had left over away.
So I sold Just about everything I owned and moved countries with one suitcase for the greener grass. Got a much higher paying job and started budgeting and saving after coming up with some goals on where I want to be in life. After a year I used my savings to purchase a couple of ips to get me on the road.
Today I am working my way towards those goals thanks to somersoft.
You need good saving habits. During my school days I worked every weekend and school holiday without seeing 1 cent for 3 years. All my hours worked were written in a book and once I got my license I cashed in those hours for my very first car, Debt free. That was a pretty good feeling and a valuable lesson.
Earn more, save more or both.
So I sold Just about everything I owned and moved countries with one suitcase for the greener grass. Got a much higher paying job and started budgeting and saving after coming up with some goals on where I want to be in life. After a year I used my savings to purchase a couple of ips to get me on the road.
Today I am working my way towards those goals thanks to somersoft.
You need good saving habits. During my school days I worked every weekend and school holiday without seeing 1 cent for 3 years. All my hours worked were written in a book and once I got my license I cashed in those hours for my very first car, Debt free. That was a pretty good feeling and a valuable lesson.
Earn more, save more or both.
That was my first thought when I read the title.
I've always been a good saver. Comes from growing up with nothing and watching mum work out her money each week. No money for rubbish. I'm not into material things (except houses).
Travelling is my biggest expense.
Just back from a few days away - wow this thread is awesome! Inspiring to hear even short versions of people's stories.
For my part it went like this:
Step 1: Got married (still uni students doing final yr) - lived on rice and rented a dump and survived for a yr.
Step 2: Both got FT jobs, for the first 9 months we spent like crazy, ate at restaurants, had a proper honeymoon to fiji etc. (we had never seen this much money)
Step 3: After 9 months realised all those books on property I had been reading would be useless unless we got started. Pulled our heads in and started saving.
Step 4 After 3 months we had enough for a 5% and costs on a little townhouse interstate. Bought that. Did a 5k reno on a credit card and paid that off over the following 3 months. That was the start. Learning to live on less than 1 wage was the key at the time and not renting a palace or buying pricey cars.
Like others have said, spending less than u earn is a great starting point.
For my part it went like this:
Step 1: Got married (still uni students doing final yr) - lived on rice and rented a dump and survived for a yr.
Step 2: Both got FT jobs, for the first 9 months we spent like crazy, ate at restaurants, had a proper honeymoon to fiji etc. (we had never seen this much money)
Step 3: After 9 months realised all those books on property I had been reading would be useless unless we got started. Pulled our heads in and started saving.
Step 4 After 3 months we had enough for a 5% and costs on a little townhouse interstate. Bought that. Did a 5k reno on a credit card and paid that off over the following 3 months. That was the start. Learning to live on less than 1 wage was the key at the time and not renting a palace or buying pricey cars.
Like others have said, spending less than u earn is a great starting point.
Worked hard. Was making over $70k before leaving uni, saved probably 75% of it. Landed a job making more after uni. Saved 90% of first year salary. Saved 90% of second year salary also.
Never took gap years (waste time) to travel the world (expense). In fact, accelerated my degree by cutting it by one year (extra year of money). If I was to compare myself with someone same age as me, but who took a gap year to travel the world, I would've been 3 years ahead of them by the time you factor in their travel expense. Add to that the money I saved at uni, I was around 5-7 years ahead of someone the same age who took a gap year. To get things in life, there are sacrifices.
Each to their own obviously. People who live a different approach will say they have different goals in life.
Never took gap years (waste time) to travel the world (expense). In fact, accelerated my degree by cutting it by one year (extra year of money). If I was to compare myself with someone same age as me, but who took a gap year to travel the world, I would've been 3 years ahead of them by the time you factor in their travel expense. Add to that the money I saved at uni, I was around 5-7 years ahead of someone the same age who took a gap year. To get things in life, there are sacrifices.
Each to their own obviously. People who live a different approach will say they have different goals in life.
Thats right Deltaberry, our values and our goals determine our actions, which gives us the results. The frustrating thing is when people expect to have one set of values and goals and behaviours (i.e. I value eating out, regular international travel and buying shiny things) and expect a different result (I should be infinitely wealthy by now and own the house of my dreams with no mortgage).
These stories inspire me and remind me that building wealth in real estate is still as possible as ever, our journeys are all similar, but different, and it just takes a little sacrifice to get started.
Began apprenticeship in 1977 as a Butcher/ Slaughterman.
Was allowed to stay at home and board was waived as long as I banked regularly. Completed apprenticeship in 1980 and continued working in same shop until my Boss offered me the business as he was retiring. So, went out on a limb and borrowed to purchase the business. If not for a regular savings history I would have had no chance. So at the ripe old age of 22, I realised it was head down, long hours and justifiable expense management were key to it being a success. From the business I was able to go on and purchase Real Estate (houses) and never looked back.
Was allowed to stay at home and board was waived as long as I banked regularly. Completed apprenticeship in 1980 and continued working in same shop until my Boss offered me the business as he was retiring. So, went out on a limb and borrowed to purchase the business. If not for a regular savings history I would have had no chance. So at the ripe old age of 22, I realised it was head down, long hours and justifiable expense management were key to it being a success. From the business I was able to go on and purchase Real Estate (houses) and never looked back.
That's right, as they say in my hometown, there's no free lunch in this world unless your father is Li Ka Shing. I'm sure LKS must be pretty annoyed all these people keep saying "if my father was LKS".
I worked hard and saved it all, thanks to living at home. I also worked as a waitress on weekends. My dad then said, 'Do you have any money in the bank?"' to which I responded, 'Yes'. He said, 'Give it to me' and I did--no questions asked. He put a deposit on a house for me. The tenants paid it off. I have a good dad.
In my case I came to this late. After some bad decisions was as good as broke at 40, then learned from my mistakes and my business came good, but I didn't change my lifestyle so the money began to accumulate. An adviser summed it up as 'executive income, student lifestyle'!
Then - although it was not a great move in other respects - I bought a Central Equity unit off plan - had the 10% initial deposit at that stage and knowing I had to find another 10% at settlement acted as forced savings. That left me owning a property that was a cash sink with no negative gearing to help (was living in the UK then) so paying down the mortgage as fast as possible was the way to go. Which meant that by the time I wanted to do something else I had a lot of equity.
Then - although it was not a great move in other respects - I bought a Central Equity unit off plan - had the 10% initial deposit at that stage and knowing I had to find another 10% at settlement acted as forced savings. That left me owning a property that was a cash sink with no negative gearing to help (was living in the UK then) so paying down the mortgage as fast as possible was the way to go. Which meant that by the time I wanted to do something else I had a lot of equity.
I worked hard and saved it all, thanks to living at home. I also worked as a waitress on weekends. My dad then said, 'Do you have any money in the bank?"' to which I responded, 'Yes'. He said, 'Give it to me' and I did--no questions asked. He put a deposit on a house for me. The tenants paid it off. I have a good dad.
That's funny. My father would tell me it's much more meaningful to study another degree than buy a house.
Simply lived at home board free. Same as my now fiance. We saved around 50% of income for a couple years. Stopped modifying sports cars and the savings rose really quickly. Bought place. Leveraged off that gor second. 3rd property is part cash part equity. Willl keep realising equity to fund futute deposits
Never was a saver.
Bought first property with 100% finance and full fhog. Sold a year later at six figure profit and no tax (ppor). Repeated the process a few times. Sold out of property completely in 2008 (pre crash) and bought half of my employers business six months later with a little help from the bank. Business has been booming since and generating healthy profits.
Got back into property two years later (still keeping ownership in the business). For the last three years have been buying at an average rate of 1 property every 12 months with 80% finance on each one.
Currently looking around for the next IP.
Still don't save.
Bought first property with 100% finance and full fhog. Sold a year later at six figure profit and no tax (ppor). Repeated the process a few times. Sold out of property completely in 2008 (pre crash) and bought half of my employers business six months later with a little help from the bank. Business has been booming since and generating healthy profits.
Got back into property two years later (still keeping ownership in the business). For the last three years have been buying at an average rate of 1 property every 12 months with 80% finance on each one.
Currently looking around for the next IP.
Still don't save.
These 2 lines are at odds with each other. Where does the other 25% come from if you dont save and don't like using 105% finance?
I assume he sees holding cash, and "saving" as two different things.
(I agree with him, btw)
They are also different IMO. It's the difference between investing and saving.
Like keeping money in a high interest savings account vs an off-set account.
I do both, but I'm not a very good saver.
Hi Dave
Almost entirely from distribution of profits in the business mentioned in my previous post (which comes in chunks throughout the year so I try and place it in property as best as I can).
Still don't save = no savings patten with my regular week to week consulting / working income.
Great one Tony, its good to hear that despite the journey prior, and also buying a sub stellar IP1, you can still make it work! Shows its all about the determination and mindset I rekon.
