Income made this year, includeing GC.

[The Wild One]

I have to tell you all about what happened at work today.

Some of you may already know that I'm a baker working in a fatory. Anyhow this lady that works there has been carrying on for weeks about how much her husband earns, and also about their new house and car and all of the other crap. None of the workers there know about our investments, until today that is.

I quickly added up my wifes part time wages, my wages, our rents and included CG at 8% onto the figure as well. I finaly spoke up and announced that my wife and I have made over a quarter of a million dollars this financial year.

I'm not quite sure of the initial reaction because I got real nervous about it and walked away. Later I got comments like "well why are you still working then", and " you earnt $250,000, BS". Their reactions didn't surprise me, but the amount did surprise me. I supose I've never really added it up like that before. I've only ever looked at how much is left over at the end of the day.

I'm interested to know if your willing, how much did you earn and include your CG as well.

John.

 

[JChilds]

I never tell anyoen how much we make. But they all know how much we owe

 

[alexlee]

There's no point in telling people. You'll just alienate those who don't invest. It's not a contest: investing is a way to achieve personal goals, not beat the other person.

People who boast how much salary they're making, etc are probably up to their eyeballs in debt and one payday away from disaster. Why compare yourself to them?

Just be content that you're building long-term wealth and security for yourself and your family and ignore what other people say.
Alex

 

[Delta]

What is the point of such comparisons?

Top of the tree in the world is Bill Gates. Having donated over US$10 billion of his wealth to charity, he remains the richest in the world.

Second is Warren Buffett, the best investor the world has ever seen - over US$40 billion net worth, self made.

Makes all of us look 'poor'.

 

[RichardC]

(our income +) our rents and included CG at 8% onto the figure as well. I finaly spoke up and announced that my wife and I have made over a quarter of a million dollars this financial year.

You've done well WO. 8% nett before rent credits ain't real shabby. You should post more often.

But be aware that you don't make a profit (this is the 8% bit) till you sell. I was a qtr mill up on an investment a couple of months ago. At 11am today this must have shrunk to $60k. Wot! Me worry? I can live on a grand/wk.

I am learning not to even buy a better bottle of wine after a good day. If I don't tell Mrs Thommo about the good ones, I can ignore the bad ones. Can't I?

 

[alexlee]

Think about it this way: what does telling people how much income / CG you made last year achieve? It's meaningless to ask those who don't invest. To those who invest, I'd much rather ask 'HOW did you make that money and how can I do the same?'

If it's just to prove you're making more money than the next person, you're never going to be satisfied.

It's also about expenses. I can make $1m and spend it all, meaning I have nothing at the end of the year, while someone who makes $50k and saves $10k will be 'better off' in terms of net position than I would.

The gross number doesn't mean anything.
Alex

 

[The Wild One]

Surely you all know how it is. You carry all this wealth knowlege inside your head. Sometimes I feel like I'm going to explode.

But be aware that you don't make a profit (this is the 8% bit) till you sell.

I don't intirely agree with you Richard about the 8% CG not being profit until you sell. The CG can be used without selling. Can't it ?

 

[alexlee]

Surely you all know how it is. You carry all this wealth knowlege inside your head. Sometimes I feel like I'm going to explode.

Yeah, but people will be how they are. I've done this for long enough to know that not everyone has the mental capacity to be investors. We need tenants and over-emotional first-home buyers to rent and buy our properties, anyway.

Don't worry too much about it. Work on your own portfolio, fulfill your own dreams, and to heck to everyone else. If you really need to vent find fellow investors to discuss property.
Alex

 

[lizzie]

wild one ... and doesn't it feel good! i'll go out on a limb here and say "yes, sometimes i just bust to tell when others are bignoting". and sometimes i bust. doesn't get me anywhere, but i do feel better - must be something with the tall poppy thing.

 

[The Y-man]

Surely you all know how it is. You carry all this wealth knowlege inside your head. Sometimes I feel like I'm going to explode.

Know the feeling Wild One. You feel like you want to inspire them with something, impart some knowledge, and put them on the path to wealth, but you end up looking like the d**k you didn't want to be....

Don't worry - they'll figure it out one day without you telling them.... and oddly by then, you may not want them to know. If the lady bragging about her other half irks you, wish her luck (may need it if downsizing or some other event happened) and leave it at that.

I've sort of gone the opposite these days...

When people around me complain they pay too much in tax, I tell them my income is so low, I hardly pay any tax.... In fact, I tell them it's so bad I need government assistance....

It also makes it easier when I need to borrow money off them for my projects (only kidding.... although if I ever do, I will pay good interest rates!)

In all seriousness though, it means I never have to explain:

1. why I still work (I just turn up to socialize, have coffee, surf the net - don't think that'll go down well with the boss)
2. why I still wear the same jacket I wore when I started work 18 years ago (well.....it still works!!)
3. Why I am wearing a pair of Colorado boots that I proudly tell everyone I only paid $49.95 for at DFO (hang on, what the..... )


I have a map of Melbourne on my partition at work. It has round dots on it. When people ask what those dots are, I say "They're our investment properties". More often than not, they'll want to hear more....

If you're bursting to tell others, you'll be surprised how many interested people you'll find - who knows, you might become a seminar presenter

I've had some interesting responses from presenting at careers nights and school assembly at my old high school - you'd be surprised how switched on some students are about investing (certainly miles ahead of where I was at their age!!) and how much they want to hear from you about earning more than the $15 ph they are getting from their part time job at Target (nothing better than an appreciative audience).

As for our "real" figures? I really don't know - I have some rough idea, but some of my investments went up, some went down, some I haven't bothered valuing: overall I think it was upward (hope it was!! ), but if I had to put a figure on it..... I just don't know ...

Cheers,

The Y-man

 

[geoffw]

my wife and I have made over a quarter of a million dollars this financial year.

The numbers I was making on paper during the boom on property a few years ago (a few multiples of my annual income) are not happening now.

But (on paper) I'm not going backward either.

I'm not unhappy the position I'm in.

 

[Les]

G'day John,

Their reactions didn't surprise me, but the amount did surprise me.

It's a nice surprise too, isn't it. About 18 months back, I worked only 5 months of the year. My cashflow went backward bigtime, but my Nett Worth kept climbing, even without a wage - not quite enough to keep going, but it sure made sense out of WHY I've been doing what I've been doing for the last 7 years.

That realisation helped me to understand that things (for me) are WAY BETTER than they had been 7 years ago. And now I'm back at work again - but this doesn't need to be for too many more years. Choice is looming - and it feels REAL good,

Onya, John, for sharing

Regards,

 

[coffee]

The Wild One,

If her husband is making so much money, WHY is she still working ?

Geoff

 

[Kennethkohsg]

What is the point of such comparisons?

Top of the tree in the world is Bill Gates. Having donated over US$10 billion of his wealth to charity, he remains the richest in the world.

Second is Warren Buffett, the best investor the world has ever seen - over US$40 billion net worth, self made.

Makes all of us look 'poor'.

***********************************************
Dear Delta,

1. It truly inspires me instead.

2. It keeps me sufficiently challenged as to when I can join their ranks and afford to freely and generously give away my own wealth to charity, like them.

3. How do we go about developing similar wealthy mind-set as Bill Gates and Warren Buffet, so as to speed up the wealth creation process for ourselves?

4. For your kind update, please.

5. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

The Wild One,

If her husband is making so much money, WHY is she still working ?

Geoff

**************************************

Dear Geoff,

1. If people are willing to pay me to do the things that I enjoy most in life, why not?

2. ... Take away my passions, and you will "kill" me instead!... I have forgotten the term 'retirement" and will go on enjoying my life/pastimes, doing the things that I like doing in my own real life.

3. It's not the winnings;- it is just being in the game that make life more exciting and worth living for!


Cheers,
Kenneth KOH

 

[agent007]

I finaly spoke up and announced that my wife and I have made over a quarter of a million dollars this financial year.

Hey John, I bet you forgot to tell them that there is almost no tax on that 1/4 of a Mil.
I don't tell people what you told your workmates. I just listen and thank them. In some occassions (because some of them are worthier than others), I even encourage them to buy more expensive stuff and more frequently (this helps the economy and put food on the table for many families). Some time ago, I realised that (this may sound bad) but, we need people in our society that consumes like that. In fact, we need lots of them . I thank mother nature for the resources granted and for keeping everything in balance and everyone happy (at leats for trying to)
I'm happy for people to brag about their consumer goods collection, etc. That's the gratification they get from the exercise. At the end, they are entitle to get something for their contribution to society. Aren't they?. I'd be worry if the opposite is happening.

Keep on feeding the beast

Cheers,

James.

 

[Kennethkohsg]

I quickly added up my wifes part time wages, my wages, our rents and included CG at 8% onto the figure as well. I finaly spoke up and announced that my wife and I have made over a quarter of a million dollars this financial year.

John.

*****************************************
Dear John

Congratulations!

"May you and your wife continue to prosper like this year after year, or even more!"

Thank you.



Cheers,
Kenneth KOH

 

[MichaelW]

Wildone,

I'm still that "little guy with big dreams"... Maybe a more appropriate question would have been: what percentage of your income is salaried versus passive (including net growth)? On that scale I'm a way under-performer on this forum. My salaried income is still over 50% of my total income each year. I only have my PPOR as a property and about the same amount in managed funds. I just picked up my development site which will have a crappy yield initially and hopefully decent growth even un-developed. If I added it all up then I'd be on a decent number, but as for relative "performance" I would grade myself as a C-. Tries hard, but needs improvement. Working on that improvement now. Ask me that question again in two years time!

Thanks for sharing,
Michael.

 

[buynowquick]

i know the feeling

My work mates think I'm swimming in money because I've got a few properties. I have 1.5M assets and 400k of it is debt. All of it is property.

NO I don't swim in money but hopefully will one day. I'm not a high income earner, I'd say slightly above average but not spectacular.

Anyone can be rich or at least be better off than most people IF they just want to. A little discipline and lots of gut feeling I feel has got me through it. I've tried helping friends to do this but they think it only works for lucky people. There is a saying that the teacher appears when the student is ready, unfortunately some people are never ready. I've learned my lesson now. I just don't say anything about what I do. I do not believe superannuation to be the golden egg at the end of the rainbow so I am trying to create my own version of it the best way I know.

 

[The Y-man]

After reading this thread and WIllair's Party one, I think I know when I stopped telling people around me - it was when they started listening

I know this sounds stupid, but they started listening to what I said, and started taking action.

The only problem was, that there was a noticeable delay in the implementation (like always behind one phase of the cycle), and people were starting to do what I felt were very risky things (you know, just enough knowledge to be dangerous).

So a work colleague might come up and say, "Hey, I listened to what you said (about a year ago!!) - that option trading (or property or whatever) thing sounds great! I'm going to mortgage my house and...."

"Whooooa.... stop right there.... not a good thing to do unless you understand the mechanics, paper trade, go in with small money..."

"But you said you made lots of money from it! It sound great!"

"But I'm not doing options any more! The market is more conducive to long shares (or whatever)..."

"Oh no no no.... I can see you have a track record with options, that must be the safe bet. I think I'll play safe and see how you go with the shares thing, might go into it if you do ok with it...."

Now I understand what they mean about, by the time the average person gets excited and goes into a particular market - a crash is coming forth.... I began to feel the responsibilities of what I had been saying (and as someone said above, it was coming back to bite me on the bum....) so I shut up....

Cheers,

The Y-man