Lower Income investing

If you earn less than $50k per year of SALARY, how many IP's do you have?

  • 1

    Votes: 14 15.1%
  • 2

    Votes: 9 9.7%
  • 3

    Votes: 8 8.6%
  • 4

    Votes: 7 7.5%
  • 5 or more

    Votes: 10 10.8%
  • Not Applicable

    Votes: 45 48.4%

  • Total voters
    93
  • Poll closed .
That statement gets chucked around here far too often from my experience.

If it was that easy to increase your income, everyone would be doing that.

Not saying it's impossible, more futile than anything...for many folks - especially in a reasonably short time frame.

Doing extra courses, extra hours etc is an option, but when families are involved in one's life - as is the case with many, then problems with your simple answer to the problem occur.

I have to agree with you on this too. You often hear throw away lines about increasing your income, as if it was an easy thing to do. Look for another job, one that pays better?.....yeah, sure. You are an admin assistant, checkout operator, working in retail or any one of thousands of low paying jobs around the country. Yes, there ARE some employers that will pay above the award, but even that isn't going to be a lot. I ask you "How do these people just suddenly earn more income?"

Yes, I know there are things they can do to supplement that income, but you are really NOT going to suddenly go from earning $50k to $100k by working all your weekend, and then what's left for a social life. At best, you may get a couple of hundred pw, and yes, that all helps but it really isn't something that most people are going to be able to sustain on a permanent basis.

I've also heard it mentioned that these people 'go get an education' so they can get the better paying jobs. Again, not everybody CAN get an education. Add to that, that SOMEONE has to do the lower paid jobs.
 
I was wondering if a family on a single persons high wage, could then be defined as low income once dependants such as partner, children, child support for other children and negative gearing on investment properties, along with daily living costs in Australia were taken into consideration

It would seem possible to erode a single high income quickly to even fit the poll
 
But it is not futile if you do it right. If you look for deals that don't cost you anything! And don't forget, that many people don't have the means to increase their income.

Telling people to go increase their income is a slap in the face. It says, "you're not as good as me, because I'm a big-wig earning twice what you make. Unless you can rise to my level, you are just not good enough". Well, I'll tell you what, I've seen many very high earners living pay cheque to paycheque. Just scraping by, by the seat of their pants, because they are so focussed on 'looking good', or buying toys, or trying to impress others, or just basically poor money management skills. I've also seen the reverse, with someone on a low income doing well for themselves, by living within their means and investing what they can.

It doesn't matter what you earn. It only matters what you do with it. Of course, the more you earn, the easier it SHOULD be, but that isn't always the case.

G'day Skater,
I have copied most of your post because I agree with your comments. As someone who has been on a low income (<$50K) for most of my life (until recently), I understand the problems with constantly trying to grow a real estate portfolio. Never the less, I have done so, so YES IT IS POSSIBLE. As Skater said, be reasonable about the way you live your life, and keep chipping away.

Surprisingly, API wanted me to do up a brief story on what I had achieved because I wrote in to them to ask them to do more stories on people on low incomes because it is not necessarily what you earn but how you use it.

Andrew.
 
A little off topic, but somewhat related. There has been a shift in expectations over the past couple of decades in relation to the standard of living. You can see this attitude being expressed by people wanting to buy their first home in inner suburbs and not being willing to start with something of a lesser value (more affordable) further out. This leads to the notion of a housing affordability crisis, which really means 'I can't afford to pay 1.5 -2 mil for my first house in a suburb like Kew', so there really is a problem!

Many of us on the forum started off with low salaries, and bought what we could afford and went from there. My starting salary (made up of a number of itinerant jobs) was around $30,000. From there I bought a block of land and built our first home, paying it off in around 2 yrs.

Having said this, obviously a higher salary helps. I think starting with a salary of $50,000 today would be difficult, but as others have proven, not impossible.

In the future, (its already happening) the notion of full time employment will be more limited. Leading to the importance of developing skills in innovation, creativity, problem solving etc. People with these skills/characteristics will be more employable and will probably contract out their skillset, leading to them earning higher incomes.
 
A little off topic, but somewhat related. There has been a shift in expectations over the past couple of decades in relation to the standard of living. You can see this attitude being expressed by people wanting to buy their first home in inner suburbs and not being willing to start with something of a lesser value (more affordable) further out. This leads to the notion of a housing affordability crisis, which really means 'I can't afford to pay 1.5 -2 mil for my first house in a suburb like Kew', so there really is a problem!

This is not an affordability crisis! It's a reality crisis!

Get real, problem solved!
 
Great thread. I think I might've been one of these when I bought my first property in 2007. I was earning around 50-55K. Might've been a little less. Single person, single income. 2 people earning 40K or a bit more sounds like a well-balanced lifestyle to me: comes to a bit more than 50K.

"you're not as good as me, because I'm a big-wig earning twice what you make. Unless you can rise to my level, you are just not good enough".

Problem was I bought this line for way too long. My friends in my 20s and 30s were high income earners and having come from a household where we never had enough, I thought I was destined to continue this way. I suppose I was seen as 'a loser' then. Now I'm considered 'a good little investor'.

At least I came to my senses.

Although I value everyone's input on the forum, it's the successful low-income investors who really inspire me. Seems there's a few around. :)

Not telling family and friends about the latest purchase - the worm has turned.
 
Although I value everyone's input on the forum, it's the successful low-income investors who really inspire me.

I always find this mindset somewhat intriguing. Its almost as if 'they' (those high income earners) are somehow different to the rest of 'us'.

I must point out, that I am one of 'them'. But having a higher salary doesn't make 'us' any different. In reality, anyone can be a high income earner. I work the same amount as anyone else, I just get paid more for my time. I certainly don't do anything different to anyone else. Im not overly qualified (ie - Im not a doctor or engineer) though I do have a degree in agri tucked away in my back pocket somewhere. Im not stupid (I don't think) but Im no genius either - I didn't bother completing year 11/12 so never sat my SAT's (or what ever they are called nowadays).

Success on a low income is still success. I guess in many ways its just harder to achieve. Why not turn a bit of attention towards making more money and make investing life that little bit easier?

Blacky

I guess I should also point out that Im not 'successful' yet either though.
 
I always find this mindset somewhat intriguing. Its almost as if 'they' (those high income earners) are somehow different to the rest of 'us'.
I must point out, that I am one of 'them'. But having a higher salary doesn't make 'us' any different.

No offense meant to high income earners at all Blacky.
Lots of pats on the back to you too.

You can keep the mindset though. Not for me. :)
 
No offense meant to high income earners at all Blacky.
Lots of pats on the back to you too.

You can keep the mindset though. Not for me. :)

Wattle - no offence taken, I just find it interesting.

Why wouldn't you try to increase income along the way?

Earning more is not for you? why not?

I find it curious.

Blacky
 
Wattle - no offence taken, I just find it interesting.

Why wouldn't you try to increase income along the way?

Earning more is not for you? why not?

I find it curious.

Blacky

I think you've misunderstood.
I am earning more and have earned more in the past too. I hope to get into a position where I'm actually classified as a high income earner. I have a Masters in my chosen field. It's just that it hasn't always been like this.
I guess I'm not sure if you're being a bit na?ve? If everyone was earning a high income, we'd be high earning communists. Where are you coming from?
But seriously, there are people who would rather help others or practise their spirituality or are sick or for one reason or another aren't high income earners. This thread just proves that you don't have to be to get started. Of course, you become one along the way.
As you said, just because you're on a high income, doesn't mean you're any different. Working 5 or 6 days a week can be exciting ... for a while.
Keep in mind that things change, too.
 
I was wondering if a family on a single persons high wage, could then be defined as low income once dependants such as partner, children, child support for other children and negative gearing on investment properties, along with daily living costs in Australia were taken into consideration

It would seem possible to erode a single high income quickly to even fit the poll

Because these are obviously expenses that low income earners are exempt from :rolleyes:
 
Although I value everyone's input on the forum, it's the successful low-income investors who really inspire me. Seems there's a few around. :)

I always find this mindset somewhat intriguing. Its almost as if 'they' (those high income earners) are somehow different to the rest of 'us'.
Why would you find it intriguing? I think it's more acceptable, in fact almost expected, in society, that a high income earner invests.

I too, think it is inspiring for someone, however successful they become, to start & grow something from humble beginnings. It's taking what you've got, and trying to better yourself. And if you are an investor that is trying to make 'it' on a lower income, then the stories of those that have gone before can really be uplifting. It shows that although it may be hard, it CAN be done.

I must point out, that I am one of 'them'. But having a higher salary doesn't make 'us' any different.
Well, yeah, it does! It is easier, because you've got more disposable income. However, in saying that, you still have to stand up and take control and actually DO something in order to make it happen.

In reality, anyone can be a high income earner. I work the same amount as anyone else, I just get paid more for my time. I certainly don't do anything different to anyone else. Im not overly qualified (ie - Im not a doctor or engineer) though I do have a degree in agri tucked away in my back pocket somewhere. Im not stupid (I don't think) but Im no genius either - I didn't bother completing year 11/12 so never sat my SAT's (or what ever they are called nowadays).
Now this part is a bit simplistic. Not everyone can be a high income earner, no matter how hard they want it.

Success on a low income is still success.
Success on ANY income is success.


I guess I should also point out that Im not 'successful' yet either though.

Success is a hard one to quantify. It means different things to different people.
 
Hi Blacky, you come across on this forum as a lovely man. However there have been a few comments over the years I have been on here by just one or two people, that really are offensive and that suggest that in order to be a better person, one must earn as much as they earn. And if we choose to work in a low-paying profession, well we are just losers.

There will always be lovely people in each demographic, just as there will always be not-so-nice people too.

Can we please remember too that it seems that everybody on this forum has a fairly high IQ. I have read that an IQ of 140 equates to 2% of the population. The psychologists can confirm this** Not only can we not have a society where everyone gets paid a high salary, but not everyone is innately capable of doing the jobs that require a high IQ. No amount of education is going to alter some of the traits we are born with.
 
Not everyone can become a high income earner overnight, it is highly dependent on anyones chosen field, think graduate law student or engineer, if they are leaving uni at the end of this year things may be tough.
If by chance they had graduated 8 years ago I would suggest all things being equal they would hopefully now be earning a good income, sometimes factors are beyond the control of the individual.
Many professions do not pay a salary relative to the skills and qualifications earned by the new employee think graduate accountant vs nearly anyone doing anything semi skilled at best in Port Hedland etc. Sometimes the market determines a salary and it has nothing to do with anything tanaeangble IMO
 
I guess I have never been on a 'low income' while working full time. When I graduated my starting salary was $53k. I bought my first IP the following year (2011). However, it was a two-income family and hubby was earning almost double what I was.

HOWEVER, I have always held a job since I was 14 and our first IP was funded with my savings from when I was 14 - 22. Hubby (even though he had been working full time for longer than I had and was earning MUCH more) had an awful attitude to money and the first 6months of living together (before we bought the IP) was all spent on re-educating his money mindset.

Even though he had been working for 8years or so and 'could have' invested, his financial management skills were crap and instead he came into the relationship with $25k debt. Bad debt.

The point I'm trying to make is that I think the mindset is more important than the income. Once you have the right mindset the practical stuff around finding deals and funding them becomes easier (not easy) to do and manage.

Just my 2c.
 
It shows that although it may be hard, it CAN be done.

Well, yeah, it does! It is easier, because you've got more disposable income. However, in saying that, you still have to stand up and take control and actually DO something in order to make it happen.

Success on ANY income is success.

Ok - maybe I am confusing two different measures of inspiration with one calculation.
Inspiration gained by seeing that 'low' income investing can be achieved - and yes - it is difficult.

My inspiration is drawn by seeing 'everyday' people earning extraordinary amounts.
Others gain inspiration by seeing 'everyday' people achieving extraordinary results investing.

I guess its kind of similar in a way - though different.

Please excuse my reference to 'everyday' people. I couldn't think of the PC term for 'normal' people (if that makes sense).

And if we choose to work in a low-paying profession, well we are just losers.

no - it is certainly not my opinion - and if it came across that way, it wasn't my intent. If anything I was trying to say that Im no different to anyone else. Its just that I have been able to find a niche to earn a lot. That niche took me 12years to find.

Not everyone can become a high income earner overnight,
Overnight success takes about 10years.

Blacky
 
Back
Top