Hi all,
My name is James, I’m 24 years old and after almost a year of full time employment it has dawned on me that I will never make it to where I want to be by working for the man. In the last 3 or so months I've lurked here on Somersoft, PropertyInvesting.com.au and AussieStockForums.com.au, just to name the main ones. I've purchased Kiyosaki Rich Dad Poor Dad, McKnight 0 to 130 Properties in 3.5 Years, Tharp Trading Your Way to Financial Freedom, among others.
A little about me: I finished high school in 2002, went on to do a double degree in International Relations (My passion at the time) and Law (My 'career' degree), going on to do postgrad to be admitted to practice. For all the posturing and apparent 'success' that comes along with being a part of such a 'respected' field of endeavour - I sure don't feel it. Am currently earning just shy of $55k, to be increased to $64k in Feb 2010. Yet I owe the Government close to $40k in HECS debt, not to mention the lost opportunity of spending those 6(!!!!) years of study working and investing.
An example: Whilst I hated studying law, I became good mates with another bloke who didn't quite fit the 'lawyer' mould. Andrew was from a northern suburbs high school (Melbourne), most of his mates dropped out in year 10 to become tradies, yet he was able to succeed academically and got into Law at my uni. My background was quite different - Prestigeous private school, all the trappings of making 'successful' people, etc etc.
We would often lament the work that we did, the lack of motivation to do what we were doing, and the fact that a lot of his mates had opportunities right in front of them. One particular mate of his was on the ball. Leaving School in year 10, he became a carpenter at the ripe old age of 19. Yes, good money, and a lot of them sprayed that money around. However, he understood money management and the value of investing. His first task was to build a bungalow out the back of his parents place - somewhere he could live and be 'out of home' without quite being out of home. In the time it took Andrew and I to finish our degree, he was on to IP 3 with a new PPOR. We worked out that, given compounding $$$ and the head start he has had, it would take years and years of a salary over $150k to even come close to what he could achieve.
Society seems to look highly on those with a 'good education', to go on to a 'good career' and earn 'good money'. It's a lie. I'm not telling any regulars here anything they don't already know, but it's worth reinforcing that such beliefs are held due to fear - the fear of risk and failure and the fear of what others might think.
After that long winded 'introduction', I seek some advice as to whether I'm heading down the right path. When I was young my ultimate aim was to pursue a career in my own business, putting back into the community through creating a socially responsible corporation. I saw that business is the key to capital and wealth creation in modern economies, and that they, not governments, have the power to change the world. It is business that employs people, and it is business that provides economic security.
Financial facts about me: I've saved just on $25k, My after tax salary is approx. $45k. I have no debts and I live out of home - renting.
I want to build a portfolio that will support some of my business ideas - though these aren't particularly well formed (at all). I know that I seek out of working in this job and I do not want to seek a career as a solicitor. I'm wary that I'm so eager to get out that I could make some fundamental mistakes - but equally aware that time waits for no man (or woman) - I've already wasted so much time at university. So here are a few ideas I currently have:
+CF Property - an obvious one, difficult to do in Australia with my current capital base. Much like McKnight saw opportunity in NZ, I have found it in the U.S. Not without it's risk, but the return seems like a great way to pursue an aggressive portfolio accumulation strategy
Shares - More of a CG investment. I have read much on technical trading, different techniques and money management / capital preservation. It's not so much that I couldn't pursue this strategy - I could. I feel again to be financially constrained.
Other options to improve my capital base include teaming up with mates to invest together. Unfortunately a lot of my mates aren't in an investing mind-frame, or those that are still at uni and working merely to live off the savings / are in debt.
I'm cognisant of the fact that now is an unprecedented time of opportunity in the global economy and those that are willing to do well will do so. I sometimes wish I'd done a more business / finance degree, though my law books on property / trusts / corps and Intellectual Property have come in handy the last few months. I suppose I write all this for 2 reasons. 1) is to dump it all on a page to realise where I've been and where I want to go. 2) is to provoke any of you exceptionally intelligent and experienced people into responding to this question:
If you were me, in my financial situation, what would you do?
Perhaps there are options I've not considered. But mostly I'm looking for people who might now see opportunity where others less experienced (me) might not. I caveat all this by saying I know that advice in general in nature and may not suit my needs, and I know there are rules on what type of advice you can give etc etc.
There is a third reason I wrote this: When reading Rich Dad and other such books, what often hit home for me is the stories of other people, what they've done and how they did it. The good, the bad and the downright ugly. Assuming I go on to do well (or not well, but that I go on anyway) at this caper, I want to be able to tell this story. I want to share with others what I've learnt along the way. There is no greater gift than that of knowledge, as knowledge is the most powerful thing you can own.
Thanks for anyone who made it this far – over to you!
My name is James, I’m 24 years old and after almost a year of full time employment it has dawned on me that I will never make it to where I want to be by working for the man. In the last 3 or so months I've lurked here on Somersoft, PropertyInvesting.com.au and AussieStockForums.com.au, just to name the main ones. I've purchased Kiyosaki Rich Dad Poor Dad, McKnight 0 to 130 Properties in 3.5 Years, Tharp Trading Your Way to Financial Freedom, among others.
A little about me: I finished high school in 2002, went on to do a double degree in International Relations (My passion at the time) and Law (My 'career' degree), going on to do postgrad to be admitted to practice. For all the posturing and apparent 'success' that comes along with being a part of such a 'respected' field of endeavour - I sure don't feel it. Am currently earning just shy of $55k, to be increased to $64k in Feb 2010. Yet I owe the Government close to $40k in HECS debt, not to mention the lost opportunity of spending those 6(!!!!) years of study working and investing.
An example: Whilst I hated studying law, I became good mates with another bloke who didn't quite fit the 'lawyer' mould. Andrew was from a northern suburbs high school (Melbourne), most of his mates dropped out in year 10 to become tradies, yet he was able to succeed academically and got into Law at my uni. My background was quite different - Prestigeous private school, all the trappings of making 'successful' people, etc etc.
We would often lament the work that we did, the lack of motivation to do what we were doing, and the fact that a lot of his mates had opportunities right in front of them. One particular mate of his was on the ball. Leaving School in year 10, he became a carpenter at the ripe old age of 19. Yes, good money, and a lot of them sprayed that money around. However, he understood money management and the value of investing. His first task was to build a bungalow out the back of his parents place - somewhere he could live and be 'out of home' without quite being out of home. In the time it took Andrew and I to finish our degree, he was on to IP 3 with a new PPOR. We worked out that, given compounding $$$ and the head start he has had, it would take years and years of a salary over $150k to even come close to what he could achieve.
Society seems to look highly on those with a 'good education', to go on to a 'good career' and earn 'good money'. It's a lie. I'm not telling any regulars here anything they don't already know, but it's worth reinforcing that such beliefs are held due to fear - the fear of risk and failure and the fear of what others might think.
After that long winded 'introduction', I seek some advice as to whether I'm heading down the right path. When I was young my ultimate aim was to pursue a career in my own business, putting back into the community through creating a socially responsible corporation. I saw that business is the key to capital and wealth creation in modern economies, and that they, not governments, have the power to change the world. It is business that employs people, and it is business that provides economic security.
Financial facts about me: I've saved just on $25k, My after tax salary is approx. $45k. I have no debts and I live out of home - renting.
I want to build a portfolio that will support some of my business ideas - though these aren't particularly well formed (at all). I know that I seek out of working in this job and I do not want to seek a career as a solicitor. I'm wary that I'm so eager to get out that I could make some fundamental mistakes - but equally aware that time waits for no man (or woman) - I've already wasted so much time at university. So here are a few ideas I currently have:
+CF Property - an obvious one, difficult to do in Australia with my current capital base. Much like McKnight saw opportunity in NZ, I have found it in the U.S. Not without it's risk, but the return seems like a great way to pursue an aggressive portfolio accumulation strategy
Shares - More of a CG investment. I have read much on technical trading, different techniques and money management / capital preservation. It's not so much that I couldn't pursue this strategy - I could. I feel again to be financially constrained.
Other options to improve my capital base include teaming up with mates to invest together. Unfortunately a lot of my mates aren't in an investing mind-frame, or those that are still at uni and working merely to live off the savings / are in debt.
I'm cognisant of the fact that now is an unprecedented time of opportunity in the global economy and those that are willing to do well will do so. I sometimes wish I'd done a more business / finance degree, though my law books on property / trusts / corps and Intellectual Property have come in handy the last few months. I suppose I write all this for 2 reasons. 1) is to dump it all on a page to realise where I've been and where I want to go. 2) is to provoke any of you exceptionally intelligent and experienced people into responding to this question:
If you were me, in my financial situation, what would you do?
Perhaps there are options I've not considered. But mostly I'm looking for people who might now see opportunity where others less experienced (me) might not. I caveat all this by saying I know that advice in general in nature and may not suit my needs, and I know there are rules on what type of advice you can give etc etc.
There is a third reason I wrote this: When reading Rich Dad and other such books, what often hit home for me is the stories of other people, what they've done and how they did it. The good, the bad and the downright ugly. Assuming I go on to do well (or not well, but that I go on anyway) at this caper, I want to be able to tell this story. I want to share with others what I've learnt along the way. There is no greater gift than that of knowledge, as knowledge is the most powerful thing you can own.
Thanks for anyone who made it this far – over to you!