Paying yourself first

Discussion in 'Investor Psychology' started by Xenia IM, 14th Mar, 2015.

  1. Befuddled

    Befuddled Member

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    Seems an expensive way (time + money) to get a hypothetical 12k raise. In that time frame there's a good chance your current salary will lift to 60k on the back of promotions, raises and changing jobs.

    If you're doing the other degree because that's where your passion lies then ignore what I just said.
     
  2. WattleIdo

    WattleIdo Member

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    That's excellent. You're already streets ahead. Plus you'll be doing something that you want to do which is a huge bonus. Good on you.
    Some people are compelled to study a course that isn't their first interest and once that's finished, come back to do what they really want to do. If you're able to work and make the payments on your current property at the same time at the age of 24, I consider that remarkable. You're on the right track. :)
     
  3. ej89

    ej89 Member

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    Saved 80% over past 18 months to get my deposit for my first IP.
    Still doing that but hoping my 80% is a lot higher so I can keep funding my business and get married..
     
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  4. JohnMichael

    JohnMichael Member

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  5. BayView

    BayView Member

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    Terrific effort!
     
  6. Xenia IM

    Xenia IM Property Manager

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    80% is a top effort to save.
    funding business? Is it a new start up?
    was the saving from a job or another non business income stream?

    well done regardless :)
     
  7. MIW

    MIW Member

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    All money received by our kids from birth have been put aside, as they grew older split is 50%, once started working and studying and living at home then 30% for private 70% for investment.
    In addition like you we have been buying coins, stamps, prints, some collectibles, etc...
    Personally we adopted the 70% spend and 30% save then invest strategy and will pass to kids, even being self-employed yet paying ourselves first. Have separate accounts where that income is diverted then used to invest.
    In addition we have fully maximized our SMSF too, why not take the advantage of current rules, for future benefit, especially having there now 6 IPs..., further approved borrowing in 6 digits, but hesitant to advance there....
    Personally now concentrating first kid to purchase first IP, helping family member purchase via SMSF too, and perhaps investing further when steps 1 and 2 are done.
    So keeping very busy with lots to do but yes the progression was due to having the consistent discipline to continue to use this approach. Adopting "The Richest Man in Babylon" has worked wonders for us. Most people have read the book yet how many really practice what it taught???
    Really, living on 70% is not so hard to do.......
     
  8. MIW

    MIW Member

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