Please talk some sense into me....

[phil]

That is exactly what I did aussieboy. I purchased 5 acres in West Pennant Hills back in 1992 (with the help of my parents )

See aussieboy, you don't even need to leave home to make money. I'm sure your parents would love to see your car parked in their driveway as they do their weekly grocery shopping, comparing the price of bread and milk at Wollies.

Phil.

 

[alexlee]

Most people would be happy with just a kick-@ss PPOR by their middle age, instead of an ordinary one with a big mortgage.

Yeah, and since when are we 'most people'? If you start early and make a decent salary, there is no way you should have to aim just at the 'most people' level.
Alex

 

[alexlee]

But i'm working off a higher base than the "norm", in terms of salary?

Mate, you do what you want. Go ahead and buy that car. If you're just going to find excuses to not invest, you're free to do so too.

Yes, you have a higher income than most. That means you can get rich faster, too. Can you imagine, say by your 40s, that you can do whatever you want? If you can't, or you love your job and want to do it forever, go ahead.

If you don't want to make the sacrifices, go ahead and spend. We need more people like you to keep the economy going.
Alex

 

[coastymike]

One thing that we do need to cognisant of in all of this and particularly when discussing strategies is that everyone has different desires, earning capacities, etc.

I think those in the medical profession are in a unique position as the potential salaries are quite high. We have a number of clients who are dual qualified radiologists and all of them without exception, they are running their own radiology clinics, are earning a minimum $1,000,000 per annum. Now for them even after tax the investment decisions they make can be very different to the average forumite. I recall a survey here recently and apart from Dazzling I can't recall many people earning over $500K per annum. Obviously it means most people's judgements are clouded.

Now don't get me wrong I admire the likes of Brenda who has built a million dollar net worth in a short period of time and still lives in a $250K home. She has truly achieved great success in such a short time-frame.

Unlike aussieboy most accountants have a starting salary of $50K per annum so doctors are obviously being paid a lot more than the average. Over time if he moves into a speciality then his income will be at a minimum $200K. Symbion Healthcare are currently offering some doctors who sign up for five year contracts in the Hills District a $500K sign on bonus and $150-$200K per annum. With an ageing population this will continue for those in the profession.

Do I think he should buy a porsche just yet. No. But I think within the next 10 years he will have eclipsed the wealth of most forumites, provided he doesn't blow it or try to life the 'joneses' lifestyle too early on. I truly think people underestimate the amount of wealth in the Eastern and Northern suburbs. As JIT has said maybe my judgement is clouded as I don't have one single client earning less than $200K per annum. I think people would be amazed the amount of wealth that has been generated in the last 5 years. I think in Perth it is even more astronomical.

 

[JIT]

Do I think he should buy a porsche just yet. No. But I think within the next 10 years he will have eclipsed the wealth of most forumites, provided he doesn't blow it or try to life the 'joneses' lifestyle too early on.

Yes, I agree, there is enormous potential for him and lots to consider...but don't go over the top too soon. If you earn more and spend equally more at the same time you'll blow your high income advantage and get used to this lifestyle too soon...a slippery slope.

As JIT has said maybe my judgement is clouded as I don't have one single client earning less than $200K per annum.

And maybe clouded by your $5MM PPOR's neighbours too .

 

[phil]

Tee hee, Phil, I just can't get Monty Python's "The Four Yorkshiremen" sketch out of my mind when you say this...

http://www.phespirit.info/montypython/four_yorkshiremen.htm

...and add a dose of humility and reality and our patient should feel better in a couple of days.

Phil.

 

[coastymike]

Only one neighbour JIT backed on three sides by reserved bushland. I think the other neighbours subdivided their blocks years ago. I like spppaccceee.

 

[JIT]

Only one neighbour JIT backed on three sides by reserved bushland. I think the other neighbours subdivided their blocks years ago. I like spppaccceee.

Far out, you really have done well. We need to interview you here some day.

 

[redwing]

What the heck. Do what you want. If you end up loving the car, fine. If you end up thinking it's a giant albatross, then you learn a lesson. If it screws you up financially for years.... welcome to personal responsibility.
Alex

Pretty Much what Alex said;

Do it, there's a lesson within and you wont learn unless you go with the urge; c'mon, you know you want too, you'd look damn good in that car

 

[Spectre]

I had a wrx a few years ago, put $40k into it after I bought it. So all up the car owed me easily 90k.
Funnest time ever. The night I did 220 with 5 people in it was great.

Not so great a year later when I got sandwiched in the middle of a 5 car pile up and physio ever since on and off.

But years later, its rarely a week goes by that I dont think about the car and stompin on it, not to mention destroying a lot of porsches (yes I was a revhead idiot in hindsight)

Bring on kids and more 'responsibilty' and its not my cup of tea anymore

So my thinking, get the bomb, work yourself up so you have the house, then get the swish car afterwards. At least you have your foot in the door for an appreciating asset.

If you talk to trade in guys about a porsche you probably wont get it.

But that being said, Ive got the deposit sorted for the Skyline (which I'd get before a porsche).

 

[GreatPig]

I truly think people underestimate the amount of wealth in the Eastern and Northern suburbs. As JIT has said maybe my judgement is clouded as I don't have one single client earning less than $200K per annum.

Do you think that wealth has come primarily from high salaries, owning businesses, or passive investments?

Cheers,
GP

 

[aussieboy2010]

One thing that we do need to cognisant of in all of this and particularly when discussing strategies is that everyone has different desires, earning capacities, etc.

I think those in the medical profession are in a unique position as the potential salaries are quite high. We have a number of clients who are dual qualified radiologists and all of them without exception, they are running their own radiology clinics, are earning a minimum $1,000,000 per annum. Now for them even after tax the investment decisions they make can be very different to the average forumite. I recall a survey here recently and apart from Dazzling I can't recall many people earning over $500K per annum. Obviously it means most people's judgements are clouded.

Now don't get me wrong I admire the likes of Brenda who has built a million dollar net worth in a short period of time and still lives in a $250K home. She has truly achieved great success in such a short time-frame.

Unlike aussieboy most accountants have a starting salary of $50K per annum so doctors are obviously being paid a lot more than the average. Over time if he moves into a speciality then his income will be at a minimum $200K. Symbion Healthcare are currently offering some doctors who sign up for five year contracts in the Hills District a $500K sign on bonus and $150-$200K per annum. With an ageing population this will continue for those in the profession.

Do I think he should buy a porsche just yet. No. But I think within the next 10 years he will have eclipsed the wealth of most forumites, provided he doesn't blow it or try to life the 'joneses' lifestyle too early on. I truly think people underestimate the amount of wealth in the Eastern and Northern suburbs. As JIT has said maybe my judgement is clouded as I don't have one single client earning less than $200K per annum. I think people would be amazed the amount of wealth that has been generated in the last 5 years. I think in Perth it is even more astronomical.

Hey mate, thanks for your response.

You are the only person in this thread that has noted the profession i'm in as part of this argument, and that it is completely different to every other profession for various reasons that i won't go in to. Others have likened my situation to a "tradie" who has just finished his apprentiship etc. Your points are precisely the ones that pollute my mind into convincing myself that I can afford to splash out on such a vehicle atm. Currently i'm at most about 3 years away from entering my chosen field of specialisation. If i'm lucky I may only be 1 year away from this goal. Once i'm in the training program i'm gauranteed a minimum 500k per annum salary. It is because of this that I have these thoughts of "why should i bother being a scrooge now?"

May I ask what company you work for? There is only one financial company in Australia that I am aware of that advises a completely different financial strategy for doctors than those in other professions.

 

[JIT]

You are the only person in this thread that has noted the profession i'm in as part of this argument, and that it is completely different to every other profession for various reasons that i won't go in to. Others have likened my situation to a "tradie" who has just finished his apprentiship etc.

I'm pretty sure I noted your profession in my posts, in fact, I mentioned that as a second year doctor your salary is more realistically estimated at 70-90k.

You are no different.

You just think you are.

You are kidding yourself.

Once i'm in the training program i'm gauranteed a minimum 500k per annum salary. It is because of this that I have these thoughts of "why should i bother being a
scrooge now?"

Really, so as a third year doctor, with no formal specialist qualifications, your income goes from 70-90k (doing dead end night shifts for most of the year), to 500k guaranteed as a minimum?

Sorry, this is your ego talking.

Tell me what specialty this is...

May I ask what company you work for? There is only one financial company in Australia that I am aware of that advises a completely different financial strategy for doctors than those in other professions.

Oh really, do they advise buying Porsche's after you graduate too, because you are 'special'.

There are NO 'financial secrets'.

Please enlighten us on this 'completely different strategy for doctors'!!! - I'll bet that you have no idea what it is and will not be able to tell us.

Buy the stupid car and dissapear into the nothingness that you came from please.

 

[evand]

Is saving money the equivalent of delaying gratification? I don't think so. They aren't mutually exclusive.

And who mentioned anything baout 'spending it all on crap'? A Porsche or an Audi are not crap. Maybe to you it is but, again, you arent everyone.

I started a sole person business in 1989. I made enough money in one year to pack it in, buy a backpack and travel Europe/US for 6 months. ($15k)

I came back and started again. I then made enough money to start investing.

And my business & investing went from strength to strength.

I think there are 2 mindsets.

One is to get out there and make money and not have to 'delay gratification' Just make money and live a life you want. Its obviously harder, riskier and takes much more effort, research, study, more balls etc but it can be done. Most people are a bit lazy and go with option 2.

The 2nd is to save money by 'delaying gratification'. Basically deny the things you could have by saving money and investing instead. Its slower, safer, less effort, less risk etc.

Mate, your experience isn't everyones.

Oh...and as far as the people who used equity to borrow to buy a business etc and my own experience with buying properties with $100 deposit etc. Well, i guess, people eho dont spend recklessly, they live within their means and all that stuff.

But they havn't gone without the small luxuries of life as well i suppose. Is this delayed gratification?

Is denying your self delayed gratification? Hardly.

What is it anyway? I think we need to agree on a correct definition for delayed gratification first.

But you said 'EVERYONE' who gets rich has delayed gratification. And i replied 'not everyone' and i stick by that.

I havn't. Not in my mind anyway. And i know a few people who followed a similar path to me.

So you're telling me that you NEVER saved a cent, you spent it all on crap, and miraculously you wound up with the funds to start investing in a house or a business? OH; PLEASE!
EVERYONE has to delay some gratification to get to the first stage; either they save some money and buy some shares, or buy a house. It could be simply buying second hand clothes instead of the latest Gucci suit, or in AB's case it's the $25k Beemer instead of the $150k Porsche; but it's a delay; a sacrifice. This gives you the start, then you can take the risks with the fruits of the proper steps.

 

[evand]

Dude, why are you constantly trying to pull the guy down to your level? Sounds like jealousy to me. I have noticed quite a bit of that on this thread.

Why so much negativity?

In my mind. You achieve what you think you can. Henry Ford said "If you think you can do a thing or think you can't do a thing, you're right"

I have always agreed with this.

I think the guy can have his Porsche AND his success. Jesus, why not?? People just have to think a little bigger.

Why (to most people) are they mutually exclusive?

I'm pretty sure I noted your profession in my posts, in fact, I mentioned that as a second year doctor your salary is more realistically estimated at 70-90k.

You are no different.

You just think you are.

You are kidding yourself.



Really, so as a third year doctor, with no formal specialist qualifications, your income goes from 70-90k (doing dead end night shifts for most of the year), to 500k guaranteed as a minimum?

Sorry, but you're talking out of your a*se now.

Or, it could be your ego talking, I'm not quite sure which.

Tell me what specialty this is...

You're very quickly losing any shred of credibility you may have had.



Oh really, do they advise buying Porsche's after you graduate too, because you are 'special'.

There are NO 'financial secrets'.

Please enlighten us on this 'completely different strategy for doctors'!!! - I'll bet that you have no idea what it is and will not be able to tell us.

Do you think we're morons over here?

Buy the stupid car and dissapear into the nothingness that you came from please, your wasting our time.

 

[JIT]

Dude, why are you constantly trying to pull the guy down to your level?

Haha - you have no idea what my 'level' is!

I'm just giving him the face slapping he asked for?!

Perhaps it's a bit rough, a bit more like a punch in the face...

Why so much negativity?

Negativity?

I'm offering, for free, very constructive and realistic criticism that is particular to this person's situation. You normally have to pay people for this.

This is what he said to me earlier:

mate, i'm gonna follow the advice of the majority here. Porsche will have to wait.

He's already changed his mind/become unsure after 9 hours!

Why (to most people) are they mutually exclusive?

They're not, if you can dream it, you can achieve it...seriously, but this is a whole other thread, which we've done before many times.

 

[Perp]

Ouch!

C'mon guys, how about we all agree to assume that others on the forum are well-intentioned and intelligent, even when they have a different perspective? State your opinion, defend it vigorously if you like, but having a different point of view doesn't mean that you deserve to have your character assassinated!

Peace! Please!

 

[GoAnna!]

The business mindset (and cashflow) can sure be different from property investor mindset. Friends of ours have a number of factories and although they have only been operating only a few years they are going from strength to strength. They work amazingly hard and at times worked aorund the clock while juggling young kids. Not for the faint hearted. They think nothing of buying $300K cars (husband came home with one unannounced the other night and the wife just rolled her eyes) and are more than happy to spend on housing, clothes holidays whatever. Meanwhile they are also investing.

This couple was never EVER into delayed gratification, bought cars new and upgraded them frequently. They arre also generous with their money and would think little of buying car for a family member who neded some help.

I think the secret to success is spending less than yoru earn and investing the rest. Once the snowball starts cashflow injections are optional. Delayed gratification is only required if there is a shortfall betwen your desires and your income. Delayed gratification is not an issue for a minority who have very high income or few material wants.

 

[topcropper]

Currently i'm at most about 3 years away from entering my chosen field of specialisation. If i'm lucky I may only be 1 year away from this goal. Once i'm in the training program i'm gauranteed a minimum 500k per annum salary. It is because of this that I have these thoughts of "why should i bother being a scrooge now?"

.

500k Holly Cow...!!!

I was dead against the car mate, but if you have 500 k a year coming shortly, go and buy the silly looking, impractical thing.

Just be carefull of the type of girl it will attract. I was always keen myself to tone it down a bit in my courting days, as I didn't want to attract the gold digger types. I like being a dag, so I wanted a girl who likes being with a dag. I would feel like an absolute twit in such a car, but lucky we are all different.

Where I live, people would laugh their heads off at such a car. The 'cool car' to own for a young bloke is a done up V8 holden ute. The practical car for the sensible young bloke is a four wheel drive turbo diesel ute so they can tow their girlfriends horse float. Something to think about I suppose if you have to spend a few years in the bush with your job. Instead of the hot girls wanting to get in your sports car, you will be getting the 'little finger' wave.

See ya's.
.
.

 

[natmarie73]

I have to agree with whoever said that he should move out of home first.

It's not fair to earn so much money and buy an expensive car while sponging off your parents.

If you want to buy a flash car then fine - your choice and your decision but first grow up, be a man and stop expecting mummy and daddy to pay for all your basic living expenses that at 27 and earning $150K you are more than able to pay yourself.

I don't know of too many girls over the age of 18 who would be impressed by a guy who still lives at home at age 27 even if he does drive a Porsche.

I hope you are at least paying a decent amount of board.