starting with zero



From: Marc How

would like to talk to someone about starting investing with zero dollars, debt & low income (been to a Henry Kaye seminar & having trouble breaking current mindset)
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Reply: 1
From: Sim' Hampel

In my opinion, the best 'investment' you can make when on a low income with existing non-investment debt, is to learn to budget, control your finances and pay down that debt.

Remember that you are paying the interest on that debt with after-tax dollars, so even if you were able to find a suitable investment, it would need to show some pretty impressive after-tax returns to be better than removing your debt.

The art of budgetting, living within your means and controlling your finances are key to a successful investment strategy, so I strongly suggest you look at those issues first.

A good book that covers a lot of these issues, plus looks at possibilities for investment is John Burley's "Australia's Money Secrets of the Rich". I would also suggest reading anything from Paul Clitheroe (eg. "Making Money" and "Money" magazine) for good coverage of the basics of financial health.

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Reply: 1.1
From: Robert Forward

Another good book to help with budgets is one that was written by a poster on this forum.

It's called "The Wifes Budget Book". I can talk from experience of actually using it, and still do. It has helped setup the amount of money we can live on comfortably and how much we pay ourselves first. But we also pay ourselves second too with they way we use this book.

Send The Wife an email and ask about it.

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Reply: 1.2
From: Ken .

Another good source of information is our very own 'the wifes budget book'.
It starts from the basics and will give an insight into how to plan for your investment future.
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Reply: 2
From: GoAnna !

It is great that you are thinking about your mindset with an awareness that it is holding you back.

I think two of the most important elements to success are:

1. A goal.

What is your plan? 1 mil dollars?
5k passive income per month?

Why do you want this money? How will it change your life? If you know why you want it it will be much easier to get there.

My goal was to be free of a 9 to 5 job. Which I now am. I find it easy to resist "instant gratification" purchases because i know that at the moment they would put at risk my freedom to be my own boss. In the future I will be able to afford whatever I want.

What in your current behavior and thought patterns is holding you back? Your friends? (that's a hard one), a discomfort with money?

How how you complete these sentences?

Money is .....
If I had a million dollars I would...
If I have money in my wallet.....
If I were wealthy my friends would.....
Looking at a Porsche (substitute any other expensive material item) I think "..."
Rich people are...

If you don't have the right mind set a thousand different strategies won't make you rich. If you have the right mindset almost any strategy will get you there.

The is a 2. but I think I have said more than enough. Thanks for "listening"

Good luck!

GoAnna !
(aka Anna before she got real)
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Reply: 2.1
From: Rasputin .

Thought I would answer the questions above..

Money is ... the means of paying for things!

If I had a million dollars I would ... be much richer than i am now!!

If I were wealthy my friends would ... be able to come to bigger parties!!!

Looking at a Porsche I think .... how on earth do I make out in such a small place!!!
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Reply: 2.1.1
From: Firefrog .

As Kiyosaki says there are only two things that you can invest in time or money. I recommend working on yourself, read good books and develop your knowledge of money. I had a good income but it all disappeared, once I learnt the basics I gained control of me and my money.
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Reply: 2.2
From: The Wife

Can I have a go to please :eek:)

Money is ..... my servant

If I had a million dollars I would...leverage leverage leverage

If I have money in my wallet.....I carry a purse/(girls, read "Theres a lipstick in my briefcase")

If I were wealthy my friends more friendly

Looking at a Porsche (substitute any other expensive material item) I think "..." I'll have one of those!

Rich people are... a hell of a lotta fun!
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Reply: 2.2.1
From: Debra L


Firstly don't be disillusioned when I tell you that perhaps you should wait, before making your first property investment.

Take control of your finances first so that you can work on eliminating your current debt and begin putting something away toward a deposit on your first investment property.

Learn to put aside a proportion of your income each pay period (10% if possible), before paying the bills, buying the groceries and spending what is left over.
This may sound difficult, but once you put it into play, you will find that you soon adapt to living on less than your full wage.

If you already had your own home, and a reasonable amount of equity in it, then it would be possible to start investing in property without any cash outlays...but if you are not in this position, then you really do need to save for a deposit.

Use the proportion that you put aside from each weeks pay to start eliminating your other debts/saving for a deposit.

Set yourself a goal, maybe 12 months as to when you want to have the means to purchase your first investment property.

Write this it everyday. Use it as the inspiration you need to help keep you one track with keeping your finances under control.

Believe in yourself and your ability to achieve this goal...and you will make it happen.

In the meanwhile spend your time researching the market, and reading all the information you can find on property investment. Spend your time learning as much as possible, so that once you are ready to make your first purchase, you will have accumulated the knowledge that allows you to make an intelligent, well informed decision as to the best property to buy.

If you purchase a property well under the current market value (or council valuation) it is possible to refinance it shortly after purchase to 80% of the market, or council value...and redraw the additional funds to reimburse yourself for your original outlays (effectively meaning you have had no cash outlays) or better can use this money to fund your next property investment.

Because you have a low are far better choosing a property that is positively geared (you can find them even in the suburbs if you look hard enough) as this will make the serviceability of the loan much more affordable.

Always stay positive and you will find that the time passes quickly...and you will soon be satisfied that you have not only taken control of your finances...but you are well on the way to ensuring you have a happy and secure future as well.

All the best

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From: Gee Cee Cee

Debra L

Very Well Put
Gee Cee
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