Uni education a requirement for successful investing?

[jaycee]

Wow Jaycee, your ability to read outside the lines astounds me.. where in my post did I say either option was "stupid" or a "p1sstake"?

I merely said there is merit in someone battling away at a young age without a uni degree, as Skater was talking about. For the record I am a white collared uni grad (currently on hiatus )

Did someone wake up on the wrong side of the bed this morning??

No not at all

I just felt I picked up a sense of irony in the thread and your post was just one of many that I chose to continue discussion from... that was all, hope I didn't offend you too much in doing so, certainly not intended.

Investors here have been discussing how investing and not going to uni gets your more money than going to uni, cause of the head start and a number of other ideals.

But then, on the other hand, nearly each time somene has suggested somene going to uni could earn over $500k pa post uni, and that those $ coudl help their investing, many of the same people riducled teh poiontless of just chasing money... (?)

I just find it funny how adamant people are that they know everything. I know seen succesful people who have gone to uni, worked, into buisness for themselves and then sell their business .. I've also seen others become builders and investors on the job, I don't see it as clear cut as some that was all.

Sorry to offend again....

 

[csc2]

grade 10 i finished..never looked back after i left.....still learning after 30 years though about investing....its not hard if you take a hands on approach and do the figures before buying...

any mug can do it if i can...the trick is determination to succeed and not be put off by setbacks of the venture or criticism from others.

you must also know when to quit and cut your losses or take your profits...

education plays llittle part in being street wise buying and selling r/e.

you must use your head not your heart on most occasions cause you may need to make some difficult decisions with tenants sometimes who need eviction.

if you treat investing as a business and detach yourself from the personal side of peoples lives you will sleep way better...i found this an issue early on with my first few properties especially when children were involved but they had deadbeat parents...that is still difficult but you have to detatch yourself and get on with it..

it has made me way harder these days...pay the rent or pi$$ them off is the only option....(if you can do it) that is with the legal garbage that favours tenants these days)

Was easier 30 years ago when you could get away with more heavy handed tactics so to speak.

Best of luck..

 

[kathryn d]

With uni, generally their salaries will be higher.
It isn't much of a struggle to afford property.

Without uni or a trade, it can be a struggle to accomplish financial independence.
These people usually "do without" a lot. I'm included in this bunch.

Maybe the non-uni people find more satisfaction with their result, as it has been such a challenge to achieve.

It's like stating that when you come from a "well off" family, who are able and willing to lend you money, you have an advatage over someone trying it on their own.

In Canada, being from a well off family who won't pay your way thru uni, puts you at a slight disadvantage than a "poorer" person.
Our student loans are based on how much your parents earn and can contribute.(among other factors)

 

[jaycee]

Kathryn, I too got the feeling peopel were talking about "satisfaction" but they did say they were talking about acheiving $

I think someone who goes to uni beomces a qualified professional and cthen thorugh dscipline and hard work is able to work in the field and be finacnially succesful, I thikn that person deserves tyhe feeling of satisfaction as someone who did it vaia another job - liek a trade or liek I did without fomral qualifiacations at all...

I certainly don't deserve more anythign than others who were succesful at uni...

Even the "come from a well to do family" smacks of hypocrisy to me... If I have kids, I wil ltry and help them.. others wil lprobalby look at them and say "yeah no wonder cause daddy...." - catch 22 damned if you do, damned if don't - well, I think I know the way out of.... don't give too much of a damn about these sort of discussions I think .......

 

[Jen_PFR]

1. A person's chosen profession may (or may not) require them to go to uni. There is no "uni vs no uni" argument if you want to be a doctor. Same goes if you want to be a plumber.

2. Uni can help with financial literacy, but it depends on what you study. Eg. someone who studies finance and/or accounting will be able to read a balance sheet, understand financial ratios, understand risk and return, and have a foundation for business analyis.

3. Despite (2) above, going to uni doesn't necessarily lead one to be a more successful investor than another who did not go to uni.

4. Uni can lead to a greater salary than not going to uni, IF the right course of study is lead.

1. Agree. I couldn't work as an economist if I didn't have that bit of paper. That said, I can completely understand that being an economist is not everybody's ideal job!

2. I think economics specifically has helped to hone my analysis of the property market. I had the basic interest/instinct beforehand, but being able to analyse it clearly (especially to my business partner, my OH) has been useful.

3. I agree completely. My OH and I make a great team. I can find the good deals, but he's the one who can do all the reno work on them. Also, all the skills and knowledge in the world means nothing if you never actually take the plunge and BUY a property.

4. I haven't found this in my case. But then I imagine if you're a doctor/lawyer/engineer the $ would be much higher.

Just my two cents' worth

 

[Ridin-High]

I never lived at home with mummy and daddy to make my investments possible like a lot of younger investors do. My mate had this ex-girlfriend who had 4 investment properties but they were only possible while she was living with her parents rent free while working as a full time nurse. That's totally lame in my opinion. I've had the lifestyle benefits, decent cars, keep fit and love my exercise, lived overseas and enjoy my lattes. Let's talk about life balance, sanity and quality of life. Not starving yourself just to end up 60 years old owning 10 properties while your whole life sucked to get there.
.

I'm one of these lame people that you speak of.

Just wanted to know your thinking behind why you think i'm lame for living with my mother for?

I personally think it's a smart idea, keeps costs down and i have a close relationship with my family so that makes it even better

 

[kathryn d]

I'm one of these lame people that you speak of.

Just wanted to know your thinking behind why you think i'm lame for living with my mother for?

I personally think it's a smart idea, keeps costs down and i have a close relationship with my family so that makes it even better

I wouldn't allow my children to live at home after the finished school.
That was made clear to them, early on.
I think it usually stunts the emotional growth of the "child".

With my friends that allow their children to remain home, and not charge them rent, has put them further behind. The kids have all the new vehicles, big toys and too much disposable income.They can't afford to leave home now, as their loans are too large.

 

[sfulop]

I'm one of these lame people that you speak of.

Just wanted to know your thinking behind why you think i'm lame for living with my mother for?

I personally think it's a smart idea, keeps costs down and i have a close relationship with my family so that makes it even better

I'll be the same as you RH - and I agree 100% with you. Nothing 'lame' about it at all IMO. I'll be living at home until I move overseas to expand my career (around 25). I'd love to do a comparison of where I'd be in 5yrs if I moved out tomorrow. I'm much better off this way. It's a smart option, particularly if you have a great relationship with your family like it appears we both do.

I wouldn't allow my children to live at home after the finished school.
That was made clear to them, early on.
I think it usually stunts the emotional growth of the "child".

With my friends that allow their children to remain home, and not charge them rent, has put them further behind. The kids have all the new vehicles, big toys and too much disposable income.They can't afford to leave home now, as their loans are too large.

To each, their own Kathryn. My parents charge me rent (not much), and I'm still 100% financially self sufficient, but I still live at home to minimise expenses and maximise savings. I could leave home tomorrow if I wanted.

Thats all part of the fun though, having the option to have all the latest fads yet remaining focused and relentless towards your savings goals. It makes you stronger

 

[jaycee]

I wouldn't allow my children to live at home after the finished school.
That was made clear to them, early on.
I think it usually stunts the emotional growth of the "child".

With my friends that allow their children to remain home, and not charge them rent, has put them further behind. The kids have all the new vehicles, big toys and too much disposable income.They can't afford to leave home now, as their loans are too large.

Some people (like me!) leave hom (well I stayed for 4 years after school) and did exactly that - got stuck with large loans etc !

I do believe unfortunately, there is no fool proof way !

I've seen plenty young kids stay at home, save, and buy their own ppor/ivnesstment property, or build their own property and move out with either investment property or a low LVR'd PPOR. To your horror, some not only stayed home for a little after school, but all the way till they got married. Most of them do have new car and toys and even disposable income now, from jobs, money management habits learned and investments !

 

[kathryn d]

I left home at 17..wanted my independence.

 

[jaycee]

See, no one fool-proof method for everyone !

 

[kathryn d]

See, no one fool-proof method for everyone !

I agree, I think it is more based on the personality of the investor.

 

[skater]

Lil' skater I was very driven from a young age like you. My approach was 3/4 full time uni, full time work in my chosen field, bought my first place and moved out at 20, paid that mortgage and all my HECS up front as I went along (no HECS debt accumulated). That 5.5 years almost killed me.

I knew more than the practical-only uni bashers that I worked with and I knew more than the theory-only academics that I studied with. I had the fusion of both halves of the equation happening. That is the unstoppable combo where you can walk in/out of any job because you have options. I always saw myself as "the practical/hands-on person who also decided to go to uni with the academics".

OK, it sounds like you are not the "average" Uni Student. Certainly someone who knuckles down and applies themselves will be miles ahead of the competition, especially if they have a natural 'bent' towards the subject(s) they are studying, combined with the practial experience.

I think the whole Uni/Non-Uni debate should start with knowing your own strengths and weaknesses. Be honest with yourself and ask yourself the hard questions. If you know that you won't bother studying because you'd rather be going out partying etc, then why bother going to Uni in the first place.

Not all those who go to Uni get well paying jobs. Some never graduate, some do, but never work in the field they studied. Some find work in their field of choice, but only ever receive a mediocre salary. The high paying jobs would normally go to the more driven students, the ones that pass with honours and/or have been working in the field while at Uni, like our friend Recruit2.

As for getting ahead and investing, well, like everything else in life, not everyone is going to do it. Having a large income should make it easier, but that is not always the case. Many on high incomes get caught up with what they percieve to be needs. They need the expensive house in the "right" suburb. They need the private school for the kids. They need the expensive car(s) etc.

Just like Uni, you need to be dedicated to get ahead. Even on a small income, you can grow your asset base into something large so long as you have the drive and the determination to do it. Obvously a large income earner with drive and determination will amass a larger asset base than a low income earner, but that does not mean that a low income earner can not be successful.

I never lived at home with mummy and daddy to make my investments possible like a lot of younger investors do. That's totally lame in my opinion.

This I think is a little subjective. Again, you have done well yourself and have a large income, so maybe you did not need/want a leg up.

I see nothing wrong with staying at home with the family for a few years, so long as you respect your parents and will live with them under their rules AND you don't take advantage of them.

By this I mean that you pay board (yes, I know some parents won't accept it, but you should at least offer). The board should cover the expenses that you incur. Remember, your parents are not getting any younger and they may/may not be trying to save for their retirement. If they won't accept board from you, maybe you should buy the groceries sometimes or do something else unexpected like that to help them out, maybe take responsibity for the electricity for example.

You should possibly do your own washing/ironing. If your mother tells you she is happy doing everything for you, I am sure that she would be very surprised and happy to see you maturing enough to take responisbility for yourself now you are older. You could explain to her, that as an adult, you should now be learning how to do it, so you can stand on your own two feet once you move out.

Clean up after yourself. Your mother is not your maid.

Be polite and reasonable when your parents/siblings speak to you. Don't behave like a spoilt brat. Remember, you are supposed to be an adult now, so act like one.

I agree with Recruit2 in that it is lame for an adult child to still be living with the parents if you treat your parents as your unpaid servants, you take advantage of their good will, you are rude and unruly, you are on a larger income than them, but they still support you financially.

I am not saying that the young investors here do any of those things, however I have seen several youngsters do/act exactly in that manner.

 

[Luv2Travel]

Speaking of the whole uni/non-uni live at home/move out debate; I know someone who is 38 years old, went to university, has an income of around $100K, still lives at home, his mother still does all his washing, housework, makes his bed etc. He has $80K worth of credit card and personal loan debt and doesn't see anything wrong with all this! No wonder he's been single for a long time!!!

 

[ok180]

I know someone like that too, we probably all do.

I think the reason a lot of people don't move out earlier these days is because it's just to tempting to spend their money on non essential items. These days most in their early 20's travels which eats up a good 10k-20k. Most have credit cards, phone bills and car loans. They think nothing of going out on every Saturday night and blow $500 on new clothes, night clubs and booze.

By doing all this they never get that little pot of gold together to allow them to move out. Im 29, I would say of all the people i went to school with only half have left the nest. I think that is a bit sad.

 

[Corey Batt]

A lot of (single) guys I know who are in the 30's say they wish they could move back into their parents house. Single income cost of living pressures biting them from what I can see.

Not that they don't all drive BMW's, Monaro's, no car older than '07 model.

 

[Luv2Travel]

A lot of (single) guys I know who are in the 30's say they wish they could move back into their parents house. Single income cost of living pressures biting them from what I can see.

Not that they don't all drive BMW's, Monaro's, no car older than '07 model.

I'm 32, single and have been paying my own way with a mortgage completely on my own for 10 years. I'm not on a huge income and am doing ok financially, still manage to invest and pay single cost of living. I have NO desire whatsoever to move back home with my parents, and never will!

In your 20's I think it's ok to live at home, provided you do your own washing, help out around the house, pay your own way and aren't taking advantage of your parents just so you can spend all your money on yourself. If you are investing and being sensible with a goal to move out then it's a good move if everyone in the house is happy with the arrangement. However, I think once you hit 30 if you're still at home, it's getting a bit tragic. There's a time you should stand on your own two feet, and as an independant female, if I met a guy I liked and found out he still lived at home, I'd be pretty concerned!

 

[jaycee]

A lot of (single) guys I know who are in the 30's say they wish they could move back into their parents house. Single income cost of living pressures biting them from what I can see.

Not that they don't all drive BMW's, Monaro's, no car older than '07 model.

I like how CJ PROPERTY didn't necessarily suggest if the guys were uni grad's or not - I beleive that's cause this stuff happens to both...

On another thread, we have discussed low income earners who do the same thing, spend on doodads and then complain about not being able to get by - here we see hear of uni grad's doing the same thing.

I'm starting to think going to uni and getting yourself an education may not be the reason somehow.

 

[Alex P Keaton]

I'm one of these lame people that you speak of.

Just wanted to know your thinking behind why you think i'm lame for living with my mother for?

I personally think it's a smart idea, keeps costs down and i have a close relationship with my family so that makes it even better

I agree

I moved back in with mum and dad for a year to save before buying my 1st property in 2008. I wanted to pay board but mum and dad wouldn't take it! I was given this huge opportunity. Opportunity of a lifetime! My parents also gave me a 25% deposit for my 1st which I then leveraged into #2 ip one year later. They wanted to give me the cash now rather then when they pass away!

I am very grateful for the leg up and the way I see it is... when they retire i'll be there to help them financially. The other kids wont be in the position to help. So... we are both helping one another. They helped me now when I needed it, and I'll be making them comfy in their retirement. I can forsee them running out of cash after about their 10th year of retirement. This will be in around 20 years time. Unfortunately they will only have super to live off. When they retire their one and only ip will need to be sold to pay off their debt on the ppor.

Kudos too to the battler who does it all on their own. Especially those on a low/average income! I take my hat off to you because you would need to have a lot of guts, determination and drive to achieve! I really admire people with lowish incomes who are investing and their will to succeed. They are an inspiration. If you want something badly enough you'll find a way!!

 

[Alex P Keaton]

When I get a few more properties under my belt and some more experience I'm thinking about studying to become either a mortgage broker or financial planner/strategist. I need to start networking more. It will help me to get a foot in the door I'm thinking.

Right now though I'm happy working in the public service. Not ready to take this step yet.