Achieving financial independence

First thing I would say if you hate your job so much, start studying and searching for what you want to do with your life. There is absolutely no better investment than the investment into yourself. Its great to have the ability to save but top be honest, I was pretty depressed reading your story. You are 19 years old, you hate your job and you spend pretty much zero. I almost want to tell you to stop saving so much and get out there and enjoy life!!! I won't though. Save hard to get yourself a deposit to get yourslef an investment property but for god sake don't let your life pass you by without actually living.

 

A agree with this, invest in yourself first, gain skills and experience that are in demand.
Its much easier if you work smarter not harder.

I've been reading threads about second jobs etc which is okay when you are younger but it's so much easier if you have skills which will demand much better remuneration.

Find something you are interested in and investigate how you can make it a career, whether that means starting a business, further study or trade.
Good on you for saving so much at 19.

 

Personally what I have found is the 'working smarter and not harder' saying is only a half truth. I believe it's 'working harder in smarter ways' that will make the huge difference.

Just my opinion.

 

For a 19 year old you seem pretty passionate about investing, is there a possibility to pursue a career through this? Investment finance, mortgage broking, real estate, there are loads of career paths surrounding this. It would require a lot of study and dedication but like someone before me said, invest in yourself.

 

Good idea.

 

This is most excellent. that means it only costs you $100 per week to live = $5200 per year.

You should look at the website of www.earlyretirementextreme.com and Mr. Money Mustache

If you can go very hard when you are young you will set yourself up for life. Keeping the spending down is the key.

 

@Terry_w great website. Thanks!

edit: on second thoughts.. when i click on the side links its all marketing.. maybe my computer is weird..

 

I like your saying better Leo. The key is maximum return for your endeavors by gaining skills etc which the market values.

 

@HUGH72 completely agree with you mate about maximum return for effort.

 

Sorry I did't know, and still don't, how to spell moustache

Mr. Money Mustache

The EEE site is good, but MMM is better I think. I have the book written by the EEE guy and it is extremely hard reading. I have attempted it twice and given up at chapter 1. All good ideas but he is from a mathematical/philosophical background and it is heavy reading in small font.

MMM on the other hand writes in a casual style and is much easier to read.

It all boils down to this. If you can save 100% of your income you are instantly there. If you can only save 80% of your income you are much closer than someone who can only save 20%.The amount of your income doesn't really matter as people's expenses tend to go up to match their higher earnings.

 

That's the MPS concept. (Marginal Propensity to Save). Keynesian Economics.

 

EEE...MMM....MPS....WTF...

 

Agree, just make sure it has decent growth prospects, otherwise your providing a hotel for the tenants, with not much downside or upside for you imo.

 

I agree with this too. I would also add.

1: Cairns is a fairly crappy investment market. So you are going to need to seriously look at options further afield to move forward.

2: With a low income you are going no where fast, invest in your self as inov8ive said.

3: You need to push out your goal to 15-20 years time being realistic.

 

I know exactly what you mean about wanting time to read and do stuff you want to do. Believe me, the feeling only gets stronger as you get older. You need to get a job that makes it worth putting those things aside for a while. Once you're in your mid-twenties, chances are you'll become career focused and possibly competitive and money hungry like 'most people' and stay that way at least til your fifties (sorry). Therefore, do something that you don't hate. At least you know what to do with your money when it starts coming in.
Enjoy your youth and living in this lucky country - some of the things that money can't buy.

 

Hi

I wish this forum and thread existed in 1993 when I was 19!

Regards,

aliudi

 

Hi silly man

mate 19 and already on the right track that's really awesome stuff keep motivated and stay home as long as you can

$500 passive income is a very achievable goal at your age looks go into detail abit using the half life third value matrix
(this is all based on a eight year goal mate)

Goal : $500 pw passive income ( saying you can achieve a 8% return).


$500 x 52 = $ 26,000 per year needed to get your goal

$26.000 / 8% = $325,000 capital needed

1/2 life 1/3 capital
Years capital needed
8 $ 325,000
4 $108,000
2 $36,000
1 $12,000

(saying you can get a 6% return)

$500 x 52 = $ 26,000 per year needed to get your goal

$26.000 / 6% $433,000 capital needed

1/2 life 1/3 capital
years capital needed
8 $433,000
4 $144,000
2 $48,000
1 $16,000

so as you can see it doesn't look so scary if you break it down it bite sized pieces all you need to do is make a plan on how to stay on track and achieve those chunks of money ... iam sure you can save nearly that in your first year or you only have to do a very small say reno deal maybe just some paint and a kitchen and you could achieve $16,000 profit so long as you bough right...

as you get better and wiser your deals will be in line with your skils and risk profile and bye year 4 you will be doing slightly more bigger complex deals then you were at the start

best of luck with it all mate I take my hat off to you

Daniel

 

@sillyman, at 19, and with a very tangible passive income goal, I would suggest you give due consideration to business.

When you're working on your plan A (freedom) working a crappy job won't seem so bad

You have the luxury, while working, and at home and with a high savings rate, of having a go, falling over, getting up, having another go, falling over, getting up and repeating until you nail it.

You know, it's not unreasonable to set up a business that will produce that level of passive income itself.

 

This is close to the way I'm thinking at the moment. I realize from my current job that it's really important to me to be doing something I don't mind or could enjoy, whilst as you say, doing what I know I should be doing with my money. I really cannot pin down what occupation I want though I'm too indecisive maybe I just need to go out there and try different things.