Advice on starting out on journey to FIRE

Discussion in 'Investment Strategy' started by 6Withmywoess, 12th Feb, 2020.

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  1. 6Withmywoess

    6Withmywoess Member

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    Hi all,

    I am a 22 year old from Melbourne, over the past few years i have been learning about a variety of different investing strategies and ways to create wealth. I plan to work hard and invest hard while i'm young to best position myself to achieve my desire of becoming financially independent as soon as possible to allow to me peruse meaningful work. I have saved up close to 100k, work a Fulltime job and a casual job, have a small amount in ETFS that i plan to add to consistently over the years. My main struggle is where and what i should focus on to really ramp up my investing, I want to get into property but don't know what strategy i should be going for to reach my goal? Cashflow off the bat or going for high growth through renos or subdivisions? I don't want to rush and i'm going to continue to further my knowledge on everything but also don't want to over analyse and lose valuable time.
    Any advice on what you guys would do if you were in my position and where you think i should focus on?

    Thanks
     
    Jess Peletier likes this.
  2. Trainee

    Trainee Well-Known Member

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    Hard to tell because it depends on your skills and interests. But the focus should be on leverage. Do something that has a magnified gain. That may not be monetary. Eg learning would be a good investment.

    dont forget the job either. A nice high earning job is a great benefit to investing.
     
    Niche likes this.
  3. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Perth WA
    What is your goal, exactly?

    In terms of whether you should go for cash-flow, growth etc...this depends completely on your own situation and how much deposit you have, how much borrowing capacity you have, how much time you have, and how much you can personally contribute to your investment strategy.

    It's a combination of those things that determine how your property plan and strategy should look.

    We cover this in depth in our Stuck to Savvy program, which is designed to short-cut the learning curve, create your strategy and plan, and have you out the gates ASAP :)
     
    Last edited: 12th Feb, 2020
  4. Sackie

    Sackie Well-Known Member Premium Member

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    What does FI look like for you?
     
  5. Trainee

    Trainee Well-Known Member

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    Reality has a funny way of derailing your plans. With that attitude, youre going to do really well, but your definition of enough might change.
     
    Jess Peletier likes this.
  6. Sackie

    Sackie Well-Known Member Premium Member

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    I can only speak for how I did it. May or may not resonate with you.

    1. Become obsessed to achieve your goal. This will take an endless amount of sacrifices, focus and discipline.

    2. Develop a resilient mindset and psychological strength. IMHO if you don't do this, your chances to achieve your goals is greatly compromised.

    3. Spend some time to study your craft. I'm a book person so I've studied ( not just read) probably more than 60 books. Not saying you need to do that but get some recommended books or podcasts or wherever you prefer to get your knowledge from. But make sure you get it and learn all the basics. Cycles, market DD, how finance works, demographics, analysing numbers, negotiating strategies, growth drivers, networking, building a team, building a portfolio, CF vs CG, investment strategies available, how to analyse supply and demand, mistakes to avoid, risk mitigation etc. This step is extremely important if you want to achieve more than most do.

    4. Choose a strategy which resonates with you, your goals and risk tolerances. Then learn as much as you can about it.

    5. Take action. By this point you should have a team, be confident with the basics and have a small circle of folks you can network with. Time to put what you've learnt to action and go deal hunting.
     
    Last edited: 12th Feb, 2020
    Jess Peletier likes this.
  7. Momentum

    Momentum Well-Known Member

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    Collins St, Melbourne
    Congrats on saving nearly 100k. At your age your strategy should be going for cap gains, not so much cashflow. Buy, reno and hold is almost bullet proof. Go for blue chip properties inner city between Brunswick and Elwood that are near amenities (shops, schools, transport etc) which need a reno. You have the luxury of time so let compounding and leverage work for you. I bought my first place for 92k and it now rents for $640pw. Learn to be handy and try do most of the work yourself. Replacing kitchens and bathrooms adds a lot of value and increases the rent.
     
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