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Financial Independence- how long did it take you?

Discussion in 'Investor Psychology' started by Daniel007, 5th Oct, 2015.

  1. Daniel007

    Daniel007 Well-Known Member

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    Hey everyone,

    How long did it take from when you first started investing to being completely (or nearly) financially independent?

    15 + years gets mentioned repeatedly by a lot of members, however looking back now do you think you could reach this goal quicker by avoiding some silly mistakes?

    I'm interested to learn about your investing journey across the years, your initial deposit size and so on.


    Cheers
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    IMHO the wrong factor to be concentrating on. I believe the biggest impact would be household income at start (+ aforementioned kids).

    A household earning $150k is very different to one earning $50k in terms of capability to build up enough assets to feed from.


    The Y-man
     
  3. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Everybody is going to be quite different here based on circumstances.
    From our first non PPOR purchase 8 years ago, it took us about 5 years to be quite comfortable financially.
    Guessing we had about 500k equity at the time of the first IP.
    Had our first child about 1 year after the first IP, but don't think it slowed us down much.

    There was a thread like this on Somersoft, I think it was about your timeline/milestones.
    Check it out if you want some inspiration.
     
    Last edited: 5th Oct, 2015
    bob shovel likes this.
  4. EN710

    EN710 Well-Known Member

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    House likes this.
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Still a work in progress. I reckon it'll be 7 years from first purchase (PPOR) to freedom. Combo of business/investment.
     
  6. Daniel007

    Daniel007 Well-Known Member

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    Cheers guys, i only found somersoft a few months before it was shut down so i wasn't aware of existing threads.
     
  7. HomePage

    HomePage Well-Known Member

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    Yes, but since householders generally wish to spend nearly as much income through financial independence as they currently earn, the required portfolio size bar is set a lot higher. Best of both worlds is to have high income and low expenses eg. earn $150K and spend like you only earn $50K.
     
  8. 2FAST4U

    2FAST4U Well-Known Member

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    Y-Man’s point is that the higher income earner has a lot more options and potential to reach their goals of financial freedom quicker. An example I’ve seen before has been the frugal teacher v the high income spender.

    Who has more potential?

    The teacher on 70k who has accrued 1 million worth of equity over a lifetime or the high spender on a 200k income who currently invests nothing?

    Edit- On my current income I’ll be working until retirement age.