Getting started - I hope!

i started at 40yo so don't feel discouraged at all. there is so much to learn. if income is an issue, look for small balanced or yielding asset to boost your cash flow. the last thing you want is something that sucks up your cash then you never get past the first purchase.

 

You missing the main point, it doesn't matter if you have debt or don't have debt, it advises you that you NEVER spend more than you earned and you stacked some of that away and you never ever be short of money, it gets you into the habit of saving and grow that saving

say you earn $1000 a week and $300 go to rent or mortgage, $100 groceries, $100 on entertainment, $100 on bills and the rest you waste on smoke or alcohol and then people take on debt for holiday and car and you never end the cycle of having no spare cash.

so to stop that cycle, $1000 in you take $100 out and chuck it somewhere and never touch it
then you live on the $900, after a year you have a few thousand bucks, after 10 years it snow ball to ten of thousands and if you can invest this money wisely through stock market and properties it snowball into hundred of thousands and you keep the wheel going, keep 10% of your earning, so if you get pay $2000 a week 5 years later, you stacked away $200 a week

not long after that you end up with millions, and the MAGIC start when you save capital
2x your salary, compounding and regular investment return is the 8th wonder of the world.
you don't need it to be massive return, it needst needs to be steady just don't break the rule of compounding of negative return.

Most people find it hard with 10% so they start with 5% then up it slowly, that how I manage to pay off most of my properties in a very quick time under 10 years, I always start a bit more than the required P&I then I slowly racked it up , it now sits at 3x time the normal repayment, the longer it goes the better I get of racking it up.

and the why the magic starts at 2x your salary you ask?
let say you earn $50K a year after tax, and you manage to put away say 5% each year, that 2.5K you save a year.

when you reach 100K of capital which is 2x your take home salary and with the wise and conservative investment it generates you 5% a year.

5% of 100K = $5000 return, WTF happen here? your return on investment now double your yearly saving rate without any hard work and if you can yield a better return than 5% holy mother batman you can get some serious saving going and on top of that 10% saving from your packet hasn't stopped.

Soon you be a debt free man with properties and shares portfolio and enjoy your days without worrying about running out of money.

Simple maths, simple money rules and extremely effective but not many can have the discipline and the will to follow through, at some stage they get distracted with fast money, easy return and get rich quick and they have broken the rules of compounding with the negative return. DO NOT break this rule and you be very well served

Good luck in your journey.

 

In my post that I was pointing out that I had missed the point, until I read the book.

But thankyou for the examples, they are very useful. The learning journey has only just begun

 

Thankyou Pat! Very encouraging. I have been thinking that is exactly how I should aim ti start. Trick is going to be learning enough to identify and secure that small yielding asset!