How much you should have saved by the time you’re 30

Discussion in 'Money Management & Banking' started by chylld, 2nd Nov, 2017.

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  1. Indifference

    Indifference Well-Known Member

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    I think the goal drives the mindset and to me, a dollar figure of stashed cash or savings is the wrong goal....

    I prefer the revenue/cashflow mindset.... each to their own. :)
     
  2. Sackie

    Sackie Well-Known Member Premium Member

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    That's the parents fault, Any parent who teaches their children "if they don't achieve X they are a failure and terrible etc" as you put it, are morons and i know there are alot of them.

    Need to build up the kids self esteem by showing them unconditional love and support and letting them know that setbacks and challenges in life is very normal and expected. Let them build up resilience through their life and guide them in times of confusion helping them to understand and cope with pressure. You can do all that and still have awesome goals for a child to achieve without pushing them to suicide.

    Personally I believe many kids are lost not because parents are too interested in a child's life but quite the opposite.

    Just my opinion.
     
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  3. Foxdan

    Foxdan Well-Known Member

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    @Leo2413 i think your goal of 1 million by 30 is difficult but achievable if u can start early.

    However, I think your forgetting that many of us don't have parents that can help with direct financial help or financial guidance.

    Many of us, myself included, scraped through uni working their asses off doing crap jobs just to pay for the Ability to attend university. Many of us cant save big chunks of pay because we had to pay board to parents so we could stay at home.

    I left university with a few hundreds bucks in an account and no one to provide guidance on finances beyond "get a job and work".

    It's not as easy as you might think if you don't come from a family that can provide you with help getting started in investment and finance.
     
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  4. PandS

    PandS Well-Known Member

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    a million, 2 million is just an arbitrary number, as long as you can manage to generate enough income to sustain a fulfilling lifestyle then you are in heaven.

    for some 50K a year is enough for other it maybe 100K for other its 200K etc...
    I have seen lot of retires still together very happy with not much at all, it all about their simple lifestyle
     
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  5. Sackie

    Sackie Well-Known Member Premium Member

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    HI Buddy,

    I completely agree mate, its not an easy thing to do. Nothing worthwhile is. Really my point was a lot more about setting much higher targets than most do because it will force you to stretch and push yourself to the limits to be able to move towards the goal so even if you don't quite achieve it you will end up achieving a lot more than if you set lower targets. Personally (and I'm sure others will disagree) I believe, if someone truly wants to achieve something, there are lots of resources available to help them achieve it and the people who are generally the most serious about it will start to seek out those resources themselves.

    For my own personal situation, there was only so much my parents and some other family influences could tell me and guide me. Most of the knowledge was self learnt and sought out over many years, hardships and challenges. We all have our own sh*t storms in life, no one is exempt. Some may struggle more with money in the beginning while someone else may have depression, single parent at a young age, or an abusive parent/partner etc. We all have something or somethings that will hinder and supress our journey at times.
     
    Last edited: 3rd Nov, 2017
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  6. chylld

    chylld Well-Known Member

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    Pretty much how I found PC :) (SS at the time)

    @Foxdan I had the same start as you, after I finished uni I was told to go find a job but wasn't given any financial advice, business contacts, etc. I was given food, a computer, and an internet connection. Ambled through a couple of jobs, gathered enough savings for a deposit on a small apartment, walked into a Bankwest branch and signed a bunch of papers. Then realised that there must be a better way to do this so I searched high and low before finding somersoft, and the rest is history.

    Another thing I plan to do for bub is to teach them how to set sub-goals to help recognise progress and momentum, and try to stave off disappointment whilst still keeping the prize in sight. Unconditional love and support is a given.
     
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  7. MTR

    MTR Material Girl Premium Member

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    I got a better idea why save? work on ploughing money into investing opportunities, with smart choices you will probably be miles ahead.

    Some young guns have done this on PC, with leverage $1M could be dwarfed, stuff saving. Wish I did this.
     
  8. Sackie

    Sackie Well-Known Member Premium Member

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    Agree. @MTR,

    I never even entertained the idea of ' bank saving' your way to building wealth. Has to be via investing and/or business imo.
     
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  9. chylld

    chylld Well-Known Member

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    Bank savings accounts are a good way to get into a good habit, but they aren't an effective vehicle for anything other than barely keeping up with inflation.

    (In the OP I meant 'save' as a simple alternative to 'spend', which it seems is all those twitter commenters are able to do)
     
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  10. Tim86

    Tim86 Well-Known Member

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    I had the goal of one million by the time I was 30yo... but only reached half a million. And that's 50/50 shared with my wife.

    Its not going to be until Im 33yo that I hit one million.

    Alas Im such a failure. :p
     
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  11. chylld

    chylld Well-Known Member

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    Leo would also have been disappointed in 30yo me too :( NO RICE FOR YOU

    (he wouldn't be disappointed now though)
     
  12. Sackie

    Sackie Well-Known Member Premium Member

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    Avoid divorce at all costs then! :p
     
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  13. Hodor

    Hodor Well-Known Member

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    Capital preservation isn't the goal, If you retire at 65 and kick the bucket at 80 you need to cover 15 years. Many planners work on 75% of your working wage so that gets you to 78 years without any returns.

    Not very exciting or flexible, which is why people are here working out better ways/times to retire/be financially free.
     
  14. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Saving takes to long, why not "saveinvest" (I might trademark that)
     
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  15. Lizzie

    Lizzie Well-Known Member

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    Very few people working in banking actually understand how money "works". I am often bemused by the high salaries they are on, yet scrimping to get by - all because they needed two new Audis and a BMW in the garage.

    $1mil by 30? Easy if I knew then what I knew now via PPOR flipping and property developments - and I'd have a hell of a lot more energy than I do now.

    Last deal, we made half a mil - $400k after costs, or $100k tax free per year we owned it - without even trying.

    In the super account - nearing retirement and we have 10x salary throwing off 10%/pa ... it's not hard but it took of s#it load of experience that I wish I'd had earlier
     
    Last edited: 4th Nov, 2017
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  16. MWI

    MWI Well-Known Member

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    Trust me if you become a recipient of a charity why not give back if you become more fortunate or if you can see saving someone's life and having 100% transparency where you money went like medical equipment, this will give you such a great feeling, better than making your money or paying the tax man.
    My mentor Jim Rohn said this about taxes, he didn't like to pay too, he blamed the government, or the circumstances as he called it. But if that is all we have.... hence he said, "Don’t wish it were easier, wish you were better." If you understand what he means your whole concept in life changes.
    If no one paid taxes then where would the government come up with the funds to pay for all neccesitities they provide, like schooling, hospitals, police etc... A French politician Batistat put it nicely man, many, many years ago, "Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.” So we forget we are recipients too.
     
  17. Otie

    Otie Well-Known Member

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    I’m not complaining about paying tax, just saying I feel like I do my bit, and I do give when I feel like it but I could never justify parting with a regular % of my income as many do.
     
  18. Otie

    Otie Well-Known Member

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    Savings or equity? If savings well done-an awesome job you’ve done as most only get near that with equity thru rising markets
     
  19. Tim86

    Tim86 Well-Known Member

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    I think it will be 457k cash and 820k equity by the time Im done with the projects. Too many projects...
     
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  20. Otie

    Otie Well-Known Member

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    Well done!
     
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