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. Xavier

    Xavier Well-Known Member

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    The value of drinking and meeting girls at uni though.... priceless :)
     
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  2. Barny

    Barny Well-Known Member

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    Hi Lizzie, I agree it can be done but not easy, for me anyhow, the first million takes time to build without money.
    Curious how you would go about this from today if you were starting at 18 fresh out of school with your current knowledge. Remembering you have no money saved and single, you don't know the contacts you currently know to help finance the deals. Will you start studying or go straight to employment earning a low income? How many years would it take for you to save for that deposit/business, how will you create equity without any saved cash etc to make the deals stack up?
    Where would you start...
     
  3. MWI

    MWI Well-Known Member

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    I agree, I think we need to be taught this early in life as my mentor Jim Rohn said, "10% of $1 is easy to give but 10% of $1million some may find it hard!".
    I doubt many do, I read in Australia we are not as generous ass some other countries, I think the percentage overall was something around 3%.
     
  4. Sackie

    Sackie Well-Known Member Premium Member

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    Degree allowing you to work 24/7 shifts, penalty rates plus overtime . You can save double what a good saver could save with a 9-5 job. You gotta be a good saver then start with IP 1. Most important imho is developing a good knowledge of real estate investment fundamentals, strategies, negotiation skills coupled with developing a wealth success mindset .

    My 2 cents.
     
  5. HomePage

    HomePage Well-Known Member

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    I met an extremely generous guy on a recent trip who donates around 30% of his salary to charity each year. His current salary is US$650K, which means he is donating nearly $200K of it :eek:
     
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  6. Barny

    Barny Well-Known Member

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    To make that first million from scratch today is way harder than it ever was due to today's new lending environment. What we did in the past is no longer possible, your borrowing capacity has halved, overtime isn't considered 100% income like it was, it will take a lot of work and a lot longer to make than in the past days. Still possible for some, just much harder for all as it will take more time to save the cash for deposits/money to add value as you can't just borrow it these days without supporting income regardless of how much equity you have.
     
  7. Lizzie

    Lizzie Well-Known Member

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    Agreed it's not "easy" - but easy with hard work and knowledge

    I'd start work at 16 (as I did) but, instead of spending on lunch every day I'd save every cent I could whilst living at home ... if I wanted to study further, I'd do so part time but not essential.

    I have found that natural intelligence, flexible ability and common sense can go a lot further than formal education.

    Buy my first dumpy, run down, but structurally sound, shack - or unit - in the best location I could afford as soon as remotely possible. Live it in while renovating - won't be the first time I've been without a kitchen for several months and cooked with a portable camping stove and microwave. Use offset.

    Either sell or rent out (drawing down equity) - rinse and repeat.

    Works better if there are two incomes
     
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  8. Cimbom

    Cimbom Well-Known Member

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    The person who posted this was from the US which is a bit different to Australia. Many young people have rather large student loans which are from banks or similar and accrue commercial rates of interest. Rather than saving for retirement, most young people would obviously put clearing this debt as their first priority. It's not like HECS where you can take your sweet time paying it back. Well you can but it'll be a very costly exercise.

    Secondly, the superannuation system in Australia is quite different to what is offered in the US and how the system runs. I personally met her 30 yo benchmark quite easily just as an average salary govt worker (working FT from 25) without paying anything extra into super myself. This is not at all comparable to doing the same in the US and the outrage is somewhat justified when the above is taken into account.
     
  9. Sackie

    Sackie Well-Known Member Premium Member

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    I'm sure it's harder but still doable i believe if someone really wants to. Banks are still lending money bless their cotton socks. I'm always a glass half full type person. :)
     
  10. Xavier

    Xavier Well-Known Member

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    Sure positive thinking is important...

    But many of my generation think it hilarious the idea of saving up 80-200K for deposit.

    Im lucky but for many of my friends how much can you save on 60K year while living in Sydney as a graduate??

    We get it.. baby boomers say just work harder it's just hard work that will get you there... nope gotta be much SMaRter now!
     
  11. Sackie

    Sackie Well-Known Member Premium Member

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    Everyone has their own approach and perspective. For me, yes working smarter is important but at the end of the day its also going to take a lot of grind and sacrifice.
    Anyone can turn the 60k a year to a lot more if they truly wanted to, There are 24 hours in a day and 7 days in a week. Many of those hours could be used to gain income/start a business/etc etc. Also depends on what a person's goal are. The loftier the goals, the more the sacrifice, focus, blood, sweat and tears that will be required imo.
     
    Last edited: 6th Nov, 2017
  12. MWI

    MWI Well-Known Member

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    Yes, spot on, very hard to save into financial wealth, don't know many people being very wealthy via saving, doing just that. Investing is the key whether into your own enterprise/business or passive investments.
    No one helped me too, sorry, was a migrant with family, did not speak English, and all we owned when we migrated to this country was a tent and only suitcases upon arrival.
    Hence ALL of us will face daily challenges no matter who we are where we will come from, hence it is up to us to solve our challenges.
    So if a young person wishes to achieve a goal say of achieving $1million by the time they are 30 I suggest they Google, yes all that is required is learning, then action then result. As simple as that, not EASY but possible and simple to learn....
    I do that constatntly looking how to solve challenges, a friend asked how to consolidate debt by asking debt collectors, so I Google for sample letters, a friend asked for a loan, so I Google a sample contract (yes, then had it checked by my lawyer), a friend asked how to produce a resume so I Google samples and covering letters, how to be a better negotiator so I search and learn then apply, how to find new clients so I search and learn then apply, and so on and on.....
    You don't understand how lucky, convenient and more accessible you have information today, nowadays (in my days I had to find books/magazines to find solutions - now it is all at our finger tips!).
    Now if I can achieve 8 digits net worth, and only few of my migrant friends can achieve 9 digits net worth, so can anyone in this country, wouldn't you agree? I think what is required is the mentality shift in thinking....that it is possible!
    So stop giving excuses, find the solutions, you can learn how to be a better saver (heaps of information out there!), then how to invest (heaps of information out there!), it is really possible but you must also WANT it and BELIEVE it!
    As my mentor Jim Rohn said,
    "Excuses are the nails used to build a house of failure."
    "Finding is reserved for those that search."
    "Everything you need for better future and success has already been written. And guess what? All you have to do is go to the library.".

    So no excuses, go and search what you wish to achieve, learn, or model the successes of other successful people, and then just do it, act on it!
    That's what I did, I do to this every day, and hence move forward....
    Sometimes I think it takes more a shift in mentality than in doing the actual thing, wouldn't some of you agree?
    Once I understood the responsibility for my financial situation was up to me, not the tough times, or the taxes, or the rules, or the governments, or where I came from, or poor schooling, or no influential friends, the RESPONSIBILITY rests with ME!
    One of my favourite lines is:
    "THE MAJOR KEY TO YOUR FUTUER IS YOU!"
    So it is very possible today IMHO to achieve $1 million by the time you are 30!
    Where there is a will there is a way.................
    Sorry for being so passionate, but I really truly believe that is the key.
     
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  13. Sackie

    Sackie Well-Known Member Premium Member

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    Never need to apologize for your passion. Just be prepared to be ridiculed and attacked by some at some point. It goes with the territory. :)
     
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  14. MWI

    MWI Well-Known Member

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    yes, thanks, I have learned that from the past.... I need to curb my emotions at some point in time, at least you get me, right? Similar philosophies/values?
    Just goes to show we are all different and unique but I believe there is enough wealth to spread around for all!
     
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  15. Someguy

    Someguy Well-Known Member

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    I always wonder who is wealthier by 30 the uni student or blue collar worker. As a blue collar you can no skills walk into a 100k+ a year job at 18yo if you are willing to do weekends and nights, uni graduates have the potential to earn much more but are limited in earnings while at uni and have debts associated with uni. Apprenticeships I know little about seems low income for many years then massive potential once qualified tradie.

    Looks like property investment may not be the easy way to get rich over the next decade but investment opportunities are everywhere (bitcoin going crazy for example) the blue collar investing well would have a massive head start on a uni student with same investment smarts, but would the passive income make up for the wage difference down the track, past 30 the blue collar would likely be earning less as hard work catching up to them and family needs limiting overtime and shift work would drag them down, at this age the graduate would be working there way up the ladder and making more and more money every year (unless in the wrong industry). Australia truly is the land of opportunity anyone with the right attitude and dedication can live a financial secure life sadly drugs, gambling, poor money management(useless debts) and smashed avocado are dragging so many people down. If our schools focus on basic financial management as an ultimate outcome Australia would be a much better place to live.

    Excuse if this post is poorly written it's 2am after much alcohol consumption
     
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  16. MWI

    MWI Well-Known Member

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    I know quite few 'tradies' who also progressed and opened their businesses hence earn more than the white collar workers. However, those that kept investing outside their jobs or businesses actually do better financially. I think it is irrelevant of who you are or how you earn rather than what you do with it.
    Your last comment was very funny....
     
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  17. Sackie

    Sackie Well-Known Member Premium Member

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    Yep, I'm very in tuned with that pathway.

    Others may have their own belief system and feel its working for them which is great. At the end of the day, only the individual can know what is or isn't working for them. Its important to be critical and brutally honest with ourselves.
     
  18. Xavier

    Xavier Well-Known Member

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    Yep and agreed regarding opportunity cost of university.

    For example one of my friends who is a prominent journalist at fairfax who is super smart etc. hasn't had a pay rise for 4 years. She thought she did everything right by getting educated and working for big company. Stuck on 65k and renting
     
  19. Cimbom

    Cimbom Well-Known Member

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    Tell her to move into public relations/media relations and do freelance writing on the side if she really enjoys it
     
  20. Xavier

    Xavier Well-Known Member

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    Yep I have suggested this. Copywriting while being based on a beach in Asia is a great way to cash up.

    Unfortunately she will have to learn the hard way, like everyone...