What do people consider to be a 'high income earner'?

I'm in full favor of getting household help. It's pretty common to have a cleaner, gardener etc.
I was just interested in whether a 'butler' is different?

 

...and I just put in an order for an A380

 

Just having the title butler is worth an extra $10/hr in ego dollars not real money.

 

My point being that you quoted 500k / 1m income, but then talk about High Net Worth Individual?

 

guess it depends who's determining what a high income is, government or individual?

personally i would say a high income is 130p/a or more or something you can live off with high disposable income.

 

A butler these days is similar to an office manager for the household - they organise the cook, cleaner, gardener, pool guy and mechanic. Pay the bills, do the filing, organise paperwork and organise the social calendar with event coordination.

I have never met an official "butler" but I know a few EA's who only work for the family on private matters.

They think of themselves as butlers.

 

Geezus I've been away from Oz too long because I thought anyone earning over $70k is a high income earner until I read the average salary in Oz is $82k per annum. I've never been paid more than 38k a year when I used to work but looking at income is meaningless if you have no life
I'd rather 'retire' at 35yo on $40k nett rental income than work 60 hours a week until I'm 60yo so I can earn $400k per annum. Working to live sucks eh.

 

Most FIFO workers I know that live on the east coast pay for there own flights to Perth, company picks up the tab from there, but the true high costs of FIFO are not financial. FIFO is very hard on people mentally for a variety of reasons.

 

Wow....I really thought I was doing ok. But clearly there's scope to up my game.

This thread is really quite eye opening!

 

2 years ago, $100k passive was the dream for me.
$200k/yr seemed like a life changing income.

These days, I meet so many people on $500k+/yr, and then seeing that life isn't all that different for them, the house is nicer, the trips a little more 5 star, still have the same day-to-day concerns.

Think about it. Post tax, with a Metricon cookie cutter home in Lane Cove being what, $3M? Even on $500k, would take about 10-15 years to payoff if you're being frugal in other areas. After that still can't 'retire'.

It's all relative.

Had an aquaintance once share he was aiming for $1M/yr passive. His uncle whom he was speaking with stated "your dad came to Australia with no education, no english, and you with a degree and supportive family only aim for the same?"

Turns out his uncle was on $10M/month. I couldn't even grasp that conversation till much later when I started questioning my wealth creation strategy.

I think in Sydney, as above, you need minimum $500k-1M.

$500k/yr is probably my new $100k/yr passive. It's just a number. I'm sure I'll be confronted by the same fears and concerns then too.

 

I'm intrigued by how you actually know all these people you meet are on 500k a year?

Most people don't talk about their income (except in anonymous forums) so......?

 

There's 1000+ $B in the world. Which means there must be a crazy amount of people on $900M, $500M, $100M. Doubt they got there buying buy and holds in Logan.

So I went back to basics a year ago, I just accepted I knew relatively nothing about investing and my gains were luck during the Sydney boom. Started networking hard.

The people I met were mostly developers. Build apartment blocks. Undertake multiple subdivisions at a time. Others run successful businesses.

I'm not there, yet spending time with them, what I've picked up is they've become expert at 1 or 2 main strategies and they just rinse and repeat, refining their technique constantly so their returns get larger.

Amusingly I knew a handful of them since I was a kid. They just never mentioned what they were up to. My questions just became different, so our conversations changed from how's mum and dad to, I'm working on this multi level unit block in the eastern suburbs.

Law of attraction perhaps? You find what you look for.

 

OK NHG...do tell us how you are going to get to $500k passive income? I am all ears......

 

Firstly, by accepting I don't know, staying humble and learning from people that do.

Secondly, by working on a strategy that makes sense. I'm focusing on multi-res as stated in previous posts. Current project is a NGBH with 14-18 rooms @ $350-400/room. 14 rooms @ $350/week is $254,800. It's a JV. ROI is about 10%. Cash on cash ratio is what I'm focused on atm.

When I pull one of them off, rinse and repeat.

Thirdly, $500k is just a number. If you aim for the stars you'll get the moon as the saying goes. I'm not a 'high income earner', have left work to focus on this full time.


Tips I'm being given is:
1. Think in larger increments. Aka don't focus on how to get a $5/hr pay rise, how do you create a means of increasing income in larger chunks, $10k or $100k packets.

2. You need to have an income stream. So even if I do a project that makes $200k in 2 years, I'm better of paying myself as a consultant on a weekly basis via a trust. This allows me to borrow from the bank amongst other advantages.

3. Grow multiple income streams. For both cashflow and chunk profits. Aka developments are great, also develop a business.

4. Don't be the smartest person in the room. Surround yourself with those more knowledgeable than yourself.

5. It's all just a game, don't take it so seriously.

6. There's always time for family and friends.

What they don't say but I do see, is their insane work ethic. They focus on what will actually make an impact, not on being busy.

The 2 biggest obstacles I see for myself are:

1. Subconscious belief system. It's tricky to shift gears when you were told for 30 years that the way to success is through studying and getting a masters, and security means having a 'good job'. It creates a lot of self doubt if you're doing the right thing. Every step up requires me to unlearn everything I thought I knew, and rebuild my foundations.

2. I get caught up in 'being in action'. I spend a lot of time doing meaningless things, instead of focusing on what's actually going to push the project forward.

 

I don't understand what this means - is NGBH some kind of boarding house or student accommodation?

 

I'm honored to have met you at the Wenty meetup buddy. What amazed me the most from our brief conversation is that you're doing all this just for fun. I caught myself saying the same thing to a friend the other day when he asked me why I was getting into the mortgage broking business.

 

Sonographers? I assume you mean the doctors, not the practitioners?

LOL I've spent a decade doing engineering, but I do it for the government so I'm paid bugger all. In industry EA suggests I could be asking $220-250k, but there's some fringe benefits I'm happy to retain for the time being.

A friend actually is the CEO of a large dentistry company, and he said a full time dentist earns over $350k/yr. Most of them choose not to work full time though

There's a mathematical answer, which suggests one standard deviation above the mean, but to my mind you'd need to assess it on take home. $200k in the regionals is different to that amount in the city, and that sum with or without a working partner also changes things. If you don't need to budget to survive, you're doing fine.

 

Next Gen Boarding House.

My current strategies revolve around boarding houses, backpacker hostels, student accomodation.

The government provides a lot of incentives in this area and it is a relatively untapped market. The entry point is significantly higher and requires a much more hands on approach. Doesn't take much longer to learn than say, buy, reno, build granny flat, only the latter seems more achievable so people go down that path instead.

To move into this field, the areas I need to further develop are networking, understanding JV structures, building rapport. Think about the mortgage brokers on this forum, and how their first step has been to get themselves in every magazine and on tv.

It is a means of creating a funnel so people come to you, as you are now an 'expert'.

 

@fullylucky!

 

I am confused now ,i have account on both (whirlpool & PC)