Why work hard for money? So hard for it honey?

I just did some calculations and the capital gains that I've achieved in my IPs are actually more than the total salary that I've ever earned (even when including super)!

I've only been working for around 12 years full time (did some working, travelling and failing at uni, mainly the latter) and investing for just over a decade.

I imagine this ratio is only going to blow out over the next decade or so.

Now neither of the figures is all that impressive, but I was surprised when I reaslised that I'm past the tipping point, where my side gig has become more lucrative than my salary.

What about you, what's your ratio?

 

What goes up ......
Don't count your chickens ......

Are there more sayings that caution against being too sure

 

Fail now & beat the rush.

 

It is good to see and obviously the reason that we invest (for growth).

The challenge I think though is consistency and being able to rely on this always being the case..... history gives us plenty of examples of where people have relied on this and conditions have changed which have put them out (APRA is a big one).

Same thing goes for making money through renovation / development you can't always rely on consistent profitable income as market conditions can change and influence the outcome.

The good old PAYG income though... for most rock solid year in year out. Limited downside, and limited upside (with some industry exceptions).

 

Salary and business makes more money than my IP capital gain.
I guess if you don’t have the income, it’s harder to make capital gain in investment passively.

Unless it was crypto.

 

I've been telling folks for years. If you want to create wealth and that's your main goal from working then PAYG income is not work. It's a bank meeting all day, 5 days a week to secure funds to invest/ growth your wealth. That is your actual business. As your passive CF increases,.you can reduce your bank meetings as you see fit. And yes, sometimes those bank meetings can be tiresome and frustrating. But they are the engine of your wealth creation before passive income starts to take over.

The #1 biggest mistake to make is view your 9 to 5 as a job, and you, an employee.

My 0.05c

 

I retired 10+ years ago.

Since I retired, our Net Worth has gone up 142% and that is after funding our lifestyle for 10+Years, surviving the COVID crash, renovating our current PPOR, ...

So, in our case, no salary/wages but heaps of CG ...

 

This is a bit funny. But…. Say my PPOR is 1 mill more than when I bought it a little under 5.5 years ago. Definitely feasible.

1mill /5.5/12 works out that my PPOR has given us an additional 15k equity each month since we started owning it.

Of course, we never know how much it could be sold for unless we sell, but it going up around 15k and with us doing nothing is incredible.
Oh, and interest repayment? It’s currently under $5 per day, it’s really hard to deal with….

 

And you probably haven't even been taxed on it. A large part might be tax free and the rest taxed at half or less than what you would pay on wages

 

Totally agreed. Therefore, maximise the rewards of those bank meetings and minimise the effort. It’s leverage. Because you have limited time, use it to improve your investment wisdom and strategy!

 

That could be the best quote I've ever read lol. Love it.

 

I've got plenty of those.

Remember. If you feel the urge to work, sit down, it'll pass.

 

.... or ....... hard work never killed anyone, but why take a chance

 

I think took a nose dive yesterday... bitcoin?????

 

Working 9 to 5, what a way to make a living
Barely getting by, it's all taking and no giving
They just use your mind, and they never give you credit
It's enough to drive you crazy if you let it

 

You prefer they use your body eh..

 

That's how I Roll

 

Spludge, you're a money junkie!

It's on your mind so much that you analyse it and make comparisons.

You'll reach a point, like me, where nothing else matters. I know, I've been there.

I had so much fibro that James Hardie wanted to make an offer.

Relax, there's hope. There's a hot line and regular meetings. All good.

 

That's due to CG+, growth on growth which is not taxed unless you sell, so compounding your financial wealth. It's not income that made you wealthy, income/rent is taxed, it was the compounding growth, even if its not realized as such.
Assuming you earn $90K a year you may pay about $20K tax, assuming your IPs increase in value by $90K how much tax do you pay? Eventually land tax will creep in but that is tax deductible if for investment purposes.
I always say I would rather have $1M growth a year in my IPs portfolio rather than make $1M in income, as this continues to be exponential growth for years ahead....
I agree, I am invested 21 years in RE, and CG+ soon will surpass what I even purchased investments for?

 

this probably takes more work