Financial Independence (Home Ownership, Super, Long Retirement) not possible for wage earners: What do we need and how do we get it?

[farmerge]

The lifestyle choices made by those who have accumulated assets are much the same as the younger generation face now.

You can only spend it once still applies,
if you borrow to spend then you will have to pay it back from future earnings still applies
Buy needs not wants still applies
Have two jobs still works
live in modest housing still works
drive a cheap reliable car that will do the job
Instead of an OS holiday twice a year buy some shares with the money
invest in your skills set for better income for the same hours
Sell garage sale stuff on ebay new opportunity
be an influencer ads and freebies new opportunity
be a part time carer for NDIS new opportunity

Heaps of things that are new in todays world that I believe I could make money from if young and aware of todays trends (which I am not )

@macca Makes a lot of sense macca I would like to be 50 years younger also, though I not sure if I would want to change to much as I have had a pretty good innings so far.
But as you have posted, opportunities a plenty for those with the get up and go.

 

[divs4ever]

Yep, so part of the reason the cost of living has gone up is because of the price of land caused by increased population, but also just the sheer increase of the goods and services we now take for granted has risen.

Did you know that most food items are now 10 times cheaper than they were in 1960, if you compare it to how many minutes the average wage took to pay for it.

I think value hunter suffers from life dysmorphia.

not just population increase , governments/councils imposed more regulations , taxes/levies ( like the fire levy ) , required developers to do more to get land ( and homes ) to market

 

[Value Hunter]

because of the price of land caused by increased population,

And yet people like you are somehow convinced that continued immigration is a good thing..... I am sure it helps you as the properties you own become worth more.

 

[Value Hunter]

I am not saying people should just cry about it but we need to honestly accept that life has gotten harder for the majority of young people now. The reality is that in a city like Sydney or Melbourne even young people who do all the right things scrimpping and saving, working two jobs, living with their parents to save rent, not taking vacations, etc they typically end up buying a house on the fringe of the city 50km - 100km from the CBD because that is what they can afford. 40 years ago young people who made the same sacrifices could buy a house
5 - 20km from the CBD.

Not just that but even 20 years ago I remember a lot of young people were renting one bedroom apartments or at least studio apartments with the paycheck from entry level jobs. Today young people with entry level jobs are mostly living in shared accommodation.

Value Collector you can make up whatever nonsense excuses you want to say that people's living standards have increased but the fact that your salary buys less than 1/4 of the ounces of gold it did in 1971 tells us everything we need to know. Gold has not changed an ounce of gold is still the same ounce of gold it was in 1971. The gold price has not risen its simply the currency which has fallen in value.

 

[Value Hunter]

Did you know that most food items are now 10 times cheaper than they were in 1960, if you compare it to how many minutes the average wage took to pay for it.

I doubt it is true when you look at basic food items with good quality (general food quality has gone down over time). Sure if you are talking about chocolate or supermarket bread its probably cheaper today but if you are trying to tell me grass fed steak or organic free range eggs (probably fairly equivalent in quality to what standard eggs and steak were like back in the day) are cheaper today then back in the day I doubt it.

In the nicer parts of Sydney any small independent bakery that has good quality (i.e. comparable to bakery in the old days) sells a loaf of bread from anywhere between $7 and $12 depending on the type of bread and the bakery. $10 for a loaf of bread compared to approximately $26 per hour for part time or full time award wage (varies by industry award of course). That is around 23 minutes of minimum wage to buy a loaf of bread.....

 

[Dona Ferentes]

I do not aspire to committing to live in a house if it like one of these.
.

 

[tech/a]

I do not aspire to committing to live in a house if it like one of these.
.

View attachment 190970

You know billions of people not just a few million ( living in Australia) can’t even comprehend housing or financial landscapes like we have here.
The whinging and whining is pathetic
Get a grip the majority of the world lives like this

https://images.newscientist.com/wp-content/uploads/2013/08/mg21929290.100-1_800.jpg?_gl=1*1ucir2r*_gcl_au*OTY5Mzk0MzUzLjE3MzY2MzYwMzY.*_ga*MzIyOTE3Mjc0LjE3MzY2MzYwMzc.*_ga_N0NXS34EMT*MTczNjYzNjAzNy4xLjAuMTczNjYzNjAzOS41OC4wLjA.

 

[rcw1]

I do not aspire to committing to live in a house if it like one of these.
.

View attachment 190970

rcw1 much prefers to live in style in a cave ha ha ha ha

 

[Value Hunter]

Get a grip the majority of the world lives like this

True but also irrelevant. You can always point out that there are people worse off than you. This does not negate the point that for younger generations in 1st world countries their standard of living is falling. Only people who are deliberately blind like Value Collector will debate that this is the case.

 

[Value Hunter]

Getting back to the main point of why the thread was started I think that although standards of living are dropping for young people there is some opportunity left the door hasn't closed completely yet. I believe young people still have another 20 years left before AI, robotics, etc destroy the last vestiges of opportunity for young people.

To be honest a lot of people don't have it in them to be a business owner. Its not for everybody. In fact the majority of people should not be business owners.

For the majority of young men in the new generation (for women its a completely different roadmap) I believe the path forward that has a high probably of leading to at least moderate success and a happy life is the following:

-Live with your parents as long as possible
-Work two jobs and save as much as possible by foregoing any unnecessary expenditure and save a high percentage (50 - 80%) of your after tax income.
-Invest the income in something that generates good returns (shares, property, crypto, precious metals, etc)
-By age 40 retire overseas to a cheap country and enjoy life.

The west doesn't have much left to offer young productive men, it is a society that has turned their backs on them while rewarding other groups in society.

 

[tech/a]

True but also irrelevant. You can always point out that there are people worse off than you. This does not negate the point that for younger generations in 1st world countries their standard of living is falling. Only people who are deliberately blind like Value Collector will debate that this is the case.

Yet the majority will whinge and whine and the few will take advantage of what a first world country can only make possible .

We are all born naked and penniless
So it’s tougher
Toughen up and find a way bring others with you
Make your circle one worth having
Find solutions don’t create problems

If you don’t want to be financially independent don’t carry on about how opportunities aren’t like they were when the oldies were kids woe is me.

If you are committed you’ll find a way .

 

[Dona Ferentes]

the thread is about home ownership.

 

[tech/a]

the thread is about home ownership.

If you read my thread title it’s far more than that !

 

[divs4ever]

I am not saying people should just cry about it but we need to honestly accept that life has gotten harder for the majority of young people now. The reality is that in a city like Sydney or Melbourne even young people who do all the right things scrimpping and saving, working two jobs, living with their parents to save rent, not taking vacations, etc they typically end up buying a house on the fringe of the city 50km - 100km from the CBD because that is what they can afford. 40 years ago young people who made the same sacrifices could buy a house
5 - 20km from the CBD.

Not just that but even 20 years ago I remember a lot of young people were renting one bedroom apartments or at least studio apartments with the paycheck from entry level jobs. Today young people with entry level jobs are mostly living in shared accommodation.

Value Collector you can make up whatever nonsense excuses you want to say that people's living standards have increased but the fact that your salary buys less than 1/4 of the ounces of gold it did in 1971 tells us everything we need to know. Gold has not changed an ounce of gold is still the same ounce of gold it was in 1971. The gold price has not risen its simply the currency which has fallen in value.

does one ounce of gold still buy you a very nice tailored suit , that was the historic measure of gold vs .actual buying power in the last 200 years ?

 

[Value Hunter]

does one ounce of gold still buy you a very nice tailored suit , that was the historic measure of gold vs .actual buying power in the last 200 years ?

Yes it still does and there are in fact articles written about comparisons like this showing gold has maintained its value for hundreds if not thousands of years.

 

[divs4ever]

True but also irrelevant. You can always point out that there are people worse off than you. This does not negate the point that for younger generations in 1st world countries their standard of living is falling. Only people who are deliberately blind like Value Collector will debate that this is the case.

i would suggest young people in a modern society have more demands/ distractions on the earnings they make , and many will not make the really hard choices .. for instance the last TV i bought was $10 and i bought it because it would double as a computer screen ( seamlessly ) , a radio ? i haven't bought on of them for over 40 years , car .. the last car i bought was $100 , all it needed to do was go around the property where i was residing/working ( i much prefer a bicycle for traveling the wider world )

i remember one buddy in really tight times resorted to skate-boards despite being an avid performance car buff ( and loved motorcycles as well )

 

[Value Hunter]

If you are committed you’ll find a way .

I am doing just fine thank you.

Like I said before there is still some level of opportunity left and in general financial independence is still possible, but people have to be prepared to work longer and harder to reach financial independence than previous generations. Its not whingeing its merely stately a fact.

 

[tech/a]

I am doing just fine thank you.

VH
You was referring to the world in general.

 

[divs4ever]

And yet people like you are somehow convinced that continued immigration is a good thing..... I am sure it helps you as the properties you own become worth more.

SOME immigration is a good thing , but NOT just to increase the tax-base

our higher-learning facilities could be re-focused to teach more of the skills we lack , and our Government attitudes could be re-focused to persuade more graduates to stay

we ( Australia ) could grow naturally if that environment was good ( happy couples settling down and deciding to have families in Australia )

 

[qldfrog]

Yet the majority will whinge and whine and the few will take advantage of what a first world country can only make possible .

We are all born naked and penniless
So it’s tougher
Toughen up and find a way bring others with you
Make your circle one worth having
Find solutions don’t create problems

If you don’t want to be financially independent don’t carry on about how opportunities aren’t like they were when the oldies were kids woe is me.

If you are committed you’ll find a way .

Imho
Leverage the fact we are still a first world country: save here and buy a unit house or business in Thailand or second tier country, even a 3rd tier.
Your savings will go a long way there
Sadly, i did not succeed with my son..
Heading toward a lame suburban wager life in a Brisbane suburbs
Not everyone indeed is born for entrepreneurship, business or should i say success
If i can not get that into my son or wife brain, what chance do unmentored kids have...
And for us olfies: Wtf would anyone sane and retired live in an Australian suburb in a 2m house paying $5 a kg of apple and $6 a coffee.
The world is your oyster but a bit of urgency as AUD went from 73c usd to 60c jn the last 2 y....
Dare to win..so non woke..