What are your tips for acquiring wealth and riches?

[kincella]

best tip for acquiring wealth.....do not have kids...kids are very expensive, nor have expensive hobbies....you can do all those things later in life after you have made your money...then you can afford it...kids and hobbies

my little tip for those just starting in the workforce...put away about $500 pm for savings...not to be used for anything other than you future wealth...
now if you find you cannot save...always a temptation...then buy a little unit to rent out...work it out that after rental income it will cost you no more than $500 pm...or whatever...I call this one the forced saving plan...you make a committment...to hold it for 20 years or more....make a promise to yourself...
then later down the track...decide to start your own business and need a loan...the bank will lend to you...they use the resi as security....
or you can use the prop as security for any other venture...

friend recently sold his place...he bought a little unit to live in..back in the
80's..cost 65,000
it was in a 'not so' popular suburb..but was what he felt he could afford...
now married he decided to use the profit to reduce the loan on his big smart house...thought it would sell for 220k's...went to auction and got 330k's...jun 07...
so now he has a tiny loan, against the lovely big dream home.....

 

[kincella]

*** The best way to become a millionaire is to borrow a million dollars and have your renters pay it off.
Jack Miller

I forgot this one...so after NOT having any kids...wow and the banks take the number of kids into consideration when you go for that loan...so less kids means more for you and using :sheep:OPM

 

[Gordon Gekko]

Get a job at an Island resort where live on accommodation is provided for free. Have a beautiful wife so it does not get lonely. Earn 60k per year each with absolutely no bills. Walk to work in less than two minutes.
Invest all money into index funds and hope for a % return of 8%. Go fishing,diving etc on your days off and do it for 10 years.
This is my 2nd job where this has all been possible the last one was in the Caribbean and we on the 5th year of this plan.

Its long hours and your married to the place but I don't miss the big smoke at all. Im 34 and hope to only to what interests me after 45.

Invest for the long term, set realistic goals and don't speculate.

Best of Luck

G

 

[Wysiwyg]

Get a job at an Island resort where live on accommodation is provided for free. Have a beautiful wife so it does not get lonely. Earn 60k per year each with absolutely no bills. Walk to work in less than two minutes.
Invest all money into index funds and hope for a % return of 8%. Go fishing,diving etc on your days off and do it for 10 years.
This is my 2nd job where this has all been possible the last one was in the Caribbean and we on the 5th year of this plan.

Its long hours and your married to the place but I don't miss the big smoke at all. Im 34 and hope to only to what interests me after 45.

Invest for the long term, set realistic goals and don't speculate.

Best of Luck

G

Geck matey, do you manage a resort on the Great Barrier Reef?

 

[Gordon Gekko]

Geck matey, do you manage a resort on the Great Barrier Reef?

Yes Wysiwyg

www.orpheus.com.au


I should add that my wife and i do actually have a bill every fortnight 200$ for wine.

Oh and don't have kids. there like the fungus growing on the sides of trees slowly sucking the life out of there host. No disrespecting those who have kids, just a bad joke.

G

 

[Wysiwyg]

Yes Wysiwyg

www.orpheus.com.au

Unreal , I worked on Heron 4 years and Lady Elliot 1 year so know the diving and resort lifestyle.Also walked the trail on Hinchinbrook north to south.
Orpheus is way up there on luxurious and I`m sure the staff are excellent hosts.

 

[ROE]

Com on Bunyip...hindsight tells us that eastern suburbs Sydney beach side real estate
was where the saying "safe as houses" came from, this guys didn't have a portfolio..he
owned houses, got them one at a time and payed cash for the first 2, worked a simple
factory job and lived super frugal...its not rocket science.

Its buy and hold.

I find it hard to believe a guy work in a factory can save enough money to buy a house with cash ... he can provided these 2 scenario happen

1. House doesn't appreciate over the period he save.
2. Inflation is 0%

and the like hood of that is 0%

 

[gouryella]

Get a job at an Island resort where live on accommodation is provided for free. Have a beautiful wife so it does not get lonely. Earn 60k per year each with absolutely no bills. Walk to work in less than two minutes.
Invest all money into index funds and hope for a % return of 8%. Go fishing,diving etc on your days off and do it for 10 years.
This is my 2nd job where this has all been possible the last one was in the Caribbean and we on the 5th year of this plan.

Its long hours and your married to the place but I don't miss the big smoke at all. Im 34 and hope to only to what interests me after 45.

Invest for the long term, set realistic goals and don't speculate.

Best of Luck

G

That sounds like the ideal job.

Are you hiring?

 

[bunyip]

I find it hard to believe a guy work in a factory can save enough money to buy a house with cash ... he can provided these 2 scenario happen

1. House doesn't appreciate over the period he save.
2. Inflation is 0%

and the like hood of that is 0%

I'm inclined to agree - it's somewhere between highly unlikely and damn near impossible. Not just one house either....he claims he paid cash for his first two houses.
He sounds like one of those blokes who never let the truth stand in the way of a good yarn!

I do, however, personally know a couple of people who started with nothing and have done some pretty impressive things with real estate.
Husband and wife both worked in relatively low-paid jobs blue collar jobs.
Bought their first house in their early twenties, as it increased in value they borrowed against the increased equity to buy another one, put tenants in it to help meet the bank commitments, kept repeating the process over and over again.
Ended up with six properties, and they're still only in their forties. They'd owe a fair bit of money but they handle it OK. Every time a real estate boom comes along, which is every 8 to 11 years on average, their equity and their net worth climb enormously.

 

[So_Cynical]

I find it hard to believe a guy work in a factory can save enough money to buy a house with cash ... he can provided these 2 scenario happen.

I'm inclined to agree - it's somewhere between highly unlikely and damn near impossible. Not just one house either....he claims he paid cash for his first two houses.
He sounds like one of those blokes who never let the truth stand in the way of a good yarn!

Seriously u guys need to get out more...ive met about a dozen people over the years
that have achieved similar, simple people, simple jobs, simple life philosophy....without
exception these were very boring people, with wealth they didn't really enjoy...all these
people were over 55 as well.

And ya gota remember that these people started accumulating wealth back in the 50,s
and 60's when there was alot less to spend money on and real estate was the only
simple long term investment....also right at the start of the long housing boom.

 

[bunyip]

Seriously u guys need to get out more...ive met about a dozen people over the years
that have achieved similar, simple people, simple jobs, simple life philosophy....without
exception these were very boring people, with wealth they didn't really enjoy...all these
people were over 55 as well.

And ya gota remember that these people started accumulating wealth back in the 50,s
and 60's when there was alot less to spend money on and real estate was the only
simple long term investment....also right at the start of the long housing boom.

I don't doubt the six houses part, only that he paid cash for the first two on a factory workers wage. Unless he was the manager of the factory and was on a hefty salary - even then it's still unlikely.
Anyway look, whether he did or not is irrelevant......the fact is that he's shown how an ordinary person can do very well with just a an ordinary job and a conservative real estate investment strategy.
And it wasn't just back in the 50's and 60's that it could be done - it's still possible these days. As per my last post, I know people who've done it in the last 25 years. And others who started more recently and are well on their way to achieving it.
A relation of mine and her partner have just bought their first home at the age of 21, and are planning on buying many more.
Another example is a feller who went to school with one of my daughters. He got an OP1, which is the highest academic score achievable in QLD secondary school. In other words he's a very bright kid, but he dismayed his family and teachers and friends by announcing that he had no intention of going to uni, and was going to get a labouring job.
Well, that's just what he did.....a builders labourer at the age of 17, straight out of school. Two years later he bought his first house, now has two houses at the age of 21. He intends to keep buying more properties and build wealth at an early age from real estate.
According to my daughter he doesn't live like a monk either - still allows himself some spending on social life, just budgets and keeps a tight rein on expenses, and sticks like glue to his saving and investment plan.
This is not just a yarn I've pulled out of thin air.....this kid is for real.

 

[bunyip]

Further to the discussion on building wealth through long term buy and hold real estate investment.......

Recently I read an opinion from an economist that appeared in one of the papers. I don't recall his name - I'd never heard of him. Then again, I've never heard of most economists.
Amway - his prediction is that over the next 20 years, Australian house values will quadruple, the average wage will be 180k for males and 170k for females, and Brisbane will have the fastest population growth of all major Australian cities.

This sort of prediction - assuming it comes true - bodes well for anyone who accumulates a substantial real estate portfolio over the next 20 years, or has already done so.

 

[Ageo]

best tip for acquiring wealth.....do not have kids...kids are very expensive, nor have expensive hobbies....you can do all those things later in life after you have made your money...then you can afford it...kids and hobbies

Yep once you have made your money then have kids/enjoy life etc.. eh???

at what age thow? so when im 60 i can chase my 6yr old around? no thanks

 

[kincella]

my father was into his 3rd mariage at 52...and she was the love of his life...
there were 4 of us that arrived in the next 5 years... so he was 55 when I came along....
we had nannies to chase us around..did not see a whole lot of dad...but when we did it was magic....and he was around much more as we got older
had a terrific childhood....
but everyone has different choices....
my father ran a business that took him away a lot of the time in my younger years

 

[Ageo]

my father was into his 3rd mariage at 52...and she was the love of his life...
there were 4 of us that arrived in the next 5 years... so he was 55 when I came along....
we had nannies to chase us around..did not see a whole lot of dad...but when we did it was magic....and he was around much more as we got older
had a terrific childhood....
but everyone has different choices....
my father ran a business that took him away a lot of the time in my younger years

So your saying you would have liked to see your dad more when you were younger? then why are you following his footsteps?

Each to their own but wealth is more then about money, no point being filthy rich and missing out on so much in life (but like i said each to their own).

The road to financial success is a journey so enjoy the ride

 

[bunyip]

So your saying you would have liked to see your dad more when you were younger? then why are you following his footsteps?

Each to their own but wealth is more then about money, no point being filthy rich and missing out on so much in life (but like i said each to their own).

The road to financial success is a journey so enjoy the ride

Absolutely correct.....wealth is more than just accumulating money and assets that have financial value.

Anyone who makes the decision not to have kids so they can build financial wealth faster, has, in my view, made a very poor choice.
Wealth and riches come in many forms, and one of the richest of all forms of wealth is in being parents to kids and having them around for regular visits and family outings after they leave home.
Anyone who would shun such a wonderful experience, all in the name of making money, has their priorities and their values well and truly screwed up, in my view at least. And I do speak from experience, being a Dad of four, and experiencing the joys of seeing our kids grow up, all the things we did together as a family, and still do even though three of the four have left home.
And I don't accept for one moment that you can't do well financially and raise a family at the same time.

Ageo hits the nail on the head when he/she says "no point being filthy rich and missing out on so much in life."

 

[kincella]

I am giving an honest assessment....if I had my time over again, I would replace the kids with a couple of animals....much cheaper to keep, enjoyment etc still there...
I started my family when I was very young....the opposite to my father...now in hindsight...if I could choose...I would opt for the kids later in life....
its not all about the money....but later on you should have more of it...and then its easier to juggle the kids...the career should be set in stone...

the way I did it, married, had the kids early, bought the family home and in between all that going on....I studied for my career....
in hindsight it was being like superman everyday....
and less pay early in the workforce..
its just my circumstances

I could have done things differently.....
so next time... I would not get married, but I would study, and probably buy a house, then when about 40 I would consider having kids, or maybe in hindsight I would not have kids....let someone else do it

 

[Knobby22]

Most people I know that have done really well have kids. The ones with really big families - 4 to 6 kids often do better.

I don't know why that is. Maybe it is the area I live in. (inner city suburb).

I know a few guys without kids that just drink and party and live bachelor lives. They all seem to have little money.

I feel for you kincello. I think you started too early before you found your feet. 5 years can make a lot of difference.

 

[kincella]

you are right Knobby...5-10 years would have made a load of difference...
they are grown ups now....left the nest
have since replaced them with one little dog.....and its much more fun...rarely complains, always attentive...and loves to play....oh whoops almost forgot.....it is so much cheaper to keep than the kids ever were...

am thinking about finding another little one for a mate for it...
cheers

 

[Mr J]

My advice is be happy, do what you enjoy, and don't worry so much about money. Easier said than done of course, but for most people it really just requires a change in attitude and priorities.