Why are some people poor?

[Chris45]

What about kids, inflation and recession?

He could do all those things to save...and wind up a highly strung, boring old fart with no life experience too

But most importantly ... he will die financially wealthy.

Yeah you're right. Much better to live for the moment and spend everything you earn on booze, sex and drugs and die young in the gutter.

 

[Tysonboss1]

I’m very impressed with Tyson’s achievement and wish he would expand on his post #141 and give more details of how he did it.

As I said I started from a very young age, I got a paper run when I was around 12 or 14, and when I earned my first pay $14 My father asked what I was going to do, I told him i was going to buy fish and chips, gobstoppers and coke. My father then said "If you do that your money will be gone, and all that work was for nothing. If you save it you could earn interest for the rest of your life" that stuck with me and I never spent a single cent I earned from any of my high school jobs.

As a teenager I hated working, I especially hated my paper round. But I had the idea stuck in my head that if I kept working and saving eventually I would be earning more money from interest than I was from delivering the papers, so I kept going. As I have gotten older I have just kept developing this simple idea. I will write a brief description of what I have done in another post.

 

[Tysonboss1]

I’m very impressed with Tyson’s achievement and wish he would expand on his post #141 and give more details of how he did it.

High school years -

Worked a paper round and picked fruit eventually earning about $50 a week. At first I saved the money in term deposits, But my mum worked for the CBA and when they did a public offering my mum explained what shares were, I was excited to find out I could become part owner of the bank so invested all my savings ($2000) into CBA shares.

I was then bitten by the investment bug, I would read the financial review every day because mum would bring her free copy home from work.

By the time I left High school at 17 I was a disciplined investor, and had built a portfolio a bit over $12,000.

First full time job -

After high school I got job at a service station, earned a bit more and was able to contribute a large amount each week into my share portfolio.

The Army -

When I joined the Army at age 19, Things really kicked into gear for me. Not only did I really enjoy the job, But I suddenly found myself earning a bit over $40,000. But I was living on base where I only had to pay $150 / fortnight which include accommodation and three meals a day. So I was able to contribute more than $500 each fortnight to investments.

At this stage as well as buying shares I bought my first investment property ( with dumb luck it was before the property boom).

The stars lined up even further in my favor when My Army unit became classed as a special operations unit, which gave me a $12,000 pa pay rise, combined with pay rises for higher qualifications as I became more experienced and also extra pay when going away for training it boosted my income to over $70,000 pa.

Though I was earning all this extra money, I never increased my spending. I diverted all the extra pay to my shares and buying more properties. I never bought property near my army base though, this allowed me to rent near work and collect rental assistance from the army at the same time I owned investment properties.

First Business -

I left the Army after five years and bought my first business, and thankfully the business has done really well since I have taken over and it generates alot of excess cash that I use to reduce debt and make further investments,

I have also managed to keep my expenses low by living in a one bedroom flat attached to my business and for the last year have been pumping as much cash as I can into the share market investing in undervalued companies paying good dividends.

So at the moment I have a property portfolio that is positively geared so it generates a cash flow, A share portfolio which pays a decent dividend yield and generating good capital growth recovering from the GFC. and my business is also generating good excess cash ( however I don't include my business earnings in the passive income I stated because it requires me to be there so I count it as earned income)

And thats my life in a nut shell.

 

[RamonR]

Great example Tysonboss.

I am happy with my current situation but would have been much happier getting there at 27

 

[MrBurns]

Great example Tysonboss.

I am happy with my current situation but would have been much happier getting there at 27

I'd be happy just to be 27........gee it goes fast.

 

[awg]

Now for a little reality, $150 on booze, women, taxis, social drugs every Friday night x 52 weeks
over 10 years = $78,000 leaving this conservative, average young person with $108,000 still
not to bad, and he/she has had a little fun.

seek girlfriends who are great in bed & dont like boozing, grow yr own weed:

 

[Chris45]

And that's my life in a nut shell.

That's a fantastic story!!! Thanks for telling it. Full credit to you.
Maybe a few here with brains will have learnt something.

seek girlfriends who are great in bed & don't like boozing, grow yr own weed:

Excellent advice! How to have your cake AND eat it.

 

[Julia]

Tyson, as has always been so evident in your posts, you've spoken from genuine experience.

How I wish more people had your determination and attitude. You've done a great job.

Hope you don't neglect to take some pleasure from your efforts as well.

Imo you got the best possible start with good parental advice.

 

[Tysonboss1]

Hope you don't neglect to take some pleasure from your efforts as well.

I am starting to go a bit easier on my self now, At the beginning of next year I will be moving out of my one bedroom flat into a House away fom the business, which should make for a better home life.

I'll also be putting on an extra staff member to cover some of my work load, to make my work day a bit less stress ful, and allow me to work "on" my business rather than "in" it.

While I don't intend on becoming a hyper consumer, I am going to be putting less of my personal exertion income into my investments, which will free up some cashflow for some of the finer things I have deprived my self off such as holidays, my own home and possibly a wedding

I will still be investing however the bulk of the growth now will be going from reinvested earnings rather than from my personal sacrifices and savings,

And some time between now and when I turn 30, I hope to sell the business and have a year or two off to focus managing my investments and maybe some part time work or a hobby I think I will take up bee keeping. :alcohol:

 

[burglar]

Wise old Polish saying:
"Jesteśmy biedni bo jesteśmy głupi!
Jesteśmy głupi bo jesteśmy biedni!!"

Translates roughly to:

We are poor because we are stupid!
We are stupid because we are poor!!

 

[kgee]

what you ever have is all you know
and what you don't you'll never know
Buddha B##sh#t

 

[tigerboi]

yeah well done...but how many good sorts have you thrown your legover???while sitting around every friday night counting your cash?

High school years -

Worked a paper round and picked fruit eventually earning about $50 a week. At first I saved the money in term deposits, But my mum worked for the CBA and when they did a public offering my mum explained what shares were, I was excited to find out I could become part owner of the bank so invested all my savings ($2000) into CBA shares.

I was then bitten by the investment bug, I would read the financial review every day because mum would bring her free copy home from work.

By the time I left High school at 17 I was a disciplined investor, and had built a portfolio a bit over $12,000.

First full time job -

After high school I got job at a service station, earned a bit more and was able to contribute a large amount each week into my share portfolio.

The Army -

When I joined the Army at age 19, Things really kicked into gear for me. Not only did I really enjoy the job, But I suddenly found myself earning a bit over $40,000. But I was living on base where I only had to pay $150 / fortnight which include accommodation and three meals a day. So I was able to contribute more than $500 each fortnight to investments.

At this stage as well as buying shares I bought my first investment property ( with dumb luck it was before the property boom).

The stars lined up even further in my favor when My Army unit became classed as a special operations unit, which gave me a $12,000 pa pay rise, combined with pay rises for higher qualifications as I became more experienced and also extra pay when going away for training it boosted my income to over $70,000 pa.

Though I was earning all this extra money, I never increased my spending. I diverted all the extra pay to my shares and buying more properties. I never bought property near my army base though, this allowed me to rent near work and collect rental assistance from the army at the same time I owned investment properties.

First Business -

I left the Army after five years and bought my first business, and thankfully the business has done really well since I have taken over and it generates alot of excess cash that I use to reduce debt and make further investments,

I have also managed to keep my expenses low by living in a one bedroom flat attached to my business and for the last year have been pumping as much cash as I can into the share market investing in undervalued companies paying good dividends.

So at the moment I have a property portfolio that is positively geared so it generates a cash flow, A share portfolio which pays a decent dividend yield and generating good capital growth recovering from the GFC. and my business is also generating good excess cash ( however I don't include my business earnings in the passive income I stated because it requires me to be there so I count it as earned income)

And thats my life in a nut shell.

 

[KurwaJegoMac]

yeah well done...but how many good sorts have you thrown your legover???while sitting around every friday night counting your cash?

So I take it you've never purchased any clothes, produce, gadgets or gizmos that havr been imported from overseas where exploited workers get paid a handful of dollars a day and live in extreme poverty? It's a bit hypocrytical don't you think?

Also he's worked in the military, protecting our wonderful country, provided homes for people to rent, and run a business which has provided staff with a job. Of course he's also paid taxes to our government for the good of thr country and will not be reliant on welfare payments upon retirement.

So I fail to see how he's giving anyone a 'legover', except for the bit about claiming rental assistance while having an investment property - but he's returned that in spades.

 

[Junior]

So I take it you've never purchased any clothes, produce, gadgets or gizmos that havr been imported from overseas where exploited workers get paid a handful of dollars a day and live in extreme poverty? It's a bit hypocrytical don't you think?

Also he's worked in the military, protecting our wonderful country, provided homes for people to rent, and run a business which has provided staff with a job. Of course he's also paid taxes to our government for the good of thr country and will not be reliant on welfare payments upon retirement.

So I fail to see how he's giving anyone a 'legover', except for the bit about claiming rental assistance while having an investment property - but he's returned that in spades.

I applaud tysonboss for his disciplined spending and hard work, but the above is a bit much. It's hardly charity work, he's received substantial financial compensensation for his efforts. And I hope he's done anything he can to minimise his tax bill, I know what those defence force accountants are capable of!

 

[KurwaJegoMac]

I applaud tysonboss for his disciplined spending and hard work, but the above is a bit much. It's hardly charity work, he's received substantial financial compensensation for his efforts. And I hope he's done anything he can to minimise his tax bill, I know what those defence force accountants are capable of!

Everyone minimises their tax bill. That's hardly cause to accuse someone of giving a 'legover'. Better that you pay minimal tax than be a dole-bludging loser on welfare.

Also you're right about the compensation, he did receive compensation for his efforts just as we all do. However he could have been compensated for his efforts in other fields, yet he chose to serve in the military.

So by your reasoning, we shouldn't be praising firefighters who risk their lives to run into your house when it's burning down and save your nanna? After all, they get compensated too (Metropolitan brigades only). Whether you get compensated or not is irrelevant. You're still doing a good service. Of course had he been doing it as charity that would have been even better but I don't know too many people that would willingly get shot at for free :

 

[gav]

Everyone minimises their tax bill. That's hardly cause to accuse someone of giving a 'legover'.

I read the "leg over" comment as meaning something entirely different...

 

[againsthegrain]

Wise old Polish saying:
"Jesteśmy biedni bo jesteśmy głupi!
Jesteśmy głupi bo jesteśmy biedni!!"

Translates roughly to:

We are poor because we are stupid!
We are stupid because we are poor!!

Seems that its as wise as the people who say it, and no I don't mean the Polish people

 

[burglar]

Seems that its as wise as the people who say it, and no I don't mean the Polish people

Seems to me that the people who say it, can see that it is a loop and need to find a way out.

A lottery ticket might be one way out!

IMO, education would be a surefire way!!

 

[KurwaJegoMac]

I read the "leg over" comment as meaning something entirely different...

Could very well be, my interpretation is that he's accusing him of screwing over 'the good guy' for the sake of earning $.

If i missinterpreted then I apologise :S

 

[BradK]

Could very well be, my interpretation is that he's accusing him of screwing over 'the good guy' for the sake of earning $.

If i missinterpreted then I apologise :S

'Legover' means sexual relations :

Does that clear things up?

Brad