All Topics / Help Needed! / How much to spend on education?

Viewing 19 posts - 1 through 19 (of 19 total)
  • Profile photo of Pat VPat V
    Member
    @pat-v
    Join Date: 2004
    Post Count: 9

    Hi,

    This is my first post. I have a question about financial education, but I’ll first provide some quick info about myself so you know what situation I’m coming from.

    I’m a 22 year old student who in a couple of year swill most likely have a job as either an in-house corporate legal counsel or patent attorney.

    My financial situation is quite good for a student. I am able to save 50% of my gross income and keep detailed records which are reviewed weekly so have a good understanding of my cashflow pattern. I have no debts, save for my HECS student loan which will probably be $50K but almost no interest charged.

    My goal is to use property investing (or shares if property doesn’t work out) to achieve financial independence by my late 30’s at the latest, so I have the financial stability required to buy a franchise and then start up my own business.

    Now my question:

    At my young age, how much should I be spending on receiving education from sources such as books, seminars such as Steve’s masterclass ones, or home study courses? This quesiton is basically one of what’s the value of education vs. having money in the bank which can be used to invest. A good example of this was given in Steve’s 0-135 book, where he tells how spending thousands on one of Robert Kiyosaki’s seminars was a very good thing to do, but his business partner took quite some convincing.

    At the moment I’m thinking of spending an average of $25 a week on education and reading the books, but spend most of my time window shopping for property to look at how I would apply the ideas once I am in a position to actually buy.

    Patrick.

    Profile photo of Pat VPat V
    Member
    @pat-v
    Join Date: 2004
    Post Count: 9

    Sorry for the double post, but I have another question.

    What would be the best way to window shop for property? Do it online, or go into real estate offices and actually talk to the salespeople there?

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Education is the most valuable tool available. Regarding the cost, it is free online or from a library. Seminars are good learning and networking events so attending the odd one here and there can be invaluable. You can also learn from joining clubs and groups of like-minded people.

    I tried once on here to start a monthly meeting of like-minded people but had no response. Maybe my arm-pits smell too much or something similar. The idea was to bounce ideas off each other and to share resources to all help each other get ahead.

    Maybe Steve could start a similar group for each State. If it was a PI.com endorsed group, I am sure most would attend. Think of the marketing opportunities Steve!!! :)

    Robert Bou-Hamdan
    Mortgage Adviser

    M: 0414 347 771
    E: [email protected]
    W: http://www.mortgagepackaging.com.au

    FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

    Comments made are of a general nature and should not be construed as individual advice.

    © 2004 Mortgage Packaging Pty Ltd

    Profile photo of unannouncedunannounced
    Member
    @unannounced
    Join Date: 2004
    Post Count: 60

    Has such an idea been floated previously? Or are there existing groups?

    Brisbane area here! [to be completely off topic]

    Chance favors the prepared mind.
    Im unannounced.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Unannounced, as I said, I tried to get one going in Sydney once through this website but there was not much interest. Maybe it was just me.

    I believe there is already one going in Brisbane and some in other cities.

    I think I will ask Steve.

    Robert Bou-Hamdan
    Mortgage Adviser

    M: 0414 347 771
    E: [email protected]
    W: http://www.mortgagepackaging.com.au

    FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

    Comments made are of a general nature and should not be construed as individual advice.

    © 2004 Mortgage Packaging Pty Ltd

    Profile photo of SpankySpanky
    Member
    @spanky
    Join Date: 2004
    Post Count: 102

    I think it depends on how rich you want to be – the more you know about various types of investment, the higher the chance you’ll make a lot of money out of them. On the flipside, the less chance you’ll get burned. My father spent $11k on ONE futures trading seminar. And that wasn’t the most expensive one available!! I wouldn’t put a specific figure on educating yourself – I would be more inclined to simply be learning all the time. View topics on the forum and then study them more. If you are just starting out, people are generally happy to give you advice for free, as I have found with many finance specialists and even solicitors.

    Age doesn’t negate effort – you can never be too young or too old.

    Profile photo of IQIQ
    Member
    @iq
    Join Date: 2004
    Post Count: 9

    I personally think that you can borrow some books from you local library, and then learn it by doing it.

    I started with the 100:10:3:1 rule. That is simple enough to follow. Go to see 100 properties, make offer on 10, arrange finance on three, and you will buy one.

    If you can afford $25 per week, make it work for you.

    Books are just books, you really need to apply what you have learned.

    I have friends who have spent thousands of dollars on seminars and software. But they cannot found those properties that meet their criterias. They have seen 20 properties, and are frustrating now, and are about to give up.

    I learned it by actually doing it.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Seeing 100 properties would take a long time. Making offers on 10 would lose your credability if they are all accepted and you do not proceed. Arranging finance on 3 will see your credit history in a little mess. Buying 1 is never a certainty as your friends are finding out.

    There are no hard and fast rules. Also, if I arrange finance on 3, I buy 3.

    Robert Bou-Hamdan
    Mortgage Adviser

    M: 0414 347 771
    E: [email protected]
    W: http://www.mortgagepackaging.com.au

    FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

    Comments made are of a general nature and should not be construed as individual advice.

    © 2004 Mortgage Packaging Pty Ltd

    Profile photo of IQIQ
    Member
    @iq
    Join Date: 2004
    Post Count: 9

    I do not disagree with Robert.

    Everyone one needs something to start with.

    I do think Pat V will learn a lot as he/she progresses. E.G how to inspect the property, how to negotiate with the vendor or REA, what clauses to put in, how much the property is really worth etc.

    Making offers on 10 does not lose your credibility. I know some old dogs in the business, they continue to buy lower than you can image. Does everybody know these old dogs around around? Oh, you bet! But they continue to out perform the new kids on the block.

    The Chinese says ” It is still the old ginger tastes hotter “

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618

    Those figures look like Dolf de Roos, the theory being it’s based on numbers so you may need to look at 100 to buy 1. How you look is up to you, may not need to be physical. But they need to be properties that meet your strategy ie if your budget is $x then looking at 99 properties that are selling for multiples of $x doesn’t count. Then in that 100 there might be 10 you put offers in on, as you’re trying to put low offers in, you’re not going to succeed every time. Maybe the three for finance also includes where you’re arranging finance but a builder’s inspection doesn’t come up to scratch.

    Libraries will have some of the books or can get them in for you.

    Open houses can give you the chance to inspect without feeling you’re wasting an agent’s time.

    I follow a number of towns reasonably closely. This makes it easier to spot a genuine bargain.

    Profile photo of jcls79jcls79
    Member
    @jcls79
    Join Date: 2004
    Post Count: 88

    I am also just starting and I chat to some real estate agents (in some area) a lot on the phone so that they will inform me about the rental market in the area, property being listed and some even inform me properties prior to being listed publicly.

    I suppose there is no set way of doing things, just try a few and find one that eventually works for you.

    Time and patience is quite important.

    Want to join financial independence before 31 years old, currently 25

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    On a personal level I have learnt a great deal by reading. I have never ever attended a workshop etc. and probably never will. I am not comfortable with this environment, however seems to work well for many people on the forum.

    Profile photo of Pat VPat V
    Member
    @pat-v
    Join Date: 2004
    Post Count: 9

    Thanks for the replies.

    What I was looking for was basically just an indication of how much people who are already successful investors have spent on educating themselves and in what ways before actually investing and learning as you go. I’ll constantly look at what I’m learning from books and seminars and see if it is helping me, but if it isn’t helping me any longer I’ll cut it back.

    I find books useful to give ideas for what you should be doing, and to help point out steps you should be taking. I tend to rely on my own ideas mroe than the ones in books, and try to come up with 20 new ideas a day, but books also help me to evaluate those ideas. At the moment I’m fairly comfortable with just learning aobut investing but not doing it as I don’t want to take on any real risk whilst I’m a student, and am in no extreme hurry to get financially independent as I really enjoy what I study.

    And I am a him, as indicated by my ‘Patrick’ signiature ;)

    Profile photo of Kiwi-FullaKiwi-Fulla
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    @kiwi-fulla
    Join Date: 2002
    Post Count: 371

    hey there… teh golden rule is about the same as the global percentage of wealthy people 2-3% of the world population are wealthy … do not need to work and make plenty of passive income to never have to work again in thier lifetime…. the same applies for students of the world. Of all those that educate themselves… 2-3% will apply the fundamentals successfully and get to the golden age of financial independance… the rest just never do it, give up after a couple of nasty spills or give up in the end before suceeding. It is a pity we do not all fall back on the age old child hood attitude of never say die…. If you fall off a bike when you are a kid do you give up???? NO yOU KEEP GETTING BACK ON UNTIL YOU SUCCEED!!!! – NEVER SAY DIE!!!-cheers
    Kiwi

    Profile photo of IQIQ
    Member
    @iq
    Join Date: 2004
    Post Count: 9

    Peter Spann said that Knowledge applied is wealth.

    We always have students who just finish university knocking on our door, and said they want to apply for a job as system design. I am sure they are knowledgeable, but we never offer them a job. Why? If you can answer the question, you sure know what to do next, right?

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Guys,

    gettting educated about investing, is very important, i ve seen many people, who know a thing 2 about investing, but because there not educated and mindset they are also limited by what they know and can achieve, personally i would say.. get all your free info you can, but when it comes down to the nitty gritty, pay for advice…

    currently in now adays, i network with people, i keep in touch with my lender, and with my accountant try to at least meet once a month, but also i talk to my stock broker every day, in opportunities in making money…

    in doing this, too ive helped convined my friends plus brokers and lenders, to invest themselves and enjoy the journey to financial freedom…

    Cheers,
    sis

    Wanna Talk About Stocks

    Profile photo of Pat VPat V
    Member
    @pat-v
    Join Date: 2004
    Post Count: 9
    Originally posted by IQ:

    Peter Spann said that Knowledge applied is wealth.

    We always have students who just finish university knocking on our door, and said they want to apply for a job as system design. I am sure they are knowledgeable, but we never offer them a job. Why? If you can answer the question, you sure know what to do next, right?

    The answer is their lack of experience and a proven track record. But again, as a student with not enough income to cover me should I make a mistake I have no interest in buying a property.

    I know what to do next to apply my limited knowledge – become familiar with the property markets so that when I do start, I can do so straight away. But my knowledge is limited and hence why I’m interested in finding out to what extent th eother people on this forum have found education through sources such as books and seminars helpful.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I wouldn’t spend too much. Start with reading as much as you can, taking notes, and going to all those free meetings that are on now and then.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of myoungmyoung
    Member
    @myoung
    Join Date: 2004
    Post Count: 33

    Firsty, good to see people starting young, I wish I had thought more about this at 22yrs old.

    Rich Dad Poor Dad is worth a read, not as a how to but more a why? It is a fairly inspirational story that will most likely be different from what most Australian’s are taught growing up.

    Steve’s book 0 – 130 properties is a great book(no sucking up intended). I’ve read probably a dozen or so property/rich dad type books( and have 3 licensed estate agents in my immediate family) and this book I thought was not only good at the basics but had a few interesting twists and turns not covered in the others, it also reflects well to Australian markets(being a local product). IMHO you can’t go past the Internet for information gathering(especially before you build a network of contacts) to research area’s, types of properties in the area, industries supporting the area, typical rental returns etc etc. Fastest way i know of to find your targets without spending your life driving or flying everywhere(do that if you want when you’ve narrowed your targets).

    Finally a basic understanding of accounting and economic cycles are very useful and may help prevent you getting badly burnt.

Viewing 19 posts - 1 through 19 (of 19 total)

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