All Topics / Help Needed! / Initial Steps (18 yrs)

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of techhowsetechhowse
    Member
    @techhowse
    Join Date: 2005
    Post Count: 63

    I’m going through an ethical dilemma.

    I am currently 18, studying at tafe and working for a large conglomerate with the most basic income for my age.
    I would like to start +CF investing ASAP. What’s the best/better soultion?

    1.Study for a Uni degree and drop my current job after this year?

    or
    2.Continue with my job and postpone getting a degree whilst continuing to research about PI. and save up for a deposit to be on my way to financial freedom by age 25, if not 25-30.

    My parents don’t seem that all supportive of my plans of investing. I would also like to help my parents with their negtively geared property.

    Any constructive advice would be greatly appreciated.

    ps. I have posted a similar topic somewhere before but have felt the situation needs more detail and is need of urgent attention.

    techhowse

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hello Techhowse,

    Hmmmm – I see your dilemma.

    As a parent, you don’t want to see your child make a mistake and as such generally advise the ‘safer’ road.

    Having said that, this is your decision since you are an adult and are now more than old enough to understand the responsibility associated with making independent decisions.

    My recommendation is to sit down and work out some kind of five year plan and to then look back and see which path will bring you closest to achieving your goals.

    What I mean is that you would be wise to look at the consequences of either decision rather than the actual decision… does that make sense?

    For example, deciding to leave Uni may give you more time, but you may then lose out on some key skills that you actually need in two year’s time. On the other hand, leaving work may mean that you cease having income which is critical to your investing needs (both in terms of deposits and also being able to borrow money).

    Is there no way to stay at Uni and at your job (perhaps in a different capacity) and also start investing? For example, perhaps you could take your annual leave during school holidays and give investing your best shot for a month and see what happens…???… That way you could test the water without having done anything to radical up front.

    All in all, keep thinking through the decision but have enough faith to trust your gut instinct as it is through refining your intuition that you will ultimately become a better man and a better investor.

    Regards,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of techhowsetechhowse
    Member
    @techhowse
    Join Date: 2005
    Post Count: 63

    Hello Steve,

    I will take all this into consideration.
    Also, would I have to take a Uni business based course to assist me with my investing?
    or should an accountant, experience, and learnt knowledge from books and seminars be better off?

    Thank you very much,
    Techhowse

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi again,

    In the beginning, I’d spend a couple of hundred dollars buying books. Try to read widely to gain an a perspective of what has worked for others.

    Authors that I would recommend are:

    Kiyosaki (especially early books)
    Allen (anything)
    Classon (Richest Man in Babylon)
    Burley
    Somers
    Lomas
    de Roos
    Spann

    If there is any spare change then see if you can pick up a copy of my books too.

    Cheers,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of bwendanbwendan
    Participant
    @bwendan
    Join Date: 2004
    Post Count: 30

    Hi Techhowse & Steve!

    I find myself in a similiar situation as Techhowse, only that i’m 16 and in year 11, and plan to go onto uni do bachelor of commerce. the problem is that to get into commerce i need to get an enter score above 96!.

    My question is that would i be better off focusing on my vce or should i start gettin into to property investing (i’ve already read a few books from kiyosaki, Allen, Lomas, de Roos, Burley, and of course all of Steve Mcknight’s books)?
    And as a 16 yo am i too young???

    Profile photo of JULES1JULES1
    Participant
    @jules1
    Join Date: 2003
    Post Count: 147

    HI Techhowse & Brendan
    I cannot help but put my two penneth worth in here. I have to let you know how crucial it is that you make the right decision here.

    I left school at 16 and have been working every since (a few decades). I did my VCE, Uni Degree, & Post Graduate diploma all PART TIME, while I was working FULL TIME and getting promotions through the ranks in management positions. Of course the reason for this was that my parents could not afford to send me to Uni, and I made a pact with myself that I would always be able to support myself & I would climb the ladder. I can tell you that this road was arduous and very difficult. Yes I made it but if there was an easier path I would have taken it.

    The main lesson I’ve learned is that Knowledge is the most important aspect to any investing strategy you make. You are still in the stage of acculating knowledge whether it be from your Uni degrees or investing books. I don’t think it is a matter of siding with your parents views. But I do think that it is a matter of making the most logical and beneficial decision for your future.

    You need to have a lot of knowledge which you can use to be responsibile for making investing decisions, for making strategic plans, for controlling your finances and your life. You cannot blindly leave this to someone else

    The best advice I can offer you is based on my experience – spend a couple of years doing your studies full time and get that out of the way. You have plenty of time to become an investor in three or four years and a lifetime to accrue the benefits of that.

    Your education will help form your ideas and views about all of the factors that impact on your investing decisions. Simlarly so your investing books. Remember you should never take anyones word for anything. If you have the knowledge then you can take advice but you still need to do your own investigations, analysis, and make your own decisions. Your education will provide you with the tools to do exactly that.

    Sure I was getting a good grounding in business by going to work early, but I had a terrific struggle studying part time for years while being responsibile for business performance in my full time jobs. So please think very carefully about the decision for your future.

    All the very best

    Jules

    JULES1
    Email Me

    Profile photo of neo25x5neo25x5
    Member
    @neo25x5
    Join Date: 2005
    Post Count: 166

    techhowse,

    let me say that someone of your age who is thinking about property investment, SHOULD NOT BE DISCOURAGED. A big well-done!!!! (I’ve already started talking to my kids about it and theyre only 4 and 5!!)

    i think though you need to understand that initially most (and I say most) get into property investment as a part-time or side-line affair. i bought my first property at 18 but did have a considerable amount saved from working throughout my teens selling newspapers etc. you dont mention what your financial capacity is?

    anyway, my advice to you would be to take `baby steps’. think about what career you wish to follow. if that means going to university then go. when established in a job, stick to a conservative budget. save like crazy. if you can live with the folks then do so. save more. depending on what your savings look like, the next step that i would do is to speak with a broker. try to find one that is independant and is willing to help you on your way to property investment. i guess this really does fit in with point 2 of your original post. dont be impatient. there will always be opportunities for you to enter the property market. i think right now you need to establish your financial base before you can literally start building on it. i think by following this approach you might even convince your parents that you are serious about property investment and getting ahead in life. best of luck to you.

    Eric

    Profile photo of MarvinMarvin
    Member
    @marvin
    Join Date: 2003
    Post Count: 24

    Techhowse,

    I’d like to encourage you to continue to sponge up all the information you can about property investing. Take all the information you gather, sit down and do some thinking. Decide for yourself where you want to go in the future, the long run. If you can visualize where you want to go, and establish the purpose of your life, you’ll find that knowing what to do will follow suit.

    I’m 10 years older than you, I just started what you are starting. So don’t let anyone discourage you, and don’t take any advices blindly. Get into a curious state, find out everything you need to know first hand (if possible). Making decisions will be more thought out with correct data, and your confidence will be much stronger.

    Cheers,

    ~Marvin from Toowoomba (QLD)

    “Knowing is not enough, we must apply. Willing is not enough, we must do.” ~Bruce Lee

    Profile photo of perthalisonperthalison
    Member
    @perthalison
    Join Date: 2004
    Post Count: 4

    Just to let you know that I am in my 40s, I work fulltime, study parttime, run a house for my family (husband and two kids) and am just starting out with my retirement plan using PI. I don’t wish I had obtained my degree straight out of school (I am finding it much easier with many years of life experience under my belt) but I do wish I had started my retirement plan straight out of school…..[grad]

    Profile photo of CrownOfGoldCrownOfGold
    Participant
    @crownofgold
    Join Date: 2004
    Post Count: 26

    Hi, maybe my experience can help. I’ve recognised that two of the best things I’ve done in my life have been to:
    1) Complete my uni studies full-time straight after high school
    2) Live at home for as long as possible

    I got my first degree out of the way at the age of 20, which is still quite young. It was relatively easy for me to do becuase I was fresh from school.

    Living at home has been my strength and stay. It made it easier for my studying, saving, coping and just plain growing up. I didn’t have to struggle like those who had to work part-time and study.

    I was able to save heaps when I started my first job because:
    – I was living at home and able to save most of my earnings
    – I was in the highest tzx bracket immediately because of my degree and didn’t have to work my way up the ladder.

    I bought my first IP after 3 months of working. Now I have 3 IPs within 3 years. It really doesn’t take long when you have the right beginnings and a little patience.

    Hope that helps.

    Profile photo of jhopperjhopper
    Member
    @jhopper
    Join Date: 2004
    Post Count: 278

    Hi all,

    I am going to go out on a limb here and offer some advice. Please donot forget to live as well. The best thing I did when I was 20 was to travel around the world for 12 months. Started Uni straight out of high school but took off 12 months in the middle to see the world.

    I certainly applaud anyone who starts looking at investing at an early age, but take time out to experience as well.

    For me, travelling was the best education I have had so far. Teaches you to meet people of different nationalities and backgrounds, gets you out of your comfort zone, you learn how to budget etc.

    Like I said, maybe slightly off topic, but there are many options when you are young!

    cheers

    Jan

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Here here Jan,

    I also had the choice of buying a prop. at 18 or going on a backpackers trip around Europe / Scandinavia and Russia.

    I went down the travelling option, and have never regretted it. The prop I was looking at, back in 1988, has increased out of sight, but the people and characters I met whilst travelling was worth so much more. Getting into Russia whilst the iron curtain was still up was an amazing experience – something that cannot be repeated nowadays.

    Anyway, plenty of time for both I reckon, especially if you are only 18.

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

    Profile photo of kayleenkayleen
    Member
    @kayleen
    Join Date: 2004
    Post Count: 7

    I have a 20 year old who has no interest in investing in proprty much to my dismay. Whatever your career goals, they do not need to interfere with your investing plans. I can understand your parents concern if they are negative gearing their proprty. It is too high a cost for a young student to carry, however, you are lookingh towards positive cashflow investments – ones that can help to boost your income while you study. The decision for TAFE or UNI can only be made by you. I am sure your parents will back you whatever your choice may be. I bought my first home at 18. If you do your math correctly, you should do well. Good luck!

    Profile photo of RellieRellie
    Member
    @rellie
    Join Date: 2003
    Post Count: 28

    Hi Techhouse

    I thinks it’s awesome you’re thinking abut property at your age.

    Rather than tell you what the best optionis I can tell you what I did. I made the decision to not go to uni striaght from highschool but rather work fulltime for a few years first. I bought my first house at 20. One parent said go for it, the other said they didn’t think it wise – I should live first. I made the decision to buy but only one that fitted into my budget & allowed me to live as well.

    I finally returned to study last year (24yo) which i complete externally. So I run my own business f/t & study f/t at night.I may not have much of a social life these days but I’m doing the things that are important to me.

    I believe it’s possible to do both – it’s just a question of motivation & ambition. Either way you have so many years ahead of you.

    In regards to your parents not being supportive, they’re just worried for you. I also remember one peice of advice my parents told me. If you’re going to take a gamble – do it when you’re young – you have more time to recover. But that doesn’t mean rush out on a whim. Do your research & minimise the gamble.

    Good Luck.

    Rellie!

    Profile photo of NATS12NATS12
    Member
    @nats12
    Join Date: 2003
    Post Count: 129

    this is a tough one. It’s good that you know the direction you want to go and now you just need to figure out how to get there.

    The easier and what would seem like the faster option is to forget uni for a while and try and progress the property thing and work somewehre, long hours, maybe two jobs to get some sort of deposit together. thing with this option is that you’re working so hard earning money that’s not great to pay deposits, or keep up income to be able to keep on borrowing that it’s hard to find time to even think about property investing.

    the other option is to keep on the education path for a while, keep a part time job on the side and then try get some money together for property. this is possible, particularly if you are studying in the commerce or business area as the commitment at uni is low level. finishing the degree makes you much more employable too. i did this and studied full time for the first two years, went to work for a year, then finished my course part time. i bought my first property at 21 and now live in it and am looking to buy another this year. though I have learnt a lot from steve’s way of working, i am following the renovation / capital growth path in metropolitan melbourne. not saying positive cash flow won’t work, but i’m happy to spend a while in the workforce and keep property as a side thing because ther’s also a lot to learn about project management and general management while your young int he workforce. i don’t know anyone my age who earns anywhere near the sort of money i earn who hasn’t completed a degree. in fact, most of them earn 1/3 to 1/2 of what i earn. that makes a big difference when it comes to being able to talk to lenders. so don’t discount getting a proper job for a while, because it will enable you to have a better lifestyle and afford more property.

    from the first option you will earn average money and will struggle to live the lifestyle you are probably imagining because you will need over 80 properties to make it happen.

    from the second option, you can do the property thing on the side of a full time job and have a guaranteed income whilst also generating money outside of work.

    i’m not saying either option is right or wrong, I’m just saying in general if you want to generate cash and save some money first option 2 is the better way to go to build wealth.

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