How Did You Make Your First Million Dollars?

Lfreakatronic on 07/11/2016 - 06:58
Last edited 07/11/2016 - 06:59

A million dollars is no longer the number it was in the eighties. Purchasing power has dropped and cash has become cheaper. That said, it's still the first number out of people's mouths as the one they aspire to. A mil. The big M. It's become more achieveable in recent years, and there are many ways to go about it.

I'd like to ask those who have reached the milestone how they did it. I guess I'm looking for inspiration. I read The Millionaire Next Door a while back, and I'm interested in hearing from those who've reached it. I don't care if it's a million cash sitting there (which is less likely), a million in assets like property (more likely), or a million dollar business. I just won't count leveraged assets that aren't owned outright as your million, like mortgaged real estate or open currency positions … Cause well, anyone can have a million dollars that way.

(Edit for spelling)

Financial

Comments

    • freakatronic on 07/11/2016 - 09:50
      +8

      There wouldn't be anyone here to answer me then :p

      • Scrooge McDuck on 07/11/2016 - 13:39
        +9

        *Ahem!*

        • freakatronic on 07/11/2016 - 13:39
          +5

          Go on!

        • Scrooge McDuck on 07/11/2016 - 14:32
          +23

          @freakatronic:

          Well it all started with the Number One Dime. Back when I was a young duck in Glasgow, I started a shoe-shine business on my tenth birthday. My first customer was a ditch digger. It took me half an hour to chip the mud off his boots with a hammer and chisel! "Five pence please," I slumped exhausted. He tossed me a coin and walked off. When I realised it was an American dime I vowed never to be tricked again, "I'll be tougher than the toughies, sharper than the sharpies… and I'll make my money square!"

        • Kangal on 08/11/2016 - 01:35

          @Scrooge McDuck:
          Even Smaug is jelly of Scrooge's Billions!

        • gimli on 08/11/2016 - 06:53
          +1

          @Kangal:

          I would be much wealthier if it weren't for Smaug.

  • Derpaldinho on 07/11/2016 - 09:50
    +23

    I saved up for a house during the mid 2000's. Then the GFC happened, the US markets panicked (and rightfully so) and I was sitting on my house deposit and staring and rock bottom prices. Decided to pump it into the market instead and lived with my parents for a few more years. Paid off when the markets inevitably stabilised once again.

    Its really a combination of luck, being in the right time with the right amount of disposable income. The GFC was really a lack of regulation and I doubt they'd let it get back to that level again after the lessons learned (I hope).

    I'm nowhere near rich "rich", I still work and I still love ozbargain, but being in my early 30's now that decision really did give me a head start. And as sad as it is to say, the easiest way to make money is to have money when the world burns…

    • freakatronic on 07/11/2016 - 09:56

      Thanks for this. Timing really is everything huh! Do you suppose (as the gold sellers support) that a new GFC will blow up within the next decade?

    • FindMeADeal on 07/11/2016 - 15:17
      +1

      The GFC was really a lack of regulation and I doubt they'd let it get back to that level again after the lessons learned (I hope)

      There's never the same thing that happens to crash the market. It drives on sentiments, who knows if tomorrow Trump wins and the delicate balance of relationships with Middle east gets disturbed and Russia being opportunistic pitches in, market can easily go on panic..

      People are really panicky when it comes to money, more so, money involved in share market. And we all know what panic does to a rolling snow ball.

      Moral of the story: Dont take things for granted and don't count on "other" people to save your assets. Have a plan 'B' ready always and diversify.

      Cheers!

    • amca on 09/11/2016 - 10:35

      "the easiest way to make money is to have money when the world burns…"

      Woah. Quote. Well put.

  • slow on 07/11/2016 - 09:52
    +5

    Bought a couple of inner city houses in the 90s for a few hundred thousand. It was quite stressful at the time as we had saved hard and were really extending ourselves

    • freakatronic on 07/11/2016 - 10:00
      +1

      Nice, good on you. What do you think of the state of the market now? Still buy / hold? Or do you think things have overextended themselves?

  • ChillBro on 07/11/2016 - 09:57
    +4

    Wait for relos to die.

    • jenkemjunkie on 11/11/2016 - 09:53
      +1

      I already assume I'm getting my parents house so I already tell people I own like property and am rich and shit. I mean I'm living in it so same thing.

  • Donkeyface on 07/11/2016 - 09:59
    +4

    The most self-made(not from Mum and Dad) "millionaires" I know of in this country are related to real estate. Some of them have successfully done some development, e.g. subdividing and/or rebuilding.
    I feel your sentiment of " leveraged assets" does not count, and would argue that the equity in the property should be counted.
    The traditional "buy and hold" strategy should get you the 1st M within 10 years (continuous investing, not just buy 1 and wait) provided you are careful with your money and choices of properties. I am considering myself to be on this route. Remember the increase in property price is against your leveraged amount.
    Time is definitely the key word here. OP, what is the timeframe you are considering to get your 1st M? It would be difficult to get it in a short period of time, unless you win lottery, extremely lucky with leveraged investment(forex or commodities, etc.), or starting a new "facebook" or something.
    My 2 cents.

    • mskeggs on 07/11/2016 - 10:07
      +13

      I find it outrageous that this can be posted as 'the way it is'.
      No, you can not expect to hit $1m in 10 years.
      No, there is zero reason to believe the once in lifetime run up in prices over the last two decades will be repeated.
      Good luck to you, but by maximising your leverage you are also maximising your risk.
      Run your numbers again with property price increases below inflation, and rental increases below inflation.
      And run them once more with a -1% price growth each year for 5 years, and rents falling the same.
      Neither of these scenarios are at all unlikely. The most unlikely scenario is continued high price growth.

      • Donkeyface on 07/11/2016 - 10:25
        +4

        "outrageous" is a relative term. We could certainly discuss the points you have.

        Most of your points are based on the price will not be raising as fast as it did in the last 15 years or so. Yes, I would agree with you to a point. My personal opinion,
        * if you look at the history of Aussie house price for the last 100 years, you would expect house prices to double every 10 years. If you considering inner suburbs in major cities, the number is much higher.
        * the same would apply now, or in 2000s, or in 90s, or in 90s, "if i have bought XXX, I would have been XXX". I dont want to be the guy to say this to myself in 20 years time.

        Yes, I am maximising my risk of getting multiple mortgages, and it is my own risks indeed. Considering the potential return and opportunity costs of not doing it, I choose to do it.

        Regarding inflation and rental numbers, I agree with the majority of the people, including Gov analysis, that the population growth will be strong in the coming decades. Those people need somewhere to live, hence the drive for rental and houses. I consider this drive to be a fundamental one, i.e. the most prominent force. even if the house prices stagnates, the rental should not be. If both are falling, we would have been in a very tough situation as a whole country, and therefore any other investment will be in trouble too(see Japan in 90s).

        Having said all these, I am a dumb engineer earning a reasonable salary, and not knowing any better ways with my money. THe only logical way of investing for me, is to invest in real estate, although I do have some shares. Just turned 30, I think I am on my way to the 1st M well within 10 years.

        You are welcome to discuss the matter.

        • nickj on 07/11/2016 - 14:55
          +4

          It is not true that Australian house prices double every 10 years, certainly not in real terms, when you look at it over a long time frame. Here's a median house price graph going back to 1880: http://media.cirrusmedia.com.au/Money_Media_Library/Print%20…
          You can see prices slowly fell in real terms for a nearly 60 year stretch. To people living then, "you don't make money from property" would have seemed like an obvious truism, just as it seems to obvious to now that it was a good way to make money in the last 20 years.

          What has brought about that price change is 1) the amount of leverage & credit being extended, and 2) crazy low interest rates. Those 2 factors combined with 3) tax settings (negative gearing + 50% CGT exemption) are what has changed the most since the mid 90s, and you can see the combined effect it has had in prices, and the graph only goes until 2008, would be more pronounced if it kept going until 2016. But those factors seem like a one-time push to me, rather than a long-term sustainable situation. But hey, as long as people believe that property prices can only increase, they will keep on increasing, right up to the point where people don't believe it any more. And the higher they go, the sharper the eventual correction.

        • moar bargains on 07/11/2016 - 16:32

          @nickj:

          And the higher they go, the sharper the eventual correction

          That's what I'm hanging out for! Wannabe first home buyer…

        • Donkeyface on 08/11/2016 - 08:38

          @nickj:
          Nick, thanks for the reply. It is definitively an interesting perspective. The graph you showed is a bit different from what I recalled, and I shall look into it, and evaluate my thoughts.

          What are your thoughts on the population being the driving force of house prices and rental? All the forecasts I have seen are pointing to a steady population increase for the coming decades.

          Yes, the price is all based on what people think it is worth. Back to OP's original question, where he asks for experiences from people who made a million. I have not done it, but certainly close to it, so I offered my strategy, "buy and hold" and development. As I said, I don't have any exotic skill sets, like the wolf on the Wall st. I consider this route to be my safest way of investing. Even if the price stagnates, at least we have not seen the price falling in a sharp way in this country, courtesy of your graph. But I know for sure that share market has done this multiple times(more on individual stocks), and one can certainly lose a lot of money when that happens.

          Do you want to share a bit on what you consider a good way of investing? Thanks.

        • mskeggs on 08/11/2016 - 09:00

          @nickj:
          The issue a lot of property investors have is they have not readjusted their historic expectations against a low interest rate/inflation environment. Previously, inflation took care of mortgages that were too big if you could hold on for a few years (as their real size was inflated away and rents rose). But with sub 2% inflation it takes a decade plus to notice any inflationary changes.

          I think you should also factor in increased workforce participation among women.
          When I was at school through the 1980s, mothers working full time were the exception right up through high school, and very few mothers of young kids worked.
          This changed a lot in the 1990s, and positions have now effectively reversed where stay at home Mums are rare after the first and maybe second year of the kids life.

          The thing is, the increased income from a second worker went almost exclusively to real estate and childcare (and then more to real estate as childcare costs drop off).

          There is no third adult in most families who has not been part of the workforce who can repeat this trick to increase incomes directed to housing. In the USA the demographic change occurred ahead of here, and you can see they had real estate increases ahead of us too. Hopefully for those over leveraged in this thread we won't follow their real estate bust.

          FWIW, I don't think we will. I think we may well have a correction to wipe out a bunch of investors, but not the 50% retrace they had in the USA that killed so many owner-occupiers.

        • mskeggs on 08/11/2016 - 09:03

          @Donkeyface:

          All the forecasts I have seen are pointing to a steady population increase for the coming decades.

          Immigration has been running at double the long term average for the past several years. It is a big bet to think that will continue when we have unemployment rising ahead (cf. car factory closures etc.).

          Look at migration levels leading up to and after the last recession in 1992 to see how politicians react to rising unemployment:
          http://www.aph.gov.au/About_Parliament/Parliamentary_Departm…

        • nickj on 08/11/2016 - 16:53
          +1

          @mskeggs: The big problem is that the correlation between population changes or immigration, and house price changes, is very weak. E.g. see: http://www.debtdeflation.com/blogs/2011/05/02/house-prices-a… , which suggests it may even be negative. That seems counter-intuitive at first, but it's not perhaps surprising given people don't usually buy immediately after being born or arriving in the country, there's often a very substantial lag.

          But I completely agree with the workforce participation of women being a factor.

          Basically it all comes down to mortgages, because almost all property buying requires debt. Rising house prices require rising mortgages. Anything that leads to bigger mortgages leads to higher prices (e.g. lower interest rates, lower deposit requirements, increased ease of obtaining credit, widespread assumptions of housing being "safe" with expectations of rising prices, female workforce participation leading to more mortgage servicing capacity, fear of missing out leading to people borrowing as much as they can, and whether interest on that debt is deductible against other income / is non-quarantined, lower unemployment, rising wages).

          It seems to me that almost everything that can happen to lead to larger mortgages has happened. And many of those things are essentially one-time changes (you can only lower rates to historical lows once; can only lower deposit requirements from 30% to 10% once; can only have financial deregulation once; can only have a transition to 2-income households once; can only have so much FOMO before people decide other things matter more; and you can only introduce negative-gearing once; etc).

          The only trick I can think that could be reintroduced is first home buyer grants and allowing that to be counted as part of the deposit. It would not surprise me if this was reintroduced when prices start to fall, by politicians focused exclusively on the short-term, but I doubt it would be enough. Other than that, it's all been played out. But on the flipside, there are lots of catalysts that could lead to lower mortgages (rising interest rates, an inevitable recession leading to rising unemployment and stagnant wages, a snowball effect where many people want to sell at once and nobody wants to buy because it's obvious prices are going to fall further if they wait more, a political party opposed to negative-gearing being elected to government, and so forth).

          I also suspect that a lot of renting is now far more elastic than previously in a recession (people from overseas can go home if work dries up; people can move in with family; people can rent in cheaper places if money becomes tighter; and Australians can relocate overseas to find work). That could really work against investors to reduce rents and make finding tenants much harder during a recession, which would add to pressure to sell, especially if they are concerned about losing their own jobs.

        • BartholemewH on 08/11/2016 - 20:05

          @therog1:
          I'm an accountant and I held out for a long time on my first property thinking 'not long' til the madness ends'. But I was wrong, for years. Once I realised the Australian economy and therefore the Australian govt are very heavily invested in keeping the housing ball rolling, I bit the bullet.

    • freakatronic on 07/11/2016 - 10:07

      I don't have a time frame in mind. I think there are a few different age groups who use ozb and I've heard sound advice here before. I'm hoping some with ability and experience will weigh in and drop some pearls of wisdom on me, that's all. Sure, a million in your 20s is a combination of luck and other things. But most people with some drive and diligence should have the potential to have a million by their 60s.

      • mskeggs on 07/11/2016 - 10:16
        +7

        Keep your expenses low and constant, save and invest the increases in income as you advance in your career.
        Choose investments that allow you to compound the return and reinvest the income.

        This is a sure fire way to become wealthy.

        The only downside is you may wish to enjoy what money can deliver along the way through life, so you won't have that enjoyment if you save it all.

        • freakatronic on 07/11/2016 - 13:45
          +3

          Thankfully I have a low expense lifestyle. Without a fancy title and career, this is my way of managing any savings at all.

        • mskeggs on 07/11/2016 - 14:00
          +2

          @freakatronic:
          Not to sound like Joe Hockey, but if there are things you can do to boost your earning potential, they also have a compounding effect.
          A lot of people don't like their jobs much, but it is a lot easier to get along with a boring job if it is well paid versus minimum wage.

        • freakatronic on 07/11/2016 - 14:23

          @mskeggs: That's true too. I don't think I have any skills that translate well into better paid-by-the-hour work, otherwise I'd be doing it :p

      • Donkeyface on 07/11/2016 - 10:41
        +2

        For me, I do not know any other way that is less risky. Unless you have certain skill sets that are in high demand, it is pretty hard to invest well. Otherwise, there will be plenty millionaires around.

        I did not start investing until late 20s. Looking back, if I have started earlier, I would have been better off(not hugely), and my lifestyle should not alter too much either.

        mskeggs' advice of keep your expenses low is definitely great.

  • niner on 07/11/2016 - 10:00
    +6

    I sold my house in Sydney this year.

    • freakatronic on 07/11/2016 - 10:01
      +1

      I bet you're wading through cash now ;p

      • niner on 07/11/2016 - 10:04
        -1

        Looking to buy a house. Not sure I'll stay in Sydney or Australia. Advanced manufacturing is dying (particularly in my industry of engineering), city and my apartment block is filled with Chinese people that don't speak English and our government is incompetent.

        • Skramit on 07/11/2016 - 10:06
          +1

          You sound happy to be a millionaire.

        • niner on 07/11/2016 - 10:35
          +12

          @Skramit:

          Breaking news: money doesn't equal happiness.
          I'm happy with my own life. Not happy about where our country is heading if that makes sense.

          As Barnaby Joyce put it: Aussies won't die for a rented nation.

        • freakatronic on 07/11/2016 - 11:48
          +3

          @niner: I feel you. I am both a property owner and a renter. I feel very little attachment to Australia, and don't mind living in other places. Especially if they offer better value for money.

        • jenkemjunkie on 11/11/2016 - 09:55
          -1

          bet the apartment block stinks and is trashed too

        • virhlpool on 13/11/2016 - 18:29
          +1

          @niner:

          Not happy about where our country is heading if that makes sense.

          Can you elaborate a bit? What aspect of it?

    • JimB on 07/11/2016 - 10:29

      Unfortunately if you choose to continue to live in Sydney, you'll be a few hundred thousand worst off than if you never sold your house in the first place.

      • niner on 07/11/2016 - 10:37

        I live in a pretty spacious apartment near my workplace, so buying a new house is not really a priority.

        • JimB on 07/11/2016 - 10:45

          You did mention you were looking to buy a house….

        • niner on 07/11/2016 - 10:56

          @JB1:

          I think I'll be looking for quite a while. Newer houses in the inner city area is not that common.

  • PJC on 07/11/2016 - 10:02
    +1

    Male Supermodel … obviously.

    • smartazz104 on 07/11/2016 - 10:24
      +2

      But why male models?

      • bezza on 10/11/2016 - 16:39

        I don't get it. Can you become a female model even if you're a man? Don't you need to tuck your junk in first?

  • Clear on 07/11/2016 - 10:08
    +2

    Sold my shares of DSE before they went bust.

  • smartazz104 on 07/11/2016 - 10:26
    +17

    How to make a small fortune:

    1. Start with a large fortune.
    • Powershopz on 07/11/2016 - 15:50
      +1

      AKA 'The Donald Trump'

  • Forfiet on 07/11/2016 - 10:44
    +1

    I made mine on ebay when I bought a 10 billion dollar and later 100 billion dollar notes…… Now I'm a Zimbabwe prince!

    • inherentchoice on 07/11/2016 - 11:05
      +10

      Hello Zimbabwe Prince. I am a Nigerian Prince. I will message you with a proposal.

      • Forfiet on 07/11/2016 - 11:43

        Great!

        P.S Is Western union alright with you?

      • virhlpool on 13/11/2016 - 18:32

        I haven't won any lottery, please. Before you even start. :)

  • dasher86 on 07/11/2016 - 11:06

    posting referral deals on Ozbargain.
    Vinomofo
    Groupon
    Cudo
    Iherb

  • vroomkroom on 07/11/2016 - 11:36
    +1

    I always thought a millionaire was someone with a million $ income PA and not someone with house/assets valued at million $. These days the term millionaire has just become to common. I am not none of above :-)

    • freakatronic on 07/11/2016 - 11:44

      Well, a million p.a income precludes too many people. I'd be waiting a long time for an answer.

    • bighead on 07/11/2016 - 11:44

      All together now, repeat: I am none of the above.

      • freakatronic on 07/11/2016 - 11:51
        +2

        But Vroomkroom said he/she is not none of the above. They've clearly stated that they're a millionaire.

    • inherentchoice on 07/11/2016 - 11:52

      $1 million per annum in taxable income requires about $430,000 in taxes.

      • dasher86 on 07/11/2016 - 11:55
        +1

        The trick is to reduce that taxable income by employing legitimate means that cost less than $430k.

      • Brainwhacker on 07/11/2016 - 12:20
        +3

        I hear Trump is good at this

        • smartazz104 on 07/11/2016 - 20:40

          Pretty sure Kerry Packer was quite good at it too ;)

      • mskeggs on 07/11/2016 - 14:04
        +8

        What a great thing it would be to have the privilege of paying that much tax. You single handedly would be supporting a teacher, a nurse, a solider, a policeman - really doing your bit as a pillar of the community.
        Don't have to look far to find people who would feel the community should do without so they could keep more, though.

        • inherentchoice on 07/11/2016 - 14:07
          +4

          Yes totally agree.

          I actually heard a presentation from a multi millionaire property investor in which he mentioned that you should want to pay more tax.

          Because the more tax you are paying, then the more you are earning!

        • arcticmonkey on 07/11/2016 - 15:16

          @inherentchoice:

          Does that apply to big business? I found this to be an interesting read:

          http://www.smh.com.au/small-business/finance/small-businesse…

        • jenkemjunkie on 11/11/2016 - 10:02

          My father makes a lot of money ($400K+ a year) and he just does his tax online. I'm not kidding. He doesn't care about minimising his tax bill because this is his line of thinking. He only owns one house and that's the one he lives in.

          I can say with pretty high certainty that he would have $1M+ sitting in a bank account and it doesn't bother him because he doesn't have to worry about asset allocation. He just lives his life very comfortable and enjoys the fine things still.

  • NotYourFavPineapple on 07/11/2016 - 12:04

    Honestly, I'm already on my way to 400 trillion. You can all be on the same boat as me http://www.ebay.com.au/itm/Zimbabwe-100-Trillion-Dollars-200… . Accurate depiction http://hughwhalan.com/wp-content/uploads/2014/03/Inflation-s…

    • freakatronic on 07/11/2016 - 12:12

      Yeah you and a few others here, it seems. Remember me when you get to the top.

    • Forfiet on 07/11/2016 - 12:16

      I have a 100 and a 10 in my collection :)

    • AussieDolphin on 07/11/2016 - 18:14

      Gutted I gave my Zim notes to my daughter to play shops.

  • Islund on 07/11/2016 - 12:26

    I had to buy a lot of monopoly sets

  • sergun on 07/11/2016 - 13:09
    +3

    Have you ever met a fisherman who tells his fishing spot?

    • freakatronic on 07/11/2016 - 13:12

      I'm pretty sure a lot of fishermen are interested in telling the tale of their biggest catch, and will gladly recount it to anyone who has time to listen. IF you know what I mean.

    • Mad Max on 07/11/2016 - 13:26
      +18

      Talking about money and fishermen, do you know this story?
      There was once a businessman who was sitting by the beach in a small Brazilian village.
      As he sat, he saw a Brazilian fisherman rowing a small boat towards the shore having caught quite few big fish.
      The businessman was impressed and asked the fisherman, “How long does it take you to catch so many fish?”
      The fisherman replied, “Oh, just a short while.”
      “Then why don’t you stay longer at sea and catch even more?” The businessman was astonished.
      “This is enough to feed my whole family,” the fisherman said.
      The businessman then asked, “So, what do you do for the rest of the day?”
      The fisherman replied, “Well, I usually wake up early in the morning, go out to sea and catch a few fish, then go back and play with my kids. In the afternoon, I take a nap with my wife, and evening comes, I join my buddies in the village for a drink — we play guitar, sing and dance throughout the night.”
      The businessman offered a suggestion to the fisherman.
      “I am a PhD in business management. I could help you to become a more successful person. From now on, you should spend more time at sea and try to catch as many fish as possible. When you have saved enough money, you could buy a bigger boat and catch even more fish. Soon you will be able to afford to buy more boats, set up your own company, your own production plant for canned food and distribution network. By then, you will have moved out of this village and to Sao Paulo, where you can set up HQ to manage your other branches.”
      The fisherman continues, “And after that?”
      The businessman laughs heartily, “After that, you can live like a king in your own house, and when the time is right, you can go public and float your shares in the Stock Exchange, and you will be rich.”
      The fisherman asks, “And after that?”
      The businessman says, “After that, you can finally retire, you can move to a house by the fishing village, wake up early in the morning, catch a few fish, then return home to play with kids, have a nice afternoon nap with your wife, and when evening comes, you can join your buddies for a drink, play the guitar, sing and dance throughout the night!”
      The fisherman was puzzled, “Isn’t that what I am doing now?”

      • freakatronic on 07/11/2016 - 14:05
        +8

        Yep, and it's a great story that illustrates a beautiful point about gratitude and contentment. Unfortunately for me, I'm not a villager with a simple life of comfort and contentment to which I can return by simply reaching a realisation that I'm on a hamster wheel.

        • eagleanthony on 07/11/2016 - 18:47
          +8

          Don't worry too much about how other people did it. It's really quite simple.
          1. Live below your income. The cheaper you live, the faster you are to retirement.
          2. Buy appreciating assets with said savings.
          3. Refer to rule 2.
          4. In case you didn't read rule 3; do not buy things that depreciate - $80,000 cars are a prime example!

        • freakatronic on 07/11/2016 - 20:28

          @eagleanthony: Not so much worried about how other people did it as interested. And holding to the belief that successful people don't mind a bit of a brag, I propose the question to all of the readers and writers here at ozb :)

          And sure, I agree with your points. Just I'm looking for specific examples. "I bought and sold fish until I Yada yada, blah blah blah, at which point I realised I had a million dollars."

      • sergun on 07/11/2016 - 14:42
        +4

        Then he has a toothache, so he knocks his tooth out, then a cut in his leg, so he has his leg amputated, and so on until he happily dies at the age of 49, outliving all his brothers and sisters. Then his kids repeat his fame.
        FYI: Avg. life expectancy in Brazil in 1960 was 54 years. Now it's 75, but they're not fishermen anymore.

        • lnq on 09/11/2016 - 10:13

          Imagine it is not Brazil but Australia, He can live till 100 years old. Financial freedom + Best medical & education, what else you need?

        • Mad Max on 09/11/2016 - 11:08

          @lnq:
          I suppose you have to look at the moral of the story. You can keep chasing more money and more expensive status symbols and luxories. But there is always more. Always someone that has more than you.
          Or you can be happy with what you have…this could be the secret…
          After all you have plenty of examples of rich and famous people that have very unhappy lifes.
          It is also true the say "better to cry in a Mercedes than on a bicycle".
          Who knows…? Each to their own.

        • lnq on 09/11/2016 - 11:33

          @maxi: exactly, not everyone know what their needs are, always after what they want!

      • plentifoo on 08/11/2016 - 20:20

        sounds a bit like me. "Semi-retired" at 29 yo working for the WA state government as a fund manager/accountant. Work my 9-5 and spend the rest of my available time on family, friends and church. Have a standard mortgage that I'm paying off comfortably with a more than ample disposable income to save and still invest in hobbies and interests outside of work.

        without having read this before, I pretty much reiterate this story in my own way to explain why as an business/investment professional, I choose to live in Perth over the "business hubs" strewn across asia pac like Syd or Singapore.

        Why spend 30 years of my life going in a circle only to come back to what I'm striving for and have already achieved?
        I have various theories as to why, but it's usually to do with comparison and keeping up with the Joneses.

  • shadowarrior on 07/11/2016 - 13:44
    +1

    When I went to sleep after drinking a six pack of Peroni Nastro Azuro. I had spent all the money, to the cent by the time I woke up, and looks like I gave away everything I bought as well.

  • qwertyaz on 07/11/2016 - 14:20
    +5

    selling baby formula to china!

    • freakatronic on 07/11/2016 - 14:32
      +2

      Did you do it?

    • [Deactivated] on 07/11/2016 - 20:02

      The out of date NZ stock dumped in China would have been profitable.

    • niner on 07/11/2016 - 21:51
      +1

      There are suburbs in Sydney where Chinese people are going mad with sticky tape and boxes in the store. They're sending vitamins, baby formula, milk and food to China.

      In Burwood, there are more than 6 of those stores.

      • mezje on 08/11/2016 - 00:09
        +1

        Melbourne is much the same, they are popping up everywhere! CBD, outer suburbs, absolute madness.

        • lemons4lime on 08/11/2016 - 09:01

          yea its rediculous, what is happening to Australia!

        • Hirolol on 08/11/2016 - 17:03

          Yup
          The chemist warehouse in Chadstone is so busy that they ended up just putting 6 pallets of what looks like their most popular range so people can just grab what they want by the box.
          When ever I go it's guaranteed that I will see someone buying at least $400 worth of stuff

    • malouphix on 09/11/2016 - 10:21

      It makes me wonder why the producers of the formula aren't selling directly to China with so many consumers buying and sending in bulk. Same here in Brisbane, it's insane.

      I know of one lady, she travels to China every week or two selling Aussie goods to people in China, then she sells Chinese products to people in Australia upon return, it pays for her airfare and she still makes a very tidy profit.

  • Save Medicare on 07/11/2016 - 14:44
    +26

    I took the $1,080,000 daddy gave me and bought myself a new car for $80,000 straight out of uni.

    Bam. $1,000,000 left.

    • niner on 07/11/2016 - 21:52

      GO fall out of a fire engine…..again.

  • ghostdom on 07/11/2016 - 14:50
    +24

    This is about me during last 6 years after graduated from uni. i live in Sydney and now 30 years old.

    Started work in 2011 after Uni with 50K salary, parents helped with 20% deposit (about $100K) to purchase the first property - new 2 bedroom apt. paying about $2000 a month for loan interest.
    Early 2013, Salary raised to 80K, topped up the loan from 1st property to get about 150k cash plus about 50k savings from me and my wife. went for a house auction and bought a 4 bedroom house + studio in the backyard for less than 1M (15kms from Sydney CBD). Rent out the first property and rent can cover the expense pretty much. Rent out the studio in the house backyard, ended up paying pretty much same as before but to live in a 4 bedroom house. (300 dollar rent can cover about $300K loan's interest).
    Mid 2014, top up both loans to get another 150K, Purchased a 2BR off-plan apt in a good suburb for about $750K. Property settled in late 2016 and agent have offered to help sell for over 1M.
    Late 2015, top up first two property (majorly from house (valued for 1.6M from the bank) due to the crazy pricing for house these days) to get $400K, purchased a second hand franchise retail shop for $400K. Continue my day time full time job and salary raised to 90K. After half financial year, shop made over 100k profit.

    Now my life style is pretty much work and work. Go to full time work 5 days a week, stay in the shop till 11pm every weekdays to close shop and order stock. I work both weekends in the shop. No holidays during last whole year. And I see it will continue like this until I can make some future change (quite full time job or sell the shop).

    Even I work hard and have a lot of property loans, but I think I am on the right track. I believe the earlier the harder your life is, the better the earlier your retirement comes. And the reason I started the franchise shop is I think after buying a few properties, a stable cash flow is quite important, it will buffer any uncertainty in the property/rental markets, while properties value raise can help the business grow once needing extra money.

    So after 6 years i see my current position:

    Property total est. value on market: 3.4M
    Total property Loan: 2.4M
    Shop value: 400K
    Savings in bank: 150K
    Personal annual Income: 90K
    Shop annual income: about 200K

    Keep the hard work continue.

    • Tech and cars on 07/11/2016 - 15:10
      +2

      Very well done mate!

    • brizzy on 07/11/2016 - 18:06
      +5

      Sounds like you need to quit your job tbh to have something more sustainable and have some work-life balance.

      • ghostdom on 08/11/2016 - 09:51
        +2

        I agree. And I think the change will come soon…

    • freakatronic on 07/11/2016 - 20:32

      Keep up the good work! Sounds like it's working out for you.

    • thargelios on 30/11/2016 - 20:21

      Nice….. it's cool when your parents can help out like that. It definitely gave you a massive head start. Working's not all bad. If you enjoy the work.

  • itbargainhunter on 07/11/2016 - 14:57
    +1

    in Yen or Rupiah?

Login or Join to leave a comment
Login Join