I want to learn more about money.
One area of life that I figure improvements could have multiple flow on effects into other areas is money.
Learning about Money, Finance - Making It, Keeping It, Using It - What Resources Do You Recommend?
bargain huntress on 28/02/2021 - 10:28
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OzBargain
Spend less than you earn. Invest the balance consistently in quality assets.
If you can master the above, you'll be in front of most punters regardless of what you end up investing in.
Parents should be the primary source of financial acumen.
Dummies guide to money:
Budget
Cut Useless Expenditure - Netflix, coffees, eating out, expensive clothes, brand icons, motor vehicles (if you can walk to work), rent (if you can live with parents or downsize) etc.
Save minimum 30% - 50% or more of your income
If you still cannot save and have no excessive expenditure (unlikely to be the case)
Increase income - side hustle, partner works, pay rise, start business, change careers, innovate.
If you cannot do above two.
You are screwed.
If you are not screwed and can do the above two.
Then pay off all debts immediately.
If there are no debts.
Invest savings to your risk profile - (property, shares, ETF, crypto) and make your money return more than $0.
Then repeat the saving and investing cycle by compounding your money, until you are satisfied and or die. The concept of compounding means you reinvest what you earn so the next time you earn you will make money on your original investment plus the extra money you put back in to net higher growth.
Expectations:
Don’t expect anything great for 5 years
After 5 years you will see noticeable advancements in your financial position.
After 10 years you may be able to improve the material aspect of your life and say buy new cars or clothes and holidays. But you will not want to, due to your committed lifestyle.
After 15 years you will start having visions of a permanent retirement and complete financial freedom.
After 20 years those visions might come to reality.
Depending on how old you are now, that is a very good timeline. I.e 20 and retired at 40 or 40 and retired at 60.
Most people will never retire.
Also do not count superannuation in your plans. This is just the cream on top.
Depends on which doctrine you follow.
I reckon a general rule is, live within your means, buy only what you need, stock up on essentials when they are on sale (eg half price) - that’s why we are on OzB. Don’t go chasing rainbows.
Barefoot investor for basics of household budgeting and go from there.