Hey guys,
I'm only 19 but I'm really interested on investing in some property or shares, but need some advice before I start. I think it would be a good idea to reduce all debt before I start.
So far I have,1) Personal Loan – $7000 – $3600 left (3yr Loan only about 4 months into it)
2) Interest Free Loan for a laptop – $1800 – $1100 left (18 months interest free, 15 months left)
I was thinking about paying off the Personal Loan first as it accrues interest and the other doesn't.
So my question is, should I knuckle down, not go out as much and try to pay off these loans asap and then get into investing… or should I enjoy life pay the minimum and then get into it later?
I have a steady income of approx $32,000 p.a.
Everyone seems to say: "there's plenty of time; I'm still young; I'll start investing when I've got some money later" blah, blah, blah. maybe they will. History shows that most don't.
Also, the average 19 year old is only thinking about 2 days into the future, and whether they can get a bigger car/plasma/new girlfriend etc.
Do the opposite to both these things, and pay off all that consumer debt you've got and you're ahead of about 95% of the rest of the 19 year olds, 29 year olds and even 39 year olds in the country.
Enjoy life, but be smart; get rid of the debt, and try to save as much of your income as you can for investing. Put aside at least 10% of your income for this purpose.
Then, learn about the investment vehicle you like, and start as soon as possible.
With a bit of luck, you'll be retired before 40.
hi Syphanx,
Welcome to the forum.
I think its good that you have started thinking about investing now. I think you should do the following:
1. Pay off the personal loan
2. Pay off the loan for laptop.
3. While you are paying off the loans, educate yourself on property/share investments and more importantly the psychology of wealth creation. There are a number of books, audio programs and live seminars that you can attend.
4. Choose your investment vehicle and start the journey.
Hope this helpssyphanx
No 1. The best advise i can give you is to live as cheap as pos. If you can live at your parents home this is the cheapest if not rent with a friend or find someone to rent the spare room or better the 2 spare rooms.No 2. Learn the difference of a asset and a possession
No 3. I tort about 10 apprentices that wanted to go out and buy $15000 or $20000 car or Ute's. I ask them would you give the money to me and in five years i will give you back $3000. lot of them only spent $3000 on a car.
No 4.It is not how much you get payed but how much of your pay you can save.
No 5. The way you are chopping though your debts you are doing really well if you can keep it up you can be debt free in 8 months or sooner and you can start saving for investing .No 6. Dare to be different to your friends and you will be rewarded for your efforts
No 7.Read as many books as you can and read them again. I've read a book then read one or two more and gone back to the first and understood to better. Keep reading and asking questions on the forum people love to help.
No 8. That new computer you have should have m/soft money on it. It has a very handy feature called future cash-flow you put in all your bills and a deposit every time you get payed and you can see where your money has gone and where your money is going to go.
andrew
Thanks for your help guys,
I have read a few books on 'wealth creation', Rich Dad – Poor Dad, The richest man in babylon and Who took my Money? All have different perspectives on how to save money and create assets. They all however put forward one common idea, the idea to educate yourself about wealth creation. Knowledge of this is worth more than all the money in the world.
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