6 questions worth pondering

Enjoying the Postings, so here’s my responses:

1/ “What was your prime motivating event that created a focus on the need to invest”

This took some thought and reflection, the initial motivating force was meeting the mother of my son who earned half what I did and had saved twice as much, she initially instilled the desire in me, stories of my parents attempting to survive on a loaf of bread and what the sea had to offer for a week, due to no money etc, and the fact that the best investment they ever made, was in property, also helped fuel the desire. Having a family of my own and recently getting married would be recent fuel to the fire. We all want to do the best we can for our kids- in many ways. I don’t earn a large amount but do well with what I do earn.

2/ “What have you done about it since then and rate your achievement”

I’ve bought shares to fund property and done well for myself (the first time put 10% of savings away each pay and at 1k each time bought shares, sold these-at a profit to buy a property which I sold 3 months later to make 15k profit). Now with my wife own 2 IP’s and a PPOR. Only give myself a 4/10 for effort- I know I could’ve done better. For achievement however I give myself 7/10 as I know many people worse off.

3/ “based on your current performance how long will it take you to reach financial independence”

Now the marriage is out of the way, goals can be reset and we can apply ourselves again. Financial independence to me means “financial freedom”. I’d like to say 10 years as a goal- and then try and beat it !!

4/ “what are you currently doing to improve your plans”

“Just doing it”… by that I mean walking the walk, reading what I can, investing and reducing current loans, trying to improve my skills, looking at changing careers and earning capacity.

“MINIMOGUL- I JUST PICKED UP THE 1 MINUTE MILLIONARE -BIG BOOK!!”
I’ll start reading it soon![]

5/ “ what is your ultimate goal, and will it make you happy”

Being able to enjoy the company of family and good friends without time or work constraints/ commitments, me and mine being in good health and spirit and achieving financial freedom, so Yes.

6/ “which is more important the goal or the journey”

The journey-it makes the goal worthwhile, it’s a learning curve, the goal once reached is celebrated, appreciated and then re-evaluated and reset.
Thanks this gave me a bit to think about!

REDWING

“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”

Hi. Well, this is my very first post, and I thought what better place than here to start. Mostly for my own benefit – in a few months I will come back and see what has changed or what I have acheived.

1) What was the prime motivating event in your life that created a focus on the need to invest?

Our parents. My husbands parents are on the pension and struggling. They have 5 children and we all give them a small amount of money each week so they can make ends meet – I don’t want to be there. My parents are currently on a 7 month caravaning trip around Australia without a care in the world (and yes they are definately one of those bloody 4WD/Caravan combos you try to avoid on the road). They invested well in shares rather than property after a horror IP experience. They own their own home. I don’t want to rely on the pension or my kids (we don’t have enough kids anyway []).

2) What have you in fact done about it since then, and rate your achievment.

We have really only just started.

Thanks to hubbys work we are currently living in Sydney and our own home in central vic is being rented. So in reality you could call that our first IP but we are being relocated back south after 3 years in the beautiful harbour city and will move back into our own home. But we loved being landlords and see that as our path to financial independence.

We are currently reading heaps and researching areas. Looking at different structures and working out the best way to get started.

Rating: 3/10 – at least we have made the decision []

3) Based on your current performance, how long will it take to reach financial independence? (Whatever this might mean to you)

We have a 10 year plan and at this stage can’t see any obstructions to that.

4) What are you currently doing to improve your plans?

Redoing our budget to save more for deposits/closing costs. Researching to ensure our plan is realistic and includes everything we want to ahceive.

5) What is your ultimate goal; and will it make you happy?

To only work when we want to, doing what we want to do whilst living very comfortably until the day we both die. To help Hubbys parents more.

6) Which is more important: The goal or the journey?

Mmmmm… tricky. The journey doesn’t exist without the goal, so if it is a matter of importance then it is the goal. But if the journey isn’t fun, will the goal be worth it?

OK, I’ll give it a go…

1) What was the prime motivating event in your life that created a focus on the need to invest?
Coming from a single parent family, where my mum raised 4 kids working in menial jobs, she managed her money well, but always struggled and continues to do so. I don’t need to be mega-rich, just financially independent. Have three siblings, none of which own a PPoR, let alone any savings or investments.

2) What have you in fact done about it since then, and rate your achievment.
Bought an IP two years ago, just negative. Sold that prop and used the great capital gain to pay most of PPoR mortgage. Have since moved to a larger PPoR, slightly higher mortgage but we should be here for life. Have great equity in PPoR and good cash savings. Intend to wait 12-18 months for market to adjust, then look for +ve cashflow props. In the mean time plan to pay most of mortgage off.(And try to convince hubby to sell the big Harley doodad)

3) Based on your current performance, how long will it take to reach financial independence? (Whatever this might mean to you)
I am working on a ten year plan, I am finding this hard to put into detail, but am dtermined to work it out.

4) What are you currently doing to improve your plans?
reading, learning, posting, saving, paying off PPoR and formulating a plan.

5) What is your ultimate goal; and will it make you happy?

To simply be financially independent. To me this is living off a passive income around $100000 a year. This will make me happy if I have accomplished it in my own way and brought my family along with me. Without them, it would not be worthwhile.

6) Which is more important: The goal or the journey?

Without the goal, there is no direction and the journey cannot begin.

Sue []
That was great Richmond, thanks for the experience []

“Be careful not to step on the flowers when you’re reaching for the stars”

Hi Richmond,

You really know how to get the best out of people don’t you? Albeit a borrowed half dozen questions, I have been avoiding answering as it makes one look at oneself. After reading the positive goal setting of many others here, I now realise why. I need to set goals. Thanks so much for inadvertently forcing me to look in the mirror. Have you considered psychology as a side job?

Bloody hell .. here goes

1/ Prime motivation is two-fold. Fear of poverty is one. On a more positive note, something substantial to leave my beautiful daughter.

2/ What have I done? I have successfully managed to confuse myself with the many options of investment vehicles available. I have read many books, met lots of great people and yet find procrastination to be my closest friend.

Books 8/10, Other people 10/10, Me ?/10

3/ Financial Independance: I picture myself finally finding all of life’s answers just as I am about to croak it. Then spending eternity kicking myself for being, and not doing.

4/ Currently doing? Replying to your post.

5/ Ultimate goal? To make a difference with positive impact on others’ lives, in order to make sense of the purpose of being. Money by definition as a store of wealth can do lots of good in the correct hands. Make me happy?
It’s the definition of happiness that if all had the same attitude to make a difference to one another, it would be reciprocated naturally. There would be no fear of loss, if the collective mentallity was one of giving.

6/ The goal or the journey? The goal is the target, therefore the focused importance. Other achievements can be met or created on the way to the target.

I hope to improve on my answers in a more succint way when I get off my procrastinating merry-go-round. I hope my contribution might help someone though.

You’re a bugger Richmond .. how do you do it?

Kind regards to all, Phil

yeh interesting about the psychology of rating yourself.

“Some people might have 100 properties and give themselves a 2/10. For some, it might never be enough, but I think it’s good to be satisfied and proud of oneself- whatever one has achieved- because it isn’t easy for many of us. “

yeah – totally. and I gave myself a big old back-slapping look-how-far-i’ve-come-in-6-months 10, even an 11 – and yet the legendary westan was worried about appearing conceited with 9.5.

transcript of inner-dialogue while reading and re-reading this post over the last few days (just call me bridgette jones!)

eek! self-esteem-alert! should i have rated myself lower because westan has many times more properties than me? should steve be the 10 benchmark with which we all compare ourselves? was i really only a 2-3?

hang on self,

because the question was ‘rate your achievement’. *i* know what i achieved and how much i sacrificed to do it. this is a psychological barometer of self-esteem! who cares what they think, westan? who cares if someone would rate you lower than you rate yourself?

The question was rate yourself. not, rate yourself based on what you think people will accept without thinking you’re a w@nker.

why do I now feel like I have to justify scoring myself as a 10-11 when westan who I respect and think of as more experienced than i only rated himself a 9.5 and is worried that was too high? should i edit my post and take myself down a notch or two in case someone else might have a problem with it and think i am full of myself? Do I think i am up myself? no.
so if someone thinks i am, i won’t care, because i am not, right?

blah blah blah blah

result: i didn’t edit my post.
it reminded me that Steve’s answer to people’s reasons for not investing such as ‘i might look stupid’ was TO WHO? WHO CARES???

mini

Hi everyone!
Its great to see everyone doing so well.. each at different stages in their investing strategy, however, all at least doing something. Anyways, here is my 2 cents…

1) What was the prime motivating event in your life that created a focus on the need to invest?
I think that the main driving force is my dad and my brother. My dad ‘sold’ me my first IP (I got the loan and everything, while he put out the deposit and sold his IP to me at a reduced rate). With that, he taught me the basics of investing and how to create more wealth. In a sense, he is my ‘Rich Dad’. He came to this country with a wife and 2 kids and not a cent to his name. He couldn’t speak english and worked at least 2 jobs at any one time. Today, 24 years later, he has 6 kids, several businesses and many IP’s and is (I think) financially free. I have alot to learn from my dad, and my mum. They are my hero’s and my inspiration. If I can’t do at least as well as they can, then basically I am crap! I should be ashamed of myself. I was born and raised here, had a great education and am also getting financial assistance from my parents to start up.
My brother also introduced me to the ‘Rich Dad, Poor Dad’ series which has confirmed what my dad has been telling me all these years.

2) What have you in fact done about it since then, and rate your achievment.
I have purchased 9 IP’s with some help from my parents. My parents helped my purchase my first couple three years ago, and then I later bought some myself. I think that without my parents initial support, I could never have afforded my other ones. I think I have been very lazy this year, (as I have not purchased a single IP) so I give myself 4/10.

3) Based on your current performance, how long will it take to reach financial independence?
Hopefully in about 5 years.. although I think that I might be abit too optimistic.

4) What are you currently doing to improve your plans?
Nothing. Like I mentioned above, I have been extremely lazy this year. I guess that I am saving abit and waiting for the apparent ‘bust’.. but somehow, I think that I know deep down that it might never come. I have to get off my butt and search for some more property.

5) What is your ultimate goal; and will it make you happy?
I think that would like to achieve at least what my parents have achieved, so that they can be proud. That might take more.. alot more that 5 years.

6) Which is more important: The goal or the journey?
I think that both is important. The goal is what ultimately drives you, however, if you hate the journey, it might not be worth it in the end.

I think that that was more like 5 cents worth.. at least.

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Tomorrow, you might wish you started today.
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1) Dad reckon’s he’s semi-retired, working 70-odd hours a week. He loves his work, and it’s one way to make money, but it’s not for me…

2) So far, a lot of planning and very little action. I have a step-by-step plan of what I want to achieve, by when, and how i plan to acheive it. Rating? probably too early to tell, will depend on how well this plan turns out.

3) Financial independance might come in around 6-7 years, my plan however is for $200k passive income within 12 years (ie: when i turn 30)

4) Constantly learning as much as I can about real estate and assorted other investments, and fine-tuning my Plan fairly often. Getting feedback from the right people, and trying new ideas.

5)My ultimate goal, as far as my finances go, is to only ever have to work if I choose to. This alone mightn’t make me happy, but assorted other plans I have should help, especially if I can keep ahold of kylie (my g/f)

6)Both. A journey with no goal is like chasing your tail, however I don’t think its worth sacrificing everything in my youth in order to have something later, when I might be too old to enjoy it properly.
The end must justify the means, and the means must be worth the end.

Cheers,
J.

*****

“…in spite of my confusion, up above all my pain, got a death-grip on this vision so here I go again…”