Initial Steps (18 yrs)

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

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

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

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

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.

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.”

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!