What a great thread this has been, a bit older now but still good because it has thrown up lots of ideas for healthy debate and asked a hard question at the start.
I urge all of you to use pester power(writing, calling, talking etc) on your local political members at all levels and have your ideas heard. Include the senators as well
What interesting conversation in this thread!
I can not speak from experience as I've yet to reach my financial aspirations. I've started late with minimal resources.
However, I've noticed by studying wealth creation being taught there are some principles which are common among those who succeed in creating and maintaining wealth (in all forms including lifestyle and personal fulfillment aka happiness)
These are:
1) desire….clear goals to work towards with passion
2) save…."pay yourself first" (not less than 10%), pay your creditors, live within your means whatever they are
3) acquire income producing assests….in any form eg. real estate, stocks, royalties, business etc.
4) embrace opportunities
5) invest in yourself….learn about wealth creation and anything else you want/need to know in order to achieve your desire. Also leverage the knowledge & skills of others towards your goals.
6) reduce consumption & share surplus…..give generously with love
7) learn from failure….protect yourself from losses with insurance & appropriate structures.Best wishes for the achievement of your goals whatever it is.
Susan.
From where the post started to the paths it has taken, there is some excellent points raised about choice and balance.
I work with property investors and I work with seniors, people up in their mid 80's. They are two very different markets but I gain information and education and knowledge from the seniors to see what paths they have taken to get to where they are now.Savings is not enough for most people as only 5% of us are paid extraordinary sums. The old advice of pay off your home and never get into debt is not sufficient to build a wealth base to be able to retire in a degree of comfort. I have seen too many seniors scratching a living just off the pension. They own their own home, paid it off long ago but have little savings and a very modest lifestyle because that is all they can afford to do on a pension. The advice and actions they took was not enough.
To create wealth for most, it is a finance strategy you need to take on, borrowing other peoples money to invest in capital growth and income producing assets. It is about getting your capital to work for you, not just your income, to increase your wealth.
I use property as the asset class because lenders will lend up to 90% in most cases, sometimes more. They believe in it and continue to lend on that security.After that it is about understanding what type of property you need to buy in order to qualify for finance to buy the next property. For many investors property is a buy and hold strategy, for some it is an income replacement or supplement strategy of renovations or developments and you need to understand which it is that suits you.
You certainly need to build in safety nets and risk insurance for protection so you do not have to liquidate or sell unless it benefits you.
Good luck
Greg
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