Have you ever wondered what it takes to become a millionaire while you are still young?
While it might seem a no brainer for your average FI (financial independence) fan, the average person just isn't aware of how simple it is. I think the reason for this is just because it's not something that's commonly taught, a case of the middle class mindset which is seemingly inescapable.
Thursday, 10 December 2015
Tuesday, 8 December 2015
80/20: How to Maximise your Happiness
Have you ever sat down to figure out what actually makes you happy?
I recently read the 80/20 Principle by Richard Koch, where he says that 80%of your happiness comes from just 20% of your activities and conversely, 80% of your unhappiness comes from just 20% of the things you do.
I recently read the 80/20 Principle by Richard Koch, where he says that 80%of your happiness comes from just 20% of your activities and conversely, 80% of your unhappiness comes from just 20% of the things you do.
Friday, 4 December 2015
3 Most Common Mistakes to Getting Rich
While there's a million positive things you can do to reach your retirement or semi-retirement goals faster, it's also important to not stuff it up!
So what are the most common mistakes to getting rich and retiring early?
They say that the three biggest expenses in people's budgets are:
So what are the most common mistakes to getting rich and retiring early?
They say that the three biggest expenses in people's budgets are:
Wednesday, 2 December 2015
Semi-Retire Now or Fully Retire Soon?
Should you semi-retire now or should you continue working for just a few more years so that you can fully retire?
Let's use an example of a 28 year old man who has about $150,000 in investment assets. Right now he is in a position where he can work 3 days a week, say Tuesday to Thursday, earning $28,700 from paid work. Incidentally, that's all the money he needs to fund his luxurious lifestyle, including $5,000 per year for travel. So the $150,000 that's invested can just continue to accumulate and in 7 years he can drop back to 2 days paid work, as the investments will grow to $240,000 and supplement another days work.
Let's use an example of a 28 year old man who has about $150,000 in investment assets. Right now he is in a position where he can work 3 days a week, say Tuesday to Thursday, earning $28,700 from paid work. Incidentally, that's all the money he needs to fund his luxurious lifestyle, including $5,000 per year for travel. So the $150,000 that's invested can just continue to accumulate and in 7 years he can drop back to 2 days paid work, as the investments will grow to $240,000 and supplement another days work.
Why A Life Of Luxury Isn't Just For The Mega Rich!
Good news, you can live a much better life than you dream for much less than you think!
Have you ever dreamed of being able to do whatever you want, wherever you want with whoever you want? It's all possible and you don't need to earn $500,000 per year to achieve it. In fact, if you do earn that much, you'll find it very hard to get enough time off work to do those things.
What does a life of luxury look like for you? For me it might mean doing 2 days a week of paid work that I actually enjoy, maybe working Tuesday and Wednesday and NEVER on Monday. I would hit the gym everyday as one of my hobbies and work on my physique. I'd use a dreamline to figure out all the exciting things I want to learn, be, do and have and use my abundance of free time towards those things.
Have you ever dreamed of being able to do whatever you want, wherever you want with whoever you want? It's all possible and you don't need to earn $500,000 per year to achieve it. In fact, if you do earn that much, you'll find it very hard to get enough time off work to do those things.
What does a life of luxury look like for you? For me it might mean doing 2 days a week of paid work that I actually enjoy, maybe working Tuesday and Wednesday and NEVER on Monday. I would hit the gym everyday as one of my hobbies and work on my physique. I'd use a dreamline to figure out all the exciting things I want to learn, be, do and have and use my abundance of free time towards those things.
Monday, 30 November 2015
Investing vs. Saving
Should you just keep saving cash or should you invest your cash into a growth asset like shares or property?
Let me try and avoid saying, "It depends, " by laying down this simple rule, if you don't need the cash for 2 years then invest it!
Obviously this doesn't apply to direct property investment as that's more of a 10 year investment, but if you want to build up an equity portfolio then often the best strategy is regularly saving and putiing it into an ETF every 3 months or so.
Let me try and avoid saying, "It depends, " by laying down this simple rule, if you don't need the cash for 2 years then invest it!
Obviously this doesn't apply to direct property investment as that's more of a 10 year investment, but if you want to build up an equity portfolio then often the best strategy is regularly saving and putiing it into an ETF every 3 months or so.
Saturday, 28 November 2015
Can I Afford To Retire On The Pension?
Many people are approaching retirement age and are terrified that they don't have enough money to retire, which means that they will have to fall back on the Age Pension. Which then sparks the fear inducing question, "How can I afford to live on the Age Pension?!"
The maximum Age Pension rate is currently $1,307 per fortnight per couple, which is outrageously lower than what most people currently spend, but is it enough to get by?
The maximum Age Pension rate is currently $1,307 per fortnight per couple, which is outrageously lower than what most people currently spend, but is it enough to get by?
How To Increase Your Income
Many people feel that they don't earn enough money, which begs the question, how do I make more money?
The philosophies that I draw from vary widely, but when it comes to money my two main points are this:
The philosophies that I draw from vary widely, but when it comes to money my two main points are this:
- Earn as much income as possible
- Retire as soon as you can
So in this post I'll focus on increasing your income.
My go to mentor when it comes to making money is none other than the man, Grant Cardone. I recommend checking out his material if you want to be inspired to take care of your family by making money.
I'm going to lay down 3 tips to increasing your income while working for an employer.
Friday, 27 November 2015
Financial Independence
You've been investing for a while now and you're starting to build up a sizeable investment portfolio. So how do you know when you've reached financial independence?
In short, you have reached financial independence when your passive income exceeds your expenses, simple as that!
So if you spend $2,000 per month and you have a stock portfolio that pays dividends of $24,000 per year ($2,000/month) then you've reached Level 4: Financial Independence.
Wednesday, 25 November 2015
How to Invest in Australia
Now you're debt free, you've saved up some cash and you want to know, "How should I Invest my money?"
There are many options but after years of research, from fundamental and in depth value research I have in the end accepted the most tried and tested truth. It's not worth the effort to try and beat the market.
My strategy?
There are many options but after years of research, from fundamental and in depth value research I have in the end accepted the most tried and tested truth. It's not worth the effort to try and beat the market.
My strategy?
Tuesday, 24 November 2015
Level 2: Getting Ahead
So you've started saving some money on a weekly basis and you've used this money to get well on your way to paying off all of your personal debt. Congratulations! Or maybe you just never had any debt to begin with. In any cases you've made it through Level 1 and you've been promoted, you're now at Level 2: Getting Ahead!
There's a very fine line between whether you're at Level 2 or Level 3, but Level 2 is more distinct in that you're still paying down debt, successfully, or you've become debt free and finally starting to save up a cash buffer, but you're not quite ready to invest.
There's a very fine line between whether you're at Level 2 or Level 3, but Level 2 is more distinct in that you're still paying down debt, successfully, or you've become debt free and finally starting to save up a cash buffer, but you're not quite ready to invest.
Monday, 23 November 2015
Level 1: Debt Reduction
In the previous post we discussed the 4 Levels to Financial Independence. So let's start with Level 1, which is a common place for most people: In debt with no investment assets (no, you're home is not an investment asset).
The majority of people are in this position, they may or may not have their own home, they have very little or no savings and they have personal debt. They may have a car loan or two and a balance on their credit cards which never seems to go down.
The majority of people are in this position, they may or may not have their own home, they have very little or no savings and they have personal debt. They may have a car loan or two and a balance on their credit cards which never seems to go down.
4 Steps to Financial Independence
I want to outline a simple plan that can take anyone, no matter where you are financial at present, along the journey to financial independence.
I call it the 4 Levels to Financial Independence!
Each one is intricate and can involve many strategies, therefore, each one will get it's own post.
From what I have learned about finance and the road to financial independence, is that most people have to follow roughly the same steps in order to go from the worst: No Assets and in Debt! To the best: Enough investment assets to support your lifestyle, that is, financial independence!
So what are the 4 levels?
I call it the 4 Levels to Financial Independence!
Each one is intricate and can involve many strategies, therefore, each one will get it's own post.
From what I have learned about finance and the road to financial independence, is that most people have to follow roughly the same steps in order to go from the worst: No Assets and in Debt! To the best: Enough investment assets to support your lifestyle, that is, financial independence!
So what are the 4 levels?
Early Retirement Australia - First Post!
I started this blog as a hobby and also an experiment.
I am semi-retired. One thing I am hoping to do is to use the extra time that I now have, to explore some of my hobbies and find something that I am passionate about!
I've always been interested in finance, and in short, getting rich! Since I was about 13 years old, I have tried to learn all that I can in getting rich. From simple things to do with finances, to the best investment strategies and everything in between - if it was about money or building wealth, I wanted to read it!
Through the years, I refined my investment strategy
I am semi-retired. One thing I am hoping to do is to use the extra time that I now have, to explore some of my hobbies and find something that I am passionate about!
I've always been interested in finance, and in short, getting rich! Since I was about 13 years old, I have tried to learn all that I can in getting rich. From simple things to do with finances, to the best investment strategies and everything in between - if it was about money or building wealth, I wanted to read it!
Through the years, I refined my investment strategy
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