Girls... If you are reading this I suggest that instead of looking towards men for financial freedom you start learning about investment for yourself. It is never too late and honestly the feeling it gives you when you know you are doing something fantastic for your own future... well its indescribable. Get on board and start taking your life into your own hands. So many women I know talk about how one day they will marry and their husbands will look after them. Don't think like this girls! Make it for yourself and then marry for love. If your man has money then great, added bonus, but at least you know you will always be financially independent because you have made your OWN money, and you have made your money work FOR you!
This year it is my goal to set myself on the path to financial freedom. Every single moment of every single day it is on my mind. I have written investment notes all over my bathroom wall so that every time i go to the bathroom, have a shower or brush my teeth I am reminded of my goals and my action plans to get there. The past few years I have been surrounded by successful men that have worked hard to get where they are. I want that for myself. I want the financial freedom that these 30 something guys have. And I know I can do it.
Im 27 years old. I have no debt, a small shares portfolio and now a steady income. I have brains and I have a passion to learn. For the past month I have been increasing my knowledge of both shares and property investment in order to understand the benefits and drawbacks of both. I listen to audio tapes every single day on investment and wealth creation. A few weeks ago I knew nothing about property. Now I know that there are two main strategies for property. Income or growth. I receive daily newsletters via email on the property market and I have researched quite a few towns that could provide either investment or growth. I have not yet found a property that could provide both.
Currently I have two options i am considering (but this could all change as I learn more).
1. Student accommodation
Purchase price $149k
Rental Income $298p/wk
Sunday, February 20, 2011
Investment 101
2. Proposed mining development town in QLD
Purchase price $250k
Rental income $240p/wk
Potential= Capital Growth
I have asked all of my friends if they know anyone who is a property investor. I want to learn as much as I can and to do that I need people that know more than me. Either books or conversations. Last week I was looking at a group email sent by a girlfriend of mine asking about plans for the weekend. I checked out the recipients list and noticed that one of the email addresses looked familiar. It was. I googled the name and it was actually the same company that wrote the first property investment book that I read in February. I emailed him and asked if i could by him a coffee or dinner in exchange for a chat about property investment. It is my goal this year to get as much knowledge as possible so I can make sound financial decisions. He agreed. I am meeting with him in 2 weeks. I hope to learn a lot.
In the mean time I have also just purchased 2 books on the strategies of Warren Buffet- the greatest investor of all time. I have just started reading but am highlighting all the important bits I can take from it.
I have talked to my friends about what they look for to invest in. I have also listened to conversations of strangers and then asked them if I can take them for a coffee and pick their brains. I am so focused right now.
One friend who works for the ASX has said
- Look at management (are they solid)
- Look at the top 20 investors (are they family/ friends or are they large institutions)
- Look at profit growth over time
Another who is a trader has said
- You have to be aggressive at our age, capital growth is the key... it's the only way to beat the banks and shares provide the best gearing as an investment
- It's all about making your money work for you in the right class of assets, at the right time
- Right now it is exposure to resources
One $15mill business owner has said
- You will never turn $50k into millions through shares or property
- The best thing to do is back yourself and start a business
A real estate agent has advised
- The key to wealth creation is purchasing a property where the rent pays the mortgage and then you experience capital growth over the long term
All of these people are leaders in their fields, thus their investment advice is targeted towards what they know. I plan to take knowledge from all areas and then come up with the best strategy to suit my situation, income, and equity.
I don't plan on working my whole life. I plan to make my money work for me and to provide me with a passive income by the time im 32. That's 5 years from now. Last year I was sick and relying on the people I loved to look after me. I never want to be in that position again. It made me lose my confidence and independence and that is something that does not sit well with me. This year I'm back to myself. I'm getting better slowly and i'm as determined as ever to set myself up financially. It's gonna happen! Wait and see.
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