澳洲Australia property Time to earn some Money | Sydney


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


Hello, everyone. As the title suggests, I believe it is time to earn some money. I am hoping with some advice and discussion from others, my path from rags to riches can commence.

Just some background on myself.
I am 25yo engineer and I have next to no savings, however I am earning 125k this year and will be earning 145k at the start of next year.
Through hard work (FIFO site job) I am in a position with a moderately good income for my age. However I spend long hours at work 3 weeks on site (constant work) and 1 week off (rest).
I have no earnings because I was just being young and enjoying life - spending big on food (yes I got really fat ><) and going out - don't even have a good car to show for it :(

I've always been rather ambitious, and wanted to become a CEO and of course rake in some cash. I was brought up with the idea that hardwork and persistance will pay off. So I have been slaving away working with that idea in my head.

Of course I have realised its not always working hard, its working smarter. I have also come to realise the world likes to stereotype and always will choose a dumber person who has more experience (**** at job) versus a smart person with less experience (but good at job). Hence it is hard to break through that ceiling and accelerate at a faster pace cause its always the HR (people who have no clue about anything) that hire/promote you. The managers (who know wtf is going on) really just come and have a chat with you to see if you are "normal" before giving you a nod of approval (well at least at my low level position it is).

I definitely want to start doing something on the side this year to earn passive income. It doesn't have to be in place and working this year (due to my capital), I just need the structure and plans set out.

I believe with some diligence and good saving, I can have 50k savings this year, and an addition 70k savings next year.

So now to my questions and Options
Option 1.
Slave guts off, and stick to initial goal of working towards a CEO. Rest on week off.

Option 2.
Slave guts off, work on setting up my side job on my week off, no rest.

Investment 1
Shares and what not - high volatility but good returns if done right (I have a commercial background but I am in no way an investment banker)

Investment 2
Start buying property - I have been researching and I believe later this year/next year would be best times to buy. Due to my low capital, I would be looking mainly in Western Suburbs such as Footscray/Sunshine. (Suggestions would be much appreciated)

Investment 3
Trip to china and jump on the band wagon of finding something to import over and sell. High risk, high returns.


If you are still with me - thanks. In conclusion, this is all very basic and not fully fleshed out, but I am trying to figure out what I should do.
To me money does buy happiness - it buys everything - you just need to earn enough and earn it at the right time. (An 18 yr old will be laughing off his head with a BMW, whereas a 60 year old will be like zzzzzzzzzz).  

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Good that you reached this conclusion at 25 instead of almost 35 like me... I worked FIFO for years and at the end had nothing but fond memories of a rock star style lifestyle on my time off.

My advice, start saving like crazy. Set yourself a high monthly savings goal and feel the satisfaction of hitting it.

If you are renting, move out and put your stuff in storage or just get rid of it. Go on a holiday 1 in 4 and you'll come out better off.

Spend your down time on the net learning as much as you can about investing so that when you have built up a kitty, you don't waste it on bad investments.

Don't bother with the flash car just yet, you won't be home for long enough to justify it.  

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Soulnafien said: ↑
. I have also come to realise the world likes to stereotype and always will choose a dumber person who has more experience (**** at job) versus a smart person with less experience (but good at job).Click to expand...
Dont take this the wrong way, but thats typical victimology talking here.

Perhaps you havent yet got what you want, because maybe you dont really want it, or dont know what "IT" actually is for you ( I feel the latter )

Right now, you have pretty much what you really want ...........confronting I know.

How do I know this ? because the same rule of life applies to me........

If I want something enough, I will find a way to REMOVE the control that others have, and no longer be victim and surrender my circumstance to others.

Its that simple ( or hard and complex)


ta

rolf  

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I personally wouldn't aim to be a CEO...I would aim to be a good investor and manager of my own money. Whether that be through property, shares or direct business depends on you. Aiming to be another (more highly paid) wage earner is not a good aspiration in my books as it just means you are a higher paid slave.  

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I'm in software, rather than engineering, so have experience of the lack of technical knowledge in managers and HR. And, yes, it is frustrating having to explain to your superiors why what you're doing is the right thing in very simple language, or being turned down for a job because you don't tick everything on a checklist, particularly when you could pick up what's missing in a matter of days.

However, being antagonistic about it won't help, and, frankly, your comments about your colleagues don't reflect well on you.

If you're still reading then I've got a couple of suggestions. :)

Be more humble. In my line I reckon that it takes three or four years after university to become competent, I'm continually learning, and best practices are always being revised. Learn what you can off them because they'll have seen things you probably haven't even thought of.

If you want to become a CEO then you're going to have to move into a managerial role. The worst team leaders are the ones who micro-manage everything, so you're going to have to trust the skills of those around you. (Which feeds into the above.)

I find running projects to be difficult, and it never turns out as well as I'd hoped. That's probably true for most managers, and a lot of technicians have poor interpersonal skills too, at least in my industry where we're all borderline autistic. :)

If you want to make serious cash from work then you really have two choices:
  • Cultivate skills that are perceived as being in critically short supply. This would mean being something like a rock, sports or film star; CEO (for some reason executives see themselves as having exceptional abilities); top trader at an investment back; or any other profession where there's a massive difference between the top tier and everyone else.
  • Start your own company, and hope it's very successful. But be aware of the failure rates of new ventures. :(
Rather than pick something that you don't know much about or everyone else is doing (such as importing goods from China), I'd focus on what you know or love.

Put it this way, JK Rowling was advised after selling the first Harry Potter novel not to give up her day job, as there's no money in children's literature. She's now a billionaire.

As for investing, around 20% of fund managers will beat the benchmark indices in a given year. Around 5% will achieve that long term. And these are the top brains in the industry, with access to information that retail punters lack.

If you save well and invest sensibly then you'll almost certainly end up as a millionaire in twenty or thirty years with your income. You might do it sooner if you're lucky enough to time it right (e.g. buying into the property market ten or fifteen years ago), but unfortunately it's hard to know in advance if you've made the right decision.  

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At 25, I'm guessing you're not long out of uni, So $125k is pretty decent. But i think you could be doing better, as for how to spend/invest the cash is up to you.

What engineering are you doing? There is massive money to be made as an engineer on a contract basis at the moment.

I'm 2 years out of a tafe course I didn't complete and am earning just over $100k as a civil drafty.

I'm not particularly good at my job, nor do I work particularly hard. I'm just in the right place (Perth) at the right time (Now)

I have engineer, designer and drafty friends earning anywhere up to $200k (some even more) just by taking the contract route, rather than staff positions.

None of us need to work FIFO or ridiculous hours to get this cash. We all catch the train into the city, work 45 hrs/week in airconditioned offices with cheap city lunches and have weekends to ourselves/our families.

There is a bit of a stigma around contract roles, but there doesn't need to be. About the only thing that makes me worse off is the shorter notice period, but hey, that just means i can jump ship for a better rate easier.

And seriously, the more often you move, the more your rate goes up. Keep your ear to the ground, apply for anything interesting, and don't move unless you're getting a better payrate.

Once you're on $200k, you'll have plenty of spare cash to throw at investments properties/shares/whatever.  

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Soulnafien said: ↑
Hello, everyone. As the title suggests, I believe it is time to earn some money. I am hoping with some advice and discussion from others, my path from rags to riches can commence.

Just some background on myself.
I am 25yo engineer and I have next to no savings, however I am earning 125k this year and will be earning 145k at the start of next year.
I've always been rather ambitious, and wanted to become a CEO and of course rake in some cash. I was brought up with the idea that hardwork and persistance will pay off. So I have been slaving away working with that idea in my head.

Of course I have realised its not always working hard, its working smarter. I have also come to realise the world likes to stereotype and always will choose a dumber person who has more experience (**** at job) versus a smart person with less experience (but good at job). Hence it is hard to break through that ceiling and accelerate at a faster pace cause its always the HR (people who have no clue about anything) that hire/promote you. The managers (who know wtf is going on) really just come and have a chat with you to see if you are "normal" before giving you a nod of approval (well at least at my low level position it is).
).Click to expand...
Well, I dont mean to be rude, but if you are earning $125Kpa, you are already earning around double the average salary... so you are hardly on a rags to riches journey. It seems to me that you dont need to earn more money, you need to use the money that you have more wisely.
My suggestion would be to start with some discipline in your savings. If you want to be a CEO, or run a business, you need to learn how to manage money. It seems that you dont have this skill at the moment.
Although you think that people who are dumber than you are getting promotions, it seems to me that you are not yet mature enough to be able to manage yourself, let alone others. Build that maturity into your own life, and it will become evident to the managers around you. The HR people and managers may not have as much technical know-how, but immaturity is pretty easy to spot, and it is a major blockage to being given more responsibility.

I wouldnt look at setting up a business or any investments until you have gained control of your spending and savings.  

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Most 25yo's are earning under 50k so 125k is beyond the wildest dreams of most.

Look for a referral to a good unbiased financial planner (eg PT Bear) who are more interested in your financial outcome than promoting what earns them commission.  

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dude, i am a social worker with 4 kids and make way less than you. the potential is ENORMOUS on your current salary. You need to read every book you can find on property investing, do a serious budget and put a lot of money away for the next year or 2. When you have your head in the game start investing. in 10 yrs you would be better off that the ceo if you invested right.  

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The first thing you're going to need to do is save some money. Without some money to invest upfront, you're not going to get very far. $125k/yr is more than enough to live well on and have something left over, especially if you're in a role that only gives you free time 1 week in 4.

I'd suggest you simply start putting a percentage of your salary aside. If that ends up being $10k or $50k, it's better than nothing.

In the meantime, educate yourself. By all means use some of your spare time to enjoy life, but success does require some sacrifice, both financial and personal. Use some of your spare time to improve your understanding of various types of investment so you minimise your mistakes when you've got the funds to do something with.

If you want to be the CEO, that's a career choice, not an investment choice. Many employees invest wisely and have a net worth many times higher than their boss on a lower income. Investing and career are mutually exclusive so don't make a decision on one based on your decision on the other.

Don't get arrogant about other people being promoted ahead of you either. You're 25 and believe it or not, there are people out there with more experience than you! The tone of your post comes across as confident and more than a little cocky. This can be great for running ahead at 1000 kph, but you likely lack the experience to protect against the down-side. For many people this might be a good reason not to promote you.  

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You are getting some excellent advice on this thread. I hope it gets valued as such.

BTW don't limit yourself - it's not either/or. You can do everything on that list of yours if you actually want to. It only depends on how much you want to. Although personally I wouldn't bother with the trip to China - that's just like getting a different job.  

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So to the data ;

Soulnafien said: ↑
25yo engineer
I am earning 125k this year
will be earning 145k at the start of next year.
I work 3 weeks on site (constant work) and 1 week off (rest).
I have no earnings
I got really fat
don't have a good car
I believe I can have 50k savings this year
70k savings next year.Click to expand...
Hmmm, few comments as requested ;


1. Congratulations on graduating as an engineer. Demonstrates long hours of study and resourcefulness.

2. Big kick up the bum for letting your health go. No excuse. Get it back - now !! See my signature below.

3. Not good that you have no savings. Your financial and health habits are currently really poor. You've got bucketloads of work to do in both areas.

4. On 125K gross p.a., you should be paying 34.2K in tax and another 1.2K as a flood levy. Say roughly 35K to the Govt. That leaves 90K in your hand. As a young single guy on-site for 3/4 of your life, where all food & lodgings are provided free of charge, you should be able to Bank at least 75K this year. That leaves $ 15,000 of free cash to blow as you have been doing in the 13 weeks you have off in town. IMO, that still affords an extravagant life for a young guy with no kids, no wife, no mortgages.

5. I reckon advising what you should do with your cash (that you don't have any of) is waaayyy down the track. Demonstrate a severe turn around in both your health and your ability to save and come back next year and ask the same question.


P.S. I was in exactly the same position as yourself 20 years ago. If you get your act together, it doesn't take that long to be in a far better position than any CEO.  

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Dazz said: ↑
P.S. I was in exactly the same position as yourself 20 years ago. If you get your act together, it doesn't take that long to be in a far better position than any CEO.Click to expand...
For a start you have freedom of your time.......................

ta

rolf  

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Congratulations on finding this site and thinking about your future. I feel that at such a young age, you have fallen into a well paying job and you think, for some reason that it is just a start-up salary. Let's look at some of the comments from some of the other posters for a minute.
pennyk said: ↑
if you are earning $125Kpa, you are already earning around double the average salary... so you are hardly on a rags to riches journey. It seems to me that you dont need to earn more money, you need to use the money that you have more wisely.Click to expand...
DaveMSydney said: ↑
Most 25yo's are earning under 50k so 125k is beyond the wildest dreams of most.Click to expand...
Dazz said: ↑
4. On 125K gross p.a., you should be paying 34.2K in tax and another 1.2K as a flood levy. Say roughly 35K to the Govt. That leaves 90K in your hand. As a young single guy on-site for 3/4 of your life, where all food & lodgings are provided free of charge, you should be able to Bank at least 75K this year. That leaves $ 15,000 of free cash to blow as you have been doing in the 13 weeks you have off in town. IMO, that still affords an extravagant life for a young guy with no kids, no wife, no mortgages.Click to expand...
I can't comprehend that someone on that kind of an income has no savings, especially a single guy doing FIFO work. You are earning more than many families, while you really have no huge expenses to pay, and you are only 25 years old.

Don't be cocky! Get your act together and tame that spending. On your income you should be able to save a very healthy sum in just one year. While building up some savings, stick around here and other places and suck up the information. It's no good having high & mighty plans on what to do with your money, if you don't have any.  

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skater said: ↑
I can't comprehend that someone on that kind of an income has no savings, especially a single guy doing FIFO work.Click to expand...

Its easier than you think... working FIFO is HARD WORK you slog your absolute guts out doing long days and 13 day fortnights. On your time off you want to really reward yourself for all that hard work.

When I was working FIFO I put all my stuff in storage and saw the world on my time off. Ive been to every continent on earth and have had some amazing experiences.

Its not till I stopped working FIFO that I actually started settle into a routine and save money.

Its not going to be easy to curb your spending behaviour, but you will find that watching that bank balance grow gets addictive.

Make a separate online saver account and religiously deposit a % of your earnings as soon as you get paid and promise yourself that the money will only be used to make more money.  

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Ergophobia said: ↑
Its not till I stopped working FIFO that I actually started settle into a routine and save money.Click to expand...
like i said, as an engineer you don't need to be working FIFO to earn that kind of money.

Ergophobia said: ↑
Make a separate online saver account and religiously deposit a % of your earnings as soon as you get paid and promise yourself that the money will only be used to make more money.Click to expand...
Agree.  

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Jake D said: ↑
like i said, as an engineer you don't need to be working FIFO to earn that kind of money.Click to expand...
As an engineer, you can make 50% more FIFO than Perth based.

I think that young guys should do it while they can before family commitments require more time at home. You also learn a hell of a lot more on site than behind a desk on the terrace.  

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Ergophobia said: ↑
Its easier than you think... working FIFO is HARD WORK you slog your absolute guts out doing long days and 13 day fortnights. On your time off you want to really reward yourself for all that hard work.

When I was working FIFO I put all my stuff in storage and saw the world on my time off. Ive been to every continent on earth and have had some amazing experiences.

Its not till I stopped working FIFO that I actually started settle into a routine and save money.

Its not going to be easy to curb your spending behaviour, but you will find that watching that bank balance grow gets addictive.

Make a separate online saver account and religiously deposit a % of your earnings as soon as you get paid and promise yourself that the money will only be used to make more money.Click to expand...
I don't find it so hard to comprehend either.. not saying it's a good idea, but I thought we'd have to be pretty naive to not expect this sort of thing to be true in our society we've talked about how common it is here on this forum heaps of times. Couple that with youth & extra money & I can certainly see how it could happen.

At least he's earning more than most people, so he can make up for lost time.


It's poor dumb ones like me who never saved anything who are worse off when we don't save our minimal wages.  

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Ergophobia said: ↑
As an engineer, you can make 50% more FIFO than Perth based.

I think that young guys should do it while they can before family commitments require more time at home. You also learn a hell of a lot more on site than behind a desk on the terrace.Click to expand...
I wasn't trying to say that FIFO doesn't pay more, just that it's not necesary to earn the money he's talking about ($125-$145k) or easily more.

I'm a couple of years older than OP and have two kids at home, so if I can earn good dollars without the lifestyle sacrifice, that's definitely my preference.

I agree that if you're young or don't have any commitment holding you to the city, FIFO can be beneficial. But I also agree with you (and observe) that those that work hard up there also tend to play hard and not to squirrel much coin away.

Also, please note my signature.  

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Agreed with what many have said in this thread, especially pennK.

One thing i might add, is that money does not buy you happiness. In 30 years time you may have more money than you could spend, but that wont mean youre happy. Once you have realised this, maybe setting out your goals will become a little easier.  

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