What is your strategy to achieve financial freedom?

The first step to financial freedom is to learn to live within your means... reduce your expenses so that you have 10% of every paycheck as pure discretionary income... save/invest that 10% wisely and you will surprised how quickly you will achieve financial independence.

 

My strategy is constantly evolving but is basically-

5% precious metals as insurance

10% shares - double geared. Relatively small amount of capital at risk but supercharge the returns. 10-15 year timeframe.

85% property- (50% buy and hold resi / 50% development to increase returns.)

Aim is to increase capital base aggressively at this stage of life and then convert to commercial real estate and retire early.

C

 

This comes to my mind:

A). What is high risks now?
Gold, most bonds, most treasurys.

B) what is medium risks now?
Real estate, property in some parts of the World (like Europe) - pretty good. Prices have come down since 2008. As for the USA: I think the property risk is high.
Silver ETF's?

C) what is low risks now?(or once in a life time opportunity to you)
Renminbi. Land in some parts of Europe and Africa.

Invest in agriculture if you can.

Real estate, homes in Greece are very cheap nowadays. I read one day that you can get a 1-2 bedroom home (in a houseblock) for around 10,000-15,000 EUR in Athens. But I'm pretty sure it's in the slums.

Vacation homes in Greece and Spain, Portugal are cheap enough. They overbuilt themselves. Real estate bubble, 2008 crisis are bringing the prices down

 

"Greatest enemies to financial freedom:

1. Low IQ
2. Laziness
3. Broke / Corrupt Governments
3. Inflation"


I like that, very clever, AND correct!


OC

 

Like many, I take a Powerball ticket when it gets up about $30 million.

I sometimes think what the hell I would do with it all, and after sending a cheque to the kids, and buying a house each for the grandkids I would sink the rest ASABP into HARD assets such as top quality apartments (not houses) , good freehold grazing land, and 'G & S' (LOTS).

back to reality!


OC

 

Thought you were a banker OC - 1,2,3,4..
- or is that how it works.. LOL


You can add to that:

5. Faith in the government
6. No sense of thrift
7. A sense of entitlement

 

I shall give my proof reader yet another severe thrashing!

I think he is beginning to enjoy it!

OC

 

Contrary to popular sentiment, I'd avoid agriculture.

In theory it should be the best investment going, rising demand for food and a reduction in suitable agricultural land.

In reality the demand will rise, the middle men make more money and primary producer gets screwed.

Agriculture was tipped to be the shining light since the GFC but the share market has performed better than most agricultural pursuits.

Bottom of the food chain.


C

 

Interesting - could you elaborate further on your point of view?

 

The best way to achieve financial freedom is
not to want more all the time.
You don't have to earn it if you don't have to spend it.
You'll never have enough to be content.

 

Yes OC, why apartments?

 

OC is too old to mow lawns!

 

Apartments are harder to neglect, and allow to become over-run with weeds. We all know what house is rented from the way the weeds are up to your knees, a duty that is the TENANTS responsibility!

They also often/usually have a building manager that oversees tenant behaviour, and presentation of the apartment. Our apartment on the Gold Coast is ruled with an iron hand by our property manager.

....and yes, OC is too old to mow lawns!


OC

 

where I live is a beautiful and very secure place but to fill in the holes(empty units) they let "anyone" in lately-unfortunately......

 

Something a very rich guy told me a long time ago: always have a business on the side. Even if you have a well paying full time job, have a business on the side and try to grow it.

This will give you:

1. Practice
2. Additional income
3. Something to leave your job for if it takes off
4. Something to fall back on if your job disappears
5. Something to sell when the time is right

 

A VERY successful customer of mine once said, "NEVER, EVER sell an asset, once you have it keep it, and borrow against it if you wish, to buy yet another asset."


OC

 

Some businesses have a shelf life or fill a need for someone who'll pay you good money for it (who knows, maybe Google will come along and offer you $50 million for the thing you built in your spare time). Not only that, but exiting a business is a whole process in itself and ideally you should get experience in cashing out.

I'd agree with the sentiment though and say "NEVER, EVER spend the capital. Re-invest it in another business."

 

Agree and wish I knew that when I was 30!!

 

I don't even know what an "asset" is these days

I drive a depreciating asset to work at a job that uses depreciating euqipment (that the company tells the bank are 'assets') to dig out resource assets that are essentially worthless in the ground, then go home to a depreciating asset who's real losses are hidden by negative gearing. My shares are arguably overvalued and destined for a reset and my PM holdings have lost 30% in the last 12months.

at least I have my jetski :/

 

I understand your point, but others have said it's the land value (ie house and land) that appreciates not the building itself.

In that sense isn't house and land more likely to appreciate more vs a unit/apartment?