What is your strategy to achieve financial freedom?

Discussion in 'Wealth Creation & Management' started by Silverfun, Sep 29, 2013.

  1. Silver Pauper

    Silver Pauper Member

    Joined:
    Sep 10, 2012
    Messages:
    221
    Likes Received:
    0
    Trophy Points:
    16
    Location:
    Australia
    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.
     
  2. Contrarian

    Contrarian New Member

    Joined:
    Dec 16, 2010
    Messages:
    686
    Likes Received:
    1
    Trophy Points:
    0
    Location:
    Australia
    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
     
  3. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    3,114
    Likes Received:
    566
    Trophy Points:
    113
    Location:
    Treasure Island
    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 :D
     
  4. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,936
    Likes Received:
    3
    Trophy Points:
    38
    "Greatest enemies to financial freedom:

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


    I like that, very clever, AND correct!


    OC
     
  5. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,936
    Likes Received:
    3
    Trophy Points:
    38
    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
     
  6. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,419
    Likes Received:
    2,705
    Trophy Points:
    113
    Location:
    Australia
    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
     
  7. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,936
    Likes Received:
    3
    Trophy Points:
    38
    I shall give my proof reader yet another severe thrashing!

    I think he is beginning to enjoy it!

    OC
     
  8. Contrarian

    Contrarian New Member

    Joined:
    Dec 16, 2010
    Messages:
    686
    Likes Received:
    1
    Trophy Points:
    0
    Location:
    Australia
    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
     
  9. Phiber

    Phiber Active Member Silver Stacker

    Joined:
    Nov 21, 2012
    Messages:
    1,601
    Likes Received:
    14
    Trophy Points:
    38
    Location:
    Australia
    Interesting - could you elaborate further on your point of view?
     
  10. Peter

    Peter Well-Known Member

    Joined:
    Jul 28, 2009
    Messages:
    2,693
    Likes Received:
    101
    Trophy Points:
    63
    Location:
    sydney
    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.
     
  11. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,419
    Likes Received:
    2,705
    Trophy Points:
    113
    Location:
    Australia
    Yes OC, why apartments?
     
  12. sammysilver

    sammysilver Well-Known Member Silver Stacker

    Joined:
    Apr 7, 2011
    Messages:
    6,414
    Likes Received:
    1,299
    Trophy Points:
    113
    Location:
    Sydney
    OC is too old to mow lawns!
     
  13. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,936
    Likes Received:
    3
    Trophy Points:
    38
    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
     
  14. dragafem

    dragafem Well-Known Member Silver Stacker

    Joined:
    Jan 16, 2012
    Messages:
    5,186
    Likes Received:
    454
    Trophy Points:
    83
    Location:
    Sunshine State
    where I live is a beautiful and very secure place but to fill in the holes(empty units) they let "anyone" in lately-unfortunately......
     
  15. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,609
    Likes Received:
    249
    Trophy Points:
    63
    Location:
    Sydney
    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
     
  16. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,936
    Likes Received:
    3
    Trophy Points:
    38
    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
     
  17. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,609
    Likes Received:
    249
    Trophy Points:
    63
    Location:
    Sydney
    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."
     
  18. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,419
    Likes Received:
    2,705
    Trophy Points:
    113
    Location:
    Australia
    Agree and wish I knew that when I was 30!!
     
  19. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

    Joined:
    Feb 26, 2010
    Messages:
    9,307
    Likes Received:
    76
    Trophy Points:
    48
    Location:
    Gone Fishin'
    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 :/
     
  20. Byron

    Byron Guest

    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?
     

Share This Page