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09/10/14
13:59
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Originally posted by acorn
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Thought I'd better put in a view from a payg employee .
Get yourself a good steady job ( skill backed ) earning more than you spend and buy a property . Build a bit of equity and go again . Rinse and repeat . Call it compulsory saving if you like but there is no doubt the power of leverage and compounding . A bit of experience gained through being involved can add value as well .
Somewhere along the way I got interested in shares so with a bit of that spare money I started building a portfolio . Now the stock portfolio is about the same value as the property one so I've spread my risk roughly 50:50 . No one can guarantee that either will be perfect so the spread is the go . Steady cash flow from rent and fully franked dividends makes it easy to sleep at night .
Fortunately for me , I'm in a defined benefit super scheme at work which I like to call my insurance policy in case I manage to stuff up my investments .
All pretty much low risk but it also means a longer timeframe . I suspect that this wouldn't suit some of the posters on here as they seem to want to be rich overnight . For you guys , don't follow my example .
Thinking about it , whether you work for yourself or work for someone else , the common thread is a bit of hard work and sacrifice , particularly early on . Add in some luck and a reasonable time frame and I think anyone can do it .
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That's also a very good point. Everyone is different and what works for that person I guess is best. I'm interested a lot of people talk about their super and I feel bad to admit it I don't even know how much I have in it. I hate it I want that money in my pocket each week to pay my mortgages down