what to do with money-becoming rich

How long is a piece of string? Depends on what sort of standard of living you require. 15 years is more than enough time for this kid to achieve a very nice standard of living using the example I provided. I would say with utmost confidence that a passive income of 100K is very achievable in this time frame.

Mark

Not at all. A year 10 dropout will have no choice: they will only get mind-numbing jobs. Someone educated has the choice to choose a mind-numbing job if they so desire, but the door to so much more will be open to them.

Rich inheritances aside, everyone will have to work for a living. But who will look back at the end of the day and be more satisfied: the kid who slaved his guts out from 15 working crap jobs and never having the time or spare money for anything enjoyable, or the person who worked for 10 more years but had interesting & challenging jobs and was able to go home at the end of each working day in a nice car to a nice house and eat nice food.

Sure, we could all get richer a lot faster if we drove a $500 dunger, ate nothing but baked beans and home brand oatmeal and lived in a tin shed with nothing but yesterdays discarded newspapers for company (exaggerated, but you get the point). But at what cost?

That's why I see danger in encouraging someone along the path of "drop out of school, get the first manky job you can and save your butt off for the next X years". Do that and it's the only thing you can do, because the alternative is being unemployable at 40 with no skills and a retirement that's going to consist of those baked beans and oatmeal. And either way, would you look back at 40 and say "where did my life go?"

Life if the longest journey you'll make. It's worth considering how you want to travel it. Not just what you'll do at the end of it.

For every Lindsay Fox there'll be ten thousand people who didn't make it. Great if you're the next Fox, but if everyone was like that we'd all be billionaires.

This is where we'll have to agree to disagree. And I'll illustrate my beliefs with a personal example so you can see where I'm coming from.

My wife has been married before; her previous husband had worked hard and continued to do so, he'd built up to an impressive income level, they had numerous investments, an enviable house... by most measures, they were rich. But she left him. Why? Because there's more to life than just money, it's a cliche but its true. All the possessions and financial freedom in the world yet it was hollow and meaningless. And he'd been so caught up in it that even after she'd left he didn't understand why. Or the little tale I use to describe such things: "He crossed the deepest ocean for her, swam the longest river, walked the widest desert, climbed the highest mountain for her. She divorced him. He was never home."

I'm very much pro-education, but I do think that someone with the right motivation can be successful even without formal education. There is no better education than experience after all!

But a year 10 dropout won't become a health care professional or an astronaut or an engineer or any other vocation where our society demands a proof of proficiency. If you don't care about those things, then there are always other choices for the suitably motivated.

Success is a very subjective measure either way - you don't have to earn a lot of money to be successful - but you have to earn enough!.

I understand where you're coming from. But if you gave me the option to have a mind numbing job and retire at 30 or having the door open and work until I'm in my mid 40's I know which option I'd take. 15 years of my life is a lot to give up for the 'benefit' of being forced to work, even if I do like the job.

Did you stop to think that the guy that achieves financial independence at 30 could go back to school and do some courses at his leisure and get a job he enjoys, not just take whatever he's offered? He can then work when he wants as long as he wants, knowing he can stop working anytime he wants because his investments take care of his income.

Mark

Mark, how is someone working at McDonalds going to be able to build up a investment portfolio? Do you really think such a wage will support a house loan? Do you think such a wage will allow someone to save any significant amount of money each month?

I agree with what your saying in regards to it being a waste of time spending 7 years in UNI, but to say not to get any education and looking at mcdonalds type jobs certainly not wise. You should complete your VCE, and get a traineeship or do a tafe to get some formal education, cause if your investment dream fails, you have something to fall back on. Plus your larger income will allow you to build wealth faster.

I for one did not finish VCE, but I did a IT course which got me into the industry after 6 months, allowing me to gain experiance and then earn big dollars... but I failed to utalize this money correctly, as I was a big spender.. This will also explain to you why I have trouble spelling stratergie.

I wouldn't recommend a 16 year old to quit school to start a business.. sure do the business on the side while studying, but don't think its as simple as registering a business name and putting a open sign on the back of your van.

bill gates? Wasn't bob hawke a high school drop out as well?

whats a Maccas job pay? $150 per week? IF you could save the whole $150 a week, do the sums and see if it can compound into any sizable amount..

I think not.

very good point. I know someone who is almost 50, worth 10 million dollars, never had a girlfriend, lives alone, drives a Nimbus van, buys cloths from the opp shop, is the worlds tightest ass.. He rents because its cheaper to rent rather than buy a house..

He will never change, regardless of how much money he has, as he has always been tight to save for those millions, and now that he has them, he wants more and thinks its a sin to spend money.. no chick will go for him, he will die a lonely rich man, no kids, no family, no wife, no life experiences.

Money isn't everything...

Do you read SS? If so, I'd suggest you pose these questions to Kristine. She may not answer for a little while - she's in England taking care of family business.

Mark