How to Get Rich after Uni?

Leverydollacounts on 23/10/2017 - 20:07

Just turned 21 and will finish uni soon. No job offers yet for next year however I expect to earn at least 40-50K.
Current qualifications is Degree in Finance and Banking Double Major as well as a diploma in financial planning.
Ironic I dont know what to do, but see I have learned so much and yet I don't know where to start or how to even apply the knowledge I learned. Ideally, I should really work in a financial planning before I start investing but it just comes out of curiosity how do people in their early 20's get rich (or at least don't feel poor) after they finish uni.

What would be the do's and dont's of managing money in the early 20s and what kind of investments should be a priority?

Financial

Comments

  • mbck on 23/10/2017 - 20:38
    +4

    All on black

    • toristo on 23/10/2017 - 20:39
      +1

      Always black.

      …except when it's red.

      • John Kimble on 23/10/2017 - 20:53

        Or green.

        • toristo on 23/10/2017 - 20:54

          shrugs colourblind here. All the same to me.

  • toristo on 23/10/2017 - 20:41
    +29

    Don't worry about getting rich in your 20's. Worry about making good financial decisions.

    1. Job
    2. Stop stupid spending. Do a budget. Be financially responsible.
    3. Save or invest what you can
    4. Don't kick yourself too hard when you screw up and blow some cash. You're young… enjoy it too. Pick yourself up, check the budget, and keep going.

    Also, work for Westpac and buy a high yielding $80k car and you're sweet as.

    • ChillBro on 24/10/2017 - 00:35
      +2

      Thought your advice was bullcrap until the last line. I can now vouch this advice is golden.

    • Oz8argain on 24/10/2017 - 15:16
      +1

      pure gold, solid advice

  • AusGP on 23/10/2017 - 20:44

    Invest in yourself. Educate and qualify yourself where needed - CA / CFA etc

  • RockyRaccoon on 23/10/2017 - 20:52
    +3

    If Left leaning

    Join the Union/Green movement, then a political staffer, then Politican and then the UN (with maybe after a brief stint as PM) Get directorship with industry superfund, retire with bonuses

    If Right leaning

    Join a Bank, then a political staffer, then Politician, then to Merchant Bank (with maybe after a brief stint as PM), then get directorship with bank superfund, retire with bonuses.

    • fossilfuel on 23/10/2017 - 21:19
      +3

      Join the Union/Green movement, then a political staffer, then Politican and then the UN (with maybe after a brief stint as PM) Get directorship with industry superfund, retire with bonuses

      I read that as dictatorship. We need someone to replace rocketman.

  • railspider on 23/10/2017 - 21:00
    +6

    No-one is going to trust a 21 year old to look after their money.

    So max out your credit cards and put it all on Bitcoin to prove your investment savvy.

  • chartparker on 23/10/2017 - 21:16

    Work.

  • chumlee on 23/10/2017 - 21:22

    Get into entry level funds management. Long hours but you get rewarded well if you can make it

  • CalmLemons on 23/10/2017 - 21:38

    Work. Save money. Work harder. Gain experience. Figure shit out and get rich around 30.

    Have a credit card with a $1000 limit.

  • TheBilly on 23/10/2017 - 21:39
    +5

    The "rich" ones in their 20's are entepeneurs, gay youtubers or generally just rare and qualifications had little bearing on their success. If you want to be "normal" aka comfortably afford a mortgage and a decent car and not freak out about bills and have to live pay to pay. Just find a job work hard/learn/be patient. Or alternatively you can marry a chinese student with money. Just go to the Sydney at anytime anywhere, and take your pick.

  • The Wololo Wombat on 23/10/2017 - 21:48
    -2

    Property investment. Worked for me. You get rich by what you invest, not what you earn. I'm on $88k now (27) but have a 1.5mill portfolio….. (i guess that's only worth, like, 1 unit in inner Sydney though haha).

    Buy in low SES areas <$300k that are positively geared. You may have to look interstate if you're in NSW or VIC. Otherwise go rural. Get landlord's insurance to cover your ass and you're set.

    • lolmao on 23/10/2017 - 22:51
      +1

      how much mortgage tho

    • Ughhh on 24/10/2017 - 00:28
      +1

      Wasn't there a 20yo couple who had a 5 million portfolio or something, but then things de-esculated.

    • spackbace on 24/10/2017 - 01:06
      -1

      I'm on $88k now (27) but have a 1.5mill portfolio

      Posting history says otherwise

      Thanks mate! No, Ipswich, Gold Coast and Logan in SE-QLD. All sub 250k purchase price.

      But good to know you lived with your folks till 26yo and engaged…😂

      Best way to buy houses - Ask mummy and daddy to help pay things ($10k deposit for wedding etc) and live at home for far longer than you should, sponging off them!

      • The Wololo Wombat on 24/10/2017 - 09:49
        +5

        Why all the down-votes? I'm answering OPs question by sharing my actual success and strategy that's worked.

        @Spackbace, perhaps you have not considered that my portfolio has grown and you can consider these values an update?

        When I started on Ozbargain in 2015, my portfolio was work maybe $600k. I've since made three additional purchases; two of these within the last 12 months, bringing my value to just shy of 1.5mill (probably more like 1,450,000)

        It's very easy to cherrypick other posts and make me seem privileged… My parents didn't help with my portfolio financially, but they blew me out of the water with their generosity for my wedding in December!

        I notice you didn't mention the 6months I lived in the US, 12 months in the UK and 6 month on the Gold Coast (out of home)? You also failed to mention the board I paid to my parents… $150 per week was very generous of them and helped me a lot, but I have friends living cheaper in share houses. Not impossible to build a portfolio and live out of home in your 20s, but if OP can live at home, I would suggest he do the same. Nothing to be ashamed of, it's a small sacrifice in order to get ahead.

        @lolmao makes a good point. I am just over 1mill in debt (1,007,000, just to be specific, for spackbace ;) ) Being positively geared though and paying P&I, my LVR is increasing quickly.

        • Skramit on 25/10/2017 - 13:47
          +3

          Spaceback often goes back through peoples post history to find a gotcha type point. It's really quite petty and pathetic.

  • Steptoe on 23/10/2017 - 21:58
    +4

    Spend less than you Earn

  • ihbh on 23/10/2017 - 22:13
    +1

    Worth repeating:

    Spend less than you earn.

    • Oz8argain on 24/10/2017 - 15:22
      +1

      What about spend A LOT less than you earn?

  • CyberMurning on 23/10/2017 - 22:24
    -1

    prostitutes
    bikies
    cocaine cassie

  • Tasmaniac on 23/10/2017 - 22:49

    Work to learn not to earn and always remember that corporations are people to.

  • Bluberry on 24/10/2017 - 01:08

    Call Westpac - i head they were hiring.

  • Ozbala on 24/10/2017 - 08:14

    Look at the government job sites if interested; there are lots of grad programs to get into ….

    • Oz8argain on 24/10/2017 - 15:24
      +1

      Govt permies are good for older professionals that wants to be stress-free, as a young individual the environment could affect the learning experience a lot, right now (20s), coming out with invaluable/desirable experience is worth more than above average pay

  • ozbjunkie on 24/10/2017 - 12:13

    Work out what you mean by rich.

    If you mean multi millionaire, good luck, report back and teach us all how.

    If you mean comfortable - work hard, develop a side business, spend less than you earn, shun credit, separate wants from needs, understand the difference between utility and price in order to get value.

    Alternatively, Bitcoin or property and pray pray pray.

    Don't buy an 80k car, like, ever.

  • Cheap Steve on 24/10/2017 - 13:57

    He who is content is rich.

    Who is content? Nobody.

    Another vote here for spend less than you earn.

    I read a personal financial/frugality blog called Early Retirement Extreme. The blogger reckons 20 year old's should spend their whole twenties working hard at high paying jobs and saving 80% of their take-home pay to pay off a house and build a passive share dividend income to meet their living needs. They then retire at 30 and do whatever they want for the rest of their lives. His theory is that working hard and saving hard is best achieved during your physical peak in your twenties.

    • John Kimble on 24/10/2017 - 14:34

      They then retire at 30 and do whatever they want for the rest of their lives.

      Do whatever they want alone because they've spent 10 years just working and saving, not socialising with anyone.

      • [Deactivated] on 25/10/2017 - 05:05

        plenty of time to find a partner at 30

  • [Deactivated] on 24/10/2017 - 15:28

    Health is wealth

  • wordplay on 24/10/2017 - 20:41

    I would hope you get more than $40,000 per year isn't that ~$20/hr (if you only work 38 hours a week). should be able to earn that in a job that you don't need a finance degree for

  • echelon6 on 24/10/2017 - 21:37
    +1

    If you're a pretty girl you can marry well.

    pro-tips:
    1) find a dude with rich grandparents (rich parents are sort of useless because with life expectancies today, he'll inherit that shit at around age 60)
    2) find a dude with no siblings
    3) (real talk) don't waste your 20s partying millenial style. Find a sensible good dude that fits as much as possible the above two criteria while you're young and pretty, and put everything into maintaining a healthy relationship that leads to a family

    • Skramit on 25/10/2017 - 13:44

      LIKE

    • lainey13 on 25/10/2017 - 17:52
      +1

      Was also going to advise not settling poorly, better to wait and choose right rather than waste time, money and effort on something that isn't going to work out. Get the experience sure but don't make any decisions that you will regret later. Also do some traveling that involves fitness, no point doing that shit when you're 60 and can barely sit in a bus for a few hours let alone hike up mountains, dive in oceans etc.

  • L4zz4 on 29/10/2017 - 21:55

    For me personally its about lifestyle. In the beginning when I finished University my first job's salary wasn't much, so I had to keep my expenses at very minimum, not going to sugarcoat it, the first few years were horrible, having said so it did help me to quit smoking and going to the pub, instead I found new appreciations for free outdoor activities such as star gazing.

    After accumulating enough funds, I decided to spend it on my first MacBook Pro laptop and ADSL2+ connection, back then it was a really big deal as they enable me to take freelance jobs during my free time. After that I spend few years gruelling with two different incomes. My only enjoyment was getting back my initial investment in such a short time and boost my savings at pretty fast rate. It helps not to spend when I had no time to go out I guess.

    Few year later I finally able to purchase my first passive income investment, which is one car park space. Back then it was still affordable and very low maintenance cost. It may sounds easy but for me personally it was a very stressful decision. Luckily one of my relatives was a mortgage broker and she helped me all the way, I am still so grateful to her that I still used her service until now. Anyway once I've gain one, the second and onwards were easier.

    Unfortunately Global Finance Crisis happened and it changed the game's difficulty to the max, but I keep telling my nephews and nieces that it still doable, my famous quote to them is "you just have to change your lifestyle for long term gains, you're going to hate it in the beginning, but if you persist long enough, you'll see the light at the end of the tunnel".

    Hope this helps, I know its not going to help you much as your game started in the very later period after mine, but I hope you found at least one useful thing from this post.

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