How to Retire Young and Have a Good Passive Income Stream?

MrNice on 18/09/2018 - 19:03
Last edited 18/09/2018 - 19:05

What is something one can do to achieve financial success without putting hours on end to achieve it? (I work 60 to 70 hours a week and merely earn about 87.5k

  • I have an investment property
  • I have a modest car
  • Holiday overseas yearly

I'm 26 and I know I have accomplished quite bit
** But I feel that I am reliant on working like this to support a good life**

How can I achieve FINANCIAL INDEPENDENCE and have a good PASSIVE INCOME without costing my health as I work 7 days a week and I really have to life really…

I hope someone on here can guide me in a direction where I can focus the hours to begin with and step pack and see that I can travel the world and still have a decent income stream like 70 to 100k or more :)

I have thought of buying:

  • Positively geared properties again and again to increase the passive income stream
  • Starting a business (Cafe, bubble tee like Gong Cha franchise, Boost franchise, Anytime franchise)
  • Importing goods from China and going to China to find good suppliers
  • Creating a brand and connecting with instagrammers, facebook influencers to sell fashion products (designed in Aus and source from China)

P.s. Not interested in USANA, Amway or any pyramid schemes

Poll Options

  • 7
    Buy into a Franchise
  • 8
    Connect with Social media and create a branding
  • 112
    Positively geared properties again and again until I achieve success
Financial

Comments

        • bringbring on 23/09/2018 - 20:34

          Lol nice

          Think stormii meant plasticiser?

    • dcep on 19/09/2018 - 10:19

      yeah, there are 2 in Bris cbd within 1km apart

      and both outlets flooded with long queues

  • TheBilly on 19/09/2018 - 05:49
    +5

    I have an investment propertyI have a modest carHoliday overseas yearly

    You are on your way to live a modest middle class life, now cut back to 5 days work and have some rest time so you stop setting yourself unreasonabls expectations

    • MrNice on 22/09/2018 - 13:26

      Thanks for your advice, I want to be a little more than modest due to inflation and knowing that everything will continue to rise i.e. cost of living

  • Nugs on 19/09/2018 - 05:56
    +7

    stop spending money….
    .

    • MrNice on 22/09/2018 - 13:25

      I sure am :)

  • [Deactivated] on 19/09/2018 - 06:25
    +10

    I'm 26 and I know I have accomplished quite bit
    ** But I feel that I am reliant on working like this to support a good life**

    If you are working 7 days and this many hours this is not a good life. Those extra 2 days you are earning what maybe 15k per year, because it’s taxed proportionally higher than what you earn Monday to Friday.

    Work smarter - there is usually a way to get paid more for staying in your line of work, make yourself the best at what you do and make sure anyone who influences your career outcomes knows it. Or take those skills somewhere you’ll be paid more. If the most you’ll ever earn is 70k a year (5 days a week) and this isn’t enough to support a “good life” then look at a shift in career path and invest in yourself.

    IMO even 70k is more than a lot of people earn and you can achieve a lot with it. As for the millennial obsession with early retirement I don’t get it - feeling like you don’t have to work but choose to is also freedom.

    • MrNice on 22/09/2018 - 13:25

      Hi Fallout!,

      I just want to travel the world and enjoy life when I am young… at the same time, I want to be financially secure and have things in place to support my lifestyle. Dream goals :)

      • [Deactivated] on 22/09/2018 - 20:14

        Fair enough - if you haven’t read it yet, the barefoot investor is good reading at any age especially in your 20’s. It’ll put into perspective how unimportant it is to be driving an expensive leased car - who cares what your friends drive, and you probably don’t want to marry someone who’s easily impressed by that sort of thing. Most importantly it’ll help you see what an asset (financially) being in your 20’s is regarding share investments and compound interest.

  • mskeggs on 19/09/2018 - 07:05
    +49

    This is the second post where you are concerned about work/life balance, but also with keeping up with the Joneses.

    It doesn't sound like you're doing very well, unfortunately. If you work 65 hours a week, you are getting paid $28 an hour, if you work 70, it is $26p/h. This is barely above the casual wage at a retailer. Worse, you say your job doesn't have room for promotion.

    If you double or triple the hourly rate you get paid, you can work a pleasant 4 days a week and needing to retire to enjoy life will not be such a priority.
    If you insist you need an income higher than you have now, but won't lift a finger in work to get it each week, you will need very substantial capital savings. Realistically, in the order of $2million.

    Consider instead getting a job in a career that pays better. Your current workload would allow you to save a heap of money, and you could dial the work load back in future to have a more balanced life.

    I would also suggest to you, from your previous post comparing yourself to friends who own Mercedes, that you would find $100k p.a. a very modest income when you have a family to support. If you work toward a higher paying career, you can more easily balance your income and leisure at any time in the future. For example, being able to work part time when children are young, or having weekends free with your future family.

    Conversely, if you lived incredibly frugally and saved $50k a year, it would still be decades before you had capital to replace this income, and you would have to delay or give up the ambition to have a family.

    While it is true some people make a lot of money from a business, or instagram or the lottery, the best chance to have a comfortable life is to maximise your personal earning power, and moderate your personal spending goals.

    If this means a change of career or retraining, better to do it now when you have a capacity for hard work.

    • MrNice on 22/09/2018 - 13:23

      Hi Mskeggs,

      Thanks for your advice! I will check into it and see if I should retrain… even then.. it will not provide passive income stream.. I'll have to see what can help me

      • Kangal on 25/09/2018 - 01:10

        He's right mostly.
        And this is coming from me, someone who understands you.
        Because I'm a little older than you, much more behind, earning less, and working similar conditions.

        No-one will give you better advice than this, make yourself a person of value from your perspective.
        The key is to meditate.
        Sit down, clear your mind, figure out where you are and where you want to be in the future. That takes wisdom.
        Then you need to figure out how to make that a reality. That takes intelligence.
        And lastly you need to put that into action. That takes will-power.

        It's not about good vs evil, its about efficiency and cause/effect.
        (and a little bit of luck, inherited wealth, and beauty)

  • srhardy on 19/09/2018 - 08:18
    +30

    If your driving the same car, on the cheapest mobile plan and watch a 32" tv in a decade then your SAVING and if you invest that you will do fine

    SAVE SAVE SAVE and meet a women that can cook, clean & sow ~ who shops at aldi and has more savings than you and you will do fine!

    its the LEAKS IN THE BUCKET that makes it empty, never its size!

    • ihbh on 19/09/2018 - 09:47
      +13

      its the LEAKS IN THE BUCKET that makes it empty, never its size!

      very true.

    • John on 19/09/2018 - 10:19
      +2

      Best advice right here. Learnt this while playing the Cashflow board game. Its not about how much you earn, its more about how much you spend..

      I have so many leaks! :(

      • Charity on 21/09/2018 - 21:21

        Is that Kiyosaki? The cashflow boardgame I mean, i have heard him talk about it in other of his books. If so, doesn't the 32" tv in decade lifestyle go against his "abundance" philosophy (just buy luxuries last, instead of first) as opposed to being frugal.

        • John on 22/09/2018 - 13:23
          -2

          32” tv is no longer a luxury now. Quite a basic sized tv in fact

    • Cusack on 20/09/2018 - 10:26

      The bucket analogy ….that's solid advice.

    • 4wd on 23/09/2018 - 09:29
      -1

      if your driving the same car

      25 y.o. LandCruiser and 18 y.o. Hyundai.
      Check

      cheapest mobile plan

      $5/month Telstra staff plan from when I left in 1998 and $1/month TPG from 6+ years ago.
      Check

      watch a 32" tv

      26" Sony Trinitron using a 4 y.o. Telstra T-Box.
      Check

      Married, no kids, traveled, (and still traveling), the world, retired at 38 … 20 years ago.

      I've done 2 months of sub-contacting for a friend in last 20 years, other than that we live off rental income.

      We don't live expensive.

      • justcallmeboss on 23/09/2018 - 14:01

        You are living the dream. Congratulations!

      • boostpak on 23/09/2018 - 16:25
        +1

        Do you use a magnifying glass when you watch tv?

        • 4wd on 23/09/2018 - 18:13

          There's nothing worth watching on TV so apart from ABC and SBS news, I don't watch it.

          The wife only watches ABC and SBS, everything is recorded on the T-Box so all self-promotion/ads can be fast forwarded through.

        • boostpak on 24/09/2018 - 08:20

          @4wd: movies? netflix? sports? i'd be squinting at your tv

        • 4wd on 24/09/2018 - 10:20

          @boostpak:

          Exactly, nothing worth watching.

          Only sport worth watching is the 30min Dakar summary, the 2 weeks it's on SBS.

          If I want to watch a movie, I do it on the computer while doing other things like programming, reading … very few movies, (and pretty much all TV), are worth even 20% concentration so I might as well do something constructive at the same time.

          And since there aren't any movies/sports/TV that are worth that much time to us, why waste money paying for a subscription, (and usually the privilege to watch ads)?

          I took up the free Foxtel 3 month Platinum, (or whatever it is/was - movies/sports/lifestyle/etc), subscription a couple of years ago. I watched one movie I'd already seen, the wife watched some of the UK lifestyle rubbish … returned it after the 3 month period, even after they offered to extend it for free for another 3 months.
          Any credits I got from my Telstra package to watch Bigpond movies always expired since there was never anything worth watching.
          I had free subscriptions to Deezer, Google Music, and currently TIDAL - don't use them, don't use any streaming service.

          TV is fine since the furthest we can sit from it is 4m, btw I was wrong it's 29" … shows you how long it is since I took any interest in it :D

          In the meantime we save money for the next overseas trip, last year was a 6 week cruise from HK to UK, followed by 3 months in the UK, plus I spent a week in Ukraine.

        • boostpak on 24/09/2018 - 11:35

          @4wd: even if I watched TV for 2 weeks a year I'd still want something I don't have to squint at 4m away.

        • boostpak on 24/09/2018 - 11:36

          @4wd: You're only justifying it to yourself haha

        • 4wd on 24/09/2018 - 12:38
          +2

          @boostpak: Justify what?

          That there is more interesting things than TV?

          I didn't retire at 38 just so I could sit in front of a TV instead.

        • boostpak on 24/09/2018 - 15:36

          @4wd: justifying why your tv is the size of a soup can.. what about if family or guests come over and there's something on tv to watch.. lol

        • 4wd on 24/09/2018 - 16:43
          +1

          @boostpak: Family or guests come over we sit around and communicate … you know, what they did before TV.

          I think you're trying to justify you need a big TV because your eyesight is failing ;D

        • boostpak on 25/09/2018 - 08:24

          @4wd: of course you communicate for the most part, but if there is some sort of sporting event on, olympics, grandfinals, australian open final, any type of big event, movies.. you're acting like we live in the stone age and tvs weren't invented. I'm talking about the casual during the week also. You tell me you sit in silence monday to friday.. doubtful

        • 4wd on 25/09/2018 - 10:52
          +3

          @boostpak: I hate to break it to you but not everyone's life revolves around sport.

          Of course it's not the Stone Age, I'm saying we have other things to do than sit around watching TV.

          Conversely, you act as if the TV is an essential part of your life, to each his own.

        • frewer on 25/09/2018 - 11:09

          @4wd: TV = bias/filtered news at its best. Sport … nah

        • boostpak on 25/09/2018 - 11:11

          @4wd: Squint city

  • jason101 on 19/09/2018 - 08:50

    Op can you PM me? (I cannot message you)

    • MrNice on 22/09/2018 - 13:22

      Done!

      • tryagain on 23/09/2018 - 14:07
        +6

        I sense an MLM opportunity coming your way!

  • backpaqer on 19/09/2018 - 09:23

    Drugs. Become a bikie - a lot of people seem to look for them on here ;)

  • jacross on 19/09/2018 - 09:42
    +2

    The easiest way is to change your perspective on what a good passive income is, what your needs and wants are, and how much is required to obtain them.

    If you can decrease the cost of your utility, youve just made the whole game much easier.

    Anyway, look up FIRE communities.

  • Changskies on 19/09/2018 - 09:47

    OP, what you think you achieved now will be nothing in 35.
    honestly, due to my visa probs I cant get a loan for home loans which ultimately costs abound 26k a year in rent… soooooo

    • dcep on 19/09/2018 - 10:25
      +6

      well, you chose to rent $500 p/w

      could've gone for cheaper ones

    • MrNice on 22/09/2018 - 13:20

      You can rent a room or half house instead of a $500 pw house.
      They and commute a but further to work and move to a cheaper more affordable home to rent. It is all about the willingless of what you want to achieve and minimise.

      • iTzPossible on 22/09/2018 - 21:50

        Focus on saving when necessary, but learning to increase your income is far far superior.

  • [Deactivated] on 19/09/2018 - 11:55

    Medical Marijuana export licence .

    • sam91 on 20/09/2018 - 12:00
      +2

      I genuinely think Marijuana is the next big industry to boom. Once AU legalises it, which is only a matter of time - there will be a lot of money to make.

      • KBZ on 20/09/2018 - 16:51
        +2

        I feel Australia is too conservative for that to happen in the near future. Maybe 40-50 years after conservative majority of Australians are gone.

        • try2bhelpful on 20/09/2018 - 17:14

          I think they will be cautious on this. The medical profession will not be keen on extending the number of products where smoking is involved and, if there is any doubt on links to mental illness, it will be slow progress. However, I can certainly see an opening for medical marijuana for cancer patients etc.

  • [Deactivated] on 20/09/2018 - 02:06
    -1

    Kill money & inheritance? What is your licence# lad to ask such blind questions.

  • rompastompa on 20/09/2018 - 09:43

    I feel in >10 years, I have contributed enough to society to check out. Please let me know the answer so I don't have to work another day in my life.

    I think you're onto something here.. Maybe write a script for a movie where it's mandatory 16-26year olds do all the work, and everyone else can retire, travel, and basically not need to do anything! I wonder what the ending will tell. 🤔

    • try2bhelpful on 20/09/2018 - 10:26
      +1

      It will devolve into Logan's Run or Soylent Green.

    • MrNice on 22/09/2018 - 13:19

      Sounds fun! Can you be the director?

  • Donaldhump on 20/09/2018 - 10:40
    +3

    get a different job, working 7 days a week is no good.

  • talbot777 on 20/09/2018 - 10:42
    +6
    • Find an area/topic you are passionate about
    • Become an expert
    • What is the biggest problem people face in this area?
    • Solve the problem
    • Tell the world
    • Profit
    • sam91 on 20/09/2018 - 12:00
      +2

      This is exactly what an entrepreneur does.

    • MrNice on 22/09/2018 - 13:18

      Sounds like a good idea! I'll check into it :)

  • antonthenet on 20/09/2018 - 11:52

    Write a Christmas song.

    Live off the royalties.

    • Cluster on 20/09/2018 - 11:54

      Have the song played endlessly off other people's youtube channels, making youtube and them money.

    • MrNice on 22/09/2018 - 13:12

      Sounds like fun! But I am not an artist and would not know where to start and who to sell it to haha..

  • DarthAntz on 20/09/2018 - 12:03

    Dont. Theres plenty of responses on quora about this subject.

    Do something you enjoy and feel fulfilled.
    Sorry to hear you are not getting happiness from your possessions and decent salary for the work you do. youve got a lot more to learn about youself.

    • MrNice on 22/09/2018 - 13:11

      I will try! I feel like I put in way too many hours and it is starting to get to me. I want to build my nest up so I can have a passive income stream somehow. This way I can travel the world and get back to something that is under my name.

  • MoonlapseVertigo on 20/09/2018 - 13:00
    +8

    Don't chase the cash too much - you get distracted away from what's in front of you. And you can't take it with you.

    If you find a job you enjoy and can work from home and has plently of flexibility then you have made it

    • titan0r on 20/09/2018 - 21:10

      This!

    • Homr on 21/09/2018 - 09:32

      What if I have a job that I don't love or hate, minimal stress and great flexibility. Have I made it?

    • MrNice on 22/09/2018 - 13:10

      Wise words! My dream is being able to travel the world and have something to get to back home. Life a simple life. But it is hard.. I need to build my nest first and hope somehow I can create a good passive income stream

  • hoey888 on 20/09/2018 - 13:16
    +4

    Something you might want to consider

    FIRE (Financial Independence Retire Early)
    https://www.smh.com.au/money/planning-and-budgeting/fire-fol…

    I've read stories of people pumping large amounts of money into investments into low cost funds during their younger years. With the benefit of compound interest over 10+ years this is potentially you can reduce working hours and/or retire if setup correctly.

    Some people are content living on $4x,xxx and pumping remainder in investments. The short term sacrifice means they'll probably retire 10+ earlier than the average depending how the numbers stack up.

    *Disclaimer - past returns are not indicative of future returns. this is not financial advice, it does not take into account specifics of your situation or risk tolerance #dontsueplease

    • MrNice on 22/09/2018 - 13:09

      I'll check it out!

  • Typical16-bitEnjoyer on 20/09/2018 - 13:38
    +18

    You don't need a passive income to retire early and do nothing, man. Take a look at my cousin. He's broke and he don't do sh*t.

    • imahapyboy on 20/09/2018 - 14:07
      -2

      who is your cousin? web link please

    • zathras on 20/09/2018 - 17:40
      +1

      Office Space is one of my favourite movies too.

      • JIMB0 on 22/09/2018 - 14:59
        +2

        Every time I watch that film it makes me want to go into work and do very little to see how long it takes them to fire me. One "co-worker" has done nothing for years and he is still there.

    • MrNice on 22/09/2018 - 13:08
      +2

      If only I would just relax and be on centrelink and milk the system! But I feel like.. it is boring and not for me. I would rather put my effort in and in hopes for financial success along the track. Money that is earnt feels better than just given to you..

  • Ghost47 on 20/09/2018 - 14:14
    +2
    1. Invest.
    2. Spend money on things that appreciate.
    3. Increase your earning power.
    4. Start a side hustle.
    • MrNice on 22/09/2018 - 13:07
      +1

      Sounds like a plan!

  • baileyj on 20/09/2018 - 14:14

    Check out the Smart Passive Income podcast.

    https://www.smartpassiveincome.com

    It has lots of interesting ideas for generating passive income. The guy who makes the podcast is very transparent, posts his own income reports etc.

    • MrNice on 22/09/2018 - 13:07
      +1

      I checked it out.. but he seems to be like Dan Lok and selling something..

  • love2buy on 20/09/2018 - 16:24
    +1

    If you are working so hard, it makes sense that your retirement years should be a lot shorter than someone who puts very little stress on their bodies. It might work out alright in the end.

    • MrNice on 22/09/2018 - 13:06

      It might, but.. I am getting just a little tired rn

  • swapsey on 20/09/2018 - 17:47
    +2

    Devil's advocate here - chances are pretty high that anything that actually works for someone else won't work for you. Passive income is not a thing to do but an extension of one's personality and circumstances. Most people can't let go of their attachments and habits to make the necessary changes for passive income to be realised.

    • MrNice on 22/09/2018 - 13:06
      +2

      That is true! I have a friend that does not believe his employees will do right by him so he does everything himself! This will never produce passive income if you are not willing to step back and place procedures and protocols to ensure everything follows through correctly

      • swapsey on 24/09/2018 - 22:37

        Your reply reminded me of the excellent book: "Four Hour Work Week". Not for everybody but will work for some.

  • beki on 20/09/2018 - 19:23

    Invent something useful and patent it. Earn money through royalty fee. For example "Happy Birthday to you" song

    • MrNice on 22/09/2018 - 13:04
      +2

      That is ABSOLUTELY hard haha..

  • Tasmaniac on 20/09/2018 - 20:28

    You've got to risk it to get the biscuit. Just remember that you can't make a omlete without breaking some eggs.

    • MrNice on 22/09/2018 - 13:04

      Thanks for your advice! But are you suggesting I should go into business or investment? Or in general by the sounds of things :)

  • drprox on 20/09/2018 - 20:34
    +2

    Start reading

    https://www.mrmoneymustache.com/blog/

    • movieman on 20/09/2018 - 23:11

      ^ This!

      Should be mandatory reading in High School.

  • SoapyWooder on 20/09/2018 - 21:36

    save like crazy, only buy absolute necessity, keep working, do a side project, keep motivated by rewarding your successes, don't buy lotteries, watch dan lok videos on youtube, do these continuously & never break the habit.

    • boostpak on 21/09/2018 - 12:12
      +1

      so you'd spend your life only doing this? sounds like a pretty dull way to go out. We could be dead tomorrow.. live a little

      • MrNice on 22/09/2018 - 13:03
        -1

        If we lived to our best every single day we will never own a nice house and life a good life in old age. I don't want to rely on a pension to survive when I get old.

        • Feeblely on 23/09/2018 - 04:06

          key words were "live a little"..

        • boostpak on 23/09/2018 - 16:31

          Who says you can't live a good life in old age with less money? Why is money the only thing you think will make a life good? You sound like an EGG mate. Again - live a little! That's not saying to spend every single cent you have every single day. It's basically saying you work 7 days a week and there is 7 days in each week. You have NO LIFE but work, so why not enjoy life a bit more work a bit less and live a little from time to time. Balance your life more. You're looking at life in 60 years time rather than being in the moment and enjoying the moment and valuing time right now every single day. You will always be empty if you think 60 yrs ahead or always ahead and always trying to fill something and have the next thing. You can still work hard and make a good living while having a life.

  • centrelink on 20/09/2018 - 23:19

    How is any of OP's suggestion passive income? seems like OP has to add some effort into it thus not being passive at all.

    • MrNice on 22/09/2018 - 13:02
      +1

      Hire a manager when the franchise goes well and remove yourself from management?

  • idonotknowwhy on 21/09/2018 - 08:27

    1. I recommend this book initially: https://www.amazon.com.au/Millionaire-Next-Door-Thomas-Stanl…
      It's a bit dated but the same principles still apply.

    2. If you haven't already, read this one and pay attention to the personal finance advice.
      https://www.amazon.com/Barefoot-Investor-Money-Guide-Youll/d…
      I've read it but still have an Amex and platinum visa (with no annual fees) because I never pay interest and want to accumulate points.
      His investment advice isn't as good (kind of contradicts himself a few times) but it's still a good read.

    3. Look into ETFs. You can't beat the stock market (most people can't), but you can follow it. Most traders gain 3% p.a on average while the market gains 8% p.a (vague statistics, not 100% accurate). ETFs can track the market for you.

    I would suggest you use an OzBargain referral link to get a SelfWealth account (with 5 free trades) and look into Vanguard ETFs.

    This is not financial advice. See a professional but wear a tinfoil hat ;)

    • MrNice on 22/09/2018 - 13:01

      @idonotknowwhy I will check those books out! Thanks a lot!

  • h4zey on 21/09/2018 - 08:47
    +1

    you could die now, tomorrow, next week, next month, next year… do what you need to do and want to do, live everyday like it's your last day!

    • boostpak on 21/09/2018 - 12:13

      agree

      • h4zey on 21/09/2018 - 12:18
        +1

        as long as you don't translate that as blow all your saving and max your credit card because YOLO!!

        • boostpak on 21/09/2018 - 12:22

          I think it's more about having good balance in life. Enjoying life within your means and not living life to save every penny and living a shitty dull life.

        • MrNice on 22/09/2018 - 13:00

          @boostpak: I know.. but I am not rich.. if I enjoy too much I will not have a house under my name and life a good life without worries in old age. I don't want to be the one who will struggle and be dependent on pension in old age to survive.

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