What Financial Path Would You Choose in My Position (+ Life Advice Wanted)

L[Deactivated] on 16/12/2023 - 19:27
Last edited 16/12/2023 - 20:09 by 1 other user
Prefacing this post as I want to say that this is my first time posting in these forums so please be gentle :) Also please treat the poll as separate from the other questions at the end of my post.

I graduated uni this year and somehow completely lucked out (despite my grades and Atar) in securing a graduate job that pays very well. I have learnt from my coworkers that there is a significant pay bump if I perform well and get promoted, which is achievable within a couple of years. I made a spreadsheet and forecasted that if I go into complete saving mode for the next few years I can pretty much guarantee becoming a "millionaire" by 25 assuming I live like an OzBargainer and invest wisely. "Millionaire" in quotes because 1 million is not particularly many millions, but it still counts.

The thing is I just don't see the benefit of having that much money if I live like I'm poor the whole time and dont actually do anything with it. For what its worth I am very much interested in and passionate about personal finance (I actually asked my parents to make a brokerage account I could trade in their name with when I was underage in high school 😭) which is part of my motivation to hit this goal, but I feel like as soon as I reach it I will instantly start thinking about the next goal. Most of what is making this possible is that I can hit a 90% savings rate minimum with my current situation (living with parents and not a huge spender), which I know is an extremely fortunate position and am very grateful for. Although I could also very comfortably move out and get a decent apartment with how much I earn, only dropping my savings rate to maybe 70%.

I think I am aiming to FIRE, but not sure at what age I am aiming to do so at yet. And yet while I would definitely say that I am financially literate (I hang out here on OzB so duh), sometimes I dream about being completely fiscally irresponsible. What I am trying to say in a metaphorical sense, is that I feel like I would rather have a Lambo (as an example) in my 20s than 40s/50s/60s, but can't shake the feeling that this is extremely stupid and I should prioritise boring saving and climbing the corporate ladder. This is clashing with me wanting to save up a ton and FIRE early. As a side note, I'd almost definitely do something else with the money than a Lambo, along the lines of a huge expensive 6 month 6 figure holiday around the world or something similar. Although a really stupid supercar like that might be nice too, idk. I hear some even appreciate, although I would not shy away from throwing miles on one and incurring lots of depreciation.

I've read similar posts on ausfinance and the comments are invariably always split between "you will get a dopamine hit once you hit your goal and then soon after just want more, so spend while you are young and live life" vs "I wish I had saved more at your age and set myself up well for later". However unlike on ausfinance, I couldn't find many posts here on ozb apart from this one which wasn't really life advice, moreso investment advice. Whereas for me on the other hand, I know exactly what I'd invest in, but dont know if I should be going along that path at this point in time. The standout comment I took away from that thread was this:

George Best has great financial advice for you
"I spent 90% of my money on women, drink and fast cars. The rest I wasted,"

Which I thought was quite funny but not very relatable. I also saw this post, but my situation is pretty significantly different so that's why I still wrote this up.

I'd appreciate some anecdotes in the comments from people who decided to lean one way or the other with regards to focusing on hardcore saving vs having fun in their early 20s and whether you regretted it or not? Would you do it again? What advice you would have for someone that age?

life questions I have (unrelated to the poll and main post):
- when should I buy an apartment / house? ASAP, or wait a while?
As stated before, I live at home with family still so there's no urgent pressure to buy a place right now, but there are a bunch of first home owner incentive schemes such as FHOG, FHSS, and the CGT exemptions, so I have been considering this a lot recently. I quite like living at home, but I feel like there's a societal expectation to move out as well. The potential financial upside is nice too. Obviously property can go down too, but on a risk adjusted basis it's a chance I'd be happy to take.
- should I bother maxing super?
I am not totally sure where I am going to end up in life, and I don't know if super makes as much sense if I plan on FIREing at say 30 or 40 either since I can't access it "early". If I retire in the US for example, super isnt recognised as a tax advantaged account. Also I value the flexibility of taxable accounts. I know I could do a SMSF at some point but it's a lot of hassle apparently.
- would it be worth moving countries to save up lots of $$$ even faster?
I will have the option to move to the US, Europe (well just London if I want the big $$$), or potentially even a place like the UAE which all come with huge raises in pay. Apparently if I move to the states I'll double my disposable income. I figure that if I'm willing to dedicate the next few years to saving furiously, I may as well optimise where I live to earn the most possible? Wondering if anyone on here has done this.

I apologise if this is not 100% relevant, but I don't have any mentors outside of work apart from my parents, and I am looking for some external advice / wisdom. Feeling a little lost in life as honestly I was in high school not so long ago and still feel like a child. Have no idea what I want from life right now or what to do with myself really.

I have been writing and editing this for long enough now so I think I have included everything but please ask me any other questions for things that are unclear. I did omit some details in the name of anonymity but am happy to clarify anything if necessary. Will check comments and reply periodically over the next few days :)

What Financial Path Would You Choose in My Position?

Poll Options expired

  • 24
    I would prioritise getting to $1m in NW by 25yo
  • 14
    I would prioritise living life, drive supercar in 20s, save after 30yo
  • 187
    I would choose the middle ground, say $1m by 30yo with some holidays in between
Education & Work

Comments

  • Protractor on 16/12/2023 - 19:36
    -2

    Are you a student of psychology or social science etc? Other?

    • [Deactivated] on 16/12/2023 - 20:06

      Dual stem + finance student

      • RTX9090Ti on 18/12/2023 - 10:53 
        "In 1969 I gave up women and alcohol—it was the worst 20 minutes of my life."

        — Best quips on his lifestyle.

        • R4 on 19/12/2023 - 12:54
          -1

          Or the Northern Irish football player, George Best - I spent most of my money on booze, women and cars. The rest I wasted.

          Legend.

  • iforgotmysocks on 16/12/2023 - 19:38
    +22

    You can hire the supercar to scratch the itch. It will be horrendously expensive to buy, insure, maintain and run.

    • [Deactivated] on 16/12/2023 - 20:08

      Huh, smart. Good idea :)

      • Antikythera on 17/12/2023 - 23:14

        Cars Next Door became Uber Carshare.
        hire a mildly hot sportscar for a few days.
        then buy a corolla.

        I was 5 when my parents retired. I watched mum and dad in their retirement age put their money into term deposits.
        so when i had some savings i did the same. i wish I had put it in the stock market instead.
        risky investments for more growth when i was younger would mean I'd be in a better position now.

        my nephew bought his first unit at 25. he has been working overseas for most of the last decade. ski resorts mostly. when he comes home he has that property to either move in to or keep renting it out.

  • 7ekn00 on 16/12/2023 - 19:38
    +33

    Yes … But, TLDR …

    • WhyAmICommenting on 19/12/2023 - 13:54
      +4

      “I’m rich, what should I dooooooooooo????”

  • garetz on 16/12/2023 - 19:40
    +6

    Whenever you watch interviews with billionaires they always say the 1st million is the hardest.

    Once you reach that level of wealth it becomes much easier to grow your wealth exponentially.

    I have a family member who prioritized life over savings, wasting money on cars, spending over 500k in 10 years on travelling.
    Now he has a family and he struggles to get by, he barely makes enough to keep his family in the lifestyle they are accustomed to and he makes over 120k pa.
    He could easily be retired at 40 if he didn't piss away all his money having fun. Now he has responsibilities to his family and cannot take risks or make investments.

    Just remember as you get older your priorities change. If you have 1 mill at 25 that opens up opportunities you otherwise would never have had, you are also not stressing over money all the time. As long as your bills are paid and you can afford a roof over your head and food, you are basically financially ahead of most people who are living pay cheque to pay cheque.

      • garetz on 16/12/2023 - 20:25
        +2

        If you invest and can attain a return of 10% pa on average, from 1 million, you will double your net worth in 7 years.

        As long as you know the risks and can manage your risk by diversification you should be able to double your net worth every 7 yrs or so.

        If you invested in Vanguard etfs 5 years ago, you would have seen an average return of about 11% pa

        it just depends on how much appetite for risk you have.

        • 1st-Amendment on 19/12/2023 - 09:08
          -3

          If you invest

          Cool story, now tell us how this is 'exponential' growth?

          I'll give you a hint, 'exponential' refers to a power of, not a multiplier of as used in your example. So in your example, a multiplier of 2 every 7 years. If it was exponential it would to the power of 2. This is what 'exponential' means.
          eg. So starting with $1m it would be $2m in the first cycle, $4m in the second (2^2), $16m in the third (4^2), $256m in the fourth (16^2).

          The word 'exponential' gets used all the time as a vague reference to mean 'rapid' but that is not what it means in maths. And if your talking mathematical calculations you need to use the mathematical definition, not the bro science definition

      • johnno07 on 19/12/2023 - 03:43
        -1

        I don't think you know what the word exponential means…

        • 1st-Amendment on 19/12/2023 - 08:58
          -3

          I don't think

          You got that right

    • Some Guy on 17/12/2023 - 02:25
      +6

      It's seriously doubtful that someone on $120k could retire comfortably at 40, without an unlikely combination of incredibly frugal living and fantastic investments and generous inheritance.

      It is entirely believable that someone supporting a family on $120k would struggle to get by, let alone invest and a "fun" lifestyle.

    • Hardlyworkin on 17/12/2023 - 09:05
      +6

      Your family member could have also died or got really sick at 40. As someone who also spent every last cent I had travelling in my 20s I to 30s, I look at my friends and family who did the same boring thing year in and year out and feel sorry for them. Everyone's health deteriorates, make the most of it when you're young. The key is finding a little balance / smart investment.

      • rezdo on 18/12/2023 - 07:35
        +4

        Unless you are blessed with amazing longevity genes, your health will be crap after 40-50's. Everyone in my family who tried to get ahead, they worked smarter (some harder), and most keeled over and died early or have crippling health concerns. The mates that did skimp every penny and save are retiring in their 50's, but have poor health and relationships.

        If I could have a redo, I would do a little less saving early on, drink a bit less to dissociate the dulls of life and invest in experiences and relationships that will keep me healthy. While I am not well off now, I am comfortable but sick in my 50's (probably from over working and focusing on wealth creation) which is pointless in the end.

        We aren't all the same, some get lucky, some don't. I would focus on balance.

  • tsunamisurfer on 16/12/2023 - 19:44
    +8

    If you are on a good career.

    I would :

    • Save / invest initially.
    • Purchase a modest home as a first one.
    • Once you have the mortgage at a good place, enjoy a holiday.
    • Pay off mortgage, then re-assess life goals. Eg. You want to buy a bigger house for a family or you want more holidays or a better car.

    You can be a millionaire in assets.
    Don't worry about Super for now.
    As tempting as it is, don't spend big for a car. There may be an initial level of satisfaction but it dies off after a month and then the maintenance bills accumulate.

    • Wiadro on 16/12/2023 - 20:05
      -1

      satisfaction but it dies off after a month and then the maintenance bills accumulate.

      what do you mean? maintenance after a month, you must've purchased a lemon

      • 1st-Amendment on 16/12/2023 - 20:10
        +5

        what do you mean? maintenance after a month

        Can you read?

        He said the satisfaction does off after a month, and THEN, meaning after that time, maintenance bills accumulate. All machines need maintenance and you'll get sick of buying things like $800 tyres pretty quickly…

    • [Deactivated] on 16/12/2023 - 20:17
      -1

      Yes I did mean in NW / assets, not straight cash, shouldve specified in the op. I’m fairly risk tolerant, dont see the value in a HYSA as an actual investment at my current age outside of an emergency fund, so I do intend to have majority of my NW in assets. I really like stocks.

      Just not too sure how much % of NW I’m comfortable having as a property right now. I feel nervous when I see peoples primary investment be their ppor.

    • JDMcarfan on 18/12/2023 - 09:05
      +3

      perfect advice mate! OP not to burn your spirit but don't expect to be a millionaire at 25. I've got a very similar background to you and have gotten a good grad job at 21, working till today at 25 and just finished step 3 on @tsunamisurfer's list. My net worth right now is approx. 500k, and most people I know would say that's seriously impressive, and I'll admit I've only gotten here from luck in my property purchase and serious discipline with spending until my 25th Bday (i.e. no holidays, drive a 5k shitbox etc.). You'll eventually come to the realisation that life's worth more than that, and when you've become comfortable in life, I hope you begin to value life experiences more than pure financial wealth.

      As tempting as it is, don't spend big for a car.

      unless it's a high-yield investment vehicle ofc.

      • [Deactivated] on 18/12/2023 - 14:04
        -1

        It's nice to see someone who has (successfully) taken a very similar path as to what I am envisioning on here. Its worked out for you and you have done very well for yourself :)

        I don't know why other people here seem to think it's impossible to save up a decent amount by then. Good grad job at an early age makes all the difference vs having to do an average grad job for 4-5 years before breaking into high pay. Sure if I was on 80k for that period of time I'd have to bump the age it would take to get to 1m to 30 years old, but getting high pay early really does make all the difference.

        Would you mind sharing your primary investments? Did you invest the majority into property? Or perhaps other equities? I doubt you went entirely HYSA / fixed income to get to that figure. Feel free to keep it semi vague.

        Enjoy your holiday!

        • JDMcarfan on 18/12/2023 - 14:45
          -1

          PM me if you want more deets, but largely followed the tsunamisurfer way of thought. I went straight into property as the ability to leverage at effectively 10:1 (if you can access it with professional membership) seriously boosts ROI and provides you with a stable base to then seek alternative investments.

          I made closer to that 80k mark for the first 2 years since I graduated so would be a normal person in your terms, but friends with 130k-150k+ grad/analyst pay packets seem to not be as well off as you'd think. Firstly, taxes eat up a massive portion of your income and most of them needed to live near work, nor had time to cook given their hours so their expenses we're instantly much higher than mine before even going into their spending habits. I'd say the amount they had set aside for saving was about the same as me if not less, so if you're a diligent saver then all the best, but your self-discipline must be insane.

          Unfortunately, the nature of my work does largely exclude me from doing direct equity investments (without a headache of permission) so ill be stuck with ETF's for the foreseeable future (not a bad thing), but ETF's were my primary investment vehicle over the time I was saving up, with a small emergency fund saved aside in HYSA's.

  • Godric on 16/12/2023 - 20:05
    +5

    I asked Google Bard to TLDR this post:

    • 20-something with high-paying job wants to FIRE but struggles with balance between saving & enjoying life.
    • Can hit 90% savings rate but wants a "lambo" experience (e.g., luxury travel) in his 20s.
    • Unsure about buying a house, maxing super, and moving abroad for faster savings.
    • Seeks advice on life balance and prioritizing goals.
      • Protractor on 16/12/2023 - 20:58
        +29

        Know your audience's (1) attention span and (2) care factor.

      • kerfuffle on 17/12/2023 - 04:31
        +26

        No one wants to read a 1000+ word post. Here for bargains, not essays.

  • Wiadro on 16/12/2023 - 20:05
    +4

    just join the bikies

  • 1st-Amendment on 16/12/2023 - 20:20
    +8

    I think I am aiming to FIRE

    This is the second time this week I've seen this phrase, is this the latest Tiktok or something?

    I can pretty much guarantee becoming a "millionaire" by 25

    I'd like to see your maths here. Assuming you did a 4 year degree, that makes you 21-22? To accumulate $1M in 3-4 years does not sound plausible for a grad. You'd need a salary of somewhere around $600k to achieve this as after tax earnings. Not saying it can't happen, it does happen to the privileged few, but something tells that the people who post in OzBargain aren't those types of unicorns…

    • [Deactivated] on 16/12/2023 - 20:25
      -3

      I’d be happy to share via dms if you want, but would prefer to not post that much indentifying info here. Lmk if you want me to reach out.

      Also the FIRE movement is pretty popular. Its been a thing for years now. Check out r/fire or r/fiaustralia for some of the bigger communities around this movement. Or r/fatfire for the obscenely wealthy version.

      • 1st-Amendment on 17/12/2023 - 09:32
        +10

        Also the FIRE movement is pretty popular. Its been a thing for years now.

        I hate to break it to you but planning to retire early has been everyone's goal since the year dot. They love to come up with goofy names for the same old concepts, but it's the same shit just rolled in a different brand of glitter. The part everyone falls over at is that life eventually gets in the way.

    • original15 on 16/12/2023 - 21:00
      +1

      OP is going to save 90% of their salary but invest it and triple their return, year on year
      I’ve seen the show Billions. It’s easy

    • npnp on 17/12/2023 - 20:30
      +3

      Not even sure this is a serious post TBH (I'm referring to OP). Grad student even at the most prestigious course is unlikely get to millions in a matter of a couple of years (unless of course robbing a bank is also part of the agenda). Even if this is some extremely rare unicorn case, how on earth such a guy relying on ozbargain community to show his way.. lol

  • hasher22 on 16/12/2023 - 20:33
    +9

    Find the middle ground. Live life, money is important but you got to enjoy life as well.

    If you feel you need be rich by 25 or 30 but what are your life goals?

    It's fine and dandy to have money but are you the type of person that will have money in the bank at 30 and cry because you just saved all your life without experiencing anything in the past decade?

    The reality is
    - you don't know if you're going to get sick
    - you don't know if you're going to get injured
    - you don't know if something tragic happens
    - you don't know if you'll meet a long term partner
    - other things you can't control such as redundancy, epidemics, financial crisis etc.

    I'm not saying spend and go crazy, find the middle, cause , imo, the last thing you want is that you're 30 with money that lived a boring life.

    If you feel you want to start living life at 30 or 40 after you purchased a home or whatever, then do that.

    Some people live their life in their 20s, some in their 40s.

    Only you know what type of consumer and personality you have and are.

    • [Deactivated] on 16/12/2023 - 21:48
      -1

      this was good to read, thank you :)

  • djsweet on 16/12/2023 - 20:51
    +5

    I think you’re over thinking it. Live life and don’t worry so much about $$$. Of course you need a certain amount of money to live, but don’t base your whole life around the pursuit of wealth. It’s a miserable life.

  • Protractor on 16/12/2023 - 21:00
    +15

    The question is, did OP dad send OP to best or 2nd best private school?

    • Muzeeb on 16/12/2023 - 21:17
      +4

      private school

      Selective School

      • [Deactivated] on 16/12/2023 - 21:45
        -1

        correct

        • Protractor on 16/12/2023 - 22:38
          +14

          dad must be well chuffed that you're using that education to seek life advice on a shopping website ,lol

    • cashless on 16/12/2023 - 21:36
      +3

      He only went to James Ruse:(

      • Protractor on 16/12/2023 - 22:49
        -1

        Confucius say>
        Doesn't matter what school you go to, if you don't pay attention.

        • 1st-Amendment on 17/12/2023 - 09:34
          -1

          Confucius also say school not matter, if drugs make you happy.
          Or maybe that was Yoda, I forget…

  • Pikaloo on 16/12/2023 - 21:13
    +5

    Prioritise $1,000,000,000 by 15. That way you can holiday and relax in your 20s and beyond.

  • cashless on 16/12/2023 - 21:33
    +14

    My 2c.
    You seem like the kind of unrelaxed guy that is going to spend your whole life worrying about money.
    You’ll get to the end of your life, maybe well off, but deeply unhappy because you only ever thought about hitting the big time and getting rich.
    To truly en”rich” yourself you need to stop worrying about getting rich and worry instead about how to live a fulfilling life that benefits all those around you.

    • Muzeeb on 16/12/2023 - 22:13
      +7

      Username checks out

    • Protractor on 16/12/2023 - 22:51
      -1

      enter Simply Red background musak flashback, Money's Too Tight To mention

  • lachhelix on 16/12/2023 - 21:41
    +5

    Yeah - great to think this way but you really gotta chill out.. You'll reach 30 and be having a shit time

    Source: trust me

  • AustriaBargain on 16/12/2023 - 21:43
    +1

    Become a novel writer.

  • djones145 on 16/12/2023 - 21:44
    +14

    guess ur single cause its -90% saved once u start dating lolz

  • ass3ts on 16/12/2023 - 21:46
    +2

    If you hate what you do and you work only for money, I guess it makes sense to aim to retire and possibly do nothing much as early as possible. I bought my first Lambo in my late 20s outright and I could've very comfortably 'retired' by most standards a long time ago but I don't want to. I still travel to every corner of the world several times a year even without ditching work for good. If you're not too risk averse maybe consider working for yourself? As clichĂŠ as it sounds, you can't really save your way to real wealth.

    • Muzeeb on 16/12/2023 - 22:15
      +2

      Is that you, Lambo guy?

      • cashless on 16/12/2023 - 22:26
        +1

        No, it’s Techlead using a pseudonym

    • brendanm on 16/12/2023 - 22:31
      +2

      What colour is your lambo? Mine is green.

      • Protractor on 16/12/2023 - 22:54
        -1

        Matchbox or Corgi?

        EDIT, Never mind , I get it, the tractor Lambo

      • ass3ts on 16/12/2023 - 23:01
        -1

        It was a yellow Gallardo. Not a fan of Lamborghinis and most sports cars from the VW Group, they tend to understeer too much.

        • brendanm on 16/12/2023 - 23:11
          +1

          Should have got a Diablo.

          • Protractor on 17/12/2023 - 11:23
            -1

            @brendanm: "Sprint" is way better in car parks>

            https://tinyurl.com/LAMBO4ME

          • ass3ts on 18/12/2023 - 01:58
            +1

            @brendanm: The Diablo was older and already out of production then. I was also after something similar to replace my 360 and the Gallardo was more track friendly than pre-VW Lambos. Track use was my main purpose, driving them on public roads was cumbersome and I was already fed up with the extra attention they attracted.

      • djones145 on 17/12/2023 - 08:33
        -1

        i have all the colours of the rainbow

    • Protractor on 16/12/2023 - 22:57
      +5

      So rich, and yet still lurking here. What a guy!

  • garetz on 16/12/2023 - 22:37
    +1

    The fact that you are considering this at your age puts you ahead of 99.9% of people and makes you leagues ahead of most peoples financial status.

    Most people have no idea what getting to 1 mill in your early to mid 20s does for you financially. You would be in the top 2-3% of australians your age.

    So most of the advice here is really ridiculously short sighted, if you prioritise financial responsibility and want to be fiscally responsible, get to that 1 mill as soon as you can.

    Then you can basically do whatever you want. People really do not understand this till they sell their house and retire, but that is usually at age 60-65 for most people.

    • Protractor on 16/12/2023 - 22:53

      What's left of the human race when OP retires will be living on another planet or underground.
      But at least he'll have shiny shit to play with.

    • Exorcist on 18/12/2023 - 15:19

      I agree, also getting to a billion nw at 30 is also quite beneficial

  • JIMB0 on 16/12/2023 - 23:06
    +2

    The real supercars are the many old Toyota's that just keep on going year after year.

  • miwahni on 16/12/2023 - 23:39
    +3

    I wished I'd travelled more when I was younger, broadened my horizons and soaked up more experiences while I had longer to benefit from them.
    You mentioned that you could move to London to work and make good money. London is a good jumping off point for Europe - you could still be saving but also enjoying long weekends / holidays in Spain, France etc. Especially if you backpack around once you're there. Tour the Greek islands, explore Italy.
    So that's what I would do. Move to London, spend my free time travelling while still putting some away for the future. Invest in yourself, in your experiences, while you're young enough to make the most of them.

  • sumyungguy on 17/12/2023 - 00:06

    You can find life & financial coaches that may offer some professional guidance. A comment on moving countries - a study published in 2009 found an association between living abroad (not merely travelling) and creativity. So If you work in a role that values innovation & creativity, look up Duncker's candle problem. But… there are sh*thole countries everywhere and you're privileged to be living here. Try to network with people who have lived and worked in other countries (esp USA) and get their insights. When I was young & naive I too thought it would be great to work in the US, until I came to understand what their society and workplace culture is really like.

    BTW, as a newly graduated wage slave you won't be a millionare by age 25 unless you're expecting an inheritance. Not worth focussing on that, better to get your foundations in order.

  • mskeggs on 17/12/2023 - 00:51
    +7

    The hedonic treadmill is real, and very hard to avoid if you are in a high paying job, surrounded by other well paid people for the long hours you work.
    My upbringing was middle class, but middle class back then didn’t include overseas holidays and fancy cars, and many of the things like eating out all the time and paying people to do your chores that are usual these days.
    The result for me was a set of life goals that sound pretty modest in 2023 - I wanted to get a spouse and have a family, own a house and a nice car, travel abroad, work an interesting job I didn’t loathe attending, and pitch in to make the world a better place.

    I was also very lucky to get a job when I left uni that made these goals achievable, and they were pretty much done by the time I was in my late 20s (though still working on the last - it is lifelong).
    My next set of goals have been largely about the results of these initial ones - raising thoughtful kids, having a successful relationship, gaining increased satisfaction that I am doing meaningful things.

    I wasn’t mature enough to think through all these when I was young, and I certainly had challenges incorporating other people’s own goals into my life (ongoing).

    I guess in your situation I would definitely be putting plenty into savings while your plans are developing. I don’t think driving the Lambo will do much for you - my old boss bought himself a Ferrari when he “made it” and it became a bit of an albatross of costs and impracticality (you really don’t want to jump in the Lambo to go to Westfield to do the xmas shopping).
    So save, go on some holidays (you know, a great week in Japan doesn’t have to cost $20k) and explore things like working overseas.

    My strongest advice is not to find yourself in a situation in a decade that requires you to keep working in a job or industry your have grown to dislike, because you have mortgages/school fees/car repayments etc.
    Be smarter than that.

    • 1st-Amendment on 17/12/2023 - 09:39
      +2

      The hedonic treadmill is real, and very hard to avoid if you are in a high paying job, surrounded by other well paid people for the long hours you work.

      Yeah this is the part these kids don't understand yet. To be a 'player' in this game, you need the expensive suits, cars, entertainment just to participate.
      You can't save your way to wealth, because it costs so much just to stay in the game.

  • Some Guy on 17/12/2023 - 02:53
    +3

    It is good, terrific even, that you're looking ahead but wow, talk about counting chickens before they've hatched.

    Consolidate your job/career and see a financial advisor to confirm your investment plans.

    I'm glad you didn't relate to George Best because he was one of the best footballers ever and they're the only ones paid enough to afford those things when young.

  • Lunarboogie on 17/12/2023 - 06:08
    +3

    It's not time to make a million
    Just relax, take it easy
    You're still young, that's your fault
    There's so much you have to know
    Find a girl, settle down
    If you want, you can marry
    Look at me, I am 40, but I'm happy.

  • bigsaver on 17/12/2023 - 08:01

    If the Lamborghini is gonna get you 30x more pssies than what you get now, go for it… otherwise don't bother spending 500K to impress your mates

    • Pikaloo on 17/12/2023 - 08:28
      +7

      But 0 x 30 is 0.

    • 1st-Amendment on 17/12/2023 - 09:40

      If the Lamborghini is gonna get you 30x more pssies

      Teenage boys think that Lambos get you girls. But in reality Lambos only gets you teenage boys and a lot of headaches.

  • avoidfullprice on 17/12/2023 - 08:35
    +1

    FIRE should be a mean to achieve your life goals, like able to travel around the world/camping carefree by your 30s. FIRE is not a goal itself that once you reach it you go “so what next”. Do you see a difference between “live to earn” and “earn to live”?

    You buy an unit/house to live when your life circumstance encourages you, say living together with your partner and want intimacy and privacy.

    Your path description lacks some life experiences, rather than lack mentorship. Do you have siblings? Do you hang with your friends (but not the Jones of course)? What’s your hobby? What spark joy and life fulfilment? What’s your relationship like etc?

    • SlickMick on 17/12/2023 - 18:13
      +2

      +1 Being retired is a pathetic goal on it's own. It's only one step up from dying early.

      I could retire, but instead I'm trying to retrain and move into an industry where I feel that I'm doing something worthwhile with my life.
      I think I'll work till the day I die. I might purchase additional annual leave, but I think holidaying more than 8 weeks a year would be too exhausting.

      • ginormousgiraffe on 18/12/2023 - 09:30

        Don't you have hobbies, charities or interests that you would persue? Very sad for anyone that doesn't have any purpose other than to work imo.

        • SlickMick on 18/12/2023 - 10:44
          +1

          oh I have plenty of stuff to do. But I see it as selfish to plan my life around what's in it for me.

          My observation is many people don't live long after retirement, once their purpose in life is gone.
          Retirement hasn't always been a thing. I question whether it's the best approach. Have you heard of those places where people live longer? One thing they had in common is they don't have this concept of retiring.

          If you have something more useful to do with your life than your job, that would be fine. For most people, I reckon retirement is a mistake.

          edit: sorry, I just re-read and you mentioned charities etc. I guess that works. I've seen many people try to void the hole in their lives with volunteering. It's not something I'd enjoy, but if that floats your boat it would be a good option.

          ps. and whether your job is sad depends on what you do. I decided that my job is sad, but instead of retiring I'm retraining to get into something that I see as worthwhile. Some people find satisfaction in feeding the hungry, some want to change the world. I'm somewhere in between.

  • freefall101 on 17/12/2023 - 09:12

    I would prioritise working hard to actually get those pay bumps before you start counting your chickens. My other idiom is life is what happens when you're making plans. Working hard also eats up most of your time, relocating is rarely as simple as "I want to do that" and relies on specific opportunities to come along, retiring at 30-40 relies on your career not being eaten by AI or something along the way.

  • Central Intelligence on 17/12/2023 - 09:21
    -2

    You story seems a lot like the start of mine and I am in my mid 30s now, semi-retired, still running new businesses. So hopefully what I write can convey some doubts into the path you are choosing. Questioning what you are doing is the best way to determine what your actual proper path in life should be. If you were not worried about what you were doing and just going with the flow, chances are you are now in your mid 30s and regret your choices in life.

    Once you reach your late 20s you will realise showing off is vapid, but it is actually very important to advertise yourself if you want to build up a network of peers, find that perfect person in your life, and ultimately start a family with someone. It would really be terrible if your perfect match, assuming they are family orientated, ignored you because they thought you could not provide financially. Believe me, this is a reality in my cohort of friends where there are multiple people who are in their mid 30s and have not been able to find that someone special yet. A majority of those who remain unmarried come from poorer backgrounds, with those from more wealthy backgrounds easily being able to find wives/husbands from their high school years.

    Notably, I find that during the high school years, really simple stuff like the shoes you were wearing, the type of phone you had, type of pens you have, type of pencil case you have, how often your hair was cut, really basic stuff like that can attract a mating partner. That differentiates you and ultimately is the main determining factor about whether you actually get together with a high school crush. That is just the reality.

    I had basically nothing; I was wearing the same school bag for many years, my pens were your ordinary cheapest pens you could find at Big W, my clothes were the same and often the pants were shorter than others which led many to comment on the bus "Oh I remember you guys down at the other primary school in the suburb. You guys sure wear your pants up high". I did not even have an iPod which a majority of the other students had. One of my friends even came up with a crazy idea to sell me a mini portable FM radio which looked like a iPod, basically we just kept it in our pockets and it looked like you were one of the others. God bless that guy.

    One of my other friends ended up dropping out because he used to come to school with just a shopping bag. I do not know if he took his own life. I cannot find him on LinkedIn or anywhere, albeit I am not on those services either. I hope he is still alive.

    Believe me people are always calculating how well off other people are, and believe me they are really terrible at it. For gods sake, take my example of supermarket staff, which can be used as a proxy for the average person. They thought I was trying to steal $200 worth of groceries even though I clearly had paid… They cannot tell the difference between someone who is suffering from a fault which originates with the supermarket and someone who is trying to steal. I do not have any doubts that if I was wearing a suit that I would have been let out the door, possibly they would take my details to do the check rather than having myself having to phone up to resolve the issue. The onus was on them to show I had not paid because I already proved I had paid beyond reasonable doubt which implies I met it on the balance of probabilities. I should have been let out of the store with my groceries. I already received compensation so I won't press on it.

    I dress down deliberately to hide my wealth these days because crime levels are high, gangland wars are common in my neighbouring suburbs with multiple people being shot dead in the past year. I carry a $149 phone which coincidentally was the ozbargain $29 phone at some point in time. I do not buy some iPhone that spies on me and does client side scanning, so it is really difficult to woo that love of your life. You would not think so, but people do look at your phone and when you chat to people that have married it is those simple things they look back on that attracted them, e.g. listening to ipod together at the library. When you are poor you do not have those things. You cannot afford face cleansers. That is the reality. You do not have that competitive edge at that point in time and that is the sad reality.

    You need to ensure that you don't fall into that trap, especially when you do have money.

    So are those without funds in their early life or those who choose not to spend during their most critical years at risk? I would say yes. This is particularly worrisome for the younger generation because most people are on their phones whilst on the train, it is impossible to talk to anyone, and is a major reason why I just catch Uber these days because at least you can talk to the driver. Life is really lonely at the top if you end up neglecting parts of your life.

    The dating scene is pretty much dead with the stereotypical OzBargain mindset, that is the reality. It just does not work, end of story, unless you want to promote showing the prospective partner your bank account which just comes off cringy and can lead you to being scammed in my opinion.

    Also, who is telling you that you cannot get to $1m networth by 25 and enjoy everything? What are your constraints in your modelling? Why can't you reach the $1m networth by 25 with another job? It is clear to me that your current graduate job is possibly not giving you that satisfaction that you need. From my own perspective I knew there was another path for me to take that would have led to all the right outcomes but I chose not to because I wanted to be safe. That was my biggest regret not going my own way. Why do you need that safe job when you can have asymmetric returns with another job?

    I also come from an Asian culture where other families compare people by the jobs they have. The amount of vitriol my parents had to deal with when they said I did not have a job during the time I was retired very much angered me. When your parents tell other families that you are not working, somehow the others think that is some excuse, or proxy, that you are poor… Sadly, I will admit this is what forced me back to building businesses and basically having some type of job, otherwise I would just be sitting at the beach everyday.

    I still want to go give up everything one day and just sit on the beach doing nothing.

    Most people cannot tell if you are poor or rich. People just use social indicators, do you have a job? No, then you must be poor. The reality is I would never ask anyone what type of job they have. It is just plain offensive. I ask them how do they spend their time. This is how it should be, but this is not reality.

    I am not even done replying to the rest of your post. This is basically a reply to the first two paragraphs, but I just realised it is getting too long and possibly too personal. However, it is possible everything is already set in stone when it comes to finding a partner for a young person in their early 20s in this modern society. You are unlikely to find your love during workplace hours because of various liability issues. You are unlikely to find it whilst on public transport because everyone is on their phone. It really means that unless you have those good connections in High School, emphasis, then it really becomes difficult to find people with common goals.

    So, to conclude, really think about your goals because that is more important. If you want a partner, damn, do it earlier rather than later because that pool dries up fast. Spend up big even if it means you don't reach your goals until you are 35. If that lambo works for you, do it.

    I will briefly cover the rest of the questions:

    House can be proxy for lambo in a sense because people will do property searches to see if you own that property you live at. It can go the other way too, use a trust or company to buy your house if you don't want people peering into your finances. Superannuation is useless in my opinion, especially if you want to become an entrepreneur, keep your funds out of their as it severely limits your ability to invest in your own businesses because of the superannuation trust deeds/legal issues. Superannuation can also be changed legislatively at any time. This is my opinion coming from a Math/Statistics/Finance/Law background. Moving countries to become a Nomad Capitalist is a good idea, but generally you will find it is a lot harder to dump your Australian domicile. The Commissioner is always looking to drain funds from Australians wherever they live.

    Most importantly, Trust yourself.

    • 1st-Amendment on 17/12/2023 - 09:58
      +8

      The dating scene is pretty much dead

      I would never ask anyone what type of job they have. It is just plain offensive.

      I think we've found why you suck at dating… being offended at everything makes you a snowflake and most women don't find that attractive.

      Superannuation is useless in my opinion
      This is my opinion coming from a Math/Statistics/Finance/Law background.

      You might need to go back to school then, the tax advantages alone of Super make it a useful instrument for any investment portfolio.

    • jolee3 on 17/12/2023 - 10:20
      +8

      Am I reading this right? You are blaming your lack of partner now, in your 30s, on the fact you came off looking poor in high school because you didn't have an iPod? I don't remember paying any attention at all to what pencil cases people used.

      I know very little people who stayed with anybody they dated in high school.

    • Protractor on 17/12/2023 - 11:26
      +3

      "The Commissioner is always looking to drain funds from Australians wherever they live."

      That's why we have borders and airports.Feel free to use them.

    • [Deactivated] on 17/12/2023 - 14:10
      -2

      This is one of the most insightful and at least partially relatable things I have read (due to similar backgrounds minus law), so I'm glad I posted here. The haircut thing was startlingly accurate. I do get to dress down where I work which I prefer - no collars or suits or anything. I'm not very flashy at all. I am satisfied with where I am currently, but I do have big ambitions which is why I am thinking ahead now.

      people will do property searches to see if you own that property you live at

      Really? That is ridiculous, I can't understand the point of doing this apart from being judgemental. In a way it's sort of like what they have in Norway where you can look up peoples tax returns to find their net worths, but it's very frowned upon.

      Constraints in my modelling were just that it was relatively tight to get to above $1m by then, but it is an achievable goal still. I suppose I could choose a lower arbitrary number, and be able to spend a fair amount over the years instead. I just thought it was better to dream big. I think a large part of my choosing this figure was just that I don't know what I want from life yet and setting financial goals is the easiest way to define some "progression".

      Also it was nice to hear some confirmation from somebody else regarding super being a pain, although there's not much room to contribute extra anyway. 45 years is a long time to lock money up for. Also, my parents have a fair amount of money in a foreign countries equivalent of super which isn't recognised here, so they are planning on moving back for a few years to save a couple hundred thousand in taxes, but it is still quite a hassle. They are calling it getting paid to go on holiday which is true, but I'd still like to avoid that situation personally.

      I have looked into changing tax domicile since my job can be done from pretty much anywhere, and worked out that I'd have to close every account I have here, rent out any properties, and give up my phone number to avoid any suspicion of intent to return. If I ever start a business or even just contracting, I will 100% do it somewhere other than here. The semi recent tax residency rule change was quite worrisome actually - I would be very displeased if we switched to an american-esque worldwide taxation system.

      Most importantly, Trust yourself

      This stands out to me, because when I have talked to other people (or even gone through some of the other comments in here) they seem to think I am crazy or out of touch. I have been planning ahead for years, playing the long game, and everything has gone according to plan so far, so I see no reason to start thinking differently now. I appreciate you saying this because I don't think anyone else has said that to me before so I hadn't thought about it. I am definitely happy with how my past self acted, so I can probably trust my current self.

      Once again, thank you very much for your comment. I found it very insightful.

  • 82norm on 17/12/2023 - 09:27

    Just watch Risky Business, Wall St, Wolf On Wall St and just to throw in something for good measure, Ferris Bueller’s Day Off. You’ll have greater appreciation of life and your goals.

    • [Deactivated] on 17/12/2023 - 14:22

      WoWSt was a big influence in my choice of study area funnily enough 🙃

  • loadofrubbish on 17/12/2023 - 09:33
    +1

    always back your self

  • defaultess on 17/12/2023 - 11:14
    +2

    I got some great advice from someone when I first started out my career.

    When you're first starting in the world of finance don't focus on what you can save with your current pay as your future pay quickly dwarf it. Often in the first few years your pay will double.

    You've already pointed out that there's tonnes of growth in your career path so focus on what you need to do to achieve that performance level at work and spend your money on things that make you happy to get there.
    That doesn't mean you blow it on a lambo or business class holidays but for most people if it's just work hard and nothing else then eventually you go crazy and it impacts your performance at work and promotion potential. For me that meant I was always out with friends on a Friday night, even if I was working the weekend. Terrible from an investment perspective though lol. Did a decent amount of travel but never extravagant but never super budget either.

    I'd stay at home as long as you are all happy. Support and treat your parents every now and then with something simple and thoughtful.

    Definitely explore overseas opportunities with work. They can be some of the most rewarding however I wouldn't do it in your first 2-3years. If you are in the type of role I think you are then learning your job in a familiar environment is easier than having to learn a new culture, live in a new location, etc. You also won't get the most out of the overseas experience so early on.

    I wouldn't buy property early on, I did and it ended up being a huge mental weight.

  • Pearl Moss on 17/12/2023 - 11:52
    +1

    If I could re-do my life I would do whatever the hell I want in my 20s and worry about things from my 30s. I have a lot of regrets about not making the most of my 20s. I was too worried about “being successful”. I own two properties and am currently renting as I’ve moved countries. I personally find renting gives much more freedom and am considering selling my properties and doing more passive investments instead. I encourage you to travel. Again something I wish I had done more.

  • Drakesy on 17/12/2023 - 11:55
    +8

    Someones been drinking the podcaster coolade

    I struggle to see how you'll make $1 million in 10 years when you'll start off in the $70's lets say and work your way up to low to mid $100's

    I'm afraid you may've lost touch with reality

    I've travelled in my 20's, partied, went to uni, drove a $5k shitbox and dont regret any of it. Once you're in your 30's everything changes and I'd trade anything for another 10 years of 20's.

    Only way is
    Live at home
    Save everything
    Get a $700k handout from mummy

    • [Deactivated] on 17/12/2023 - 12:51
      -4

      I am not starting near the mid $70k range though? I can assure you that I am not out of touch with reality, but will again freely admit that I got quite lucky. I am certain that my math checks out, and that the goal of $1m by 25 is achievable for me in my current situation.

      • Drakesy on 17/12/2023 - 14:22
        +2

        Definitely trolling.

        Even doing FiFO at $200k a year is only $135k after tax. Let alone a grad job.

      • TilacVIP on 17/12/2023 - 14:45
        +2

        Well you are nit sharing the "i got lucky part" so we have to assume you mean you are going to do it all youself, from $0 to 1 mill, by 25.

        Yeah, no wonder people are skeptical.

      • sumyungguy on 17/12/2023 - 17:46

        You're anonymous in this forum, what salary are you on? Average graduate starting salary in Australia in the highest paying sectors is $80K+. Let me guess, you're 22, working for your parents, they're paying you $450K - rent, living expenses and HECS inclusive?

        • Toffees on 18/12/2023 - 04:22

          Probably working for a trading firm, grads can start at $150k +

          • ginormousgiraffe on 18/12/2023 - 09:33

            @Toffees: Even at 150k and assuming they can save 100k a year. The fact that the OP did two degrees which sounds like four years at uni, puts them at 22-23. And we can even be generous and say they have 200k in savings given they likely worked at some stage. They will still fall short by 500k.

            More likely OP is lying, has increasingly rich parents, received inheritance or naively thinks they can get 100% p.a. returns.

  • dji1111111 on 17/12/2023 - 12:42
    +3

    LOL at millionaire by 25.
    It certainly is possible but not when you are just working for someone getting paid salary. Also, by the time the tax man takes their cut, your net pay doesn't look as impressive.

    Even if you are on 300k salary (which I'm pretty certain you aren't) it is going to be very difficult to amass +1m in net worth unless you get lucky with a property investment or something in less than 5 years
    Young people starting out now is at massive advantage as well due to inflation and absurd property prices presenting as massive barrier to entry.

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