My Goal Is to Be Financially Secure in The Next 10 Years

OrangeCounty on 25/06/2025 - 19:21
Last edited 25/06/2025 - 22:29 by 1 other user

May the POWER of Ozbargainers on here guide me on the path to success.

Long time reader on here,

I would love to hear your thoughts on how if you were my age (30) you would change up things to become financially set. My goal right now is simple, I have no wife, no partner, work in a stable job 145k give or take. No assets, savings in the bank yes.

What would you do if you were me in Sydney. How would you structure your investing skills to work? Invest in ETFs as I read in some forums on here, Invests in shares, property? Or should I buy those Tiktok courses of Amazon FBA, or high ticket sales and let the money drain in hopes to build wealth when in reality it is building their wealth (i.e. those selling the courses in the lambo)

My dream is plain and simple, to be quite frankly I want to reduce time from work after 10 years time, take care of my future kids, be there for them at awards, birthdays, celebrations. Travel with the family overseas reasonably once a year. I would buy a 2 year old car every 5 years give or take. I like Landcruiser parado's.

Would my dream be possible if I make the right moves? Has anyone here been able to invest and reduce time and work and not depend on working everyday to make ends meet? How did you make your money work for you?

Financial

Comments

  • Hybroid on 25/06/2025 - 19:25
    +57

    You didn't mention the most important aspect of being financially secure: owning a property.

    Otherwise, people do your 'dream' activities with full-time jobs perfectly fine. It's about finding the right personal balance.

    • mrvaluepack on 26/06/2025 - 15:26
      -1

      People can be financially secured and be renters their whole life. Depends on circumstances.

      • Dr Phil on 26/06/2025 - 20:36
        +6

        Unfortunately renters can never be financially secure because they dont have control of thier destiny, nor retirement.
        Property ownership is the backbone of financial security as Hybroid correctly pointed out.

        Unfortunately Career Renters live on a day by day basis and most are probably perfectly happy with that.
        They may have more disposable income in the short term but they will never be financial secure because they will always be a "slave" to the rental market.

        EXCEPTION: temporary renters saving for a deposit to purchase thier first property

        • mrvaluepack on 26/06/2025 - 20:51
          -4

          100% untrue. I have done financial models and forecasts which show it all depends on circumstances.

          Person A: Bought and paying mortgage on a $1.5m house with LVR 80% at today's interest rates.
          Person B: Renting a similar sized property with the same standard of furnishing at $1000 a week.

          Person B's net worth will be constantly ahead until the end of their lives.

          • ramb9 on 27/06/2025 - 01:38
            +1

            @mrvaluepack: Must be some pretty ridiculous circumstances for Person B to be financially ahead if Person A has a 1.5m property that grows at the current rate.
            Like buying bitcoin when it was worth 10c?

            • mrvaluepack on 27/06/2025 - 05:33
              +6

              @ramb9: Fallacy to assume that every property price to grow at double digits.

            • squall3031 on 27/06/2025 - 11:57
              +1

              @ramb9: It is doable but you need to have your money working for you. I know my one of my uncles who does this but living in Asia and costs of living are way cheaper than here.

              He has lots of money. He owns a big house around 30+ year old, but he doesn't live there because all his family members are living overseas. He rarely sleeps there now because the house is pretty much not maintained and hiring a maid to clean up the house is a big hindrance because he has to be in the house and wait for the maid to finish cleaning up and it's a waste of time for him. He only uses the house to just put his stuffs and do paperwork.

              He now rents out a very decent property (new build) with a small room to live in, owned by another relative for cheap, which costs about 100 AUD a month and the interest money in the bank alone covers all the costs incurred for his house, his food expenses and all utility bills. He can basically live the rest of his life without worrying about money because the interest earned gives more than enough and makes him even wealthier.

          • johnno07 on 27/06/2025 - 08:22
            +6

            @mrvaluepack: This sounds super wrong. Can you show your working here? I just can't see how a person who spends $48,000 a year on rent ends up ahead at the end of their lives as a person who purchases the same property for 1.5m.

            My very quick calculations show that the home owner will pay ~1.34m in interest over the course of a 30 year loan at 5.84% with an 80% LVR. Whereas the renter pays $1.44m in rent over the same period and has no asset at the end of it. This is all ignoring inflation too which significantly harms the renter vs the home owner.

            Yes there are other incidental costs associated with actually owning a home, but I just don't see what circumstances could possibly transpire that would leave the renter better off. Uninsured meteorite strike maybe??

            • mrvaluepack on 27/06/2025 - 08:53

              @johnno07: Already explained in my post here. When simpletons do calculations & forecasts, they keep forgetting to include any opportunity costs.

              • bazingaa on 27/06/2025 - 11:00

                @mrvaluepack: Not in all cases, I pay an equal amount for the mortgage as if I were renting the same place. I collect extra money in an offset so the mortgage will be offset in a couple of years. But in the end, I would have at least the land, but if I pay rent, I won't own anything. I didn't pay any stamp duty either.

                • mrvaluepack on 27/06/2025 - 12:06

                  @bazingaa: Do you understand what net worth is? If the renter were to have the same net worth as a buyer in the future, they can afford to buy the same property at any time they wish.

              • johnno07 on 27/06/2025 - 23:36
                +1

                @mrvaluepack: Not sure about the simpleton jab, given how rudimentary the calculations are that you've referenced in the same sentence. It looks like this doesn't even consider that the interest portion of repayments reduces over the life of the loan? Not sure why you're so angry :S

                • mrvaluepack on 28/06/2025 - 08:01

                  @johnno07: Yes, ive considered it as those are equivalent to the savings made by the renter. The point i was trying to make was have to have a holistic view, its not always buying that wins all the time.

            • redfox1200 on 27/06/2025 - 09:59
              +1

              @johnno07: probably investing their spare cash (difference between mortgage and rent) into stocks like ASTS, QS, TMC would do it

          • May4th on 27/06/2025 - 10:43
            +3

            @mrvaluepack: everyone seem to plug a few numbers in their calculator and call it 'financial modelling' nowadays. have you priced in rent inflation, leverage and tax advantages?
            edit: saw your post below. nope of course you haven't

            When simpletons do calculations & forecasts, they keep forgetting to include any opportunity costs.

            agreed

            • mrvaluepack on 27/06/2025 - 12:12
              -1

              @May4th:

              have you priced in rent inflation, leverage and tax advantages?

              Yes and yes, which is usually offset by rising homeownership costs as well - rising rates, materials & labour costs to maintain home, etc.

              Do you understand net worth and how its calculated?

              Please elaborate tax advantages? Debt recycling? That will work out to be the same. Too lazy to explain to the uninformed.

              Did you even look at my previous post?

              • May4th on 27/06/2025 - 14:32

                @mrvaluepack: the biggest ownership cost is interest repayments, which reduces exponentially as principal is paid off while rent continues to increase. maintenance and rates constitutes a tiny proportion of ownership cost. your 1000 per week luxury rental currently will barely afford you a share house bedroom in 30 years

                the biggest tax advantage would be the PPOR exemption. i haven't factored in debt recycling as you wanted a head to head and it complicates things, bit it would put home owners further ahead if they do

                I agree you can be financially independent without buying property, but to say buying equity always gets you ahead compared to buying a PPOR is a stretch.

                for all your claims you are yet to produce any evidence of this 'modelling' or actual numbers, do you have anything concrete apart from a ''trust me bro?''

                • mrvaluepack on 27/06/2025 - 15:01

                  @May4th: I showed the numbers in my previous posts. Showing the cost and net worth of buyer vs renting a similar property with today's interest rates.

                  • May4th on 27/06/2025 - 16:11

                    @mrvaluepack: if that's all you are offering i'd politely suggest that it's woefully inadequate. and wrong.

                    • mrvaluepack on 27/06/2025 - 18:11

                      @May4th: Show your numbers then?

                      • May4th on 27/06/2025 - 18:44
                        +1

                        @mrvaluepack: you are the one who made the claim, onus is on you to back it up.

                        • mrvaluepack on 27/06/2025 - 19:17

                          @May4th: Well you are making the claim as well that buying is always better than renting.

          • The Wololo Wombat on 27/06/2025 - 15:43

            @mrvaluepack: Classic mistake.

            You forget paying off principal adds to your net worth and the latter part of the loan is practually all principal payments. I also expect you have not factored in assets inflation/purchasing power devaluation.

            The only way renting is better is if you rent-vest, even then it's sketchy.

            • mrvaluepack on 27/06/2025 - 18:12

              @The Wololo Wombat: Nope, I have spreadsheets on my pc that takes that into account as well. I'm just too lazy to upload them just to prove a point to the uninformed, property diamond hands loving crowd.

              • May4th on 27/06/2025 - 18:46

                @mrvaluepack: ah the good old "i'm too lazy to tell you why you are wrong but trust me you are"

                • Senpai69 on 28/06/2025 - 20:46
                  +1

                  @May4th: Ben Felix explains it pretty well:
                  https://youtu.be/lBG-g1CKfgs?si=2oCTml_yOmSfdDd2

                  • mrvaluepack on 28/06/2025 - 22:16

                    @Senpai69: Finally someone who gets it. I love watching his videos but it can get a bit too dry and technical at times.

                    • May4th on 28/06/2025 - 22:36

                      @mrvaluepack: Get what? Ben is saying if done right equity investment can be equally viable to property ownership. He doesn't support what you are saying at all.

                      • mrvaluepack on 29/06/2025 - 06:08

                        @May4th: Which is what ive been trying to say, that renters can be ahead and it depends on circumstances. But you and others on here, have your property double digit growth blinkers on and are oblivious to looking at opportunity investment costs from owning a property.

                        • May4th on 29/06/2025 - 07:22

                          @mrvaluepack:

                          person B net worth will be constantly ahead until the end of their lives

                          this is what you said? property doesn't need double digit growth to get ahead. your calculations ignores so many variables it's largely irrelevant.

                          Ben's analysis also were based on average purchase price vs average rent - this ignores that the average rental would be a lower quality housing

                          • mrvaluepack on 29/06/2025 - 07:32

                            @May4th: Show your calculations then? What i showed was just a quick 5 min calculation that i put together to sort of compare the opportunity cost of buying a home vs putting your money in other investments and renting.

                            this ignores that the average rental would be a lower quality housing

                            This depends on the LVR when comparing the buyer and renter.
                            At 80% LVR (which is typical for new home owners) - a rental at that $ amount of mortgage repayments would be far superior.
                            The level of finishings and style in a rental property starts to match that of an owner-occupied home once the loan-to-value ratio (LVR) reaches around 40% to 50% in today’s property market.

                            • May4th on 29/06/2025 - 09:49

                              @mrvaluepack:

                              This depends on the LVR when comparing the buyer and renter.
                              At 80% LVR (which is typical for new home owners) - a rental at that $ amount of mortgage repayments would be far superior.
                              The level of finishings and style in a rental property starts to match that of an owner-occupied home once the loan-to-value ratio (LVR) reaches around 40% to 50% in today’s property market.

                              what is this nonsense?

                              i'm not trying to convince people here. i'm just challenging your calculations which are full of holes because you seem to be under the delusion you are in a position to give advice.

                              • mrvaluepack on 29/06/2025 - 10:22

                                @May4th: you said "the average rental would be a lower quality housing" - which i wanted to state that it's not true. i'm also challenging others that owning property is not always better than renting but you always try and find some sort of issue and want me to provide a perfect real-world simulation/forecast, which i cbf doing. and when i asked you for any of your numbers, you dont show any at all to back up your claims. just random statements.

                                • May4th on 29/06/2025 - 11:41

                                  @mrvaluepack: i guess the problem is your numbers are not much, if at all, better than random statements

                                  • mrvaluepack on 29/06/2025 - 11:43

                                    @May4th: Nope, i backed it up with actual ads from realestate.com.au, actual inflation rate and current average loan rate numbers. Where as you have provided none at all to even show anything. That means my argument wins until proven otherwise!

          • R4 on 27/06/2025 - 17:55

            @mrvaluepack: Fortunately, owning a property that you live in. enjoy and call home is much, much more than a financial transaction.

            Property ownership is a cornerstone of Western civilisation.

          • alexdagr8 on 28/06/2025 - 20:48
            -1

            @mrvaluepack: You’re forgetting the human factor.
            The person that owns their place (often sacrificed to get that deposit).
            The other people you’re mentioning, did not and learns to spend frivolously.
            You’re also forgetting that 1.5million asset likely grows in value (dependent on what they bought)
            There’s too much go unpack in what you’ve said.
            But generally, in times of uncertainty assets tend to raise the most in value.
            Stocks are considered over valued at the moment (however the rise of the retail investor is real).

            • mrvaluepack on 28/06/2025 - 22:24
              -1

              @alexdagr8:

              The other people you’re mentioning, did not and learns to spend frivolously.

              How the about people who are disciplined investors & frugal but renting?

              You’re also forgetting that 1.5million asset likely grows in value (dependent on what they bought)

              Nope i've not, look at my numbers in my previous post. I included price appreciation at current inflation rate of 2.5%. if you cant wrap your head around the difference in opportunity cost, you never will.

    • OrangeCounty on 26/06/2025 - 16:02

      Thank you, appreciate the thought.

  • AustriaBargain on 25/06/2025 - 19:26
    +46

    Probably get a wife who earns about the same. Your combined wealth will make your lives pretty secure.

      • AustriaBargain on 25/06/2025 - 20:29
        +11

        There's also a chance that she could tragically pass away, which would be a massive payday for OP as he gets all her assets, her insurance, her super, and probably can sell her makeup and shoes for a few hundred on Facebook. Think of all the cars he could buy.

        • McMaferMur on 25/06/2025 - 20:32

          Ah yes the latest faster and more advanced cars. Got it. Im in. Opening tinder now.

        • jsediv on 26/06/2025 - 14:15
          +4

          So is a wife considered an investment or a gamble?

          • vid_ghost on 26/06/2025 - 17:11
            +3

            @jsediv: If its a rich wife (very hard to find) 100% investment. if its a poor wife its 100% a gamble. :) Many men get married and divorced multiple times and each time lose 50% of everything they have worked so hard to save and invest in. Starting over and over again all for "love".. not even going to talk about child support on top of that loss of 50%

          • SupeNintendoChalmers on 26/06/2025 - 19:47
            +2

            @jsediv: yes

          • Protractor on 27/06/2025 - 11:04
            +3

            @jsediv: In this sort of discussion, no doubt, a wife is to be seen as a 'depreciating asset', whereas the husband is a 'deprec i ating ass et'.

        • RTX9090Ti on 27/06/2025 - 19:49

          What about girlfriend

      • Jolakot on 25/06/2025 - 20:35

        If part of his goal is having kids and a family, you just have to take the punt.

      • vid_ghost on 26/06/2025 - 14:39
        +1

        Renting is cheaper long term and you always get to ride the latest edition of cars.. Who would want to be a tenant in old age were you may need to move at any time if the owner want to sell.

        • Pussqunt on 26/06/2025 - 20:21

          Who would want to be a tenant in old age were you may need to move at any time if the owner want to sell.

          Old mate is renting as they don't want to be a tenant in old age. If you find a rental with an owner please report this to the police.

    • LFO on 26/06/2025 - 11:38

      Your combined wealth will make your lives pretty secure

      Your combined wealth will make your life pretty secure

    • OrangeCounty on 26/06/2025 - 16:03

      I will start going on the dating apps. Any particular recommendations?

    • OzzyOzbourne on 26/06/2025 - 16:23

      Women generally marry up, ie. Guys with more money/better career.

      • frewer on 26/06/2025 - 19:13

        6inch 6 figure 6 ft ? That pool is only 1% …

        • serpserpserp on 27/06/2025 - 16:07

          I'm glad I'm in that pool then! Thanks for the ego boost!

        • alexdagr8 on 28/06/2025 - 20:52

          Cutting me in half won’t help.
          FYI Average wage is $100K in most cities now.
          Division 291 is where it’s at these days (if you know… you know) - albo and co also don’t have to pay it btw

      • AustriaBargain on 26/06/2025 - 19:30

        Also OP could be pug ugly, which would offset his earnings. Even a woman earning 100k would still dramatically increase his quality of life though, their combined income could get them a massive home outside of Sydney.

        • LFO on 27/06/2025 - 10:04

          a massive home outside of Sydney.

          Outside Sydney like Perth? Darwin? Adelaide?

    • pennypacker42069 on 28/06/2025 - 14:10

      On average women have discretionary spending 10 times higher than men, would need to find a frugal wife

      • May4th on 28/06/2025 - 14:21

        I don't know.. men's discretionary spending is mostly on women and cars.. which are big ticket items

  • Downvoter on 25/06/2025 - 19:30
    +30

    Stop living to work and find a partner to help achieve the part about wanting kids. Less Financial Independence Retire Early bullshit.

    • Hardlyworkin on 25/06/2025 - 22:25
      +4

      *** find a rich partner.

    • topherboi on 26/06/2025 - 07:20
      +5

      Less Financial Independence Retire Early bullshit.

      Yeah! Why retire early when you can just penny-pinch for the rest of your waking life on some orange website?

      • kiitos on 26/06/2025 - 09:40

        Por que no los dos?

      • May4th on 26/06/2025 - 09:43

        why not both

        • topherboi on 26/06/2025 - 11:22
          -1

          They both go hand in hand, no?

    • mrvaluepack on 26/06/2025 - 15:27
      -1

      Or just adopt a kid. No need partner headaches.

      • tenpercent on 27/06/2025 - 20:21

        Good luck adopting as a couple in Australia let alone a single man.
        There are only around 30 adoptions of children outside of family members in Australia each year. And only around 200 adoptions all up (most of those are aunts, uncles, grandparents doing the adopting).

        • alexdagr8 on 28/06/2025 - 21:00

          Easier if you foster first..
          (Also helps you “try before you buy”and get paid for the privilege by the tax payer)

      • Protractor on 28/06/2025 - 21:11

        Yes because commodifying kids is how low we have sunk as a species.

    • OrangeCounty on 26/06/2025 - 16:03
      -1

      Very true.

  • DashCam AKA Rolts on 25/06/2025 - 19:30
    +9

    Email everyone: * If you can find it in your heart to* help me, send one dollar to Sorry Dude, 742 Evergreen Terrace, Springfield. You have the power.

    • sghetti on 25/06/2025 - 19:44
      +5

      Project Manager?

      • jv on 25/06/2025 - 19:50
        -1

        Post Master.

    • Fredfloresjr on 25/06/2025 - 19:48
      +1

      P*rn model?

    • Protractor on 25/06/2025 - 19:58

      Which party PM?

      • OzzyOzbourne on 26/06/2025 - 16:25
        +2

        The furthest left so you know Aussies will always vote for you

        • Protractor on 26/06/2025 - 17:38
          +2

          That's democracy. Choosing altruism over self entitles greed.Good work.

          I think people who hate the idea of a social safety net should sign a disclaimer to reject any of it's support.(Ditto for climate change denying farmers getting tax payer relief for weather extremes) Then there'd be more $$$ to go around for the safety net. .So rather than the rich dodging tax,hiding funds,HG, CGT perks, trust fund dodges etc, the'yd put their ideology ($$$) where there mouth is and be lifters, not leaners and pay their own way. Call it the hypocrisy tax,maybe?

    • 87percent on 25/06/2025 - 20:11

      I prefer AM

      • Protractor on 25/06/2025 - 20:37

        FM sounds better

    • OrangeCounty on 26/06/2025 - 16:04

      Haha

    • alexdagr8 on 28/06/2025 - 21:03

      If albo can do it there’s hope for anyone.

      500K per year (for life) and the best part (ask albo) even if you stuff it up you still get paid!

      Division 293 exemption

      What’s not to love.

      • jv on 29/06/2025 - 00:24

        If albo can do it there’s hope for anyone.

        No, he only exempted himself and other high earning public servants from the taxes.

  • JIMB0 on 25/06/2025 - 19:59
    +1

    How much savings have you got? Buy a house first before investing and stay away from scams, the Lambos in those videos are all rented.

    • OrangeCounty on 26/06/2025 - 16:04

      Enough to by an investment property in Sydney.

      • jasiano on 26/06/2025 - 17:32

        if you can afford an investment property and actually make money on rent vs mortgage/loan/expenses (positive gearing) or get close to break even then that is a win, then take the surplus and put into a reasonably reliable ETF or some blue(ish) chip shares that pay some good dividends to reinvest.. CBA comes to mind

        Negatively gearing an investment is all well and good to reduce your taxable income but unless it's making an actual difference to your real net income (eg. dropping you down a tax bracket or medicare levy %) you are still spending more than you make.. fine for a bit but long term it's all about growing your asset/cash base.

      • Protractor on 27/06/2025 - 10:14

        LOL.
        What a garden shed or block of units?

  • Protractor on 25/06/2025 - 20:01
    +7

    Sell the Parado and retire, they're as rare as rocking horse shit.

    The rest of your post is like a teenage dream. Best of luck, but it's a fantasy novel.

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