Male, mid-twenties, residing in Vancouver, Canada. Planning to become a millionaire one day through smart investing. In the last
three four years that I’ve lived on my own I’ve managed to pay off $15,000 of student loans, triple my home equity, build up a stock portfolio worth over $100,000, and acquire over $150,000 worth of additional investments like farmland and precious metals, all using my own savings, plus some bank loans. I’ve shared my tax statements from previous years to demonstrate that even an average salary can be used to create great wealth with the proper strategy and leverage So far my net worth has increased exponentially every year because I’ve learned how to make my money work hard for me. I’m Liquid Independence, and welcome to my freedom 35 blog (^_^)
I don’t have a dramatic rags to riches story. I grew up in a typical middle class household. My parents never had a lot of money, but they’ve never lived in poverty either. When I was going through college they were generous enough to contribute $10,000 to help pay for my tuition That definitely helped me a lot because it effectively reduced the amount of student loans I had to borrow by that same amount. I’ve received no other financial aid from them other than that and I plan to pay them back the $10K when they retire some day. In 2008 I graduated and began my humble career at a medium sized design firm with a $35,000 starting salary. Still living with my folks at the time I was easily able to save $13,000 by early 2009, which I used to buy my own apartment and move in to right away. I chose to invest my savings instead of pay down my student loan debt, which turned out to be the right choice as both the real estate and stock markets performed very well the following year in 2010. I continued to invest heavily into 2011 and tried to learn as much as I could about money management and the business cycle. By 2012 I had ventured into more exotic investments like farmland. By the end of 2013 I had broken the $200,000 net worth mark.
There are many other generation Y bloggers like myself who also have a relatively high net worth for their age. But most of them have a really high income which some readers may not be able to relate to. I suppose what’s unique about my particular situation is that I’m not unique. I had average grades in school. I’ve never aspired to be a doctor or engineer. I’ve never taken any finance or business courses. I’m not even that good with numbers. In fact, I flunked first year math in university. I worked part-time at Safeway and had to go into debt to complete my education. I don’t consider myself the frugal type because I currently spend over $3,000 a month. My salary today is higher than when my career began 5 years ago but on an hourly bases I’m still making less than $26/hr which is the average Canadian wage for my age group.
Many people equate income to wealth. Although there is a correlation between the two what’s more important is capital management and financial literacy.
Life is about balance and moderation. I try to balance my spending to make my life just as comfortable today as I plan to be in the future. I don’t want to save money so aggressively that I’d miss out on life right now. But not saving enough would leave me with financial difficulties when I start a family, or eventually retire. So currently I save around 1/3rd of my total gross income, which I find is the right balance for me.
I have a similar mindset when it comes to investing. Penny stocks are too risky, but the safest investments like US treasuries do not provide a good enough return. So I balance my portfolio mostly with investments like real estate, commodities, and blue chip stocks, as well as a small handful of more volatile and higher risk equities.
These are my life long goals
-Become financially free
-Donate at least a million dollars to charity
-Become part of the 1% wealthiest people in the country
-Start a company and create jobs for my community
-Qualify and become an accredited investor
-Fly into space