My quest to have £100k Net Worth by 26

Zekko

Good luck buddy. Pay-down those debts and get cracking.

As a 22 year old on a good income, it's probably worth you're while to put some of it into a pension. You will be 30 before you know it, and you will be glad you started young.

rockitup

Hi Rictus,

Hope your plans do keep up with your forecasts but I still think that U.S. Holiday should be something to do later, not while you are in debt (but I did the same myself slipping another £4,500 into debt due to cost of U.S. holiday)

I have one question though, the 3 business loans totalling roughly £12k you mentioned in your first post on this thread - was this for building trade tools/equipment or did you spend some on Wealth Creation classes or similar.

rictus123

Was all for tools and equipment and scaffolding. Would never ever pay for any of them classes. I believe they are a waste of the 2 most important things in this thread - time and money. Holiday is paid for, just need spends. Will knock back debt free date by about a month. Not the biggest deal but still right enough it should have been avoided. Just happened to be when I was invited to go and it was booked for.

I have got it budgeted it so should manage to get spends out of a pay in march. Get paid fortnightly but have 3 pays in march so really an extra pay and it will be spending money. If that makes sense. Please in future disregard previous threads I have started, let's move on and concentrate on this one. Debt free then onto bigger and better things - financial security.

rockitup

rictus123 wrote: »

Was all for tools and equipment and scaffolding. Would never ever pay for any of them classes. I believe they are a waste of the 2 most important things in this thread - time and money. Holiday is paid for, just need spends. Will knock back debt free date by about a month. Not the biggest deal but still right enough it should have been avoided. Just happened to be when I was invited to go and it was booked for.

Good thinking to avoid the Wealth Creation (WC;)) classes, they only create wealth for the seminar organisers...

Spending on tools and equipment for your trade is necessary and a good investment, all part of expanding your own empire

Enjoy your U.S. trip, plenty of nice places to visit, lots of diversity across the country.

getmore4less

rictus123 wrote: »

Yep that was the original plan and would also have had me over the £100k net worth aim i still have. I spent the £14,000 debts i took on and £2,000 savings i put in on stuff(that i would not like to go into) so i could actually include the value of them but i am not going to as will not be selling anytime soon. It was all bought with the intention to increase my income and it has paid off as my income is over £2,800 net a month. Some calander months have an extra pay in it so pay is over £4,000. A month to month basis is how i will be working in future. Aiming to get £1,500 a month better off every month.

Whether this is paying off debts,pension,mortgage etc aslong as this is minimum a month i will get there. It does seem a long slog but worth it and its what i want to work for.

You seem to have business and personel all mixed up.

getmore4less

Net wealth is a poor measure of getting to the goal of financial freedom.

The wealth needs to create an income to meet expences or be an asset that reduces expences.

For example a house reduces the need to pay rent but still needs income to mainatain and keep. Bigger the house the more it costs so the more other assets generating income you need.


The thing that gets people closer to financial freedom quicker than anything else is spend less.

rictus123

True net worth is to some people poor way to review financial freedom. I am going for net worth then once I have savings and equity and shares behind me I will work on increasing income, creating passive income and multiple streams of income that do most of the work for me, allowing me to have a lot more freedom and choice in my work. Who knows how the construction imdustry will go in the next 30+ years, I would think judging 3 years is hard enough. 1 thing is I hope I'm never renting unless its a very short term measure.

Like iv said you can judge me a lot better once this thread is a year old and I'm debt free with an emergency pot behind me and deposit growing.

heathcote123

rictus123 wrote: »

Was all for tools and equipment and scaffolding. .

In that case, you don't neccesarily just have a 12k debt, you (presumably) have the assets that you purchased with that 12k. And as you're running a business, you'll no doubt be keeping accounts, and writing the purchase costs off against your income on your tax bill, yes?

What is this 50k 30 hour week job anyway?

heathcote123

rictus123 wrote: »

I am going for net worth then once I have savings and equity and shares behind me I will work on increasing income, creating passive income and multiple streams of income that do most of the work for me, .

No stop right there! you're going about this the wrong way.

You create the streams of income FIRST, which in turn leads to amassing wealth.

I'm beggining to think you might be rather a good troll....

atush

heathcote123 wrote: »

In that case, you don't neccesarily just have a 12k debt, you (presumably) have the assets that you purchased with that 12k. And as you're running a business, you'll no doubt be keeping accounts, and writing the purchase costs off against your income on your tax bill, yes?

What is this 50k 30 hour week job anyway?

If you are self employed then you do need to keep these records and will be able to deduct these expenses from your income (even the interest in the loan).

And I agree that having these items seems to be a way for you to earn more so good luck with it and get back to us on a month or so.