The Personal Development & Financial Independence Thread

Ecco said:
I know it's not a short term thing, but read the way the guy posted it, he makes it seem like he got there after a few years.
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It probably wasn’t a whole lot.

He’s probably talking about a circa R10k/m shoestring budget. That’s R3m in savings. If you can save R20k/m, it will take about 12 years to get there.

If you save R120k/m, it will take 2 years.
 
ronz91 said:
Has anyone read Cashflow by Robert Kiyosaki?
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I only read his previous book “Rich Dad Poor Dad”. The good advice in there was that there are things you can spend your money on that will give you the opportunity to become richer and things that definitely make you poorer, and that you should avoid the latter.

The actual investment advice in there was largely “Go long, and be lucky. Cashflow can be used to generate more cash flow. Here’s a made up example of how I did it.” Apparently almost all his net worth comes from his books.
 
cguy said:
I only read his previous book “Rich Dad Poor Dad”. The good advice in there was that there are things you can spend your money on that will give you the opportunity to become richer and things that definitely make you poorer, and that you should avoid the latter.

The actual investment advice in there was largely “Go long, and be lucky. Cashflow can be used to generate more cash flow. Here’s a made up example of how I did it.” Apparently almost all his net worth comes from his books.
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I agree that his stuff is basic. I read Rich Dad Poor Dad long ago and it got me to dig further into FI and wealth building so I think its a win. Having read more sophisticated stuff and coming to Cashflow (which is similar level to RDPD) it is lacking. But it got to the SO who I am getting onboard the FI train and his reading is seeming to have the same affect. Lining up Warren Ingrams' books for her to read next.

Anything you would recommend as required reading for FI and wealth building?
 
ronz91 said:
I agree that his stuff is basic. I read Rich Dad Poor Dad long ago and it got me to dig further into FI and wealth building so I think its a win. Having read more sophisticated stuff and coming to Cashflow (which is similar level to RDPD) it is lacking. But it got to the SO who I am getting onboard the FI train and his reading is seeming to have the same affect. Lining up Warren Ingrams' books for her to read next.

Anything you would recommend as required reading for FI and wealth building?
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Yeah - I would definitely say that the book did reinforce that one has more control over one's wealth than one thinks, which is empowering. It did make getting rich sound a bit too easy though. It did get me excited about buying property, renting it out, etc., although today I realize that it's largely a distraction, I investing in something listed is much better for someone who doesn't want to spend all their time managing their properties.

I haven't read any other FI books since, but the biggest turning point for me was realizing that being conscious of one's career and thinking strategically about my next move(s), was a huge part to becoming wealthy. I would be a middle class academic (like poor-dad) right now, if I hadn't done that. It's incredible that so few people actually think about who is making the money, find out how are they doing it, and figure out what they need to do in order to do that too. A lot of the time they just expend energy blaming other peoples' success on luck, and their lack of it on their imperfect situation.
 
Good afternoon, im trying to learn about finance and investing and saving etc. Doing the Dave Ramsey baby steps.

Sorry if this is a dof question, im literally a beginner at this building wealth idea at 40 years old, been in debt most of my life, even did the whole debt review process in my early 20s and learnt from that mistake.

I have a question about tax free savings, say for instance i invest my 36k per year limit and get my compound interest over the years and once i hit the 500k limit mark, how does tax work, will i be taxed once my compound interest takes me over the 500k threshold? i will hit that mark way before i retirement age and i would like that money to continue earning interest.
 
Terence1983 said:
Good afternoon, im trying to learn about finance and investing and saving etc. Doing the Dave Ramsey baby steps.

Sorry if this is a dof question, im literally a beginner at this building wealth idea at 40 years old, been in debt most of my life, even did the whole debt review process in my early 20s and learnt from that mistake.

I have a question about tax free savings, say for instance i invest my 36k per year limit and get my compound interest over the years and once i hit the 500k limit mark, how does tax work, will i be taxed once my compound interest takes me over the 500k threshold? i will hit that mark way before i retirement age and i would like that money to continue earning interest.
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any gain in the investment will not be taxable. the interest or growth doesnt count towards the cap the cap is purely the additions you make

Stick to the baby steps will serve you great in getting debt free!
 
Snyper564 said:
any gain in the investment will not be taxable. the interest or growth doesnt count towards the cap the cap is purely the additions you make

Stick to the baby steps will serve you great in getting debt free!
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Thank you so much, once again apologize but does this extend to for instance a capitec 32 day tax free savings account at 7.5%interest, i just pay my 2k per month up until i have paid in 500k, then just leave it and let it, i dont really want to invest into equities or etf's or anything, i played around on easy equities a bit but wasnt confident LOL, there is always an element of risk there, a 32 day tax free savings account seems like the safest option to me but as i said, still learning.

100% baby steps over time, already planning on selling off items we no longer need or use and down scaling and using any cash made to pay into the car finance to get that done. We have an emergency fund so baby step 1 is complete, we on step 2 and step 5 doesnt apply as we not having kids so we doing pretty well in the grand scheme of things.
 
Terence1983 said:
Thank you so much, once again apologize but does this extend to for instance a capitec 32 day tax free savings account at 7.5%interest, i just pay my 2k per month up until i have paid in 500k, then just leave it and let it, i dont really want to invest into equities or etf's or anything, i played around on easy equities a bit but wasnt confident LOL, there is always an element of risk there, a 32 day tax free savings account seems like the safest option to me but as i said, still learning.

100% baby steps over time, already planning on selling off items we no longer need or use and down scaling and using any cash made to pay into the car finance to get that done. We have an emergency fund so baby step 1 is complete, we on step 2 and step 5 doesnt apply as we not having kids so we doing pretty well in the grand scheme of things.
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good to hear!

Yeah all TFSA add up together.

Look at satrix etf and do a split between nasdaq and s&p I would rather do this split and be dollar hedged than do just bank interest. Let that TFSA pay for you!
 
Fully support. Also remember that TFSA is long term savings, so ideally one can take equity investment risk there. Over the long term (10 years+), equities outperforms cash by far. With ETF-based TFSA, you can also go fully overseas ETF, as there is no restriction.
Go compare the S&P500 growth in Randelas over 10 years to the 7.5% return you are getting.
Snyper564 said:
good to hear!

Yeah all TFSA add up together.

Look at satrix etf and do a split between nasdaq and s&p I would rather do this split and be dollar hedged than do just bank interest. Let that TFSA pay for you!
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ronz91 said:
I agree that his stuff is basic. I read Rich Dad Poor Dad long ago and it got me to dig further into FI and wealth building so I think its a win. Having read more sophisticated stuff and coming to Cashflow (which is similar level to RDPD) it is lacking. But it got to the SO who I am getting onboard the FI train and his reading is seeming to have the same affect. Lining up Warren Ingrams' books for her to read next.

Anything you would recommend as required reading for FI and wealth building?
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For South Africa-specific advice, can't go wrong with Warren Ingram's How to Make Your First Million (also useful if you've already made a million and don’t know how to spend it), and Sam Backbessinger's Manage your Money Like a Fscking Grown-up. Both are very introductory, but way better than Kiyosaki. The truth is, I don’t think FI requires more advanced reading than this fairly straight-forward material.

When I started looking at books on this stuff, I also greatly enjoyed Nassim Taleb's Incerto series, which is mostly not investment advice, but is a great inoculation against bullschit.
 
holler said:
Fully support. Also remember that TFSA is long term savings, so ideally one can take equity investment risk there. Over the long term (10 years+), equities outperforms cash by far. With ETF-based TFSA, you can also go fully overseas ETF, as there is no restriction.
Go compare the S&P500 growth in Randelas over 10 years to the 7.5% return you are getting.
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Investing in your own education through part-time studies is also a great way to increase your marketability.
And put in time to prepare for a salary increase discussion with your manager if you are in a salaried job. It's surprising how many people don't do that,while managers may have discretion to provide an increase of requested and properly motivated.
 
3WA said:
For South Africa-specific advice, can't go wrong with Warren Ingram's How to Make Your First Million (also useful if you've already made a million and don’t know how to spend it), and Sam Backbessinger's Manage your Money Like a Fscking Grown-up. Both are very introductory, but way better than Kiyosaki. The truth is, I don’t think FI requires more advanced reading than this fairly straight-forward material.

When I started looking at books on this stuff, I also greatly enjoyed Nassim Taleb's Incerto series, which is mostly not investment advice, but is a great inoculation against bullschit.
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Yeah I already have Sam's book and both of Warren's books. Firm favourites of mine.
I was thinking of starting my SO on Become Your Own Financial Advisor as it covers a broader range than How To Make Your First Million.

Have not read anything of Taleb yet, think I started either Fooled By Randomness or Black Swan but it didn't grab me at that time. I do hear of his concepts all the time though so I should give it another try.

There was another recommendaton on James Altucher's podcast called The Heart Of Business by Hubert Joly. It does seem to be more business foccused, will report back if I check it out.
 
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holler said:
Investing in your own education through part-time studies is also a great way to increase your marketability.
And put in time to prepare for a salary increase discussion with your manager if you are in a salaried job. It's surprising how many people don't do that,while managers may have discretion to provide an increase of requested and properly motivated.
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Any tips on a good way to broach this topic with a manager or how to prepare for the meeting itself? I have had these once or twice before without huge success.
 

He's abit different in that he advises on investing in oneself and growing your income
 
ronz91 said:

He's abit different in that he advises on investing in oneself and growing your income
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A lot of really good points in there (some which I mentioned in post #8). The key thing is that working towards increasing income is usually a bigger factor than saving, and also that to grow your income there are things that people need to do - most just choose not to, because of the short term sacrifice involved.
 
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