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[deleted]

Does semi-passive mean turning up to work but doing the bare minimum ?😂


Lopsided-Session-570

Semi passive like real estate investment where you have to do the odd thing here and there


Popular_Butterscotch

Thanks for clarifying lol 😂 He was being sarcastic


Lopsided-Session-570

Haha think I was on the phone when I read that, shit went over my head 😂


3rd_in_line

>I’m 23 now, had a 200k inheritance that is mostly in indexes and DCA’ing a bit into crypto. Planning to somehow reach 1 mil in assets by 30 with 40k+ semi-passive income The best thing you can do is be serious about your financial situation and not just dream about it. There are quite a few posts on r/fiaustralia that miss the basics and skip straight to the unbelievable. You need to be realistic about your income, expenses and investments. Life rarely works out the way we hope. You are "planning" on reaching $1m in 7 years. You don't mention how many other investments you have besides the $200k inheritance. But, lets say for the sake of discussion you have another $100k already invested, so are starting with $300k and want to reach $1m in 7 years. Using a basic [compound interest calculator](https://moneysmart.gov.au/budgeting/compound-interest-calculator) you will need to invest $3,300 each month and assume you can achieve a 10%pa return (which is quite a stretch) in order to reach $1m by 30yo. And then you have the issue of assuming you will have $40k income if you were able to reach $1m invested by 30yo. This may or may not be a reasonable outcome. Can you really live off $40k a year, every year, and have the lifestyle you desire? Don't compare yourself to others. Work hard to increase your income, save where you can, invest as much as you can and think long term. Make the most of your annual leave and public holidays to enjoy your journey. Good luck.


bigkevkev88

Your last paragraph is amazing


Lopsided-Session-570

Oath, saved a screenshot


Lopsided-Session-570

Gday thanks for the reply. Appreciate the advice It’s a tad more realistic for me as I’m fortunate to be in a situation where my expenses are very low. Definitely life never goes to plan, however I do plan to start multiple businesses in a few years (some might flop but another could do well) and I feel like setting an ambitious goal is good motivation for this. That said with investing I am grounded and am 90% in low to moderate risk ETFs. Income wise the next 1-2 years I’ll only make 50k max but yeah for this goal im backing myself to do well in business. I feel that’s the best shot to make real money. A good wage is great but your dependent on it, aren’t in control of your life and your income has a ceiling.


throwfaraway191918

There are certainly better and safer ways to make money instead of starting a business. Most flop unless you’re constantly investing money in to it.


ScaffOrig

>however I do plan to start multiple businesses in a few years (some might flop but another could do well) and I feel like setting an ambitious goal is good motivation for this. Advice on this part. If you're starting "businesses" as a numbers game they'll all flop, definitely if you're coming from the angle of doing so to only to make money. You'll go through the motions of "starting a business" like getting cards, thinking of a logo, making a website, and fail. Approach with a clear motivation for why the business is needed, and a passion for doing what the business does and you're far more likely to succeed. The point is that it's not easy, it's not a "I'll do a few of those". It's 70+ hours a week for a decent stretch. Focus on your network, your reputation and your proposition and THEN start a business.


Lopsided-Session-570

Very true. I say "businesses" as I wouldn't limit myself to one. Anything I start now would certainly flop. I definitely recognise the networking/reputation side of things, that's why my strategy at the moment is to - get skilled, experienced, educated and build a social following :)


ScaffOrig

Sounds level headed. I'm still not sold on social marketing. The platforms have a TON of people offering crap, usually in those "train of thought" videos as they walk or drive. My recommendation is for solid, real world contacts who like you. It takes a lot of investment, and for marketing to take a back-seat until you have rapport, but being known as the person who specialises in something is gold. Having people call you is a big step forward, but it takes lots of one on one time showing a genuine interest in what they are doing, not sleazy glad handing. I'd also advise you not to wait until you feel you're fully skilled. Get out there with those genuine, no strings conversations. Don't ask for mentorship, or tips, or pitch anything. Just express an interest and listen.


calicoshore

Solid, professional income for many years spanning accounting, management consulting, small business ownership, MBA teaching, and a bit of governance work. Daily rate now varies, $3-10k/day, and working ~25% of the time. Continuing to scale back. Gradually built up eight figure investment portfolio - property, shares and ETFs and some PE. It produces a passive income (divs, rent etc, capital growth is excluded) that far exceeds family requirements. Could have fatFIREd around 40, but just wasn’t ready. Struggled with the idea of giving away career for quite a while. Then realised the solution was just doing the fun stuff on a part time basis. I am not fully retired and have no plans to be. I enjoy the work I do, it’s easy money and non intrusive. In better times it also enabled me to travel throughout Asia and Europe with a bit of time in the Middle East. I was never into get-rich-quick schemes, crypto etc. My strategy was to earn a good income, be careful with expenditure, and invest for the long-run. It was a boring strategy that was virtually guaranteed to work over a 20 year period.


DonQuoQuo

$3-10k p.d. is a very solid rate! Do you find you return to the same clients over and over, or do you have to do much pitching for work?


calicoshore

Most clients pay in the $5-7k/day range, only one pays $10-12k (varies with exchange rates). Most of my clients are long term - either have been working for them for a number of years (ie. run their annual strategic planning process), or return year after year to deliver a particular course. Typically, these are all clients/business schools that I really enjoy working with. I do a bit of pitching, but not a lot. Most work comes to me which is great and a reflection of having been in the space for a long time. It’s nice to be able to pick and choose and I’ve opted not to continue with some clients when I didn’t enjoy the project or wasn’t happy with how I was treated.


Lopsided-Session-570

That’s the way awesome to hear. Idk why you got downvotes that’s a perfect answer. Maybe there’s just salty people lurking on here haha


lsmith1988

Can I ask how you entered into a small business? Is it profitable and were you apart of the beginning or bought in later on?


calicoshore

Some people I knew were struggling with a little business they had just set up. I took a look and saw immediately what the problems were. I took a sweat equity deal and it paid off. I worked 1-2 days per week in the business and took out $~200k/year in director fees and dividend. Then sold the business and got a nice payday :-) Most small businesses fail and many just limp along. Having a background in commerce and good business sense helps enormously.


lsmith1988

Any tips you’d like to share? This is quite a good story to tell and I only ask because it’s something I truly find interesting


calicoshore

Tips? In what area?


annoying-vegan-76

100k income a year is a 10% return on 1M. In shares you will have to sell off capital to make that amount a year. 1M property is not passively paying you 100k a year and you can't sell off capital in portions. I spent all of my 20s with a mortgage, no new cars and a modest lifestyle. I don't care for brands/labels or going out drinking and doing drugs. I had a 750k inheritance in the form of properties. - my dad passed this on to me so I can get a headstart. Since he did it alive we had to pay capital gains and stamp dutys. He did the same for my 2 brothers as well. With my partner we purchased another property 8 years ago. 5 years with an interest only loan. We didn't have the income to pay off any principle. Ive had a 950k mortgage now for the last 8 years. Having a mortgage this large in my early 20s wouldn't have been considered normal back then. Still probably isn't now I suppose. In the last 8 years my networth has doubled and I'm sitting at about 1.5M I am only 33 so I need a lot more before I can retire. I left high school at 15 and I've been working non stop. My dad retired at 46. Economy was different but he was earning more than the prime minister just as a tradesman working massive overtime hours. I don't plan on retirement any near as young as my dad. Me and my partner aren't in high paying jobs. I'm a tradesman who's hit the peak of my roles pay. She's a vet nurse who was on minimum wage for 10 years. She's now running the vet so she's on some more now. But it's not a profitable industry. Everyone has no issue spending thousands and thousands on pets but don't want to pay anything to take care of medical needs. I'm putting everything I can spare now into shares. I want to get it to 100k as soon as possible to try and make up for lost time. My passive income is only $30k per annum gross. And that has a lot of expenses. Also a fair bit of time involved as well. While property has gained me good capital growth it has cost me time and stress.


Lopsided-Session-570

Thanks for the reply that was a good read. I wasn’t expecting 1mil to earn 100k passive income I just said 40k which is a lot closer to yours. Is your property local? I’m looking into buying overseas when I’m ready for better yields. Either way sounds like your going well with 1.5mil at 33.


annoying-vegan-76

My properties are all In Sydney. 2 IP are In the same suburb but a house and an apartment. Not really diversified but it's what I have. I manage my own properties to save on real estate fees. It's about 15 minutes drive from where I live and I'm pretty handy. Anything I can't do I just find some tradies. I looked into buying in NZ. My partner is kiwi so I have the ability to buy there. Australian citizens have a shared visa with NZ so maybe even Aussies can buy there without issue. Wellington City looked appealing with huge rents for affordable purchase price of a unit. The whole currency conversion and loan and tax complexities stoped me from looking into it properly.


perv997

I could be if I put a manager in to run my business. I'm 42. Phase 1 starts in 3 weeks when I go down to 4 days per week.


billmurray_goodbloke

Not many people. I would like to think those that they have moved off Reddit and are enjoying their lives. Check out Mad Fientist podcast on spotify for somebody who has already done it. American based in Scotland but still gives you an idea.


Comprehensive-Cat-86

"I would like to think those that they have moved off Reddit and are enjoying their lives." There is a certain (infamous?) bear in these woods who's FIRE'd but manages to spend a lot of time on reddit.


andysev89

Hes got no remorse 😉


Lopsided-Session-570

That is a great point haha. I’ll check that one out ta


ricthomas70

Here is my progress by 5 year age blocks. The journey is more interesting than the destination. Age 20: finished uni, no job, no plan, no money... Age 25: job earning median wage (from 22yo), bought a car, saved up and bought an apartment at the bottom of Sydney's market (poorer area). Used credit cards for emergencies. Age 30: building equity in apartment with P+I and reinvestment of rent, two weeks salary saved up, 6mo salary in superannuation. My salary was 15-20% higher than median. no vision, no plan... My brother gave me a book about 7 levels of investor and how to improve literacy... Age 35: apartment paid off in full, investment triplex and inner city (Sydney) studio apartment purchased, 4mo salary in savings, 1.2yrs salary super. Salary50% higher than median. Clear vision, goals, strategies and plans, 20-30 finance books read. Age 40: appt + 40% equity in triplex, 60%equity in city studio 6mo salary in savings, 2.5yrs salary in super, salary 50% higher than median. Fine tuned my plan, paid for planning advice. Age 45: appt + 90% equity in triplex, sold inner city apt and bought 3br apt in Parramatta with partner (70%equity). 6mo salary saved up, 5years salary in super. Resigned from FT work at 45yo. Age 50: appt + 75% equity in triplex (redrew funds to renovate all 3 bathrooms and kitchens, carpet and paint), partner paid off residential mortgage, salary + passive income 90% median Aussie salary (not including partners income). 6mo salary saved up, 8 years current salary in super. Now 51, moving to Thailand in one month to teach English with passive income (rent from 1st appt, triplex and residential apt and some shares) of about 75% median income. Equity in all assets about 15-18 times median income. What does this mean for me? Part time, casual or contract work to kill my time... Teaching is a passion for me (20 years teaching).. waiting for partner (8yrs younger) to prepare for retirement... Heath & fitness, community participation and giving back...


paulpaulpaulpaulau

Nice work thinking about this now! I’m not FI but that’s my goal. For 7 years away you’d need to invest in the region of 7k per month, if the gain is 5%, to hit your 1m target. Not the easiest thing to do for most mid-20s people. If you could do that, you’d be on easy street for the rest of your life as you could just work any old job and let that 1m compound.


Lopsided-Session-570

Cheers for the answer! I’m not making much right now but I plan on making solid coin through the fitness industry. I’m a PT now but the next few years will spent building a social following and then leveraging that to start selling supplements, coaching etc. Aiming for the income to be say 150k a year by 30. So it will be hard, maybe near impossible but I feel it’s better to shoot for the stars and land on the moon haha


paulpaulpaulpaulau

Sounds unlikely based on that but that’s not a problem, as you said it’s great to aim high. Even if you fail you’ll be much further along and maybe hit that mark by 35 rather than 30. Still a great place to be. Oh and don’t forget about superannuation (especially as income goes up) and saving for a house.


Lopsided-Session-570

Yeah might be unlikely and I might move the goalposts later but can’t hurt to set big goals. The downvotes are a bit harsh, fitness is a booming industry and there are scalable business models that can make 6 figures easy if you play your cards right.


[deleted]

People downvoting must not be in and around fitness, there is heaps of money if you can make it big on tiktok/yt/ig. Go for it dude, youll smash it


Lopsided-Session-570

Oath brother cheers!


[deleted]

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[deleted]

Do you know many people in the fitness industry? I know many who are getting 50k-100k average youtube views, with sponsors making six figures.


[deleted]

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[deleted]

There would be at least 10+ people from my gym working exclusively through social media, multiple over 6 figures. Not sure what else i can say to turn around your perception.


[deleted]

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[deleted]

Entirely possible, fitness is easy enough to make a living, especially as a PT, $50 sessions on average, 20 a week, is over 50k a year, once you get a decent client base, 40 sessions a week wouldnt be a stretch, then add in a sponsor or two on your instagram, couple group fitness classes, hours behind the front desk, some nutrition programming and youll easily make bank


onepoundfeesh

Exactly and thats a super cheap PT session, and low hours at that. Most PTs i know typically charge 90-120/hr for at least 30hrs/week (obviously these are dependent on location). Extremely doable numbers


Resilient_Wren_2977

I wish I thought that same way at your age. I was 43 before starting to get interested in getting ahead. Good on you for deciding to use your inheritance wisely.


Lopsided-Session-570

Thanks for that. Even before it I was interested in it but yeah trying to make the most of it


Mynoncryptoaccount

I'm FIRE but don't need 100k+ (for 2 it's more like 70k)


passwordistako

Why does it need to be 100k+ ??? I would happily fire on much much much less if I owned my PPOR.


CheshireCat78

Depends what you want to do when you FIRE. $100k is our plan too. We have family all over the world so will want to travel. We don't waste money but aren't super frugal either and want to still be able to eat what we want or upgrade devices etc as we desire/need.


passwordistako

My budget also includes international travel. Maybe I’m just a massive cheap skate.


CheshireCat78

International travel can mean a lot of things. 7 nights in Bali isn't exactly the same as 6 weeks in Europe. We currently go overseas generally in 4-6 week chunks and if I was retired if probably want to do that twice a year not once. Flights accommodation and food for 2 people is a lot for a month or two travelling. That before you do any activities.


passwordistako

I travel the same duration at you. Similar distances. Probably different style accomm and food tho.


CheshireCat78

so what would you say that costs you? as i'd budget about $20k for that sort of trip for 2.


passwordistako

Yeah half that. Flights on sale, budget accommodation, make our own food and eat out about as much as we do at home. Public transport. Hiking. Visiting museums, parks, churches, etc. lots of cheap activities.


CheshireCat78

that just sounds like staying at home to me :P we generally travel to eat food these days (ie choose places with food we want to eat). im not making my own in japan i want yummy japanese food. if im visiting family we eat at home a bit but otherwise its every meal on the go or at a restaurant. we definitely buy flights on sale and use public transport, but while i go for cheaper hotels i wouldnt go budget unless i had to (eg. i will stay in the ibis at the airport just before a flight but not for a week in sydney) museums and temples etc can cost a bomb.


ribbonsofnight

25k would be plenty


Snoo_94254

I own a business that I spent a lot of time and energy building and automating. I put a trust-worthy and reliable (Australian based) manager and team behind it. ​ I now have to work maybe 2-3 hours a day and take 225k p/a. Its an IT business. It was established in 2018


StumpytheOzzie

Fuuuuuuu....... I have so far to go and I'm already so far behind.


the_booty_grabber

Just inherit $200k bro


ribbonsofnight

what if I don't want to right now


ScaffOrig

Interesting reading, though wonder how much use it is looking forward. Essentially 90% are "I bought/inherited a property over a decade ago and subsequent government policy has handed me a couple of million". I don't think that's going to happen again. Basically a chunk of the population won the lottery, but they're not selling tickets any more.


Additional_Minimum33

Hey there. 34M, exited tech biz, NW$10M. My portfolio is 70% managed funds (largely a mix of global, diversified index’s), 20% VC funds, and 10% independent investments. My goal was always FIRE, but I’ve found myself in a position where I actually really enjoy the intellectual and social side of work so now consulting across a number of businesses. Time with the kids + still active in business (on my terms) = dream result.


ainsindahouse

I (45F) do creative social media as a job and it is in the same vein as my passion for TV and production. I've only just started investing in the ASX and I love it. I have the bulk of my cash in sustainable ETFs and managed funds but I now also do shareholder activism. It's my new way to be a bit of a ratbag as I invest in fossil fuel & mining companies (high earning) but then am registered with ACCR to make the companies work harder on climate change and other ESG issues (good karma). It's a nice balance. https://www.accr.org.au/shareholders/


summertimeaccountoz

Not *quite* 100k, but our income from dividends/distributions was around 84k in calendar year 2021, which is less than our total expenses for the year (~~not by a lot, though~~ edit: actually by a fair margin). So... I guess?


Loose-Inspection4153

What's the total sum invested in order to return the $84k? And how long did it take to grow?


summertimeaccountoz

At the time (2021), about 2.5M. My wife and I are both in our late 40s, but we only started to grow our net worth "seriously" about 20 years ago.


jbravo_au

Boutique Property Developer $400k p/a about 25% passive; 75% active. Assets: $6M Approx PPOR Australian Shares Working / Business Capital Age: 35 For myself to be independent is to be self employed with a bankable skill, answerable to nobody and ability to generate enough to have the freedom over how you use your time and whom you associate.


Ok-Nature-4563

I am 22 currently earning about 80k passive income (don’t have a job though). Assets in Crypto, property, stocks. Bought property at 19, gained most of the crypto and stocks at 21-22.


Master_Skin_3171

You’re not gonna get 40k passive income from $1m.


WizziesFirstRule

Why not? Shares and an investment property outside Sydney would comfortably do that..


Master_Skin_3171

4% withdrawal rate as passive income? How long do you expect that to last?


420bIaze

Per the Trinity study, based on historic backtesting a 4% withdrawal rate for a 30 year retirement was "extremely unlikely to exhaust [a] portfolio of stocks and bonds" https://en.m.wikipedia.org/wiki/Trinity_study


Master_Skin_3171

Exactly. This study is about drawing down the principal to zero. He’s taking about passive income from $1m not drawing down to zero. Just being realistic. $1m ain’t as much as you think it is


ribbonsofnight

I think in over 50% of historical cases 30 years resulted in more money, even in real terms. If your point was that 5% risk is actually closer to 10 or 15% over a longer time frame then you might have a point.