Crazy teenagers these days..

[Neongreen]

Hey there,
I'm looking at ER at or around the ripe old age of 30. Can't wait, I'm just a student but I've got a couple of side 'businesses' which earn me about $15k in profit a year, so I'm keen to pour that into savings along with socking away a very high portion of my income (70-80%).

I'm not a very materialistic person - I only use a few things regularly - my computer, projector($600, I saw it on a local auction site and bought it on sight. That was before I started saving!), etc.

Thankfully over here in NZ the interest rates are pretty high at the moment - a good bank account will get you in excess of 8%, and many balanced funds are in the 10%+(Some over 22%, however these are high risk Asia-Pacific investment gigs) range. While I don't expect this to last long, I'm hoping, through shrewd investment, to keep the interest at a nice 12%.

Being 16, I really don't have any costs whatsoever, which is great because I can save most of what I earn. It is very, very tempting to spend it however - I spied the new Eee laptop in my local PC store about a week ago for a cool $600, the fun times I could have with that... but I digress.

I'm the kind of person who cannot stand working for others. Being at school at the moment is an incredible hassle - I could put my time into much more worthy things. I do have a part time (12hrs/wk) telemarketing job which pays very well (I hate it, but I need to save as much as possible at this age.).

I am investigating business options which'll provide me with a huge amount of income in the short term, so very keen to do that as the magic of compound interest is most potent, well, now.

All dollars mentioned here are NZD - so it's roughly $70 US dollars per $100 NZD. Average cost of living in NZ is probably around $40k-$50k.

Any advice? People keep telling me I need to live out my teenage years but I'm way past that, unfortunately. I've always been ahead of the curve and I'm dead keen to keep it that way. This whole investigation was triggered by the fact that my father recently passed away, so it really drove home the whole working from paycheck to paycheck fallacy.

 

[samclem]

Welcome, I'm sure you'll find things here that will be useful. I'm glad I started saving for retirement early, but I'm also glad I didn't start at 16. I blew years of paper route savings on a fun, impractical British sports car at your age--and to this day I'm glad I did it. And happy I did it again with a different car when I started to get a real paycheck. Plus, other wasteful pursuits. All of it money well invested to get the urge out of my system, but maybe some younger folks don't have that problem.

Also, don't neglect the need to invest in yourself at this stage. It sounds like you're not a big fan of formal education, but you are probably already aware of the high payoff per dollar invested in a college education--on average. Likewise with specialized training, etc. All of this puts stuff into your toolkit which you'll use throughout your life, and a lot of it can be a really good investment (plus giving you some knowledge you can't get on your own).

Anyway, enough sage advice from moldy old elders. Welcome again.

(P.S. Don't count on a 12% growth rate in your savings.)

 

[jambo101]

Marriage, children and home ownership should totally destroy your financial plans.

 

[Coach]

Neongreen, it will be interesting to see how things go. When I was 30 I loved work and working, and didn't have the slightest interest in retirement. At that age the world really is your oyster.

Coach

 

[Neongreen]

Thanks for the (mostly)positive feedback guys,

Thing is, for some reason I have a real apathy towards school and working. I work right now because I must(And then I only accept 45% over the minimum wage for my age). The possibility of retiring in my thirties is worth well more than the half a million dollars or so of investment required - in fact, it's priceless to me.

Fortunately, my other ventures aren't time intensive at all - I spend probably a couple of hours a month on them, so they're incredibly easy and profitable.

Marriage and children always, and I quote a most quotable quote, "ruin the best laid plans of mice and men". However I'm expecting to be earning well over the average for my age off of interest by that time, although that will be completely up to what happens in the next few years.

Regarding enjoying the money that I earn - Two-three grand of spending money a year is fine for me. I have specific saving goals for each month(IE, this month - $2k, so far - $1.6k), and every month that I pass my goal I treat myself.

When you look at the figures, however, it gets really hard to justify spending any amount of money - $10 today can mean $2-3 of yearly income in a dozen or so years. $1000 can mean $200-$300 - and it all adds up. Great way to deter spending!

After all - if the world is my oyster when I'm 30 and working, imagine how it'd much more enjoyable it'd be if I was FIREd?

Sorry for the long posts! They always get away from me in length, but I can't bare to cut them back lest important points be lost.

 

[haha]

I'm waiting for a post from a fetus, who is directing his mother to the ER Forum by tapping Morse code on her womb. “Dear ER Forum, I need advice! I've wasted practically 8 months in here where in spite of having a very comfortable living situation and a very low cost of living, I have not been able to save even a penny! My needs are simple, but I have gotten used to the easy life and I definitely know that I don't want to work.”

Ha

 

[Neongreen]

Lucky Foetus. My mother didn't know Morse code!

 

[REWahoo]

Looks like here's the windup...

...I'm just a student but I've got a couple of side 'businesses' which earn me about $15k in profit a year...

...and

Fortunately, my other ventures aren't time intensive at all - I spend probably a couple of hours a month on them, so they're incredibly easy and profitable.

...now we just need the pitch.

I am investigating business options which'll provide me with a huge amount of income in the short term..

By some strange coincidence your 'business options' wouldn't involve posting spam on discussion boards would they?

 

[Nords]

By some strange coincidence your 'business options' wouldn't involve posting spam on discussion boards would they?

Actually he's heard those 15-year-old Missoula chicks are hot stuff, and he's pretty sure this will reel in UncleMick...

 

[Neongreen]

Looks like here's the windup...

...and

...now we just need the pitch.

By some strange coincidence your 'business options' wouldn't involve posting spam on discussion boards would they?

Well, for six easy payments of $2999.95 we can optimize your financial investments to yield a significant percentage increase!

And that's not all - pay by credit card and we'll throw in a hoverboard, free!

Seriously though, awesome use of quotation!