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Steps to becoming independently wealthy?

Hi, I am 28 and have not been contributing any money to savings until recently. I Have no credit card debt, approximately $14000 in debt to two vehicle payments, I rent an apartment. I am currently putting all the money I make at my part time job, around $650 per month to paying off my motorcycle which is about $4000. After that I plan on putting the part time job money and the money I was paying on the bike toward the car. I also plan on using my income tax return money toward paying off the car. The goal is to be completely debt free in about 14 months, then I plan to save all the money from the vehicles and the part time job which is about $1155 per month.

Now I wonder what steps I need to accomplish to reach my goal of becoming Independently wealthy. I currently have a goal of $35000 per year.

What are the best steps? I want to purchase a home and get it paid off as soon as possible, I am married and have two children and want to be able to afford some pleasures.

After I pay off my debt, I theoretically could save about $14000 per year. Using my income tax and this savings, I could have a house paid for in about five or six years. Then I could use the money I was paying on a mortgage to save as well, about 600 more dollars bringing my potential monthly savings up to about $1755 per month making about $21000 per year.

Is this a good plan? It is a rough plan, I have contemplated starting a small business eventually or perhaps investing in rental properties. I Wish to continue to work but simultaneously generate a nice passive income that allows me to invest in other opportunities like funding my retirement, college for the kids, ect.

What would be best for me based on my goals, age and amount I can save?

Update:

I only have two vehicles, a four door car for my wife and the kids and i have a ninja 250...

1 Answer

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  • peter
    Lv 6
    1 decade ago
    Favorite Answer

    I disagree with what you are doing. I can't see you becoming wealthy at all. sorry for being rude. Why so many vehicles. Are they classics that will appreciate in value, or are they just some items to make you feel good. I hope you don't feel Im a idiot but I have to question your strategy. You clearly have a passion for vehicles, but is that a positive. These are expensive to maintain for WOF and rego's, and if you don't comply the fines are steep. Why so many vehicles.

    Can you put some of the money into some good savings scheme with comound interest. What I see is you working hard, and giving your hard earn't money to others.

    Drop the assets that don't return any positive income and put that money towards paying yourself first.

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