please evaluate my life plan:

[john kane]

currently have $150K. by time i start job in october hopefully about $220K.

year 1-3 training as accountant.
after-tax pay for all 3 years ~ $135Kish.
poker winnings and other moneymaking entreprises, hopefully another $135Kish. so total income $270Kish.

expenses:
live at home for year 1, spend about $7K.
year 2 and 3 rent with friends, costing $35K, spend about $20K.
total expenditure: $65K.

so net earnings $200K in year 1-3.

so have in the bank after qualified as an accountant $420K ish.

now it gets tricky. basically i want to spend mid 20s with friends then try and buy a pretty awesome 1 bedroom riverside apartment, such as this:

http://www.foxtons.co.uk/SS/chpk0046488

change in house prices will affect a lot, but i'll need about $1.2mill in real terms to buy something like that. so ill be able to get a $400K mortgage, have $420K in the bank, im still $400K short.

so if I spend year 4-6 working, hopefully involving some work abroad, making say $240K posttax from salary and make another $200K ($5.5K/month) during that period from moneymaking enterprises, then I'd have a total of about $850K-900K and at that point could take out a $400K-$50K mortgage, having spent a few years renting with friends, a bit of work abroad, and then have enough for a riverside flat.

that's the plan.

thoughts?

obv there are a billion variables till then, but i like to have an idea in my head for something to aim for and keep me motivated in the hard woring times.

[yellowbastard]

What makes you want to work as an accountant? I've had accounting jobs before in the past and virtually everyone I worked with hated it (including myself). It's very hard work, very time consuming, and very frustrating.

[meditate89]

why can you only borrow 1/3 of the value of the property? putting more than 10% down on a piece of RE seems really really -EV to me. Is this standard in the UK?

There's no way in hell buying is better than renting in your area if you have to put 66% down on any property you buy.

otoh, it's pretty hard for people in the US to land a 250k / salary job right out of school...

I would much rather rent out a place for 17.5k per year than drop 800k into a property and still have a 30k per year mortgage on top of that

If I were you I would bank almost all of the 450k++ per year in income you're making for 4-5 years, live cheaply renting for 17.5k/year and then come to the U.S. with 2 million++ or so 4-5 years from now... you'll be able to buy tons of well priced RE that will cashflow, borrow up to 90% LTV and be able to semi retire if you play your cards right

[john kane]

yellow; i do not want to work as an accountant. likewise everyone i know doing it doesnt enjoy it. my brother qualified 12 months ago, and i know another 2 guys entering their 3rd year, both dont enjoy it.

reason is means to an end. hopefully come 10 years down the line it'll lead to a more interesting job, and for me importantly, a very secure financial future.

i would rather of got a better paid, more interesting bank related job, but when the competition is people with a number of internships and people who actually properly prepare for interviews (unlike myself who would play online or drink instead) it is very hard. fwiw, i will be working at a big 4 firm, so whilst i will be working hard on dull jobs, career wise it should lead to better work.

mediatate; sorry i mean i'll make $270K in the first 3 years culmulatively. the job pays $53K/year which goes up each year, and hopefully I should make some playing online and other bits and bobs.

In the UK the amount you can borrow is up to 4.25 times your salary with most estate agents, a few allow up to 5 times you salary. so yep i could put down 10% of the house, but i could, if my salary was then $100K, borrow $400K, thus putting down a $40K deposit. $440K total won't buy you much at all in london. your looking at a 1 bedroom flat in a not very nice area, or some tiny studio flat. London house prices are ridiculous.

Thanks for the replies.

[Gugel]

So, let me get this straight. You'll be doing a job you hate so one day, far in the future, you hope to get a job that is similar, easier, and pays more. This is a recipe for a quick burnout...

You're much better off finding something you LIKE doing and sticking to it.

[superder]

there really isnt anything i'd particularly like to do as a career. what i enjoy is meeting up with friends, going out, eating at nice restaurants, security, keeping the parents happy, knowing if i keep working ill be able to retire early with a decent balance to my name.

and heck, sure ill probably hate it at times, but it's a challenge, it's something to put my mind to. it's something to feel proud of if i succeed. on these forums we get used to reading about everyone doing so incredibly well. i think a reality check is often needed. take two of my school friends who i meet a couple of times a week down the pub.
one of them wanted to become a sports journalist, something he liked to do. he did a 3 month journalism course, did work for a local newspaper. time came round to apply for a proper local newspaper job, and the competition was too high. he's spent months applying and barely getting any interviews, yet he has a decent academic record. he is now considering a change in his career idea.
another friend studied music at a good university. he would like to go into the music industry. he did got a work experience job for 6 months at a the royal phillamonic (sp?) orchestra in london. after that he has struggled to get any interviews. he is currently doing telesales till he can find something.

now, whilst i wish them both the best, sometimes doing something you like simply isnt realistic. the sports journalist wannabe would have been on $26K salary, you can't even rent somewhere and live properly for that in london.

i'm not from a wealthy background, more a standard middle class background, mum's a housewife, dad's a retired teacher. if i want to own my own house, provide well for my kids (if i end out have any), go abroad as much as i hope to, be able to go to the really good restuarants, blow money on strippers (as i do), and generally never worry about money in terms of paying for essentials, then this isn't going to fall into my lap, it's something i'm going to have to work at, something i'm going to have to invest some time and effort into.

sorry if that comes across as mega-over-the-top, just i feel often on these forums you have people who have 'made it' by following something the want to do. unfortunately we don't read about the other 90%+ who haven't made it, and wishing they had taken the safe option.

anyways, ill leave it at that, sorry again, i don't mean to single you out at someone to have a general rant at, it's just i read a lot of this on the forum and other forums, and i think the reality is a lot different. maybe i just have bad tastes, in that my tastes means i need to have a decent amount of money later in life, in terms of nice house, provide for kids (not saying you cant without money, but its definitely easier), nice holidays, restaurants etc. some people i know don't care about these things and don't care about money, but just me i do. it's not the 'i want to be as rich as i can' it is just i want to have the lifestyle i'd most enjoy, once i get there and can stay there, im retiring asap.

[kimchi]

[ QUOTE ]
So, let me get this straight. You'll be doing a job you hate so one day, far in the future, you hope to get a job that is similar, easier, and pays more. This is a recipe for a quick burnout...

You're much better off finding something you LIKE doing and sticking to it.

[/ QUOTE ]

I agree.

Why would you spend 50 to 70% of your conscious hours doing something you don't like.

You're young, have some cash. You can secure your financial future easily with another job and actually enjoy your life.

A job doesn't have to be something you don't like - maybe you're just conditioned that way

[john kane]

crap i posted that in my rakeback account.

kimchi, i just cant see a career out there which i could get which will allow me to have the financial security i'd like whilst still being enjoyable.

[kimchi]

You should take a year out and find some things you enjoy doing. Then work out a way you can do them and get paid enough to live on.

That's all you need. Don't get sucked into a dull life worrying about maintaining financial security.

Simplify your life and costs so you can enyoy yourself with less burdens, hassles, and stress, and avoid sinking into a monotonus trip into tedium.

Maybe this is something you have to learn my trial and error (like following tips for spreadbetting).