# 24 yr. old female looking for ways to earn additional income;millionaire by age 35



## 4eversmac12

Hey everyone,

I am a 24 yr. old female college student. Next month, I will be graduating college for the last time and start earning my full-time income on my own while continuously educating myself. I am looking into getting to university and become a licensed accountant in the future.
My field is in accounting but I didn't take a direct route in becoming a CPA. I found out when I was 22 yrs. old that I wanted to get myself a career in accounting.
After getting a certificate and two diplomas, I'm ready to earn some income now.

Current Assets: 
2013 vehicle: 21k
TFSA-10k
Savings/GIC-11k

Total Assets: 42k

Liabilities: 0k (paid all my student tuition and textbooks beforehand)

I live with my parents. I went on exotic and adventure trips internationally in my past. I do enjoy life while saving money. I pay my monthly phone bill with 5g internet for $29/mth. and car insurance/maintenance/gas.

I have three jobs all in my field related. 

When I finish school, I'll make 33k in my first, 11k in my second job, and 3.6k in my third job. For a total of 47.6k after taxes.

However, I am looking to make more income but just with one job. However, I am afraid that I lack experience and higher education in order to be on that level esp. in the accounting field. 

I am pretty good at saving $$, limited experience in investing, and am working on my networking skills, social media, along with my certifications/license to use towards my future small business.

I am looking for ways to earn more money and maximize my savings. I want to make a sound decision. I am hoping to invest in rental properties. Luckily, I have parents who are currently doing that as a passive income. I am hoping to do the same since I have the help from them and advice on how to get a decent property. However, I need cash to do this and don't want to start paying mortgage. 

Any ideas on how to make income from my current situation and how to make more income down the road?


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## Just a Guy

Actually, you don't need a lot of cash to get into real estate, what you do need is good credit, or parents with good credit willing to help you out by consigning a mortgage.

For a basic book, I usually recommend looking at www.easysafemoney.com for a good book and a useful blog. There are also a lot of good threads on here where we've discussed the topic quite often. 

If you can find a good rental in this day and age, which is quite tough as the market is very overpriced, it should pay for all its expenses and provide you with extra cash which you should bank for the repairs, upgrades and maintenance all while being paid off by someone else.

You would probably be better served getting into some debt to build up your credit rating (you don't need to be in debt, borrow and pay it back right away). Getting established in a job will help as well, usually they want two years. 

Best thing to remember is to be patient. Two years to establish credit and work histories may seem like a long time (10% of your life as it were), but you can spend that time looking at the markets, getting to know the opportunities, and learning.

Maybe, by the time you are ready, the market will have started correcting and more properties will become available, either way, the worst thing you can do is rush into this and buy the wrong property. 

Feel free to bring some properties in for discussion, we often provide feedback on if you are looking at an investment or a money pit.

One thing to remember as well, your life is about to become much more expensive over the next few years, so getting into real estate may be difficult.


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## james4beach

I disagree entirely with the preceding advice.

You're free of debt, which is great. Don't rush to get back into debt (real estate). Instead, control your expenses (keep your spending low) and continually look for new jobs that pay more.

Increasing your income (by looking for newer and better jobs) and keeping your expenses low is the best way to become wealthy. Property and debt is going to tie you like an anchor where you are. Being free of debt and having the ability to accept new jobs in other locations is a huge luxury.

And what if real estate declines in value? At your income level, declining real estate can wipe you out. It can potentially ruin you within just a few years and literally bring you to bankruptcy.

On the other hand, seeking higher paying jobs and keeping expenses low comes with no risk. You can remain debt free and steadily become wealthier.


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## KaeJS

Hi,

I am 24 and own a home/rent it out.

Truthfully speaking... it isn't necessarily worth it. It is not a "bad" investment, but you do need to factor in that being a landlord is a lot more work than you might think. Whatever you think being a landlord is like, just multiply the negativity by about 5.

This isn't what you want to hear, but from someone who knows what they are talking about... your best bet is to:

Stay at home and invest all of your money.
Focus on your career.
Find a man (or woman, if that's your thing) and split EVENLY on a house.

Then, after you've done that....

Invest all of your left over money.
Continue focusing on your career.
Try to live happily ever after.

Owning property is like some gigantic elephant of weight on your shoulders that is physically hard to move and occasionally pokes a thorn in your side.

Real Estate is illiquid. Liquidity is very important. It is the main reason Warren Buffet prefers stock over Real Estate. Why own 1 property when you could own multiple companies?

If you play your cards right, you can invest and raise capital for the next while (3-5 years) and still jump into a mortgage while rates are low.

I'm not trying to be rude, but a millionaire by 35 is quite an aggressive goal, seeing as your assets are 42k (50% of which actually has a value of $0) so your total worth is really $21k. The vehicle doesn't count. You should know this from accounting that the FV of the vehicle is effectively nil.

Let's assume you made 60k/year and had rental income of $1500/month.

If you saved $1000/month from your salary and kept your $1500/month rental income, that gives you a net savings of $2500/month.
Without compounding or investment, 2500x12x11 (dollars x months x years) will get you $330k after 11 years.

Assuming a 5% annual return for each year, you're still at less than half of your target.

Mortgage rates are so low right now that it would be unwise to tie up your capital.

But, alas, this is just the opinion of someone who has done it.


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## Janus

First impression - why do you own a car that cost almost as much as a full year's salary after tax? Be prepared to reduce the value of that "asset" by quite a large amount each year going forward.


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## CalgaryPotato

On the one hand it's impressive that you've saved so much money while going to school... on the other hand as others have pointed out you're savings could be almost doubled if you had gone with a more affordable car. 

Given your situation, I actually think you're ignoring the best investment option you have at 24. Continue to invest in yourself. Accounting can be a huge money making field, but like you've said, you have to have the proper education/credentials to make the big bucks. Jumping from making $50K a year to $150K a year with a couple of more years of school will then give you the freedom to start really making your investments work for you.

Personally I'm not that high on the idea of buying a rental property when prices are still this high and you'll be investing most of your net worth just to make the minimum down payment. You have to be prepared for the fact that there may be a correction, and you may be in negative net worth for a number of years, let alone climbing towards a million dollars.


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## Just a Guy

KaeJS said:


> This isn't what you want to hear, but from someone who knows what they are talking about... your best bet is to:
> 
> Stay at home and invest all of your money.
> Focus on your career.
> Find a man (or woman, if that's your thing) and split EVENLY on a house.
> 
> )


Most of what he said, I agree with, you aren't as rich as you think, real estate is work and illiquid, one property won't make you rich (of course, you and I know you can buy more than one), etc. but this, I'm totally opposed to.

You need to move out in your own and learn what it takes to do so, especially before getting married.

You'll find out things like there are no magic draws that fill will clean clothes, or fridges that are full of food...that life is expensive and a lot of work...that marriage is a partnership that tackles these concepts, not a new parent to fulfill these needs for you...

Also, real estate isn't for everyone, it takes a certain mindset to do it, just like anything else.

P.S. As to people who became millionaires, in my real world examples (not people like buffet, gates, or trump) most people I know became millionaires by starting and selling their own businesses, next was from real estate, and then came stocks... I don't think I know more than one who did it by paycheque. 

If you look at the lists of top wealth people, you'll probably see it breaks down similarly (maybe not for actual amounts, but by the process they got there). Buffet may have more money, but there are less stock investors than business owners.


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## Guban

I'm thinking that with such an aggressive goal, the OP is going to have to leverage in some way. Real estate and a mortgage is definitely one way of doing this. Borrowing to invest in the stock market is another, but considering how she currently invests, she may not be a risk taker in the stock market. 

Sounds like the OP has had a great opportunity to have seen what it is like to be a land lord, based on her parent's experiences, so that may be the most familiar path. With 3 jobs, however, there may be more of a time crunch when dealing with a needy tenant.


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## birdman

My suggestion is to be sure you find the right business to be in or company to work for for and develop a good work ethic and people skills. Fortunately I like to think I have these skills and with no secondary education I managed to find a career where I earned $150-200,000. PA in my latter years and managed to retire comfortably at age 55. I realize this is probably quite unlikely in this day and age but I am sure it is still possible with your background.


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## nobleea

It seems to me your salary is on the low side. I always thought accountants graduating from university started in the 65-70K range, then increasing fairly rapidly with designations.
But you mention certificate and diplomas, so I assume you went through trades-type schools or community colleges. Do you have the required education to get a CPA designation? How long will that take?

Edit: maybe not, I see you mentioned your income as after taxes. 

Three jobs seems excessive. I guess it depends on your hours worked, but sometimes the additional hours over a normal work week aren't worth the hourly wage you get for them when working multiple jobs.


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## Feruk

You said your income will be $48K after taxes. What is that before taxes? Just wondering if you can raise that number by any significant amount by putting money into an RRSP. Three years of contributions ($8K/year) can get you to $25K in your RRSP, while giving you $2-$3k in taxes back. That $25K can then be used tax-free for a deposit on a condo.

At your age and income level, my focus would be increasing that income with one job (what you're currently doing). Also, as mentioned above, have a credit card that you pay off monthly to grow your credit. Third, take that $21K (your total liquid assets), and invest it into something more risky than GICs (such as diversified ETFs). With your net worth and age, you should not hold any GICs IMO.

I think your goal to be a millionaire by 35 is only realistic if you significantly increase your net income and have money to invest elsewhere.


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## CalgaryPotato

Personally I think if you contribute to your RRSP now, don't use the tax portion yet. Your taxes are low right now, and your salary will only go up over time.

Also I don't think it's good advice to advise someone of any age, that they should have $0 to their name in cash, and be fully invested in equities.

I guess the most important question which I didn't ask, and no one else did either, it what is the real goal. A million dollars by an arbitrary age is fine, but what does that money actually mean.

Do you plan to buy a million dollar home for cash as that age? Is that for your future children to go to ivy league college? Are you planning to retire young? Do you plan to be rich just so you can brag that you are a millionaire?





Feruk said:


> You said your income will be $48K after taxes. What is that before taxes? Just wondering if you can raise that number by any significant amount by putting money into an RRSP. Three years of contributions ($8K/year) can get you to $25K in your RRSP, while giving you $2-$3k in taxes back. That $25K can then be used tax-free for a deposit on a condo.
> 
> At your age and income level, my focus would be increasing that income with one job (what you're currently doing). Also, as mentioned above, have a credit card that you pay off monthly to grow your credit. Third, take that $21K (your total liquid assets), and invest it into something more risky than GICs (such as diversified ETFs). With your net worth and age, you should not hold any GICs IMO.
> 
> I think your goal to be a millionaire by 35 is only realistic if you significantly increase your net income and have money to invest elsewhere.


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## Feruk

CalgaryPotato said:


> Also I don't think it's good advice to advise someone of any age, that they should have $0 to their name in cash, and be fully invested in equities.


I didn't say equities, I said diversified ETFs. To me that implies bond funds as well, but perhaps I should've been more clear. With only $21K, it's so little compared to her lifetime earning potential that taking a loss on it won't be a huge impact long term.


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## CalgaryPotato

Feruk said:


> I didn't say equities, I said diversified ETFs. To me that implies bond funds as well, but perhaps I should've been more clear. With only $21K, it's so little compared to her lifetime earning potential that taking a loss on it won't be a huge impact long term.


Oops good point. Still though, bond funds can be moderately volatile short term, and I wouldn't consider them equivalent to cash. And exactly, long term investing that $10K now really isn't going to make that big of a difference to her portfolio, but if she ends up needing even a small amount of money fast and has to say take out a high interest loan, it isn't worth it.

Again this is the risk if she wants to buy real estate, is that if ANYTHING goes wrong with the property, she has no cash on hand to do anything about it. 

Maybe she can borrow from her parents, but personally I think we shouldn't be suggesting a financial plan to her, that may get her closer to a million, but is equally as likely to make her broke.


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## Ethan

I obtained my CA designation from an accounting firm in 2011. My concerns about your plan are the 3 jobs you plan on working. I barely found enough time to complete my work requirements and education requirements. Several people were either fired from the firm or failed out of the program during that time, it's not easy. I'd focus on getting your designation before worrying too much about your net worth.


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## crazyjackcsa

It's an overly aggressive plan. with a 7% annual return, you need to sock aside $5000 a month for 11 years. So clearly you need a tonne of leverage, a tonne of risk, or make a lot more money. 

I'd say aim lower. KaeJs had a good point. A partner makes things a lot easier. Living costs are essentially halved. Risk is mitigated by having two sources of income. It can also free up a little bit of time as there are two people sharing the workload. 

Of course, two people living in such close proximity has an increased likelihood of creating more people. Which can slow things down a little.

If you're as focused as you sound, the family net worth could exceed $1-million inside a decade.


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## ashin1

most fit way I can see you achieving you goal of millionaire status is to increase the amount of capital coming in. time to pack your bags and chase the dollar, you have a skill, capitalize on it, travel to parts of the country where no one wants to go that will pay the big bucks.


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## Guban

CalgaryPotato said:


> Personally I think if you contribute to your RRSP now, don't use the tax portion yet. Your taxes are low right now, and your salary will only go up over time.


Haven't seen this for a while, but I will say this again. *Don't* do this! By age and TFSA balance, I assume that the OP's TFSA is not maxed out, so contributing to an RRSP and not claiming the tax deduction is a mistake. Contribute to the TFSA instead, and if you want, take it out to contribute when you are going to want to claim the RRSP deduction. Why have the money grow tax deferred when you can grow it tax free? The only time to defer the RRSP deduction is after your TFSA is maxed out.


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## My Own Advisor

Like many others have said, focus on your human capital, invest in you.

I would agree the best way to obtain wealth is to increase your income (i.e., get better jobs over time) while keeping your expenses low. 

James said it well: "Property and debt is going to tie you like an anchor where you are. Being free of debt and having the ability to accept new jobs in other locations is a huge luxury."

Stay debt free and keep working hard for bigger and better jobs over the next few years. 

Good luck! You seem very focused!


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## Just a Guy

I think this is a basic fallacy whic is championed by David chilton's new book the wealthy barber returns...

A basic fact about earning money yourself. There are only 24 hours in a day. No way that can be changed. Even if you never ate or slept, your earning power is limited by the number of hours in a day, and the maximum amount you can get paid.

The true path to unlimited wealth, one that even chilton applies, yet doesn't preach, is passive income. Passive income, in whatever form, is not limited by the number of hours in a day, nor in the amount you charge, you can always add a new source and increase your earning power and wealth.

I'm not saying the path is easy, or that the money is free...but I know very well educated people, with many initials next to their names, who are poor, in debt, and even unemployed (nearly unemployable because they are overqualified). I know a lot of wealthy high school drop outs who haven't worked in years because they started businesses, own real estate or other investments which pay them money regardless of them doing any work.

I'm not saying getting an education is a bad thing, far from it, but there is a real world limit on an individual's ability to make money.


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## Plugging Along

Just a Guy said:


> I think this is a basic fallacy whic is championed by David chilton's new book the wealthy barber returns...
> 
> A basic fact about earning money yourself. There are only 24 hours in a day. No way that can be changed. Even if you never ate or slept, your earning power is limited by the number of hours in a day, and the maximum amount you can get paid.
> 
> The true path to unlimited wealth, one that even chilton applies, yet doesn't preach, is passive income. Passive income, in whatever form, is not limited by the number of hours in a day, nor in the amount you charge, you can always add a new source and increase your earning power and wealth.
> 
> I'm not saying the path is easy, or that the money is free...but I know very well educated people, with many initials next to their names, who are poor, in debt, and even unemployed (nearly unemployable because they are overqualified). I know a lot of wealthy high school drop outs who haven't worked in years because they started businesses, own real estate or other investments which pay them money regardless of them doing any work.
> 
> I'm not saying getting an education is a bad thing, far from it, but there is a real world limit on an individual's ability to make money.


I agree and disagree at the same time. I am all for passive income, however, it is also easier to make passive income if you have good active income. Coming right out of school, And only making $33k from her main job, she would be much better off to focus on her career, and advance as far as possible working n her human capital. I would actually ditch the other two jobs, unless they are either working on human capital, her career, or potential longer term passive income.

It makes it a lot easier to buy dividend investments and rental properties of you have a higher income and higher savings. I know that you have done well in your approach, but I do not think it's an either or.


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## Plugging Along

Here is my random advice:

Focus on the you main career and your human capital first. You have a very good education now use it it. Unless the other two jobs you have either add to your career, or are setting up another business, ditch them and use the time more to pursue things that will have a longer benefit.

You sound like a very hard worker with 3 jobs, don't lose that work ethic. Just refocus it.

Learn about ways to make more passive income such as investing.

Keep spending way below your means. 

If you decide to find a partner, make sure you find one on the same path as yourself. 

Most importantly, please don't let the $1mil be your driver in life. You are young once, enjoy and have a little balance.


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## peterk

Just a Guy said:


> I think this is a basic fallacy whic is championed by David chilton's new book the wealthy barber returns...
> 
> A basic fact about earning money yourself. There are only 24 hours in a day. No way that can be changed. Even if you never ate or slept, your earning power is limited by the number of hours in a day, and the maximum amount you can get paid.
> 
> The true path to unlimited wealth, one that even chilton applies, yet doesn't preach, is passive income. Passive income, in whatever form, is not limited by the number of hours in a day, nor in the amount you charge, you can always add a new source and increase your earning power and wealth.
> 
> *I'm not saying the path is easy, or that the money is free...but I know very well educated people, with many initials next to their names, who are poor, in debt, and even unemployed (nearly unemployable because they are overqualified). I know a lot of wealthy high school drop outs who haven't worked in years because they started businesses, own real estate or other investments which pay them money regardless of them doing any work.*
> I'm not saying getting an education is a bad thing, far from it, but there is a real world limit on an individual's ability to make money.


The primary difference that is never pointed out is the risk. Starting a business or building a real estate empire is a road paved with the bodies of the unsuccessful who have no money and are now in their 30s or 40 with no employment history. Good hard working people who had bad ideas, badass competition, or bad luck. Working on your career and earning potential as an employee during your twenties, while saving as much as possible as you go, is a one-way ticket to upper middle class and early retirement. The only way to screw it up is to be a dumbass and spend all your money instead of saving it (which is entirely your own fault).

My take is that the *best* way to go about it, with the least risk and high reward, is to focus on career and earnings development with aggressive savings in your 20s, and transitioning this into business ownership and smartly deploying your saved money in your 30s and 40s.

Someone in their 20s with little experience, trying to go their own and start whatever kind of company is a huge, massive risk. Especially in this day and age. Maybe 50 years ago a young ambitious guy could try and make it big, and then still convince a company owner to hire him in his 30s based on his ambitions. Good luck doing that today with small companies disappearing and big companies getting bigger with more restrictive and anal hiring practices.

Unfortunately the true path to unlimited wealth is also the true path to unending poverty.


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## Plugging Along

I think I can give you the advice I did because as a female who had an accouning degree (who did not practice accounting though) I did hit the networth around of $1 mil on my early thirties. It was not my specific goal at the time, it just happened, and I was lucky, I woke up one morning, and had been hearing about the real estate boom and then decided it was time I grew up and calculated my networth and there It was. I am a little flippant about it, because a few years later the 2008 recession hit, and we lost a lot. Net worth is just a gadge of many things so don't get too hung up on it.

How did we do it...

First, I say we. My spouse and I worked together. We decided as a couple what kind of careers we wanted. I was more of a Corporate climber, my spouse was more of the chase the money, but be really unstable. When money was good, it was really good, when it wasn't, I was the one that carriered us. That's my first piece, if makes it easier ifs here are two of you as it spread the risks. As long as your partner is not a risk himself. He is more of a spender than me and more impulsive and didn't invest, we both agreed I would handle the long term finances (investing and such), he the spray to day bills. The key is working together, or get rid of him. 

As Just A Guy said, we got into real estate really early. My spouse bought a condo, it just about killed him in terms of cost, and then we kept it. I came from a real estate family, so made it in to a rental (he wanted to sell). We actually were renting a bigger place for less money than what we were getting in rent from our place. Plus we had a person living on the basement. 

When we were ready to buy, we had a large down payment, and we based our house on the most stable income (mine). His income was just a bonus. We were able to pay off the house in 7 or 8 years. It would have been sooner if the stock market hadn't crashed, and we didn't have kids. The key piece I would say for real estate is only buy if you know are going to stay for a very long time and can weather drops. This is where we made a majority of or networth. 


In this time, prior to kids, I focused on my career. I moved into new higher positions or liateral positions almost every year. I made sure I had a really good skill set before deciding having kids so I could choose what I wanted to do. My spouse was all over the place, sometimes travelling for months for the higher paying contracts. I think the efforts we put into our careers earlier on has paid off most greatly. It has provided us a lot of choice not that we have two young kids.

In terms of investing, I have to admit, I am really lousy at it. I am too undisciplined and take unnecessary risks. I understand it, but sometimes will chase the riskier investments. (Gambles). Our saving grace, was we always maxed out our RRSPs (no TSFA we then, I would do that instead). We did high MER mutual funds, but the key for us was just to put some money aside every pay check. This is our 'stable' money, with an advisor, so we don't get reckless. We still do that. I also invest on my own for our TSFA and non registered. We win some we lose some. We are in our early forties now, and we're targetted to hit $1 mil in investable assets last year. Most of our investments (outside our Mutual funds) are in oil and gas. So we are no longer on target. Also, my spouse was laid off, so we are diverting cash there instead of investing.

So very long story short, worked on your personal earning potential, work together with your partner, spend less than you earn, save and invest that money, know yourself before you invest in that money. acceot things will happen, and don't get too stressed over it.


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## Plugging Along

peterk said:


> The primary difference that is never pointed out is the risk. Starting a business or building a real estate empire is a road paved with the bodies of the unsuccessful who have no money and are now in their 30s or 40 with no employment history. Good hard working people who had bad ideas, badass competition, or bad luck. Working on your career and earning potential as an employee during your twenties, while saving as much as possible as you go, is a one-way ticket to upper middle class and early retirement. The only way to screw it up is to be a dumbass and spend all your money instead of saving it (which is entirely your own fault).
> 
> My take is that the *best* way to go about it, with the least risk and high reward, is to focus on career and earnings development with aggressive savings in your 20s, and transitioning this into business ownership and smartly deploying your saved money in your 30s and 40s.
> 
> Someone in their 20s with little experience, trying to go their own and start whatever kind of company is a huge, massive risk. Especially in this day and age. Maybe 50 years ago a young ambitious guy could try and make it big, and then still convince a company owner to hire him in his 30s based on his ambitions. Good luck doing that today with small companies disappearing and big companies getting bigger with more restrictive and anal hiring practices.
> 
> Unfortunately the true path to unlimited wealth is also the true path to unending poverty.



I choose a more conservative path through employment/career. 

I do remeber some really surprising advice my father gave me. When you are young, that is the time to not be afraid. 
When we were debating of my spouse should start his consulting firm and to buy a house, my dad said 'you guys are young, you can still go bankrupt at least twice and still make it'. His point was take the risks early on in life because when you get older, it gets harder to take those risk when you have a mortage, kids, and a high income. The rosk leaving then is much harder. 

Some of my family memebrs followed this advice and Did VERY well. When I asked their secret to success was take the risk early, know yourself, and set limits to chasing your dreams. One said they they would give every thing they had to start a business up until they were 30. If it wasn't panning out, they would pull the plug, and go a traditional employment route. They would wait on having kids until this milestone. 

My spouse and I talked about if we were willing to try this, and we felt that it wasn't for our personalities, and took less extreme route. We have encouraged our young nieces and nephews to go for it if they want. The risk is a lot less now then later when you are settled.


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## peterk

Plugging Along said:


> I choose a more conservative path through employment/career.
> 
> I do remeber some really surprising advice my father gave me. When you are young, that is the time to not be afraid.
> When we were debating of my spouse should start his consulting firm and to buy a house, my dad said *'you guys are young, you can still go bankrupt at least twice and still make it'.* His point was take the risks early on in life because when you get older, it gets harder to take those risk when you have a mortage, kids, and a high income. The rosk leaving then is much harder.
> 
> Some of my family memebrs followed this advice and Did VERY well. When I asked their secret to success was take the risk early, know yourself, and set limits to chasing your dreams. * One said they they would give every thing they had to start a business up until they were 30. If it wasn't panning out, they would pull the plug, and go a traditional employment route.* They would wait on having kids until this milestone.
> 
> My spouse and I talked about if we were willing to try this, and we felt that it wasn't for our personalities, and took less extreme route. We have encouraged our young nieces and nephews to go for it if they want. The risk is a lot less now then later when you are settled.


That is all fine and dandy in a growing and prosperous society that rewards ambition and has companies that are willing to take risks. This is increasingly not the world we are living in. Companies are no longer interested in taking the risk of hiring 30 year olds that have spent the last 10 years unsuccessfully running business. It is no longer perceived as go-getting and ambitious. It is now unstable, not a team player, and too ambitious for the good of the company. Even if managers and owners at companies didn't feel this way, good luck getting to speak with them after the increasingly picky HR department has screened you out immediately for not being employed the past 10 years.

It's bad now, and it's only going to get worse.


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## Plugging Along

peterk said:


> That is all fine and dandy in a growing and prosperous society that rewards ambition and has companies that are willing to take risks. This is increasingly not the world we are living in. Companies are no longer interested in taking the risk of hiring 30 year olds that have spent the last 10 years unsuccessfully running business. It is no longer perceived as go-getting and ambitious. It is now unstable, not a team player, and too ambitious for the good of the company. Even if managers and owners at companies didn't feel this way, good luck getting to speak with them after the increasingly picky HR department has screened you out immediately for not being employed the past 10 years.
> 
> It's bad now, and it's only going to get worse.



Again, I don't think it has to be either or. I am pretty optimistic, and I have seen it done many times overs so maybe that's where I come from. 

I am not saying get out of school, and start a business, but go get some experience, and then if you so desire then start a business. My neice is currently working a full time job in the corporate world in a global company. At nights, she is starting to launch her business. She is not buying a place yet because she wants to have free capital for her company. She is still getting some really phenomenal work experience. She is 26 with and MBA and three years work experience. She is putting in the foundations for her company now. She is also giving up a lot sleep, and working her butt off. 

I think the risk she takes now, is much less than if she did the same while she has kids, a house, a family to support, and to give up a 6 figure salary. 

There are still lots of opportunities out there, but it is not without risk. 

In terms of employment, yes it is hard, but it's not undoable. We just hired someone who has been 'retired,' for the last 6 years. Apparently, they misjudged their expenses vs savings.


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## 4eversmac12

Thanks for the advice. I do own a credit card and been paying it off monthly as I spend money for tuition, textbooks, etc. Then use the credit card perks such as points to accumulate towards a reward of a prepaid credit card at the end of the year. As I think about it, I am not sure whether I should be investing in real estate or not. Since I haven't finished my CPA, I may get better opportunities elsewhere across the country. I have to make sure that the rental property is able to sustain itself which I hear that as a landlord, it's a lot work than you think. I think the best decision that I've read throughout this discussion board is to invest in human capital, increase my salary, and start investing into the market as opposed to GICs and leaving money in chequing/savings account. 




Just a Guy said:


> Actually, you don't need a lot of cash to get into real estate, what you do need is good credit, or parents with good credit willing to help you out by consigning a mortgage.
> 
> For a basic book, I usually recommend looking at www.easysafemoney.com for a good book and a useful blog. There are also a lot of good threads on here where we've discussed the topic quite often.
> 
> If you can find a good rental in this day and age, which is quite tough as the market is very overpriced, it should pay for all its expenses and provide you with extra cash which you should bank for the repairs, upgrades and maintenance all while being paid off by someone else.
> 
> You would probably be better served getting into some debt to build up your credit rating (you don't need to be in debt, borrow and pay it back right away). Getting established in a job will help as well, usually they want two years.
> 
> Best thing to remember is to be patient. Two years to establish credit and work histories may seem like a long time (10% of your life as it were), but you can spend that time looking at the markets, getting to know the opportunities, and learning.
> 
> Maybe, by the time you are ready, the market will have started correcting and more properties will become available, either way, the worst thing you can do is rush into this and buy the wrong property.
> 
> Feel free to bring some properties in for discussion, we often provide feedback on if you are looking at an investment or a money pit.
> 
> One thing to remember as well, your life is about to become much more expensive over the next few years, so getting into real estate may be difficult.


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## 4eversmac12

Controlling small impulsive expenses is one of my goals this year to accomplish. I want to limit the purchases of food and beverages as much as I can. Only use it for outing/special occasion purposes. I know I can gain at least $3k from just accomplishing this goal. I am hearing a lot that my current salary is too low and I need to focus on increasing it. I just enter the world of accounting with two basic diplomas. I know I wouldn't start out well with my salary since I lack the experience. Hopefully, once I start gaining valuable experience, I can choose jobs that have higher salaries. 

I am leaning towards not getting into real estate right away at my age through reading the discussions on this forum. I've notice that I can work anywhere across the country and I have many possibilities of increasing my salary with better opportunities not only where I am at. 

Thanks for the advice! Appreciate it. 




james4beach said:


> I disagree entirely with the preceding advice.
> 
> You're free of debt, which is great. Don't rush to get back into debt (real estate). Instead, control your expenses (keep your spending low) and continually look for new jobs that pay more.
> 
> Increasing your income (by looking for newer and better jobs) and keeping your expenses low is the best way to become wealthy. Property and debt is going to tie you like an anchor where you are. Being free of debt and having the ability to accept new jobs in other locations is a huge luxury.
> 
> And what if real estate declines in value? At your income level, declining real estate can wipe you out. It can potentially ruin you within just a few years and literally bring you to bankruptcy.
> 
> On the other hand, seeking higher paying jobs and keeping expenses low comes with no risk. You can remain debt free and steadily become wealthier.


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## 4eversmac12

My parents purchase it mostly and only asked me to pay 5k for it. I didn't exactly pay the full amt. of it. I am aware of the depreciation level that will accumulate the day the vehicle gets off the lot. 



Janus said:


> First impression - why do you own a car that cost almost as much as a full year's salary after tax? Be prepared to reduce the value of that "asset" by quite a large amount each year going forward.


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## 4eversmac12

What I am hearing is to invest in myself. Yes, this is the one of the best advice that I've see on this forum. I didn't purchase the car. My parents mostly paid for it and I only paid 5k for it. At least, it's a fuel efficient. 
I am planning on getting an accounting degree in the meantime while working. I am working towards my CPA. It's gonna take less than 5 years to obtain it. 

I am leaning towards not buying a rental property my age. Maybe in the future or when I possibly inherit my mom's rental properties. Never know. 




CalgaryPotato said:


> On the one hand it's impressive that you've saved so much money while going to school... on the other hand as others have pointed out you're savings could be almost doubled if you had gone with a more affordable car.
> 
> Given your situation, I actually think you're ignoring the best investment option you have at 24. Continue to invest in yourself. Accounting can be a huge money making field, but like you've said, you have to have the proper education/credentials to make the big bucks. Jumping from making $50K a year to $150K a year with a couple of more years of school will then give you the freedom to start really making your investments work for you.
> 
> Personally I'm not that high on the idea of buying a rental property when prices are still this high and you'll be investing most of your net worth just to make the minimum down payment. You have to be prepared for the fact that there may be a correction, and you may be in negative net worth for a number of years, let alone climbing towards a million dollars.


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## 4eversmac12

I do realize that I need to move out. However, my graduation is the end of next month. While I'm working my jobs, I am going to look into the job market and continuously find a position that will benefit my career and raise the salary as well. For the millionaire part, I am hoping to open my own business in the future and I know pay cheque after pay cheque isn't going to be possible to obtain my goal. So having that said, opening a business and possibly reselling it may be my best bet as well as investing in the markets. 



Just a Guy said:


> Most of what he said, I agree with, you aren't as rich as you think, real estate is work and illiquid, one property won't make you rich (of course, you and I know you can buy more than one), etc. but this, I'm totally opposed to.
> 
> You need to move out in your own and learn what it takes to do so, especially before getting married.
> 
> You'll find out things like there are no magic draws that fill will clean clothes, or fridges that are full of food...that life is expensive and a lot of work...that marriage is a partnership that tackles these concepts, not a new parent to fulfill these needs for you...
> 
> Also, real estate isn't for everyone, it takes a certain mindset to do it, just like anything else.
> 
> P.S. As to people who became millionaires, in my real world examples (not people like buffet, gates, or trump) most people I know became millionaires by starting and selling their own businesses, next was from real estate, and then came stocks... I don't think I know more than one who did it by paycheque.
> 
> If you look at the lists of top wealth people, you'll probably see it breaks down similarly (maybe not for actual amounts, but by the process they got there). Buffet may have more money, but there are less stock investors than business owners.


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## Just a Guy

Nothing wrong with that plan. As I said before, the opportunities in real estate these days are small...they'll probably get better down the road, and by then you'll be more prepared if it's still of interest. There are lots of opportunities out there to make money, just keep your eyes open. 

Also, don't go all in at once. You need to discover what kind of investor you are...learning that can be costly if you aren't careful. Personally, I'm a buy and hold, value investor when I tried other forms, even though I knew what I was supposed to do, I found my personality didn't really allow me to succeed in them. I know a day trader though who's very successful, but bombed at doing buy and hold...


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## 4eversmac12

It's not that I am not a risk taker. I just need to obtain more knowledge in the market before placing my money into funds that I have little knowledge in. I am hoping this forum may give me suggestions on which products that I should try investing into. Realizing real estate is not the best option at my age now, I am going to work on increasing my salary, education, and investing more appropriately other than GICs, and savings. 



Guban said:


> I'm thinking that with such an aggressive goal, the OP is going to have to leverage in some way. Real estate and a mortgage is definitely one way of doing this. Borrowing to invest in the stock market is another, but considering how she currently invests, she may not be a risk taker in the stock market.
> 
> Sounds like the OP has had a great opportunity to have seen what it is like to be a land lord, based on her parent's experiences, so that may be the most familiar path. With 3 jobs, however, there may be more of a time crunch when dealing with a needy tenant.


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## 4eversmac12

It all depends on where the job is. In my city, the salaries tend to be lower since real estate is cheaper and the unemployment rate is higher than the rest of the country. Since I didn't graduate with a university degree, I can't take jobs that are on the higher end of the salary. The salaries here tend to be start for a 2 year diplom a grad. is 30k and higher. I haven't heard of a student getting a 50k right out of school with a 2 yr. diploma from a college. My diplomas are in accounting and payroll through a college. To get a CPA designation, you need to have a university degree as the entry point, then you need to complete the designated courses along with tests and exams and the working experience of 2 years in public accounting. It will take less than 5 years to obtain it. My goal is to complete the university degree that is CPA certified and finish all the requirements of being a CPA. The two other jobs aren't many hours. I only do 15 altogether for both. 



nobleea said:


> It seems to me your salary is on the low side. I always thought accountants graduating from university started in the 65-70K range, then increasing fairly rapidly with designations.
> But you mention certificate and diplomas, so I assume you went through trades-type schools or community colleges. Do you have the required education to get a CPA designation? How long will that take?
> 
> Edit: maybe not, I see you mentioned your income as after taxes.
> 
> Three jobs seems excessive. I guess it depends on your hours worked, but sometimes the additional hours over a normal work week aren't worth the hourly wage you get for them when working multiple jobs.


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## 4eversmac12

Absolutely agree with this. HR these days are hard to get through and I've found that I am lucky to get a full-time job right before graduation. 



peterk said:


> That is all fine and dandy in a growing and prosperous society that rewards ambition and has companies that are willing to take risks. This is increasingly not the world we are living in. Companies are no longer interested in taking the risk of hiring 30 year olds that have spent the last 10 years unsuccessfully running business. It is no longer perceived as go-getting and ambitious. It is now unstable, not a team player, and too ambitious for the good of the company. Even if managers and owners at companies didn't feel this way, good luck getting to speak with them after the increasingly picky HR department has screened you out immediately for not being employed the past 10 years.
> 
> It's bad now, and it's only going to get worse.


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## 4eversmac12

Great advice. Firstly, I am currently gaining my experience and making the connections and then heading out to increase my income with next job. Second, I have a credit card and I've been using it for years to pay it off monthly. Luckily, I pay it on time every month so I don't have bad credit nor interest accumulating. Third, I am going to take your advice and move the liquid assets elsewhere into a ETFs. 




Feruk said:


> You said your income will be $48K after taxes. What is that before taxes? Just wondering if you can raise that number by any significant amount by putting money into an RRSP. Three years of contributions ($8K/year) can get you to $25K in your RRSP, while giving you $2-$3k in taxes back. That $25K can then be used tax-free for a deposit on a condo.
> 
> At your age and income level, my focus would be increasing that income with one job (what you're currently doing). Also, as mentioned above, have a credit card that you pay off monthly to grow your credit. Third, take that $21K (your total liquid assets), and invest it into something more risky than GICs (such as diversified ETFs). With your net worth and age, you should not hold any GICs IMO.
> 
> I think your goal to be a millionaire by 35 is only realistic if you significantly increase your net income and have money to invest elsewhere.


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## 4eversmac12

Sound advice. I'm planning on getting rid of the three jobs in the next year. I want to be mobile and not having to rely on this side income. Thanks for the advice. 



Ethan said:


> I obtained my CA designation from an accounting firm in 2011. My concerns about your plan are the 3 jobs you plan on working. I barely found enough time to complete my work requirements and education requirements. Several people were either fired from the firm or failed out of the program during that time, it's not easy. I'd focus on getting your designation before worrying too much about your net worth.


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## 4eversmac12

Much agreed. I will be doing this right after I get my current experience in my current jobs now. 



ashin1 said:


> most fit way I can see you achieving you goal of millionaire status is to increase the amount of capital coming in. time to pack your bags and chase the dollar, you have a skill, capitalize on it, travel to parts of the country where no one wants to go that will pay the big bucks.


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## 4eversmac12

My other two jobs are bookkeeper for a non-profit organization and treasurer on the board of directors for another non-profit. 

I know that I will be earning more income next year for the treasurer position. But the bookkeeper one is actually a dead end within a year and I need to find another qualified candidate to train and take over my position. I'm hoping to get rid of it in a year so that way, I can focus on getting a better main job with more salary. 



Plugging Along said:


> I agree and disagree at the same time. I am all for passive income, however, it is also easier to make passive income if you have good active income. Coming right out of school, And only making $33k from her main job, she would be much better off to focus on her career, and advance as far as possible working n her human capital. I would actually ditch the other two jobs, unless they are either working on human capital, her career, or potential longer term passive income.
> 
> It makes it a lot easier to buy dividend investments and rental properties of you have a higher income and higher savings. I know that you have done well in your approach, but I do not think it's an either or.


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## janus10

Since leaving university, I have worked for six different companies. Each move resulted in taking a job with a substantial jump in compensation (except for where I am now since low stress and international travel were more important. That being said, my second full year was my third best earning year in my career).

I only saw decent increases when I stayed at the same company. No promotions (I tended to have unique positions) and only one real job change at the same employer. But, joining a different company typically saw 10%-50% compensation increases overnight. 

Hopefully you will be at least as fortunate as my experience is not unique.


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## KaeJS

***** I don't know if you purposely ignored my first post or forgot to respond. I am not offended, but considering your *entire thread* is essentially about making the right moves at 24 years old, I would think that my post is one of the most important since I am and have _lived_ what you are asking.

Regardless, I will try to guide you once more. The following realization is actually a realization that you are unaware of how to start off:



4eversmac12 said:


> I do realize that I need to move out.


^ Moving out is the worst idea. Just a heads up.
You will _significantly_ hinder your goals. Money is exponential. Why would you waste it living on your own?

You will make everything more difficult for yourself. If you can stay at home, you should.

I already told you that rates will stay low for at least a few more years. So, I don't get it?


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## ashin1

Kaejs, if OP is moving out for the sole sake of finding a lucrative job, it may not be a terrible idea. however if she wants to move out to be free from parents but continue to work in the same place, then i would agree with you brutha


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## nathan79

Yeah, generally speaking moving out is not a good idea unless you have a partner. I moved out when I was 23 and single, but in retrospect it wasn't a very good idea. The only saving grace was that I got into the market before prices went up.

I don't know what your parents charge you for rent (if anything), but it's surely a bargain compared to alone. If you're willing to find a roommate that's a different story.


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## Plugging Along

KaeJS said:


> *****
> 
> ^ Moving out is the worst idea. Just a heads up.
> You will _significantly_ hinder your goals. Money is exponential. Why would you waste it living on your own?
> 
> You will make everything more difficult for yourself. If you can stay at home, you should.
> 
> I already told you that rates will stay low for at least a few more years. So, I don't get it?


I agree moving out is financially the best idea. However, I think everyone should move out on their own, without a partner first before they settle down. Looking back at my friends and their partners who did this and didn't do this, you can see how they function as a couple later in life. Even though I adore my kids, I will push them out the door so they can have this experience. I will also insist that they do not move out with their boyfriends, u less their boy has lived there own too. 

This is coming from a person that grew living at home until I got a place with my fiancé (now spouse). Financially, it was great, but looking back, I should have gotten my own place, and let my fiancé live on his own for a while too. 

Though, getting your own place, does not mean buying. Especially for the OP, I do NOT think she should buy. She wants and needs the mobility for now. 




Just a Guy said:


> You need to move out in your own and learn what it takes to do so, especially before getting married.
> 
> You'll find out things like there are no magic draws that fill will clean clothes, or fridges that are full of food...that life is expensive and a lot of work...that marriage is a partnership that tackles these concepts, not a new parent to fulfill these needs for you...
> 
> Also, real estate isn't for everyone, it takes a certain mindset to do it, just like anything else


This is the best advice. I wish I was given this advice. I followed the advice of stay at home as long as you can to save money. It hasn't taken my spouse and I a long time to figure this out. 

All young people should follow the above advice, forget finances for just a bit.


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## 4eversmac12

I apologize for offending you in any way. Sometimes, I am really tired when replying to posts. I tend to not focus very well and may forget. By the way, thank you for the advice. Much appreciated. 



KaeJS said:


> ***** I don't know if you purposely ignored my first post or forgot to respond. I am not offended, but considering your *entire thread* is essentially about making the right moves at 24 years old, I would think that my post is one of the most important since I am and have _lived_ what you are asking.
> 
> Regardless, I will try to guide you once more. The following realization is actually a realization that you are unaware of how to start off:
> 
> 
> 
> ^ Moving out is the worst idea. Just a heads up.
> You will _significantly_ hinder your goals. Money is exponential. Why would you waste it living on your own?
> 
> You will make everything more difficult for yourself. If you can stay at home, you should.
> 
> I already told you that rates will stay low for at least a few more years. So, I don't get it?


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## 4eversmac12

I believe once I join a new company after gaining more current experience, I will see a large increase. I just wanted to know is it better to stay at a entry level job in a company for 2-3 years to show loyalty, gaining 3 years of experience at that specific job and not be viewed as a job hopper or is it better to move jobs frequently? What's your suggestion?



janus10 said:


> Since leaving university, I have worked for six different companies. Each move resulted in taking a job with a substantial jump in compensation (except for where I am now since low stress and international travel were more important. That being said, my second full year was my third best earning year in my career).
> 
> I only saw decent increases when I stayed at the same company. No promotions (I tended to have unique positions) and only one real job change at the same employer. But, joining a different company typically saw 10%-50% compensation increases overnight.
> 
> Hopefully you will be at least as fortunate as my experience is not unique.


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## 4eversmac12

My parents don't charge rent which means I am in a very lucky situation for now. However, they mentioned to me that they will be charging rent later on since they supported me for a long time. This makes entire sense. 



nathan79 said:


> Yeah, generally speaking moving out is not a good idea unless you have a partner. I moved out when I was 23 and single, but in retrospect it wasn't a very good idea. The only saving grace was that I got into the market before prices went up.
> 
> I don't know what your parents charge you for rent (if anything), but it's surely a bargain compared to alone. If you're willing to find a roommate that's a different story.


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## OurBigFatWallet

Given you're in accounting you may want to look at extra stuff you can do on the side related to accounting such as tutoring, tax returns, bookkeeping etc. You can also mark exams for the institute as part of the CPA program. If you have any specific questions let me know, I wrote the UFE in 2009 and moved from public practice to industry then. Best of luck in your journey


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## Just a Guy

I was just reading The World is Flat. They were talking about how US firms are outsourcing all the regular tax stuff to India, while the firms spend more time coming up with creative solutions to tax planning back in the US offices...if all goes to plan, local accounting jobs will become a thing of the past...

Not sure I believe it, but it was interesting to see that it's happening.

I think it was a revised edition...

http://en.m.wikipedia.org/wiki/The_World_Is_Flat


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## tenoclock

Just a Guy said:


> I was just reading The World is Flat. They were talking about how US firms are outsourcing all the regular tax stuff to India, while the firms spend more time coming up with creative solutions to tax planning back in the US offices...if all goes to plan, local accounting jobs will become a thing of the past...
> 
> Not sure I believe it, but it was interesting to see that it's happening.
> 
> I think it was a revised edition...
> 
> http://en.m.wikipedia.org/wiki/The_World_Is_Flat


I have worked in a Big 4 tax department and this is true. They all started going paperless back around 2008 and this opened up an opportunity to outsource most of the work. The basic level tax returns, and audit vouching were being done by Team India, and they were getting better at it every year. And their roles are expanding with experience. I believe this is happening in most firms, and fields, not just in the accounting. Most of the lower level corporate jobs will be outsourced within the next 10-15 years. So wages will remain depressed because of global competition, only those who are creative and innovative will get ahead. The times where you just got a nice 9 to 5 job in a mid level corporate position and lived comfortably are soon to be over.


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## janus10

4eversmac12 said:


> I believe once I join a new company after gaining more current experience, I will see a large increase. I just wanted to know is it better to stay at a entry level job in a company for 2-3 years to show loyalty, gaining 3 years of experience at that specific job and not be viewed as a job hopper or is it better to move jobs frequently? What's your suggestion?


If your resume shows that you are showing progress with moving every 2-3 years, then I think that could be viewed as a huge asset. I was at a meeting last week and the IT guys were talking about there more than 25 years with one company. If they get let go, who would want to hire them with their experience only working for one company with one culture and vision? Similarly, if you go for a PhD, you are highly discouraged from getting your advanced degrees at the same university where you got your undergraduate degree. 

Being successful in different environments, let alone different roles, is a skill in and of itself.

Now, I'm not recommending anything, let alone that you should try to move on every 2 to 3 years. I'm saying that I never had the opportunity to go from $56k / year to $85k/year, or from $90k/year to $115k/year instantly by staying with the same employer. Those kinds of jumps only came because I found a new employer.

Typically, I was only getting a few percentage points increase at the same company.

Don't move just because, but don't avoid looking at opportunities elsewhere as a way to increase the value you can bring to an organization.


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## Compounding1

I bought my house when I was 24 and have been there 2 years now. Based on my experience I would have to agree with majority in this thread and say focus on your education as much as you can. Owning a house is a lot of extra stress especially in the first year and it sounds like you don't need any extra stress if you're working 3 jobs and planning on going back to school. Not to mention tenants...

If a year or 2 down the road you want to buy a house, look for one you would be able to rent out a basement or spare room to a friend(reliable friend). I'm sure you'll still have friends at that time living at home. I did and it helped me save a lot of money for renovations in the first year. And luckily houses have skyrocketed in my area and mine has gone up a lot in value if I were to sell. However, I traded that for mobility. Where you live you might not want to do that.
Good luck!


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## OhGreatGuru

Maybe you should ask Ashin1 if he wants to hire an accountant and money manager. :smile-new:
http://canadianmoneyforum.com/showt...-trying-to-make-the-best-of-a-6-figure-income!


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## WiseOwl

I haven't read the entire thread, but from the parts that I have read, I would also echo the other comments re: focusing on your education for the next few years if you plan to go the CPA route.

Although I am biased because I am a designated accountant, I do believe that becoming a CPA is a fantastic career choice and I've always been a strong promoter of the profession. I would caution you though that, at the early stages of your career, you do need to be very cognizant about the potential for burnout. I wouldn't recommend working one or two other jobs in addition to your CPA articling position. I would suspect that you would quickly find yourself spread too thin and typically when that happens, something naturally suffers. You don't want that to be your articling position. My philosophy has always been that you want to be fully invested in your chosen career because ultimately as a CPA, your career (by itself) can be very financially rewarding as you progress through the ranks.

That doesn't mean you can't further supplement your income though -- just be strategic about it. There are many ways to earn additional income that are a natural extension of the education you have so heavily invested in and won't easily lead to burnout. Some will even help you become stronger in your own day-to-day work. One of the best examples of this would be becoming involved in the educational process after you become designated either at the private level (Densmore, exaMentor, etc.) or at the Institute level (e.g., module teaching/marking and CFE marking). The profession is always in need of professional exam markers and course facilitators with general and specialized knowledge. Most firms are very supportive of these activities as well because they recognize that it will make you stronger overall.

Cheers,
WiseOwl


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