In less than 8 years you want to go from -20,000 to +1,000,000. I'd say you'd need to inherit nearly 1,000,000 pounds to achieve that.
Paying off the debt means you have nothing growing or working for you in savings or investments. So, how long will it take you to pay off the 20k debt? Let's be generous, and say two years. That leaves you six years to amass a million pounds in real estate. First, you have to save a down payment on your first property. Let's say that's 10% of a 400,000 pound property. At your prior loan pay-down rate of 10k a year, that will take you four years. At that point, you have assets of 40,000 pounds and mortgage liability of 360,000 pounds, for a net worth of negative 320,000 pounds. So now you have fewer than two years to amass 1,320,000 pounds to reach your goal. Even if your property rents are good, it's going to take you many years just to get to a positive net worth, and many more to get to a million pounds on the positive.
If it were easy or practical to do what you say your goal is, everyone would do it.
Pay off your debt ASAP. Then start saving for your first property. Don't be saving more than a safety net while you have debt to pay off. That's just throwing money away.
Answers & Comments
You been had kid.
Excellent plan.
Maybe you could be more specific on how you're going to do that, so we can all learn?
Be nice to the taxi driver, and always tip your server.
Study hard n keep pressing on, once you c the brightness, then u r successful.
Be more realistic.
In less than 8 years you want to go from -20,000 to +1,000,000. I'd say you'd need to inherit nearly 1,000,000 pounds to achieve that.
Paying off the debt means you have nothing growing or working for you in savings or investments. So, how long will it take you to pay off the 20k debt? Let's be generous, and say two years. That leaves you six years to amass a million pounds in real estate. First, you have to save a down payment on your first property. Let's say that's 10% of a 400,000 pound property. At your prior loan pay-down rate of 10k a year, that will take you four years. At that point, you have assets of 40,000 pounds and mortgage liability of 360,000 pounds, for a net worth of negative 320,000 pounds. So now you have fewer than two years to amass 1,320,000 pounds to reach your goal. Even if your property rents are good, it's going to take you many years just to get to a positive net worth, and many more to get to a million pounds on the positive.
If it were easy or practical to do what you say your goal is, everyone would do it.
Pay off your debt ASAP. Then start saving for your first property. Don't be saving more than a safety net while you have debt to pay off. That's just throwing money away.
If it were that easy the world would be full of rich people looking for quick cash.
The most important thing is to work hard and save every penny.
Lower your goal just a bit......
Focus on finding a career that has real growth potential, work hard, live cheaply, only date women with good jobs, and save your money.
Finally, a question I would not answer even if I could. If I knew, I would do whatever myself.