Travel the World or Buy a House?


There is one very common question that I get asked by millennials around financial planning. It’s a debate held among friends and between family members. The question?

Do I travel the world, or buy a house?

It comes to a point in your life where you’re starting to save or you’re starting to make some big money decisions. You’ve got quality employment  and you’re tossing up whether you want to go see the world and get that cultural experience or if you should start being an adult and paying down a mortgage.

Let’s go through both of these options

If you’re looking to travel the world, some of the advantages for this is you actually start creating a wealthy mindset.

The whole concept of planning and paying for travel is the exact same concept as building wealth, but instead of paying for the travel later on down the track you can take that skill and you can start to pay for investments.

If you’re not going into debt to travel, which you should never do, you’re starting to understand the concept of how to build wealth.

Let’s say you need $10,000 to travel, what are you going to start doing now? You’re going to go through, look at your budget, and find some areas you might get some quick wins.

But, if you don’t have a lot of cash, there’s not a lot you can do. So your next option is to start increasing your income. You’re taking on more shifts.

You’re doing some gigs on freelance websites, or building up that income to the point where you can afford to travel.

That same process next time instead of traveling you can do that and then go on and invest. You’re actually teaching yourself a wealthy mindset, so that’s really valuable.

The next aspect is the potential on your career aspects. If you’re undertaking significant travel, and let’s say you travel throughout Asia and you’re learning how to speak languages.

You can speak Cantonese. You can speak mandarin. Later on in your career you find that the business you are working for wants to do business in Asia and needs someone to take the lead.

 Who are they going to hire? Someone who’s been there for a while and does an okay job.

Or are they going to hire the person that’s travelled the world and had experience living in that country for 12 months to give them guidance on how to do that? The opportunity to boost your career is real.

Picking up another language. Understanding other cultures and how international business works. It’s got to be something that’s universal and sexy to a lot of organizations.

 And the third one is the experience. The experience is just second to none. I’ve personally sat down and talked to over 2,000 different clients.

A lot of them are on that retirement borderline. They’re sitting down they’re getting ready to retire. Two questions I asked every one of them. Number one was  what are you going to do now that you’re retired?

Over 80% of these guys say they’re going to travel. They want to do more travel whether that was just in Australia or they went overseas. Majority of people were saying they wanted to travel.

 The second question I asked was going back in time and looking over things again. If you could change anything, what would you do differently?

And I’d say close to 95% of people said they would travel more. Travel is a big, I wouldn’t say it’s a regret, but it’s what people are saying they wish they’d done more.

Rather than delay it like other generations have, why not do it now and get that experience in there.

 All right. For those who are thinking about buying a house. The biggest thing is it’s a faster way of creating wealth. Being in the property market young means you can create something called equity.

Equity is the difference between what a house is worth and how much debt you have. Let’s say you have $100,000 equity. You can access $80,000 of that to buy another investment property, to buy a share portfolio or to buy a business. It’s up to you. And when you do that you might buy an investment property that pays for itself or gives you cashflow.

 All of a sudden you’ve got your house that you’re paying for plus a property that puts an extra 200 bucks week in your pocket. It’s going to give you a much faster route to wealth.

The second one is that you can have the option of travel plus a house. You might secure a mortgage and start paying it off, and then you decide you want to go back and travel the world.

You just put your house up as an investment for 6 to 12 months or however long you want to travel. Have it pay for itself and then when you come back from overseas, you have a house that you can move into.

The other option requires storing your belongings and finding a rental when you return.

 The third thing is home ownership gives you just that. You can do whatever what you want to it. You can create your own lifestyle.

You can create your own space where you can invite people over and start living and having something that is yours that you can really celebrate. You can’t do that with renting.

It gives you that security that you don’t have to go through the property checks or you’re not going to be kicked out because the owner’s just sold and they’re moving in or whatever it is.

It gives you a lot of security and it gives you the opportunity to make it your own.

 With this there’s no right or wrong answer. It’s just what you want to do in your life. I put this together because there’s a lot of older finance professionals saying you shouldn’t travel.

You should be smart and pay for property. Travel is too much. They say things like “back in my day we use to just go up to the coast and keep it a really simple holiday.” Well that’s fucking great, but these guys didn’t have return flights to Hawaii for $450 staring them in the face every time.

Not that I’m saying you should go ahead and do that. I’m talking about travel where it’s that extensive travel. You’re going over to live in Europe for 6-12 months. Something that’s really going to have this positive impact on your life.

 Essentially it’s up to you. Personally, I’m much more of travel than house person, but there’s advantages and disadvantages of both. It just depends what you want to do, and what is calling your name.

You sit down, have a discussion with yourself, have a discussion with your partner, and the answer is going to start to stick out if you look at those six things that I’ve just covered.


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