How do you make some serious money, become wealthy?

[Alex]

Pulse said:

If you were on £100k a year, you'd probably not think much to buying a supercar, for example.

Haha! Haha! Haha! Haha! Haha! Haha!

[Alex]

£100k pa is not enough to buy a supercar, especially if you have a mortgage and kids.

[Pulse]

Alex said:

£100k pa is not enough to buy a supercar, especially if you have a mortgage and kids.

Not necessarily, though I'm clearly on my own on this one.

Of course, this depends on two factors:

1. What sort of supercar you're after... I didn't say a BRAND NEW supercar, but something in the region of £60k-£70k I wouldn't say is unfeasible.
2. What your priorities are... If I was earning £100k a year, I'm sure I could quite easily afford a supercar in the region of £60k-£70k.

[Steve Evil]

Pulse said:

Alex said:

£100k pa is not enough to buy a supercar, especially if you have a mortgage and kids.

Not necessarily, though I'm clearly on my own on this one.

Of course, this depends on two factors:

1. What sort of supercar you're after... I didn't say a BRAND NEW supercar, but something in the region of £60k-£70k I wouldn't say is unfeasible.
2. What your priorities are... If I was earning £100k a year, I'm sure I could quite easily afford a supercar in the region of £60k-£70k.

Depends how you balance things, if you've got no kids and a 3 bed semi, then you might well be able to afford a £60k car. If you value a larger house and have a family to pay for then you might struggle to do it.

All comes down to your perspective though, personally I'd rather not spend more than about 10-20% of my yearly salary on any car, but you might be happy spending two thirds of yours.

[Pulse]

Steve Evil said:

Depends how you balance things, if you've got no kids and a 3 bed semi, then you might well be able to afford a £60k car. If you value a larger house and have a family to pay for then you might struggle to do it.

All comes down to your perspective though, personally I'd rather not spend more than about 10-20% of my yearly salary on any car, but you might be happy spending two thirds of yours.

Absolutely. I spent about 75% of my yearly salary twice on a car, and haven't hit financial difficulty... yet. I am very sensible, though.

[bogie]

£100K on PAYE doesnt go far and you are not "wealthy" and cannot afford to buy £70K cars for cash...well unless you live at home with mum and save for a couple of years

....for most people as you increase your salary steadily over the years, your bills just get bigger, you can afford another bedroom, extra holiday and a £30K car on the knock instead of a £20K one...thats it

....many people you see driving around in fancy cars are just as skint as you, with more debt and higher income

remember, its not how much you earn, its how much you get to keep for yourself

maybe start off reading something like the "Rich Dad" series of books

http://www.amazon.co.uk/Rich-Dad-Poor-Robert-Kiyos...

then you will understand some of the concepts of business and "creating wealth"

My definition of "wealthy" is not having to do anything to maintain the lifestyle I choose e.g having enough income from assets/cash in bank to live off . My current lifestyle would need me to be mortage free and about £2M in the bank....so ive got a few years work left to go yet ! LOL

[Mr E]

Pulse said:

If you were on £100k a year, you'd probably not think much to buying a supercar, for example.

How much do you think you'd see a month of 100K PAYE?



edit; covered above.

[jonny70]

There are plenty of people who look wealthy a concept my father told that didn't exist 20/30 years ago. Nowadays you have people with new 13 plate BMW x5's on PCP or leases for £500-600 a month and huge mortgages + credit card debt.They maybe on a semi decent PAYE salary yet living way beyond their means and probably dont have savings.

[jonny70]

Also by working for someone you are limited to how much you can make , very few people get rich being employed ,you may make a decent salary yet to be wealthy yo u really need to self employed.

So you need a successful business or businesses

Also being rich means you figuratively you spend less than your income and dont covet things you cant afford. Thats far richer than some millionaire always chasing the next Porsche/Ferrari/ holiday home.

So spend less than you make and invest the difference ,build assets like shares/property etc

[Rufus]

The wealthiest people I know who haven't been born into it (which is most of them and seems to be the most surefire way but obviously if you aren't you aren't) have started a business and sold it, often doing this numerous times. If I listed them in terms of wealth it would go:

- Inherited/born into
- Created and sold business(es)
- Property
- Profession

I know a few who, like me, have mixed two or more of the above although I wouldn't consider myself wealthy as I have the responsibility of the upkeep of my house and generations to sure up as I was.

[ben_h100]

Someone on here mentioned mrmoneymoustache a few weeks ago and it's certainly opened my eyes (google it).

And rich is too vague a term. Mans different things to different people.

I think if I can/could take on most of what the website above says then I think that although not wealthy in financial terms I'll be happy.

[otherman]

Muzzer79 said:

3. Wanted to be successful very very much

This is the one I think. If you want to be really wealthy it won't come easily.
Your life has four gas burners on a hob. Wealth/Social Life/Family Life/Sports&Hobbies.
If you want the big wealth you need to turn two of the other burners off.

[LimaDelta]

In my line of work I have been employed by some seriously wealthy people. Not 5-bed detached and a Ferrari for weekends wealthy, but Forbes list, $100M yachts and $50M aircraft, plus god knows how much elsewhere. The one common personality trait is without a doubt determination. You have to want to be rich so badly that you will do anything to achieve it. People like that never retire. They never really switch off and are always thinking about how to make the next buck.

Mr Burns said:

Friends, religion, family. These are the three demons you must slay if you are to be sucessful in business.

[Markhoskins]

Pulse said:

I don't know about that... There has to be plenty of people earning a pretty good wage on PAYE, which would lead to the 'wealthy' impression from 300bhp. If you were on £100k a year, you'd probably not think much to buying a supercar, for example.

I know few petrolheads earning 100k and have sub 3k fun cars as they are planning for financial security. I equally know lots on 40-70k with new m3s and hot hatches , track cars who are not planning quite so much...

Edited by Markhoskins on Thursday 18th July 19:11

[Markhoskins]

300bhp/ton said:

Really no need to be quite so conceited.

But maybe you could expand on points 1 & 4 specifically. What risks should you take and how do you get to a point that you can even take a risk?

Edited by 300bhp/ton on Thursday 18th July 15:13

Not read all replies but isn't it obvious

Start a business. This is the risk

[Markhoskins]

skahigh said:

100k pa would give you roughly 5.5k net per month working through PAYE.

I earn about 2/3 of this and dont really believe I can afford to buy a newish bmw or merc for example, can't imagine what i'd have to earn to consider a ferrari or lambo.

It's obviously entirely dependent on your other commitments but I'd say mine are reasonably low at about 1.25k pm.

You earn between 11k a month and 16.5k with 1.25k outgoings and don't believe you could afford a new BMW?

[Markhoskins]

rotarymazda said:

"Stake" money and leverage.

Unless you are given it, the stake money would have to come from working for it, so you need special skills, job hopping (between countries if necessary), and pay as little tax as possible. Some friends made a packet in the dot.com boom through share options.

Otherwise, leverage either requires debt or turning something of low value into high value (e.g. field->plot).

I'm not wealthy but have managed to turn a plot where I was told by the planners that I would not get permission into finding a legal way to add 140sqm of living space and a big uplift in the value. Other neighbours have turned fields into building plots over the years.

That's all very well if you never want to return to UK with the money and bit get taxed to buggery

[audidoody]

Pulse said:

I don't know about that... There has to be plenty of people earning a pretty good wage on PAYE, which would lead to the 'wealthy' impression from 300bhp. If you were on £100k a year, you'd probably not think much to buying a supercar, for example.

You think? £100,000 gross a year is around £60,000 net. That's £5,000 a month. Deduct mortgage of around £850, Council tax £120, Food £800, holidays £400 (over a year), fuel £100, electricity and water £250, clothing £150 etc etc. You're probably left with around £300 a month to finance a car. good luck buying that supercar. Of course if you live with your Mum and Dad and don't have any bills to pay .....

ETA: Just seen I wasn't the first to point out that £100k doesn't get you into the "rich" category.

[Tribal Chestnut]

Markhoskins said:

You earn between 11k a month and 16.5k with 1.25k outgoings and don't believe you could afford a new BMW?

You appear to have slipped up a bit there; 75% of £100k pa is not £11k+ pcm

[Markhoskins]

Tribal Chestnut said:

You appear to have slipped up a bit there; 75% of £100k pa is not £11k+ pcm

Indeed, you never worked out I read it as 2 or 3 times of rather than 2/3rds.

Why 75% that is 3/4, not 2/3rds?