How do you make some serious money, become wealthy?
Discussion
too many beers?It's not about income, it's about the difference between income and expenditure. Any idiot can spend what they earn but you will never accumulate wealth.
There are many books on this subject but its basically common sense. There are so many things you can do to save massive amounts of money. Take the smallest mortgage feasible and pay it off over 5 years. Buy a 2 year old car and keep it for 5-10 years. At the end of the day you can't really afford that million pound mortgage and you would be stupid to consign yourself to 25 years and 500k in interest to pay it off - by all means buy that house when you are worth 2-3 million but until then - whats wrong with the 200k house?
You can't live like a millionaire and save like one in the same lifetime.
There are many books on this subject but its basically common sense. There are so many things you can do to save massive amounts of money. Take the smallest mortgage feasible and pay it off over 5 years. Buy a 2 year old car and keep it for 5-10 years. At the end of the day you can't really afford that million pound mortgage and you would be stupid to consign yourself to 25 years and 500k in interest to pay it off - by all means buy that house when you are worth 2-3 million but until then - whats wrong with the 200k house?
You can't live like a millionaire and save like one in the same lifetime.
swerni said:
New POD said:
To be seriously Wealthy, you need to be in a position to exploit other people.
You might also have to take some financial Risk.
But you don't get rich as in seriously rich by being honest, or nice to people.
bYou might also have to take some financial Risk.
But you don't get rich as in seriously rich by being honest, or nice to people.
ks. What made you so bitter?
Others doing well and you failing?
. I'm talking about seriously rich.
Just to add, one of the studies recorded that the average millionaire was worth $3.6ish million however the median (the middle, the typical) was worth $1.8 million and 80% lived in houses worth less than $400k. Most of them earned less than $100k a year but spent far far less than that and became millionaires by 56. It really is achievable if you find a lifestyle that you are comfortable with well below your means.
Sure there are 0.001% who REALLY are rich, people who earn millions per year, but for us mere mortals we will never be like them and should NOT try to imitate them.
Sure there are 0.001% who REALLY are rich, people who earn millions per year, but for us mere mortals we will never be like them and should NOT try to imitate them.
swerni said:
That would depend on how much the asset was going to approximate (or not)
It's how some people have become very wealthy.
The trick is, finding the correct property
Well there are plenty of opportunities if you know where to look.It's how some people have become very wealthy.
The trick is, finding the correct property
http://www.rightmove.co.uk/property-for-sale/prope...
This went for 58k. Put 15k, roughly 25% deposit down. Rental income of £495pm, pay it off over 15 years. Rinse and repeat.
Intellectual Property
Everything else can be arbitrated away by the leeches.
Do some study get to the top of your game and prostitute yourself.
Worked for a few people I know.
Also works for rent seeking financial industry types as well as genuine entrepreneurs who put their own capital up.
Everything else can be arbitrated away by the leeches.
Do some study get to the top of your game and prostitute yourself.
Worked for a few people I know.
Also works for rent seeking financial industry types as well as genuine entrepreneurs who put their own capital up.
swerni said:
Hope you factored income into your ROI calculations
Or you could by a plot for circa £800kl, knock down the house.
Build two properties for circa £400£ each and sell the pair or £1.2 - £1.3m each
£800k profit ( before tax) so why bother with a small rental? ( unless you are going to have lots of them)
My income? Does it matter? As long as it can sustain itself you wouldn't need to think about it until it's paid off. I use this example as it is achievable, most people on a high income could save 15k a year to buy one of these if they really tried to shave their expenses. Buy 1 a year for 15 years and when they are all paid off you have circa 72k (80% of rent after costs) per annum or sell and have 900k (+ any capital gains) to enjoy retirement. Obviously if you have 1.6m now to invest then you are in the big boy leagues and there are numerous money making schemes available. Or you could by a plot for circa £800kl, knock down the house.
Build two properties for circa £400£ each and sell the pair or £1.2 - £1.3m each
£800k profit ( before tax) so why bother with a small rental? ( unless you are going to have lots of them)
If I had 1.6m I definitely wouldn't be looking at property! But for now doing what I've mentioned could only be matched by a 12% return on a stock portfolio (not including capital gains on property).
The problem with most people is that they try and save AFTER expenses, if you are on 6k net, give yourself only 4k of that and try to live on it.
Eric Mc said:
Pulse said:
rotarymazda said:
Working in the PAYE system will never do it unless you are one of the few bankers that get mega bonuses.
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 quite a few people who salaries at or above such levels and would never consider a supercar.
VII said:
It's not about income, it's about the difference between income and expenditure. Any idiot can spend what they earn but you will never accumulate wealth.
And we have a winner!I've never been a huge earner. I've done OK I think. But I've always, and I mean always, spend less than I earn. What was left over was thrown at the mortgage. Then the equity built up was used to buy the next property, and so on and so on. Until we get to today, with a decent 4 bed family home in London and no mortgage. It also helps to marry someone who is equally frugal and a grafter, and stay married to them.
Now my friends look at us and they don't understand how we got "wealthy". In reality, we're not wealthy at all I think, but just much better off than them. They think I'm a drug dealer on the side or something. But they completely overlook the last 30 yrs when they jetted off on expensive hols without us, and laughed at our rubbish cars or our failure to wear the "in" clothing brands.
TwigtheWonderkid said:
And we have a winner!
I've never been a huge earner. I've done OK I think. But I've always, and I mean always, spend less than I earn. What was left over was thrown at the mortgage. Then the equity built up was used to buy the next property, and so on and so on. Until we get to today, with a decent 4 bed family home in London and no mortgage. It also helps to marry someone who is equally frugal and a grafter, and stay married to them.
Now my friends look at us and they don't understand how we got "wealthy". In reality, we're not wealthy at all I think, but just much better off than them. They think I'm a drug dealer on the side or something. But they completely overlook the last 30 yrs when they jetted off on expensive hols without us, and laughed at our rubbish cars or our failure to wear the "in" clothing brands.
That is it, I think.I've never been a huge earner. I've done OK I think. But I've always, and I mean always, spend less than I earn. What was left over was thrown at the mortgage. Then the equity built up was used to buy the next property, and so on and so on. Until we get to today, with a decent 4 bed family home in London and no mortgage. It also helps to marry someone who is equally frugal and a grafter, and stay married to them.
Now my friends look at us and they don't understand how we got "wealthy". In reality, we're not wealthy at all I think, but just much better off than them. They think I'm a drug dealer on the side or something. But they completely overlook the last 30 yrs when they jetted off on expensive hols without us, and laughed at our rubbish cars or our failure to wear the "in" clothing brands.
Whilst not quite to your levels, we've almost paid off our small 2-bed, and we're 28 and 25. Another year or so and it would be paid off.
Key to this, whilst not spending above what you earn is important, is to buy right. I've used this philosophy all my life, and it's done me pretty well.
There are some points on here that I disagree with.
Risk: Whilst you can build a business by taking risks it is better to build one by understanding what you are doing and doing it well, mitigating any risks as you go.
Selling a business: Not necessarily the way to get rich, I earn far more from my businesses than I would get from reinvesting the capital I would raise by selling them. My aim, at least with my core business, is to reduce the time I spend on it but continue to own it and draw income from it for many years to come.
And one I do agree with - £100 salary is not rich. Frankly almost any salary is not where you want to be, owning a business is the way to make money.
Risk: Whilst you can build a business by taking risks it is better to build one by understanding what you are doing and doing it well, mitigating any risks as you go.
Selling a business: Not necessarily the way to get rich, I earn far more from my businesses than I would get from reinvesting the capital I would raise by selling them. My aim, at least with my core business, is to reduce the time I spend on it but continue to own it and draw income from it for many years to come.
And one I do agree with - £100 salary is not rich. Frankly almost any salary is not where you want to be, owning a business is the way to make money.
This is a very interesting thread as its something Ive always thought about myself. Im 41 years old and have never achieved any success in my working life as Im not really a 'career' person. I would love to be wealthy through my own success and like the idea of having my own business.
Ive taken voluntary redundancy at work (leave in Oct) and it would be great if I could have my own business and not have to sit behind a desk working for someone else for the next 20 years.
The only thing im struggling with is what to do. I dont have any real skills or talents so I think at the end of the day its going to be a non starter
Ive taken voluntary redundancy at work (leave in Oct) and it would be great if I could have my own business and not have to sit behind a desk working for someone else for the next 20 years.
The only thing im struggling with is what to do. I dont have any real skills or talents so I think at the end of the day its going to be a non starter
Anthony Micallef said:
This is a very interesting thread as its something Ive always thought about myself. Im 41 years old and have never achieved any success in my working life as Im not really a 'career' person. I would love to be wealthy thorugh my own success and like the idea of having my own business.
Ive taken voluntary redundancy at work (leave in Oct) and it would be great if I could have my own business and not have to sit behind a desk working for someone else for the next 20 years.
The only thing im struggling with is what to do. I dont have any real skills or talents so I think at the end of the day its going to be a non starter
You're 41 years old and "don't have any real skills or talents"??Ive taken voluntary redundancy at work (leave in Oct) and it would be great if I could have my own business and not have to sit behind a desk working for someone else for the next 20 years.
The only thing im struggling with is what to do. I dont have any real skills or talents so I think at the end of the day its going to be a non starter
What have you been doing for the last 20 years? Are you a robot?
I assume that you have been working in that time, naturally, so you must have learned something in that time??
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