From rags to riches......anyone got first hand experiences?
Discussion
Sump said:
gregf40 said:
Adam B said:
nonsense - plenty in my company are worth 9 figures
(unfortunately not me by a long shot!)
You have 'plenty' of people employed in your company worth £100m+?(unfortunately not me by a long shot!)
The only companies I can think of where that would be the case are the internet giants - and even then - the money has come from share options (which is company ownership) not from being employed by the company.
I can't imagine any FTSE100 CEO's who didn't found the company are worth that.
Go on...where do you work?
Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary. THat's not Rich.
To me, rich is billionaire level. Leerjet and super yatcht rich.
lukefreeman said:
Don't feed the troll ;-)
Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary. THat's not Rich.
To me, rich is billionaire level. Leerjet and super yatcht rich.
Can't leer at much up at 35,000ft, surely.Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary. THat's not Rich.
To me, rich is billionaire level. Leerjet and super yatcht rich.
Anyway, point stands - we'd all love an indication of the sector he works in, given Forbes - link below - suggest average earnings of the 10 highest CEOs in the US at $10.5m a piece. He's saying plenty in his company earn in excess of £100,000,000 a year each. Reasonable question.
http://www.forbes.com/pictures/eggh45jef/highest-p...
ETA: that figure includes stock options. So he's in essence saying that, with a very round exchange rate of 1.5, 'plenty' in his company earn circa 15x more than the average of the 10 highest paid CEOs in the US, ceteris paribus.
Far be it from me to suggest he's got his numbers hugely incorrect, mind.
Edited by iphonedyou on Wednesday 19th November 08:53
After a long hard court case I've went from having 3 maxed out credit cards a good sized overdraft to having a mortgage free house and excess of 15 years worth of salary in savings. Many times I thought what was the point and constant put downs but if you put your mind to it and don't give up you will succeed in what you want to do.
iphonedyou said:
lukefreeman said:
Don't feed the troll ;-)
Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary. THat's not Rich.
To me, rich is billionaire level. Leerjet and super yatcht rich.
Can't leer at much up at 35,000ft, surely.Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary. THat's not Rich.
To me, rich is billionaire level. Leerjet and super yatcht rich.
Anyway, point stands - we'd all love an indication of the sector he works in, given Forbes - link below - suggest average earnings of the 10 highest CEOs in the US at $10.5m a piece. He's saying plenty in his company earn in excess of £100,000,000 a year each. Reasonable question.
http://www.forbes.com/pictures/eggh45jef/highest-p...
ETA: that figure includes stock options. So he's in essence saying that, with a very round exchange rate of 1.5, 'plenty' in his company earn circa 15x more than the average of the 10 highest paid CEOs in the US, ceteris paribus.
Far be it from me to suggest he's got his numbers hugely incorrect, mind.
Edited by iphonedyou on Wednesday 19th November 08:53
Traders can get massive amounts of pay that dwarf CEOs of the company.
If I were to look at the top 25 traders in the US for 2013 the lowest one took home $350 million, so god knows how many were on above $100 million, although some were the owners but thats not the point it is possible, but I believe he is talking about traders.
CarAbuser said:
RobinBanks said:
I was born into a middle class family, I became rich and then I ruined it all.
I hope that that helps.
Now that's a story that needs telling!I hope that that helps.
I ended up coming into quite a lot of money out of school (circa £1 million). I didn't really know how to comport myself and ended up spending it all on cars (for me and others), a house which really was worth about half what I paid for it and alcohol.
I then went to university with just about no equity having sold the house to repay credit!
It was a good two years though. Sadly I don't remember much of it.
Something useful I would add to the discussion is that people don't remember that if you do become rich, you tend to have more responsibilities. If you own a business you're not just responsible for yourself or your family - you have employees and creditors and suppliers etc.
You probably also have a lifestyle which is harder to fund but you don't have any greater security of income. So if you do lose it, it's harder to run that expensive car and house.
Of course you should save to ensure that you can continue to do that on any income but as we know it's not that simple.
iphonedyou said:
He's saying plenty in his company earn in excess of £100,000,000 a year each. Reasonable question.
Before accusing people of being trolls perhaps some should learn to read, I said "worth" as in total wealth not earnings per year - rather different! Sector has already been mentionedRobinBanks said:
CarAbuser said:
RobinBanks said:
I was born into a middle class family, I became rich and then I ruined it all.
I hope that that helps.
Now that's a story that needs telling!I hope that that helps.
I ended up coming into quite a lot of money out of school (circa £1 million). I didn't really know how to comport myself and ended up spending it all on cars (for me and others), a house which really was worth about half what I paid for it and alcohol.
I then went to university with just about no equity having sold the house to repay credit!
It was a good two years though. Sadly I don't remember much of it.
Something useful I would add to the discussion is that people don't remember that if you do become rich, you tend to have more responsibilities. If you own a business you're not just responsible for yourself or your family - you have employees and creditors and suppliers etc.
You probably also have a lifestyle which is harder to fund but you don't have any greater security of income. So if you do lose it, it's harder to run that expensive car and house.
Of course you should save to ensure that you can continue to do that on any income but as we know it's not that simple.
Don't spend f
k all until you have at least 6 months or more of wages in the bank that are yours.So many people start raking in £10-20k a month and piss it all away, then the contract ends and they need to find a new one, it can take a few days up to 6 months, those that saved are fine with their rainy day fund, those that did not, end up losing badly and come back to earth with a thud.
s
t like they were ok on £1000 a month flat before, but now have to have the £3000 a month penthouse, plus are paying £1500 on their new expensive car, etc,etc... Have seen may get bent over by Mr HMRC when it comes to them wanting their tax and they have stupidly already spent it on the above and need to find £20k ASAP.
lukefreeman said:
Stand by original statement.........CEO of our company (Very large FTSE100, £70bil of orders) doesn't make more than £1mil a year through salary.
The CEO where I work isn't the highest grossing employee. He's about tenth highest now. The highest earning employee is worth (net worth rather than annual comp) over £100M. He is, however, an exceptional case. I generally agree with your sentiment, but there are exceptions to any rule.I spent my formative years on the fringes of a council estate in Liverpool. Family moved down South to escape and we lived an extremely frugal existence - hand me down clothes, camping holiday once a year, no luxuries ever (no alcohol or meals out or takeaways), Christmas presents would be necessities e.g. a duvet. Heating not on very often so always well wrapped inside the house.
I was lucky enough to get a scholarship to a good school and lucky again to be exposed very young to a nacent industry that now underpins modern life (computing). I was the first in my family to go to University and fortunate in my first job to learn a skill which gave me the capability to take advantage of a chance conversation with someone who identified a niche opportunity.
I then spent the next 15 years working 80-100 hour weeks building a business to sell the products I created for this vertical market. It generated very marginal income for many years, but every year revenue increased slightly. I didn't have the money (or attitude to risk) to grow the business any way other than organically, but eventually we turned the corner and suddenly the revenues (& profit) increased dramatically. This drew us to the attention of acquisitors, and eventually I sold the business leaving me completely financially independent.
For me, the journey involved opportunity, a very large slice of luck, and a considerable amount of self sacrifice and good honest hard work.
I was lucky enough to get a scholarship to a good school and lucky again to be exposed very young to a nacent industry that now underpins modern life (computing). I was the first in my family to go to University and fortunate in my first job to learn a skill which gave me the capability to take advantage of a chance conversation with someone who identified a niche opportunity.
I then spent the next 15 years working 80-100 hour weeks building a business to sell the products I created for this vertical market. It generated very marginal income for many years, but every year revenue increased slightly. I didn't have the money (or attitude to risk) to grow the business any way other than organically, but eventually we turned the corner and suddenly the revenues (& profit) increased dramatically. This drew us to the attention of acquisitors, and eventually I sold the business leaving me completely financially independent.
For me, the journey involved opportunity, a very large slice of luck, and a considerable amount of self sacrifice and good honest hard work.
Anyone know anyone who has done well and is genuinely much happier for it? These threads are always tainted by stories of overnight success but 'seemingly miserable' or 'more money more stress'
Personally, money worries are a bit of a trigger for depression for me, I'd be happy knowing I had more than enough tucked away to not feel a sense of dread every time the 5-6 day period of the month rolls around on which my debits clear (mortgage, bills etc) and yet still maintain a life style that allows us to holiday once or twice a year, have 'fun' cars and eat out maybe two to three times a month. Not feeling constrained if you want to treat yourself to something or having to make compromises.
I always feel like I'm scraping my way through life, nothing is in excess but neither are we on the breadline. I'm more than content with the materialistic side of things at the minute, but eliminating the anxiety attached to meeting financial outgoings would no doubt improve my quality of life.
I have friends who have a small business, which has been built up and improved on over the past 6 or 7 years, to a point where working isn't a requirement anymore, and they are fortunate enough to take a more back seat role. They still have bills and still have to make sensible financial decisons like the rest of us, but they have enough disposable income to actually spend time pursuing hobbies, seeing the world and generally experiencing life, free of financial burden. I don't envy the money particularly, I envy the quality of life more than anything.
Personally, money worries are a bit of a trigger for depression for me, I'd be happy knowing I had more than enough tucked away to not feel a sense of dread every time the 5-6 day period of the month rolls around on which my debits clear (mortgage, bills etc) and yet still maintain a life style that allows us to holiday once or twice a year, have 'fun' cars and eat out maybe two to three times a month. Not feeling constrained if you want to treat yourself to something or having to make compromises.
I always feel like I'm scraping my way through life, nothing is in excess but neither are we on the breadline. I'm more than content with the materialistic side of things at the minute, but eliminating the anxiety attached to meeting financial outgoings would no doubt improve my quality of life.
I have friends who have a small business, which has been built up and improved on over the past 6 or 7 years, to a point where working isn't a requirement anymore, and they are fortunate enough to take a more back seat role. They still have bills and still have to make sensible financial decisons like the rest of us, but they have enough disposable income to actually spend time pursuing hobbies, seeing the world and generally experiencing life, free of financial burden. I don't envy the money particularly, I envy the quality of life more than anything.
I wouldn’t class myself as rich, but certainly well off.
I would however; take issue with a couple of comments on this thread -
Wealth to me is not measured in a fiscal fashion, its about happiness, satisfaction, knowledge and the ability to feel fulfilled. Money might or might not play a part, but the are not mutually exclusive.
A few people have mentioned that you won’t get rich on PAYE. Whilst this is logical, it is not because you won’t get noticed and that doesn’t meant its not worth putting in the effort. Its mainly because you tend to spend what you earn. If you earn £1.5K per month, you spend that and if that rises over time to £10K per month, your lifestyle simply adjusts.
I formed my own business 10 years ago out of frustration of never being able to deliver a decent level of customer service. The first few years were hard, some business angels investing helped us, but still meant that I was paying people’s wages out of my own pocket and paying myself just enough to get by. The company grew and we got private equity involved and did an MBO, this allowed me to take some cash out finally, not a huge amount, but enough to help recognise the effort that went in, just over £500K. The business continued to grow and we were able to do another MBO (private equity sale to private equity) and this allowed me to take 75% of my stake out in cash and go part time.
Even though I worked very hard for it, it still felt like a lottery win. A couple of million, after the mortgages on 2 houses were paid off and we went on a little spending spree (F458, boat, horse box etc) and I now work part time in the business with a commitment of 1 or 2 days a week. If we pull another transaction off, the guys who have supported me though-out will net even more than me, this will feel as good if not better than my own result, to see them all being rewarded.
This has been 10 year journey and I learned the following -
People say have a plan and stick to it. I say thats bks. If your plan isn’t working you need to accept that ASAP and redefine it to address this. Flogging a dead horse is pointless.
Don’t be naive enough to think you must keep hold of 100% of your business whatever happens. I ended up with less than 12% in the end, but 12% of £40-50M is much better than 100% of nothing. You remain in control, because you are creating the value.
Surround yourself with good people and get them committed. Getting and keeping good people is the hardest thing we had to do. Everyone will benefit from any transaction we might do. The next one will create multiple millionaires. These people started off on PAYE only and we recognised that they will need to step up if we were ever to get out. This is why I disagree that you won’t get rich on PAYE, in the right environment, you will.
Be prepared to work 24/7/365. Your mind will always be on the business, holidays will be hard, you will never switch off and 10 years was all I could give running at this level. My health/sanity was starting to suffer.
Luck - being at the right place at the right time plays a big part. People say its all about hard work, but without some luck its very difficult. If you are in a business and really think you are giving 100% and this isn’t being noticed or rewarded, test the water and vote with your feet.
I would however; take issue with a couple of comments on this thread -
Wealth to me is not measured in a fiscal fashion, its about happiness, satisfaction, knowledge and the ability to feel fulfilled. Money might or might not play a part, but the are not mutually exclusive.
A few people have mentioned that you won’t get rich on PAYE. Whilst this is logical, it is not because you won’t get noticed and that doesn’t meant its not worth putting in the effort. Its mainly because you tend to spend what you earn. If you earn £1.5K per month, you spend that and if that rises over time to £10K per month, your lifestyle simply adjusts.
I formed my own business 10 years ago out of frustration of never being able to deliver a decent level of customer service. The first few years were hard, some business angels investing helped us, but still meant that I was paying people’s wages out of my own pocket and paying myself just enough to get by. The company grew and we got private equity involved and did an MBO, this allowed me to take some cash out finally, not a huge amount, but enough to help recognise the effort that went in, just over £500K. The business continued to grow and we were able to do another MBO (private equity sale to private equity) and this allowed me to take 75% of my stake out in cash and go part time.
Even though I worked very hard for it, it still felt like a lottery win. A couple of million, after the mortgages on 2 houses were paid off and we went on a little spending spree (F458, boat, horse box etc) and I now work part time in the business with a commitment of 1 or 2 days a week. If we pull another transaction off, the guys who have supported me though-out will net even more than me, this will feel as good if not better than my own result, to see them all being rewarded.
This has been 10 year journey and I learned the following -
People say have a plan and stick to it. I say thats b
ks. If your plan isn’t working you need to accept that ASAP and redefine it to address this. Flogging a dead horse is pointless.Don’t be naive enough to think you must keep hold of 100% of your business whatever happens. I ended up with less than 12% in the end, but 12% of £40-50M is much better than 100% of nothing. You remain in control, because you are creating the value.
Surround yourself with good people and get them committed. Getting and keeping good people is the hardest thing we had to do. Everyone will benefit from any transaction we might do. The next one will create multiple millionaires. These people started off on PAYE only and we recognised that they will need to step up if we were ever to get out. This is why I disagree that you won’t get rich on PAYE, in the right environment, you will.
Be prepared to work 24/7/365. Your mind will always be on the business, holidays will be hard, you will never switch off and 10 years was all I could give running at this level. My health/sanity was starting to suffer.
Luck - being at the right place at the right time plays a big part. People say its all about hard work, but without some luck its very difficult. If you are in a business and really think you are giving 100% and this isn’t being noticed or rewarded, test the water and vote with your feet.
DanielJames said:
I think it's hard to earn big money working for someone else, for someones company (regardless of the scale).
Most people I know who have earned decent money, the ones who drive around in GTRs for daily drivers, have their own businesses.
You'd be surprised too. One of the largest homes I've visited is owned by a man who sells Fruit and Veg on the market.
I think the other half's step-father qualifies on both points. A bit of a rags to riches, plus he's made his money solely from working for other companies. The industry? Oil. He came from a normal struggling Aberdonian family. Got a job for a service company on the rigs up there. Started at the very bottom. Ended up at that top after 26 years, and is now CEO of another service company in the US. Saw his payslip the other day when I was at their house. NET income this financial year to date, since April is just over £500,000. That's net in his bank! He owns 15% of this current company, so when he retires in 4 years, his estimated return is approx. 21 million (as far as he's told me). Needless to say his bank balance is ridiculous. And his whole working career has been for a company! Never for himself! Most people I know who have earned decent money, the ones who drive around in GTRs for daily drivers, have their own businesses.
You'd be surprised too. One of the largest homes I've visited is owned by a man who sells Fruit and Veg on the market.
I should add that someone once said to me that everyone has a "worry bucket" that is always full, regardless of what.
Whilst money is in most peoples buckets, that soon gets replaced with other things if you remove it, perhaps more trivial in some peoples eyes, but I never heard of anyone that didn't have a full bucket.
Whilst money is in most peoples buckets, that soon gets replaced with other things if you remove it, perhaps more trivial in some peoples eyes, but I never heard of anyone that didn't have a full bucket.
nick s said:
I think the other half's step-father qualifies on both points. A bit of a rags to riches, plus he's made his money solely from working for other companies. The industry? Oil. He came from a normal struggling Aberdonian family. Got a job for a service company on the rigs up there. Started at the very bottom. Ended up at that top after 26 years, and is now CEO of another service company in the US. Saw his payslip the other day when I was at their house. NET income this financial year to date, since April is just over £500,000. That's net in his bank! He owns 15% of this current company, so when he retires in 4 years, his estimated return is approx. 21 million (as far as he's told me). Needless to say his bank balance is ridiculous. And his whole working career has been for a company! Never for himself!
I hope for your sake nobody on here knows him as with your username, part reg plate in profile etc, you're not exactly anonymous are you 
Its also stretching things to say he done all this working for a company and never for himself, if he owns 15% of the company.
cashmax said:
I should add that someone once said to me that everyone has a "worry bucket" that is always full, regardless of what.
Whilst money is in most peoples buckets, that soon gets replaced with other things if you remove it, perhaps more trivial in some peoples eyes, but I never heard of anyone that didn't have a full bucket.
I'd second the many sentiments expressed that money doesn't equate to instant happiness or contentment, and you soon find other things to fret about. However not having to worry about the thing that defines modern life certainly enables a different perspective.Whilst money is in most peoples buckets, that soon gets replaced with other things if you remove it, perhaps more trivial in some peoples eyes, but I never heard of anyone that didn't have a full bucket.
And aspirations and lifestyle can very easily expand to absorb any level of income. And contentment comes from being happy how you spend your time; I was contented when I was working ridiculously hard because I was doing something I enjoyed. Latterly I was much richer financially but much less content professionally when I had to sip from the corporate cup for a couple of years as part of the acquisition.
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