ultimately, creating wealth for yourself is about lifestyle change and having a different mindset. you don't need a $100 cell phone plan. you don't need a brand new car. you don't need to go out to eat 3 times a week. you don't need a lot of things that your TV says you do. that's where your wealth goes to most of the time. this is one of my favorite blogs that i think you should read. http://www.mrmoneymustache.com/
I agree with you but I wouldn't say it's way north of that. Of course that all depends on what you consider rich or 'good life'. What does the OP mean by wealthy? For some people it's a specific dollar amount. So maybe it means $1 mil. For some people it's not having to work, even if that means their yearly income is a lower. So maybe that's also $1 mil and invested at 5%, they have a $50k income with no work. Personally, I'm shooting for roughly $5 mil at retirement. I haven't really worked out the numbers to see if that's really the right amount but it's a nice round number. But $1 mil net worth (not including residence) is considered high net worth right now. $5 mil is very high net worh. And $10 mil is ultra high net worth.
I agree that a million is nothing these days. I think if you make decent wages you can retire with 1 mil in wealth pretty easily.
Very true, but it can go a lot further if your house, cars, loans, and credit cards are all paid off.
I liked Rich Dad, Poor Dad when I first read it. I read two more of his books too. Then I realized, I didn't learn a ******* thing from his books. It's all rah rah material.
40, Today. I make about average salary for generic IT in Houston. I have one son, 7. My credit is excellent, my debt is fairly low. I'm good at generating extra income when I have to by either buying things super low and selling them at a higher rate or using my IT skills for side jobs. No car notes, no house note at the moment. I'm in the market but I'm thinking of shifting my focus to a fourplex since I can buy it and pay tax on it as an owner-occupied home...but my wife is pretty resistant to that. I agree with this. That's why I'd like to eventually shoot for the top 1% and beyond. My first name is Hebrew, if that counts. The friends I have who are Jewish aren't what I consider 'wealthy', but they are frugal. It's a good quality, IMO.
No, you use the money you save to earn more money. And yes, you are correct if you are not 9 out of 10 people who's business fails. Great odds, man
Working on it, including web design. I have a few potential clients. Networking (interpersonal) is good. But it's a means to an end; a way to gather funds I need for bigger investments. I don't want to run a business where I'm beholden to customers (in the long run).
Then don't run a business. Because businesses are always beholden to customers. You'd best remember that unless you want to become the 9 out of 10 Blake keeps bringing up.
I understand that. I'm a customer-service-first person when I deal with people. I bend over backwards for clients. I wouldn't take on clients if I couldn't treat them well. I just don't want to do it long-term. It's not the end goal.
I'll also recommend reading The Millionaire Next Door. Unlike other "get wealthy" books, it includes studies and thorough research to help you understand what it takes. It gives you a snapshot of what it takes for you to be statistically probably to become wealthy.
Sounds like the only thing you can do then is bust your ass for 10-15 years in a business, save $3-5 mil. Then invest that, retire, and live off of $100k a year.
That's because there's a formulaic approach to accumulating "wealth" over time when you have the means to (the people that book targets). Anything else takes skill, luck, inherit ability, determination, and all kinds of other tangible and intangible factors. There is no surefire strategy and there never will be.
You might be able to get in with a tech startup that is looking to sell. There are a handful here in Houston and they're always looking for genuine talent. You either take a pay cut or offer services at a reduced or possibly free rate in exchange for a very small piece of their pie. If it hits, you profit, then you have money to play with. It's extremely rare that a company like this will hit but if it does you win. There's a lot of people that play this game at a high level - it can work. I can name a few through PM and also give you some local IT companies that are in it to win it that are lead by gifted, open-minded entrepreneurs. This isn't the formulaic, standard plan you're seeking, this is the kind of thing you need a fire burning inside to pursue. I got out of that game. Took benefits, safety, pay and a genuinely better job. Lost what I estimate will be a 1.4 million dollar payout someday. Ultimately didn't want to leave my future in someone elses hand or wait around to get paid what I deserve.
Read the Millionaire Fastlane by MJ DeMarco. I know, it sounds like a really stupid self-serving book. I thought the same thing when I got the recommendation from this BBS about it. Surprisingly, it is very good and talks about the math about how to get wealthy now rather than waiting until retirement. It doesn't give you a guaranteed get rich scheme, rather it tells you that you're going to need to take risks, be ready to fail, and keep on aiming big to get there. I am from the school of thought that a balanced portfolio is the correct way to go. You want to balance streams of income with risky endeavors so that you have wealth in both retirement and immediately.
