Millionaire Challenge

Thanks LL for the advice and encouragement.

With what you're currently going through I do appreciate it!

Had a couple of NSD's this week so that has helped alot. OH won a competition where we get a free hotel for the weekend in Central London So July we get a cut price weekend away.

Were not high earners and we dont have alot of savings (that arent tied up for other stuff already) but we have no debt, so thats the main bonus!

Still working on being good and being frugal

CO

Good morning all

FLC - sorry don't have any special tips or secrets nor do I have any magic formula. The best advice I can give is earn as much as you can (er obviously) but more importantly hold on to it and more importantly still make what you have grow…...

I think the biggest thing for me has been about micro managing what I have and being really strict about cash flow. Not having a good cash flow is what breaks so many businesses and also poor cash flow can ruin personal and household finances too. Having a dollop of cash at your disposal also means being able to take advantage of any opportunities that come your way.

So a bit of hard work and a bit of frugal living, then you can clear any debts and then start to build up some savings. Then when you have some savings under your belt then you can start investing.

I can't and won't ever give investment advice. How we invest needs to be based on our own circumstances and needs.

FLC - you have already started well - you have invested in a home of your own.

I think the best thing is to read up as much as you can.

For practical advice and know how - follow the money columns in the quality press. Keep up with current affairs, both in the economic and political spheres and in the business world. Know what's what.

Keep a weather eye on cultural trends - the worlds of entertainment, leisure pursuits, fashion etc. This shows where and how money is being spent and you might get some money making ideas by being a trend spotter.

Read some good money management books and of course before you really get going, some good tax guides. Familiarise yourself with basic tax law and accounting procedures.

For inspiration and motivation read some biographies of people you admire, and some good business books.

There are loads of books out there - one of my favourites is "The Rules of Wealth" by Richard Templar. A little book that you can just dip in and out of when you need a little boost.

Also the "Millionaire Next Door" - American and it does waffle on about the American car industry a bit but the basic principles still apply in the UK.

Also "The Case For Working with your Hands" - again American, talks about second income streams and niche markets. It also has some very interesting points to make about global capitalism and the very nature and future of employment.

Don't forget TV - there are some really good quality TV documentaries - a great source of knowledge and inspiration.

And, for the best source of knowledge there is - the internet. I just wish it had been invented when I was young and starting out. I think a lot of young people who moan about their lot in life just don't realise what a valuable tool they have at their finger tips.

I personally think that everyone who is under retirement age - employed or self employed - should think very carefully about the future, i.e. where the jobs are going to be, what skills and knowledge they are going to require, the effects of outsourcing and technology. The world of work and business has changed so much since I was 40, let alone 20 and it will continue to change and evolve at a dizzying speed.

If I were to advise my younger self this is what I would say.

Plan for the worst and hope for the best.

Protect what you have - don't waste it, spend and invest wisely. Learn about tax etc Think about cash flow and micro manage your money. Take out income protection insurance - you never know what's around the corner.

Don't be a one trick pony.

Invest in yourself - acquire knowledge and skills which can adapt to changing circumstances. If what you do can be done either online or outsourced then your future is at risk from technological advances and shifts in the global economy.

Don't put all your eggs in one basket.

Build up multiple income streams. If one income stream dries up then you have something else to fall back on. Same with investments - spread the risk.

No-one should feel intimated by that figure of £1m - by the time you come up to retirement millionaires will probably be ten a penny:rotfl:

I am nearly 63. I doubt that I shall make £1m - although never say never. As long as I can live comfortably and well then I shall be happy. There are plenty of people who will never reach a million but who are "comfortable".

£1m for me is just a nice round figure, a symbol if you like of something to aim for. If I make it great. If I only make £500k then that will be ok. If I make more than £1m - well that's even better.

My own personal target when we started this thread was a net worth of £300K by the time I'm 70.

I'm on my way.

I do love reading this thread more than any other. I think its because its a big pep talk, people encouraging others!

The one thing that I have learned from this thread is that the world changes quicker than you think, so don't be afraid to adapt. I intend to invest in some books on the subject of wealth creation.

Another big step I am considering is up-skilling and retraining. I currently have a job which requires no formal qualifications (I got 10 GCSE's A*-C and 3 A Levels A-C at school) and I am considering a change for our future income security. The only problem is that in the shorter term, I would be bringing in less income as I would be a trainee and it could affect our ability to get a mortgage within the next 12 months.

So the plan:
Start (paid for by me) training and get Level 1 qualification in my chosen field.
Get Married in May 2015!!
Get a house (Between May 2015 and December 2015)
Sometime in 2016 consider the move to a new career.

At the moment its all pie in the sky, but you don't move forward by standing still do you?

CO

I was thinking of starting my own millionaire thread. I hope you don't mind Tink.