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  • FIRST POST
    • tinktay84
    • By tinktay84 10th May 11, 10:25 PM
    • 298Posts
    • 948Thanks
    tinktay84
    Millionaire Challenge
    • #1
    • 10th May 11, 10:25 PM
    Millionaire Challenge 10th May 11 at 10:25 PM
    I sat pondering on what ive achieved in my 27 years and realised that anything ive ever said I wanted to do or wanted to have I have managed to achieve.

    Last year after 10 years in catering I completely changed career and last week I achieved a distinction in painting and decorating. This got me thinking that since I always achieve goals I set myself what could I do next....

    Thus the Millionaire challenge!

    So phase 1 is opening a savings account and getting money building up...

    I work for myself so have a bit of control over my earnings, we have 1 property that we rent out and my husband has a decent (secure) job.

    My aim is to get to the million mark by the age of 40 (im 27 now)

    So how many of you think im mad and its impossible and how many of you think i'll do it and have ideas to help me
Page 1
    • MikeR71
    • By MikeR71 11th May 11, 11:03 AM
    • 3,706 Posts
    • 4,366 Thanks
    MikeR71
    • #2
    • 11th May 11, 11:03 AM
    • #2
    • 11th May 11, 11:03 AM
    I don't think you are mad. I think you can definitely do it if you have the right ideas and work hard.

    My problem is the idea. I am prepared to put in all hours of work but I don't have any ideas.
    • Jacka87
    • By Jacka87 11th May 11, 11:44 AM
    • 366 Posts
    • 152 Thanks
    Jacka87
    • #3
    • 11th May 11, 11:44 AM
    • #3
    • 11th May 11, 11:44 AM
    Sounds interesting.

    Not quite at the ripe old age of 27 yet, got a couple of years to go, but I have also achieved most of my "main goals" that I have ever set myself.

    decided when I was about 16 at school that I would own my own property at 21 and then a month and a half after turning 21 I got my keys to my new pad! The same day as my last exam at uni, another goal.

    I was wondering what my next challenge should be and decided that rather than being a millionair that I would set a target to retire from my 9-5 style job at the ripe old age of 40, I have since considered 50, a realistic and an achievable target if you like. At retirement I would kick back by starting my own small business, which is what my parents, uncles & aunts and Grandparents have done so I have the background for it.

    However upon hearing your plan I am now intrigued, go for retirement or a million? decisions decisions.

    Just to through a curve ball would you accept success if you won a million on the lottery or premium bonds or something similar?
    Here to help and be helped!

    New to MB, running profit, £16 from MB, £30 cashback!
    • Jacka87
    • By Jacka87 11th May 11, 11:51 AM
    • 366 Posts
    • 152 Thanks
    Jacka87
    • #4
    • 11th May 11, 11:51 AM
    • #4
    • 11th May 11, 11:51 AM
    I don't think you are mad. I think you can definitely do it if you have the right ideas and work hard.

    My problem is the idea. I am prepared to put in all hours of work but I don't have any ideas.
    Originally posted by MikeR71

    To an extent I agree with you, its not mad to set a target for yourself, even if its a bid ambitious. My property at 21 goal was laughed at by most of my school mates but hey I achieved it. Their are people out their who are millionaires younger than me so it can be done.

    With regards to teh idea thing, well I have to say I dont think its fair cop. I personally dont have a "great" idea in my head right now, a marvelous how to become a millionair scheme, but thats not how these things happen. As an example, my dad once had the oppertunity to invest in a ridiculous business idea as such and declined as he felt it was too much of a risk. Now the guy who took the risk is infact a millionaire. However my dad was only one of a few people who was approached by the guy who had the idea. the guy with the idea sadly passed away but was never ever rich. However the guy who took the gamble and is now rich got to that place initially by taking a gamble with his funds. You may be teh guy with the funds and it may be your mates brilliant idea. The thing is you need to start the ball rolling on the funds if your ever going to get there.

    So as the original poster said, get a bank account and stick what you have in it, just get started!
    Here to help and be helped!

    New to MB, running profit, £16 from MB, £30 cashback!
    • Jacka87
    • By Jacka87 11th May 11, 1:00 PM
    • 366 Posts
    • 152 Thanks
    Jacka87
    • #5
    • 11th May 11, 1:00 PM
    • #5
    • 11th May 11, 1:00 PM
    Oh just a thought, anybody wanting to accept the millionaires challenge may wish to read "Think & grow Rich" I have unfortunatly never read the full book, as I just get so far through and end up getting distracted with busy life. However it gives a guide on the principles of succeeding in becoming rich or achieving big goals.

    Also reading the "richest man in babylon" would be a good idea too. Infact I think everybody should read the book as its pretty short so their is no real excuses and gives some basic ideas on how to manage money and help yourself become financially better off and enjoy life as well.
    Here to help and be helped!

    New to MB, running profit, £16 from MB, £30 cashback!
  • LittleMissGiggles123
    • #6
    • 11th May 11, 1:21 PM
    • #6
    • 11th May 11, 1:21 PM
    One question for you. Is this challenge for £1million cash rich or would it also include any money you have in properties etc?

    The only reason I ask this is because it sometimes makes me wonder when people say 'oh so & so is worth x amount', does this mean they are sitting on that tidy sum in the bank or tied up in properties etc.

    Good luck with the challenge anyway. I always just say to myself that rather than be a millionaire I would just like to live a comfortable lifestyle not worrying about bills & just being able to go to Florida any time I like (my favourite place in the world)
  • ExpatDavid
    • #7
    • 11th May 11, 1:40 PM
    • #7
    • 11th May 11, 1:40 PM
    You need to stay focussed, no distractions. Avoid so called "Financial Advisors" at all costs and any other managed investments, even pensions which, at your age, may be left until much later despite the conventional wisdom. All such schemes are designed to benefit others at your expense and your meagre returns will be eaten away by inflation whilst the managers of them grow rich rather quickly. I would also consider a move to a low tax country.
  • Private and Confidential
    • #8
    • 11th May 11, 1:54 PM
    Good Luck
    • #8
    • 11th May 11, 1:54 PM
    So how many of you think im mad and its impossible
    Originally posted by tinktay84
    Not mad, just ambitious (and that's a good thing BTW).

    You may remember a series with an Americal guy who helped people find ways of paying off thier entire mortgage. I recall seeing perople payng off £100k mortgage in a year.

    I'd recommend reading a book called Rich Dad, Poor Dad (cheap as chips 2nd hand on Amazon, and you can re-sell for the same). This book really motivated me.

    I don't necessarily think it all about finding the next big thing either (although it would help).

    Actually, to save £1,000,000 in 13yrs would require a monthly saving of £6410 HOWEVER, taking inccout account interest this would result in saving of over £1.3 million.

    So... in order to hig the big ONE MIL you'd actually need to save £4898/mth.

    (assuming a 4% interest rate).

    Interesting.
  • iWilco
    • #9
    • 11th May 11, 5:08 PM
    • #9
    • 11th May 11, 5:08 PM
    I might need to start saving after reading this.

    My £1 on the lottery each week just is not going to get me there!
  • rictus123
    This is a fantastic thread and right up my street!! I play about with calculators etc and put in if i save between my birthday next month and my 25th, 30th etc how much small sums will become. For example i turn 21 end of next month. £250 a month at 3% net interest for 14 years(until im 35) is nearly £53k. Just as sort of back up savings. An extra £150 a month on that and until my 40th is just over £124k. This is along with me wanting to be mortgage free house im buying soon(at about £120k) and almost mortgage free on my second home(prob nearer £200k)

    Very long term but start now and reap rewards later.
    Work in progress...Update coming July 2012.
    • tinktay84
    • By tinktay84 11th May 11, 8:29 PM
    • 298 Posts
    • 948 Thanks
    tinktay84
    Firstly WOW! What a positive collection of responses!

    I realised after logging off last night that I hadnt put that I currently have approx £20000 debt and a very small 46k mortgage so thought I may get a bit of a hammering for seeming to be showy (IYKWIM)

    So wow again! All of your suggestions etc are brilliant. I too play with calculators and have EVERYTHING on spreadsheets.
    I have a spreadsheet for my bank account and as soon as i withdraw/pay in/debit etc I put it on my spreadsheet so I never go overdrawn(not foolproof as it has happened) so I have a good idea of where I stand
    I also have a sheet on said file that shows monthly bills, monthly income and debts.

    This time last year I had approx 30k of debt so I have seen just how much I can achieve to bring it down below 20k

    I am now upto £201 in my savings but this is going to be an elastic £201 as I will need to use the £200 for a bill at month end but figure 2 weeks in savings is better than 2 weeks in current account

    With regards to assets etc, the rich list only uses public assets (as in things we can see and not private bank accounts) so think property etc will be counted. and with that in mind 3 good houses may well get the million status????

    I have retrained this year as a decorator and currently work 7 days a week.We spend around £20 a week on shopping (2 adults 2 children) by going on the market for fruit and veg (£10 for bananas,apples,pears,pineapple,tangerines,carrots, potatoes,onions and the occasional pepper etc and £10 on whoopsie bread, 2 x 8pt milk,butter etc) we do get tax credits but not much and have normal childcare costs, rent, c/tax etc.

    **for the observant of you, we have a mortgage on a property that we rent out and we subsequently rent a house in a better area which adds £200 onto our monthly living costs but we dont smoke, drink, buy designer clothes, buy takeaways,buy branded goods etc so its our luxury

    I do genuinely believe I can do it as I overpay the mortgage on the house we rent out which means I will have it paid of quicker thus having assets.The house is prob valued at around £60k in current climate but in 13 yrs who knows??
    • tinktay84
    • By tinktay84 11th May 11, 8:40 PM
    • 298 Posts
    • 948 Thanks
    tinktay84
    Jacka87:
    Just to through a curve ball would you accept success if you won a million on the lottery or premium bonds or something similar? (couldnt quote properly)

    I have probably done the lottery about 5 times in my life, I do feel it would be a bit of a cop out but the challenge is to get to a million so I guess it would count??? I did put euromillions on yesterday and won £0 haha

    Between April 2010 and April 2011 I was working 3 jobs and going to college so I am well aware of how hard graft it is.
    I have today had a meeting with an accountant that is going to start doing my accounts and knows of my millionaire challenge. He didnt think I was mad so if the numbers guy doesnt scoff its good news hey?

    I was thinking of blogging but I dont want people assuming im rich or to make myself a target, as another poster said, its ok saying someone is worth such and such an amount but if its all tied up in assets its not like you have the cash to hand over but is it worth risking making yourself a target? I do however hope that it gives other people in debt or with ambition a little encouragement....
  • saphydog
    This is a great thread and you arent the only one that would like to retire age 40-50

    A million £ is not what it used to be and in assets I reckon is definitely an achievable target.

    To have a million saved in the bank by 50 could be tough unless you really drop on a clever idea or work yourself to death for the next 30 years.

    I am currently 27, married, homeowner, working both employed and running a small business. Its great to see your bank balance rise, its almost like a game which makes working more enjoyable.

    I will be more than happy with 250k savings + a nice home by the time im 50.

    I suppose there are a few rules to follow:

    -Dont waste money for the sake of it, its easy to go blowing it all when your having a good period.

    - Save everywhere you can. My wife laughs at me when we go shopping, i wont buy anything that i consider to be overpriced, even if its a matter of pence. Friends call me tight :-D, il re-use a postage stamp if it hasnt been franked.

    - Learn as much as you can in life. The more you know about the world the more money you will save; do your own diy, your own accounting, repair your own cars. One things for sure, you will never be bored.
    • JuniorDesigner
    • By JuniorDesigner 12th May 11, 11:47 AM
    • 186 Posts
    • 80 Thanks
    JuniorDesigner
    This is a great thread!!

    I'd like to do the same but through an idea, be it a business idea, product idea, gap in the market idea and watch it grow into something massive!! that's the plan anyway!!

    It's just finding that idea/gap/product initially!!
    • tinktay84
    • By tinktay84 12th May 11, 8:55 PM
    • 298 Posts
    • 948 Thanks
    tinktay84
    Its not that I want to retire early, far from it. If I have a day off I feel bored and unproductive (although i know I need days off)

    Its also knowing that £1m isnt what it used to be that makes me think 'why the hell not?!' When you think of it as 3 or 4 properties (mortgage free) it brings home just how achievable it COULD be.
    • MikeR71
    • By MikeR71 13th May 11, 9:24 AM
    • 3,706 Posts
    • 4,366 Thanks
    MikeR71
    Oh just a thought, anybody wanting to accept the millionaires challenge may wish to read "Think & grow Rich" I have unfortunatly never read the full book, as I just get so far through and end up getting distracted with busy life. However it gives a guide on the principles of succeeding in becoming rich or achieving big goals.
    Originally posted by Jacka87
    I have read this book, by Napoleon Hill. To me it's a little bit too much in the dream fantasy world. The main advice seems to be to think about money, and imagine how much you want and tell yourself this every night. This will motivate you to go after it.

    I can tell you for a fact, that I have been dreaming of being a millionaire every day for many years and am still no closer to doing anything about it!
  • rictus123
    Well iv had some financial lessons already. Although I turn 20 soon and have a debt free date of march 2012 along with saving 10k in that time. Then its onwards and upwards. I don't think il shoot for million straight away, i could get there on my 50th birthday, I would just have to work out what to put away every year for 30 years. A million won't be that much when I'm 50 but itl still be an amount some and most people will never get near. I'm putting away 450 or so a month into long term savings...eventually I can see me using it to buy a buy to let hopefully no t long after I turn 30. What would u guys do if use wete just 20 to get rich?
    Work in progress...Update coming July 2012.
    • Jacka87
    • By Jacka87 13th May 11, 12:28 PM
    • 366 Posts
    • 152 Thanks
    Jacka87
    I have read this book, by Napoleon Hill. To me it's a little bit too much in the dream fantasy world. The main advice seems to be to think about money, and imagine how much you want and tell yourself this every night. This will motivate you to go after it.

    I can tell you for a fact, that I have been dreaming of being a millionaire every day for many years and am still no closer to doing anything about it!
    Originally posted by MikeR71

    I have to say I am now at chapter 10, not quite finished and I have also done it in chunks and its taking a while. the book itself isnt one that I particularly felt was amazing and thats partially due to teh same reason as what your saying. However in my opinion the book doesnt just say "keep dreaming of eing rich and you will be rich" it also gives some helpful practical ideas.

    As an example it states the concept of having a "master mind group", which is basically a group of people that have similar goals that can help you along the way. Is that not almost an exact definition of this forum or even this website as a whole?

    Now I personally think the book suggests that the group be used in a collegue sense, ie if you own a business then surround yourself with intelegent staff that know everything that needs to be known about the business and then you will not nessasarily need to know every area. An example of this would be having technical experts in specific fields, lets say an accountant perhaps??? Clever accountants are often described as being "worth much more than their fees every year".

    Btw I am not the biggest fan of teh book, I just think that anybody on this thread may find it beneficial, tho a bit long winded.
    Here to help and be helped!

    New to MB, running profit, £16 from MB, £30 cashback!
    • tinktay84
    • By tinktay84 13th May 11, 12:40 PM
    • 298 Posts
    • 948 Thanks
    tinktay84
    Well iv had some financial lessons already. Although I turn 20 soon and have a debt free date of march 2012 along with saving 10k in that time. Then its onwards and upwards. I don't think il shoot for million straight away, i could get there on my 50th birthday, I would just have to work out what to put away every year for 30 years. A million won't be that much when I'm 50 but itl still be an amount some and most people will never get near. I'm putting away 450 or so a month into long term savings...eventually I can see me using it to buy a buy to let hopefully no t long after I turn 30. What would u guys do if use wete just 20 to get rich?
    Originally posted by rictus123
    well first of all you are probably one of a small percentage of 19 yr olds putting savings away so thats a massive start!

    if I were 19 again (a whole 8 yrs ago) and knew what I know now I would do so many things differently.

    I would never have gone onto the credit treadmill thats for sure.I only ever did it out of sheer laziness, why save up for a car when my bank would lend me the money....hmmm. I was brought up to believe you should never borrow money and hard work was the key but obviously as a 19yr old I thought I knew better.

    I would possibly have trained for a career a lot sooner as I spent 10 yrs in catering on very low pay (my first wage was 3.26/hr) I now basically set my own wages as I give the quote so its up to me to reach a fair price that people will pay whilst having a decent wage and also the faster and higher quality my work is the more work I get
  • rictus123
    I'm on a price as of July so can make as much as I want within reason...going to try and take home 3k min then next summer shoot for 4k. Not a bad months wage at my young age however there are still many same age on thousands more. Small investments now will be big come the time I'm 30. 1k a month into savings is 120k when I'm 30 without interest rates or inflation or anything coming into it. Shorter term most iv had is 4od so aiming for that by Xmas. Lots of work on so should manage.
    Work in progress...Update coming July 2012.
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