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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 179
    • elephantrosie
    • By elephantrosie 17th Apr 17, 11:50 PM
    • 372 Posts
    • 102 Thanks
    elephantrosie
    I would like to join in with the millionaire challenge .I am currently climbing the ladder on the double your money to a million in 14 steps .You would actually end up with 1. million if you start with a hundred and double it 14 times ,i am finding it great fun .I am between step 2 and 3 with £600 and 3 items to sell .I buy something and then sell it for double the money ,it takes time but doesnt feel so daunting when you think of it in 14 steps although it will get harder as i climb the steps .Sorry it should have said you would have 1.6 million after 14 steps
    Originally posted by try harder
    please elaborate on this double money to a mil in 14 steps.
    • try harder
    • By try harder 18th Apr 17, 8:30 AM
    • 503 Posts
    • 1,618 Thanks
    try harder
    I started with £100 .With that £100 you can buy one thing or as many as you like but you must double your money on each item so that £100 will become £200 .You need a good thick notebook to write down all your purchases and sales and because i buy several items instead of one it certainly becomes more complicated
    This is how it doubles
    £100=£200
    £200=£400
    $00=£800
    £800=£1600
    £1600=£3200
    £3200=£6400
    £6400=£12800
    £12800£25600
    £25600=£51200
    £51200-£102400
    £102400=£204800
    £204800=£409600
    £409600=£819200
    £819200=1.6 million
    Obviously unless you buy only one item and double it which is easiest in the easrly steps you are going to end up with a lot of items and a full time job selling them and possibly needing a spare room ,shed or warehouse to store them all in but i am doing it alongside saving and trying to overpay my mortgage ,im sure i will be totally confused as i climb the steps with the sheer volume of items i will have to buy and sell but it is fun at the moment .
    • try harder
    • By try harder 18th Apr 17, 8:31 AM
    • 503 Posts
    • 1,618 Thanks
    try harder
    Sorry mistake ,i meant
    £400=£800 pressed the wrong key
    • droopsnoot
    • By droopsnoot 18th Apr 17, 1:12 PM
    • 1,086 Posts
    • 689 Thanks
    droopsnoot
    As you say, I think the early steps on that path will be relatively easy in a number of ways - easy to sell cheaper items, but also easy to not worry about risking a relatively small amount of money buying the things to sell. My concern would be whether, once I'd got to a reasonable point in the list, whether I'd be prepared to risk the next step, whether I'd be able to compartmentalise and say that I was only risking "found" money, or whether I'd simply go "well, £400k is enough, that'll do". Still, if I was more of a risk-taker, I'd probably be in a very different situation that I am in.
    • elephantrosie
    • By elephantrosie 18th Apr 17, 4:04 PM
    • 372 Posts
    • 102 Thanks
    elephantrosie
    doubling money is difficult
    • try harder
    • By try harder 18th Apr 17, 4:33 PM
    • 503 Posts
    • 1,618 Thanks
    try harder
    I think that as the number got higher you would break it down into smaller amounts so for example if you were trying to double up £3200 you could buy 32 items at £100 that you would need to sell for £200 or 64 items at £50 that you would need to sell for £100 and they dont have to all be the same items that way you spread your risk by buying 32 items that are different .Only problem would be storing them all .Then if you couldnt double the £3200 to £6400 and say only made £4200 you would still have gained and then would continue doubling until you reached the £6400 ,you just have to make sure that you can get your money back at least on an item so that you never lose any .As to reaching £400000 then wondering what to do next wouldnt it be nice to have that dilemma droopsnoot ?
    • Chesapeake
    • By Chesapeake 18th Apr 17, 9:34 PM
    • 60 Posts
    • 253 Thanks
    Chesapeake
    I've got croft land, which is a bit different thanks to crofting legislation, but similar enough - currently have 15 acres and if we manage to buy this house will get another 18.

    Your main issues will (a) be getting planning permission on agricultural land, (b) if you do get planning permission, convincing the council not to slap an agricultural residency restriction on it, which will devalue what you build immensely, (c) antagonising people living in the area of the land who don't want it built on.

    You will pay stamp duty on it - stamp duty's full name is Stamp Duty Land Tax (or Land and Buildings Transaction Tax if you're in Scotland) and should you be successful in what you're intending to do, factor in capital gains tax as well.

    It can be done, but most of the profitable sites for it got snapped up by developers a long time ago.
    Originally posted by cazmanian_minx
    If you have over 15 acres you get permitted development rights for barns, polytunnels etc. You can live on site for up to 5yrs while constructing said buildings which gives you time to make the land profitable and meet planning criteria.

    Thanks for confirming the tax bit, will have to see what the % are and do some sums.
    • Kayalana99
    • By Kayalana99 21st Apr 17, 12:48 PM
    • 3,332 Posts
    • 5,965 Thanks
    Kayalana99
    Well productive day, changed finances round a bit so I have a small pot that is having such small amounts taken out I won't notice.

    Also got £210 from signing up to Marriage allowance (backdated), they did say I'd be entitled to around £400, but the £210 was the figure quoted for one year, so not sure if there is a reason it didn't get back dated 2 years or another payment is coming.

    They did say they would send two cheques seperatly from the wording (so the hope another payment may be made) but for some reason it was paid direct into one of our bank accounts even though we didn't give them the details for it, I think through my business tax they have it but it was such a random account not even the business account...

    Also opened a 5% interest regular saver, I thought I wasn't entitled to it with my bank as you need a 123 current account but as we have a 123 credit card I was entitled with that anyway and it was opened in seconds, so I can pay £200 a month in there till it's full. Going to drip feed the E/F into it.

    I really could do with an easy access savings account, Santander do a 123 current account that pays 1.5% interest (amongst a bit of cash back) but our bills are so low that it doesn't pay the £5 back unless we have about £1,000 savings in the current account - but even then it's only break even...so seems a lot of effort for a few pence...

    However, they do give 1% cash back on Santander mortgage payments and I've done their calculator and we would be able to transfer (and good interest rates too) but there is a £999 product fee and our mortgage would charge us around £750 to get out early, something to think about when it comes to re-mortgaging though or if we do move we'd be selling up anyway....so would be worth it if that happened.

    Husband didn't get his payrise but still got 2% after that (not giving pay rises to anyone in the division unf this year) and with the marriage allowance and increase in personal tax this year, we're still £50-£60 a month better off.

    Job promotion still in the works but even if he gets it, I have a feeling this will be dragged on into June so I won't mention it again unless I have news (although I will let you know if he doesn't get it too)

    It's all a few pennies here and there but it's adding up, and I've decreased the food bill to around £50 a week too, and the car we purchased is great on petrol so even though my Husband's car share has now changed jobs, it should still break even, if not be a bit cheaper.

    On a mission still to get bills under £1,000, but we'd need to pay off the CC (only a £1,000) that we used to pay the bathroom as that's draining £40 a month off us. We could pay less, but give or take £100 or so it will be paid off in full by the end of the 0% interest period at that rate so I'd rather not pay less. I should be able to get the money together without going into our savings pots for the car insurance to be paid off soon to, so that will be another £50 a month saved + £100 already is saved on the shopping bill at the rate I'm going.
    Last edited by Kayalana99; 21-04-2017 at 12:51 PM.
    People don't know what they want until you show them.
    • Broken Biscuits
    • By Broken Biscuits 22nd Apr 17, 8:41 PM
    • 328 Posts
    • 630 Thanks
    Broken Biscuits
    doubling money is difficult
    Originally posted by elephantrosie
    I found this article today and found it interesting.

    http://actionecon.com/double-your-money-again-and-again/

    It ties in both with the doubling idea and the million challenge. I'm much more of a fan of this buy and hold approach than the idea of buying and selling my way to a million.

    I think personally I have only 2 (or 3 at best )doubling periods left before I would like to stop working and so do really need to crack onto the 250k mark!

    Some of the 20 somethings here should walk comfortably into their million.
    • lessonlearned
    • By lessonlearned 22nd Apr 17, 10:37 PM
    • 10,134 Posts
    • 57,018 Thanks
    lessonlearned
    Biscuits......thanks for the link.

    I think you're right - those in their twenties now could easily hit the £1m purely through compound interest and getting to grips with the rule of 72.

    The best way to get cracking is not to just maximise income but also to reduce expenditure and save as much as you can. The old traditional advice of 10 per cent or even 20 per cent isn't enough, at least not if you want early financial independence. Keeping a tight rein of cash flow to maximise savings is crucial.

    It's often easier and more efficient to make more money available for investing by cutting expenditure to maximise savings than by trying to earn more.

    For example - If you are on a relatively modest income of say around £10 per hour then shaving £100 off your monthly budget is better than working extra hours. To get £100 extra net you have to factor in 20 per cent income tax (standard rate) and 12 per cent NI contributions. If my maths are right then you would need to earn £132 gross - which is just over 13 hours extra work. If you are on a minimum wage of £7.50 then it's even worse - you would need to work 17.6 hours extra.

    Cutting costs to maximise savings is infinitely preferable.

    So well done Kay on rejigging the finances, reducing costs and making your money work harder. Definitely the way to go.
    Last edited by lessonlearned; 22-04-2017 at 11:06 PM.
    • ms_night_ryder
    • By ms_night_ryder 22nd Apr 17, 11:36 PM
    • 2,996 Posts
    • 11,579 Thanks
    ms_night_ryder
    Hello all.

    I've been lurking. Today I sold my first item on etsy! Yay!

    I started it in October and had 0 sale's, lots of views, favouriting my shop and items, enquiries about bulk orders from Australia etc but no sales. I relisted as its only 15p to relist every 3 month's and today a sale. I was planning on putting up some spring summer item's to see how they went so I Will be going ahead with that. See how that goes.

    I joined a thriving business group on fb and it has encouraged me to do more, put my site back up more promotion etc, so that's where I am heading.

    Hope everyone is good.
    Lose 28lb 3/28lb
    SPC Member 1522/2012-£264/ new pot 2013
    • Broken Biscuits
    • By Broken Biscuits 23rd Apr 17, 10:03 AM
    • 328 Posts
    • 630 Thanks
    Broken Biscuits
    Hello all.

    I've been lurking. Today I sold my first item on etsy! Yay!
    .
    Originally posted by ms_night_ryder
    Well done on your first sale. Hopefully it's the first of many!

    If the sales don't keep coming it would be worth re-reviewing profit margins and competitors prices. No point working for free by having ridiculous low prices but it's better to sell multiple items at a slightly lower profit than to sell very few at a higher markup.

    It's it's the sort of thing people only buy once or very rarely your customers may not notice if you drop and then raise your prices later. (Hoping that because the product is good, increased sales when the price is dropped will lead to more positive reviews and more positive word of mouth... Resulting in again more sales even when you creep the price back up)

    Best of luck
    • Muhren
    • By Muhren 23rd Apr 17, 11:01 AM
    • 1,511 Posts
    • 2,920 Thanks
    Muhren
    Hi everyone, I've not posted in a while but I have been reading. Sounds like everyone is cracking on nicely!

    My update is that I have been busy having my kitchen updated, it was ripped out and redone from scratch. Still not 100% there but not too far off now. Even with the outlay for that I have managed to pass £150k as my net worth.

    Thanks for posting the link Broken Biscuits, very interesting indeed, I have worked it out that I have around £61k invested at the moment over a combination of pensions, s&s ISA and shares in the company I work for. I like you only have 2, possibily 3 doubling periods, so I am well short if I am going to make that million.

    I am in the process of deciding whether to up my pension contributions or open a LISA, I thought the LISA would be a no brainer but from reading lots of peoples advice on these forums it seems the better option would be to increase pension contributions. I am just about to post in the pensions section to clarify the best route for my situation.
    LBM: Dec 2012 - Debt £38,180/ Now £0.
    DFD - 17/04/2016

    Gambling: The sure way of getting nothing from something.


    • ms_night_ryder
    • By ms_night_ryder 23rd Apr 17, 11:43 AM
    • 2,996 Posts
    • 11,579 Thanks
    ms_night_ryder
    Well done on your first sale. Hopefully it's the first of many!

    If the sales don't keep coming it would be worth re-reviewing profit margins and competitors prices. No point working for free by having ridiculous low prices but it's better to sell multiple items at a slightly lower profit than to sell very few at a higher markup.

    It's it's the sort of thing people only buy once or very rarely your customers may not notice if you drop and then raise your prices later. (Hoping that because the product is good, increased sales when the price is dropped will lead to more positive reviews and more positive word of mouth... Resulting in again more sales even when you creep the price back up)

    Best of luck
    Originally posted by Broken Biscuits
    Thanks for the advice BB.

    I sell plus size clothes, I have worked the prices out to include a £10 an hour wage for myself which is pretty standard amongst seamstress' , obviously I won't be taking that money for myself, it will go towards new materials. I also work on a basis where I make the clothing sample to be photographed in my own size, i fighred if I do that, then really there is no loss of money, because I have a item of clothing to wear, so I don't have any dead stock so to speak.

    The only way is up now I guess, I have a lot to work on and I will start documenting my progress more to see what I can achieve.

    Happy Sunday all.
    Lose 28lb 3/28lb
    SPC Member 1522/2012-£264/ new pot 2013
    • Broken Biscuits
    • By Broken Biscuits 23rd Apr 17, 9:13 PM
    • 328 Posts
    • 630 Thanks
    Broken Biscuits
    Saw the site "future learn" linked into another thread. I've not heard of it before so had a quick look. Seems to be free business advice with the option to upgrade at a cost to a better package from them. So I guess they hope you like what they do and upgrade to mean they make some profit.

    If I'm right and it is completely free at the lower level, you may want to have a look at the link below about product pricing

    https://www.futurelearn.com/courses/pricing-strategy-revenue-management

    I've not used the site and so apologies if it's not the freebie i think it is.
    • Broken Biscuits
    • By Broken Biscuits 23rd Apr 17, 9:37 PM
    • 328 Posts
    • 630 Thanks
    Broken Biscuits

    I am in the process of deciding whether to up my pension contributions or open a LISA, I thought the LISA would be a no brainer but from reading lots of peoples advice on these forums it seems the better option would be to increase pension contributions.
    Originally posted by Muhren
    I've done a little research on the life time ISA and it seems it's only really a benefit if you are self employed. The tax benefit comes at the end (the opposite of a standard pension) and (unless you use it for a property) the LISA can only be accessed at 60 and I can't see a reason why you would invest in it after 50 (top up bonus ends) ... Massive costs if you decide to pull out before 60.

    If you are putting in money that you have already paid tax on ( perhaps sat in high interest current accounts) there may be some benefit to reducing cash exposure and putting this into a LISA but if you are planning on using new money from your wages as an employee it's likely you will be better off just upping pension contributions.

    Obviously if you want to retire before 60 (Lisa access) or 58 (likely age we will be able to access work pension money) then you need to invest outside of both these options (innovative finance ISA, S+S ISA + p2p)*

    *This is what I'm doing, with the exception of putting the minimum possible into my pension that gets the maximum match (and therefore most free money) out of my employers.

    Obviously do your own research, which is difficult as there isn't enough information out there as yet and a number of major banks have shunned the LISA as they seem to consider it's too complicated to suggest to their average customer.
    • CEW
    • By CEW 23rd Apr 17, 10:19 PM
    • 342 Posts
    • 4,144 Thanks
    CEW
    Saw the site "future learn" linked into another thread. I've not heard of it before so had a quick look. Seems to be free business advice with the option to upgrade at a cost to a better package from them. So I guess they hope you like what they do and upgrade to mean they make some profit.

    If I'm right and it is completely free at the lower level, you may want to have a look at the link below about product pricing

    https://www.futurelearn.com/courses/pricing-strategy-revenue-management

    I've not used the site and so apologies if it's not the freebie i think it is.
    Originally posted by Broken Biscuits
    Long time lurker but only posted once or twice before.

    Just thought I would clarify. Future Learn offers online courses on many subjects for free. The only charge is if you want a certificate to prove you have taken the course you have to pay for it.

    All the courses are produced by universities, or similar, from around the world. I have personally taken a few of their courses and have found some value in them even when the subject is one that I am already familiar with.

    Well worth a look as they have a reasonable selection of business related courses as well as many others.

    Hope this helps

    CEW
    That money talks I don't deny, I heard it once, it said "Goodbye"
    • Luckystepho
    • By Luckystepho 24th Apr 17, 9:43 PM
    • 332 Posts
    • 636 Thanks
    Luckystepho
    I read something interesting about the doubling your money thing... it suggested that you would need to use different strategies for the later 'doublings' than the earlier ones. For instance, to double from £100 to £200 you might be buying widgets and selling them for a profit, or providing a service, by, say, using the £100 to buy a bucket, squeedgee and sponge and cleaning windows.
    Once you get past a certain point it becomes very time consuming to do it yourself so you might other people to clean the windows and you keep a percentage or pay someone to fulfil your widget orders.
    That way you could have a whole team of window cleaners and you're making money each time they clean a window but as you're no longer cleaning them yourself it's freed up your time.
    One you get to the higher 'doublings' you might choose to pay someone to manage your team of window cleaners or widget packers and eventually sell the business, or invest in other people's business for a good return.
    I think that the idea is that you wouldn't necessarily be risking £400,000 in one businesss but, say, £50,000 in one business, £50,000 in another etc so you're not wiped out if it goes wrong!

    • Kayalana99
    • By Kayalana99 25th Apr 17, 7:58 AM
    • 3,332 Posts
    • 5,965 Thanks
    Kayalana99
    I read something interesting about the doubling your money thing... it suggested that you would need to use different strategies for the later 'doublings' than the earlier ones. For instance, to double from £100 to £200 you might be buying widgets and selling them for a profit, or providing a service, by, say, using the £100 to buy a bucket, squeedgee and sponge and cleaning windows.
    Once you get past a certain point it becomes very time consuming to do it yourself so you might other people to clean the windows and you keep a percentage or pay someone to fulfil your widget orders.
    That way you could have a whole team of window cleaners and you're making money each time they clean a window but as you're no longer cleaning them yourself it's freed up your time.
    One you get to the higher 'doublings' you might choose to pay someone to manage your team of window cleaners or widget packers and eventually sell the business, or invest in other people's business for a good return.
    I think that the idea is that you wouldn't necessarily be risking £400,000 in one businesss but, say, £50,000 in one business, £50,000 in another etc so you're not wiped out if it goes wrong!
    Originally posted by Luckystepho
    I don't get on with the doubling your money but it's whatever works for you.

    It reminds me of that save a penny a day, then 2p the next day and by the end of the year you'll have £2,000 saved or something and everyone swoops in saying how good of an idea it is but in reality it only works whilst you can afford it, so as soon as you get to a week where you can't spare the money you'll give up.
    People don't know what they want until you show them.
    • droopsnoot
    • By droopsnoot 25th Apr 17, 1:04 PM
    • 1,086 Posts
    • 689 Thanks
    droopsnoot
    Once you get past a certain point it becomes very time consuming to do it yourself so you might other people to clean the windows and you keep a percentage or pay someone to fulfil your widget orders.
    Originally posted by Luckystepho
    I think you're absolutely right, really - there are only so many hours in the day, so you've either got to do the same number of transactions at a higher value, or do more transactions at the value, or many many more at a lower value. Scalability, I think, is the term people use for it. I was reading another forum (what? kill the heretic!) and their main mantra seems to be not just figuring out a money-making business idea, but also making sure it's scalable.


    My concern with it is that it's a very different kind of person who can buy and sell a few old bits and pieces on a car boot sale and come away with double their money, to the kind who can be employing and managing other people. Not to say incompatible, or impossible, just that it's one thing to ramp up prices, an entirely different one to become an employer.
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