Learn to control money but do not allow it to control you

Buffythedebtslayer

most recent thread I could find - no one seems to have posted since May and I can't find any more links

https://forums.moneysavingexpert.com/discussion/2386025

Buffythedebtslayer

Firewalker wrote: »

Hi Buffythedebtslayer,

every pound has to make ten over a year - this is correct. But don;t have to do it for each separately - buying or making something that you can sell for ten times the cost (once or a number of times would do the trick). Take a cake: costs about £3 to make (excluding your labour) and can sell in pieces for £30 (well, hypothetically speaking). Or material for evening dresses - if one can make really desirable dresses.

Should not forget that a pair of trainers costs about 7p. to make and I feel really lucky if I can get it for £60.

Firewalker

Yep, I was just putting it really simply for my tiny brain! I was on the make X in to 10,000 pounds thread but it moved SO fast that i couldn't keep up.

I keep thinking about what you said about how we are all women in our prime........*goes off for a think* xxx

scrooge2008

Hi Firewalker, that is a fascinating conundrum,

Even the best investors on earth, like Warren Buffett, consider a 10% compound interest rate to be a very healthy return on investment. To achieve your figures you would need to achieve returns of 1000% a year, but nothing is impossible.

I used to be a keen investor in shares, but I sold everything a few years back as I believed we were heading for a crash and I still think that the stock market will double dip, so I am staying well clear at the moment, but will get back in at some point.

Many investors use the Rule of 72 to find out how many years it will take to double an investment. For example:

An investment earning 6% will double in 12 years (72 divided by 6)

An investment earning 10% will double in 7.2 years (72 divided by 10)

An investment earning 20% will double in 3.6 years (72 divided by 20)

Having said that when asked to nominate the most powerful force on earth, Albert Einstein is reputed to have answered "compound interest."

Attached is a compound interest calculator, which may be useful:-

http://www.moneychimp.com/calculator/compound_interest_calculator.htm or
http://www.link42.co.uk/

Using the above calculators, at a 10% interest rate, and compounding annually, it would take around 50 years to become a millionaire if you were to save £1.85 a day every day. Start young.

Firewalker

scrooge2008 wrote: »

Using the above calculators, at a 10% interest rate, and compounding annually, it would take around 50 years to become a millionaire if you were to save £1.85 a day every day. Start young.

Hi Scrooge,

it will take ages if the money is used to invest in stocks and shares (or worse just kept in the bank) - that is why at first I thought it is not possible. The way to do it, is to think of this money as 'capital' - it has to be used to achieve high value added products. This is the next part of the conundrum - and we will have to think very creatively if we are to get somewhere.

About the stock market - I fully agree with you. My money will go on a double dip.

Keep thinking guys, we can do this - even if for me it might stay as an intellectual exercise.

Firewalker

whatatwit

FireWalker, this is a really interesting theory.

As part of my 100 challenge (from MemoryGirl) I am branching out in my business. So far, my investment has been £75.28, There will be a few more expenses, for leaflets etc bu, I will try and record how much money I manage to turn this into. As well as keeping up with the £1.85 per day.

scrooge2008

I totally agree.

The £100.00 to £10,000.00 thread was disbanded by Bing0 because he felt it degenerated into a lot of drivel.

It was an interesting thread to watch though, as it started out very enthusiastically with Bing0 proposing that we read 'The Secret' and only thought positively, but he got very frustrated with us all, as the money didn't seem to flow to us as quickly as he would have liked.

I've turned my £100.00 into £2,500.00 using fairly traditional methods, but you are right to achieve the £10,000.00 I need to think completely outside the box, and very creatively. More importantly, as far as I am concerned, the thinking needs to be translated into action.

This next step is the real nut to crack, and I've not read a book yet, and I read all the time, that has led the way.

Over to you Firewalker.

Firewalker

scrooge2008 wrote: »

I totally agree.

I've turned my £100.00 into £2,500.00 using fairly traditional methods, but you are right to achieve the £10,000.00 I need to think completely outside the box, and very creatively. More importantly, as far as I am concerned, the thinking needs to be translated into action.

Over to you Firewalker.

Scrooge,

I noticed the £100 to £2,500 in your sig - this is very well done. If you turn over the £2,500 in the next five months (twice) of the year and only double it each time you would have achieved the growth from my calculation. Forget Bingo - getting frustrated is against the law of attraction.

This is becoming spooky - the next conundrum on my list is to work out the ten steps from an idea to its realisation. In fact had a big discussion with hubby - he, just like me, mainly thinks about things and than it is only a dream. If we figure out the sequential steps we might actually act one day.

Another thing I found and I am fascinated by is an application of the 20/80 rule - only two out of ten ideas will work. People give up because they focus on the 8 that don't work rather than the 2 that do. The way to grow in any path or occupation is - try 10 things, see which 2 work; dump the 8 and forget about them; try another 10 and so on...

Keep thinking, guys. Forget sudoku, forget the Times crossword - for the first time I understand an economist I know (who has the Prize in Honour of Nobel for economics) telling me that he can't understand people wasting their energy on game puzzles. There are so many interesting puzzles in life!

Now have to do some writing - back late afternoon.

Firewalker

scrooge2008

Wow!

I have a headache now. Too much thinking. Will take some neurofen and check in tomorrow.

I think you are on to something big though!

Firewalker

Amazingly I have managed to finish all important things that had to be finished before going away – and the good news is that these were all writing things. More work will have to go into them but this is part of life.

Now need to pack for three weeks, for three people – should not take long. In fact now might be the time to experiment with Memorygirl’s 15 min wonder action. OK:

1) Fold and put clean clothes away – 15 min
2) Put ironing away – 15 min
3) Put on bed what is to be taken for you and little boy – 15 min

My time starts...now...

Firewalker

Firewalker

All done - which leaves time to go for a circuits session in the gym. Hope I survive this...

Talk later.

Firewalker