Millionaire Challenge 10 May 2011 at 10:25PM in Boost your income 4.2K replies 820.2K views

tinktay84

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 :rotfl: and how many of you think i'll do it and have ideas to help me :T

MikeR71

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

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?

Jacka87

MikeR71 wrote: »

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.

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!

Jacka87

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.

LittleMissGiggles123

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_2

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

tinktay84 wrote: »

So how many of you think im mad and its impossible

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

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.

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??