Millionaire Challenge

toastking

I have re-read the Dave user comments, I wanted to check if this was genuinely someone being a plonker or if there was value in the comments. I am thinking, someone might correct me on this, that its the latter as it raises a good question.

Basically I am guessing your theory was that it would be possible to build up assets worth a million whilst living on benefits?

Whilst this wouldn't be ethical, over time I guess it must be possible. You could keep buying assets each month with your benefits and then at the end of what would probably be a very long time, whats to stop you from selling them for the million?

A few things to note:

- You probably wouldn't be very popular with anyone that pays tax (if you didn't care, then this wouldn't matter - I would care too much to do it despite thinking its possible).

- It would take ages - no matter how good you are at saving money. Benefits are going down not up and cost of living is going up. Its a tough ask.

- Governments can change the rules - you might find your loophole (if it even exists) could be closed by them suddenly saying anyone on benefits has to pay say 75% tax whenever they sell assets. Which would be a major bummer if you had actually put a big effort into working up to that millions worth.

- What motivates you? If I was on benefits it would be either a project, business or getting the best job I could! I get involved in projects around work so don't know if I could ever make a conscious decision to sit on benefits.

For a course I am doing at the moment my project is looking at a model for generating employment that is mobile and dependable. Its a tricky ask but its made for a fun time trying to work things out and to date... failing miserably. Give me a pm if you want to see some of the very early work.

dave4545454

toastking wrote: »

I have re-read the Dave user comments, I wanted to check if this was genuinely someone being a plonker or if there was value in the comments. I am thinking, someone might correct me on this, that its the latter as it raises a good question.

Basically I am guessing your theory was that it would be possible to build up assets worth a million whilst living on benefits?

Whilst this wouldn't be ethical, over time I guess it must be possible. You could keep buying assets each month with your benefits and then at the end of what would probably be a very long time, whats to stop you from selling them for the million?

A few things to note:

- You probably wouldn't be very popular with anyone that pays tax (if you didn't care, then this wouldn't matter - I would care too much to do it despite thinking its possible).

- It would take ages - no matter how good you are at saving money. Benefits are going down not up and cost of living is going up. Its a tough ask.

- Governments can change the rules - you might find your loophole (if it even exists) could be closed by them suddenly saying anyone on benefits has to pay say 75% tax whenever they sell assets. Which would be a major bummer if you had actually put a big effort into working up to that millions worth.

- What motivates you? If I was on benefits it would be either a project, business or getting the best job I could! I get involved in projects around work so don't know if I could ever make a conscious decision to sit on benefits.

For a course I am doing at the moment my project is looking at a model for generating employment that is mobile and dependable. Its a tricky ask but its made for a fun time trying to work things out and to date... failing miserably. Give me a pm if you want to see some of the very early work.

If someone had to pay 75% tax on selling assets if they were on benefits then they would come off them before selling.
I do work hard, it's voluntary work so it means I qualify for benefits.
I'm a quarter of the way on the challenge so I'm doing OK

toastking

You missed the point I was making - the Government can change the rules - in your situation they could then make it if you've ever been on benefits! Loophole closed.

I just meant that Governments are sometimes unpredictable and relying on something they provide long term is not a guaranteed winning formula. For better or worse, its true.

If as you say, you work hard, then at the end of the time having your million taken away from you due to something outside of your control would be harsh, with your income being so reliant on the Government keeping benefits ahead of the cost of living you really would do well to double your current position before retirement (do you ever retire?)

mineallmine

Well I'm rolling my sleeves up today. In order to test if I can get income from a new source I need to pull my finger out.

I need to do some basics like look at ISAs too. Ok they're tiny but it's about looking after all your assets right.

Hope everyone is cracking on with their individual challenges.
:money:

mineallmine

pixtotts wrote: »

You can't achieve if you don't try... Good luck!

You can see from my signature I've set myself a couple goals to get started with I know 0.05% looks like nothing but I'm only a few weeks in but when I come out the other side (aim is to finish uni before I'm 30... I'm 24 now ) I'll be in a position, hopefully, that I'll be able to earn a decent wage and join you on the millionaire challenge then

I have to say your plans (and signature) are very inspiring. Go you!
:T

mineallmine

lessonlearned wrote: »

Kayalana - Congratulations!!! Glad to hear that about the safe arrival of your little man. Don't worry too much about getting back to the money making - just rest a little (when you get the chance!!) and enjoy your time with your LO - it goes so fast. Before you know it that tiny little bundle morphs into a strapping 6'3" man;)

Well I'm in the bungalow, moved in on Wednesday, everything unpacked, rooms dressed, curtains up, paintings hung. Everything nice and shipshape. It's been a full on couple of days so am going to have a little rest this weekend before the next onslaught.

In addition to moving I have also been helping DS1 on his reno works, overseeing and organising the trades, getting quotes, meeting with the conservation officer. The two staircases are currently being rebuilt. I have to say it's nice to be able to get away from all that mess and return to my nice clean home in the evening.

And of course, OH enjoys having me close by. The wheelchair access to the bungalow is nice and easy for me so I can wheel him round whenever he wants to visit me.

Ray-Kay - I understand your reservations about BTL. I have exactly the same thoughts. I think I would prefer to develop rather than be a landlord.

I too would be most interested in Matched Betting and, when you have spare minute, I would be very grateful if you could PM the links you mentioned. I am not very confident about my ability to do it myself so the option you have gone for may well suit me better.

Good to see the thread is still going strong.

Happy Money Making......

Hope you're settling in nicely LL. The new home sounds perfect
:j

dave4545454

toastking wrote: »

You missed the point I was making - the Government can change the rules - in your situation they could then make it if you've ever been on benefits! Loophole closed.

and they could make a rule that you have to hand over all your cash if you've worn blue socks ever. that's as likely a rule change as yours. you are aware that the majority of households are on benefits?

Buffythedebtslayer

dave4545454 wrote: »

and they could make a rule that you have to hand over all your cash if you've worn blue socks ever. that's as likely a rule change as yours. you are aware that the majority of households are on benefits?

What statistics back that up ?


And with the "deficit" and the banks etc I don't think Toastking's basic premise that the government can change the rules to save money is very likely - "bedroom tax"

dave4545454

Buffythedebtslayer wrote: »

What statistics back that up ?

here's the statistics proving the majority are on benefits...

"The welfare state is a big part of British family life, with 20.3 million families receiving some kind of benefit (64% of all families)"

http://www.theguardian.com/politics/2013/apr/06/welfare-britain-facts-myths

Buffythedebtslayer

dave4545454 wrote: »

here's the statistics proving the majority are on benefits...

"The welfare state is a big part of British family life, with 20.3 million families receiving some kind of benefit (64% of all families)"

http://www.theguardian.com/politics/2013/apr/06/welfare-britain-facts-myths

"Some kind of benefit" is very wide, including pensions and child benefit. And if you read the whole paragraph (and the rest of the article) it isn't talking about living on benefits. It is referring mainly to pensioners and families who have benefits as part of their income.

"The welfare state is a big part of British family life, with 20.3 million families receiving some kind of benefit (64% of all families), about 8.7 million of them pensioners. For 9.6 million families, benefits make up more than half of their income (30% of all families), around 5.3 million of them pensioners. ."

You have given the impression you are living off benefits? That was the assumption I made? Not that it is any of my business. Any how the majority of the country are not living off benefits.

You have implied that the benefit rules are unlikely to change however a quote from the same article,

"The number of families receiving benefits will be between 1 and 2 million fewer now because of changes to child tax credits that mean some working families who previously got a small amount now get nothing"

http://www.theguardian.com/politics/2013/apr/06/welfare-britain-facts-myths


That and the bedroom tax would make me feel very insecure if benefits were my only or primary source of income.

any how good luck!