Millionaire Challenge

Karmacat

Kayalana99 wrote: »

Just a thought KC with you seeming to have this on and off would it be worth having one of those mini voice tape recorders for notes/ideas? I know it doesn't solve the problem by far of not being able to do something when you want to but at least its a way of putting any ideas down at the push of a button so you can come back to it.

I'm going to PM you my website (FYI its one page /shabby I put it together myself on photoshop but gives the basics) in case they are any use to you as I noticed your starting to put products together now. :-)

Thanks Kaya - I see I've been a broken record on Tut and the news posts sorry about that. The voice recorder - no, its more expense - when I think of something, I'll scribble it on paper if I'm at home, if I'm out, my phone has a note-to-self facility, so I use that. But thanks for thinking about it, I appreciate it!

I'm getting a bit spooked about money, I have to say, so I'll write a couple of sentences about the French apartment. It was the most monumental waste of money. There. At today's rate of exchange for the euro mortgage, I only owe £27,700, but I'm still subsidising it at the rate of thousands of pounds a year, its never broken even, let alone made me money. Terrible, terrible deal. I should never have done it. Well, its on the last strait now, and I need to get my finger out, put it right at the top of my to-do list, and research, very quickly, what to do about marketing for the future, as the people who had it on their books want to know.

racing_blue

Households with 2 high earners at 40 (lets say accountants, headteachers, doctors, lawyers, London finance) could conceivably have grossed on average £100k PA from age 25 to 40. Less at the start, more at the end. If they were particularly frugal they could be millionaires- or rather, have a household net worth of £1m including pension wealth.

I guess the maths would be something like:
Gross £X per year.
Spend 25%, pay 25% in tax, save or invest 25%, and put 25% in a pension.
Rinse and repeat.
You get to be a millionaire in 2000000/X years or less, depending on the success of your investments.

Mortgage interest would count as spending, mortgage repayment as saving.

While clearly there are high earners, I'm guessing there aren't many this frugal and perhaps it is more likely that a 40 year old millionaire will have created wealth by building a business, inheriting, lottery, bank heist? Maybe a smattering of footballers, pop stars, bankers?

Any been along yet to share their secrets?

Kayalana99

I think you've hit the nail on the head with running your own business - it's possible to become a millionaire under some one else but I bet it rarely happens - people with them kind of 'flashy jobs' are put under pressure to look good - spend money on themselves. (A broad opinion !)

My Dad did it by running a business and getting into property - now he is just past 50 his mortgages are in the region of being paid off / some already and he *would* have a good retirement income from them alone...but he is selling off to start investing again lol

Btw - As above when I said I needed to do a listing with about 50 or so options I did it - and I sold one within two hours!! Jumping off my seat hope its not just a coincidence as usually when you put a new listing up it takes a while before it's found....I may of hit the money with this one...fingers crossed!

Listerbelle

Karmacat wrote: »

I'm getting a bit spooked about money, I have to say, so I'll write a couple of sentences about the French apartment. It was the most monumental waste of money. There. At today's rate of exchange for the euro mortgage, I only owe £27,700, but I'm still subsidising it at the rate of thousands of pounds a year, its never broken even, let alone made me money. Terrible, terrible deal. I should never have done it. Well, its on the last strait now, and I need to get my finger out, put it right at the top of my to-do list, and research, very quickly, what to do about marketing for the future, as the people who had it on their books want to know.

AirBnB - you'd need someone local on the ground though.

droopsnoot

racing_blue wrote: »

Any been along yet to share their secrets?

Not been on here, but has been mentioned on here - the web site of Mr Money Mustache (colonial spelling, unfortunately) contains the thoughts of someone who did just that, though in the software industry in the US and Canada, retired at under 40 and preaches frugal living. A very interesting site. I think we Brits (generalising here of course) tend to be much more reluctant to talk about money and achievements.

Karmacat

Listerbelle wrote: »

AirBnB - you'd need someone local on the ground though.

Thanks Listerbelle - you're right, they're a real possibility. Its a very touristy (though very small) touristy town, so I bet AirBNB already have a presence there. I'll research it.

lessonlearned

Karmacat wrote: »

I'm getting a bit spooked about money, I have to say, so I'll write a couple of sentences about the French apartment. It was the most monumental waste of money. There. At today's rate of exchange for the euro mortgage, I only owe £27,700, but I'm still subsidising it at the rate of thousands of pounds a year, its never broken even, let alone made me money. Terrible, terrible deal. I should never have done it. Well, its on the last strait now, and I need to get my finger out, put it right at the top of my to-do list, and research, very quickly, what to do about marketing for the future, as the people who had it on their books want to know.

I know the feeling. I've been feeling a bit spooked myself recently.

I've spent an awful lot of money this last year or so, still shelling out more than I would like now. I shall feel easier when the spending stops.

We had all the expenses of buying two properties plus the costs incurred with two abortive purchases. However, I console myself that it was better to lose some money on the abortive purchases than go ahead with them and lose even more.

We also lost money on our Spanish property. It wasn't a terrible deal but a good deal that turned sour because of circumstances beyond our control, i.e. my husband's catastrophic illness.

We had to sell because we knew that OH would never recover and that his care needs would only escalate. Letting it out wasn't an option. Thankfully I did at least manage to find a buyer, although I had to sell at a very competitive price, undercutting everyone else that was trying to sell.

I drew on my show-house experience and dressed it to the nines so that it was irresistible. I threw in lots of extras and goodies to sweeten the deal - it was easier and cheaper than having everything shipped back.

The one thing that did help mitigate the loss was that when we bought it was at 1.47 Euros/sterling. When we sold it was 1-04 Euros/sterling. The currency movement softened the blow.

It was a difficult thing to do and OH was very upset. Selling up was confirmation that it was end of all his hopes and dreams.

I was very lucky to get out when I did. I think I would have to give it away now.

Similarly I had to downsize from our detached 4 bed family home and completely rethink what I was going to do to survive and how I could rebuild my finances. Leaving my home was a terrible wrench and I do miss it sometimes.

Hence the property developing as a way of rebuilding both my finances and my life.

I'm back where I started over 30 years ago, with a tatty run down 3 bed terraced:rotfl:

Never mind it's a starting point and the only way is up. The boys and I are working our socks off. DS1 with his Money Pit and DS2 and I with the flipper.

We will get there.

I don't give up that easily. There are times when I feel like throwing in the towel but I want a better future so I just plough on regardless.

Anyway the renos on both properties are really firing ahead now.

On property 2 it's a rolling programme with one trade going in after another so that we can get the job done asap. Working at such speed means it does cost a bit more but once it's done I can move in and start saving what I'm currently shelling out in rent and slash my living costs. It will also help DS2.

Exteriors begin 17th March on prop 1. It's difficult to know exactly how much they will cost because you can never be sure what you will find, but the recent inspection didn't flag up anything really nasty so hopefully nothing too earth shattering.

Only once they are done will I have a clearer picture of how much capital I have left, therefore I'm putting the purchase of prop 3 on hold for a couple of months.

In the meantime just keeping a tight rein on the cash flow. It's a good job I don't mind being frugal. I'm getting to rather enjoy living the simple life.

I've discovered that "going minimalist" is saving me a lot of money.

For example like most of us I have wardrobes and cupboards bulging with stuff I never wear or use. I have been looking at storage for prop 2.

I came to the conclusion that, rather than lashing out on expensive fitted wardrobe solutions, I shall get rid of most of my clothes and make do with a couple of freestanding wardrobes.

Much cheaper and I can take them with me to the next property, so won't have to keep buying over and over again. :rotfl: DS2 is going to do the same.

So before I move again - a major declutter will be called for.

Have any of you looked into the "Tiny House" movement - there are lots of interesting articles about this. Definitely the way forward for me - simple, minimalist living for me from now on.

"Stuff" just weighs me down and holds me back, so some serious streamlining is in order.

I agree we Brits tend to be much more modest about our achievements than our American cousins. I think most of us were brought up to believe that discussing money and success is somehow "unseemly".

I tend to agree up to a point - no-one likes a boaster or a braggart.

However, this reticence about money matters is one of the reasons why I was never really savvy about money issues. Money was a dirty word when I was a child. My husband's parents were even worse. MIL was an insufferable snob who sniffed her long nose at me because I worked in sales rather than academia like her penniless daughter. MIL found my choice of career distasteful.:D

My nom de plume says it all really. I had to learn my lessons the hard way……I just wish someone had taught me more about money management when I was younger.

I only really got a grip when OH became ill. Before then I just breezed through life spending money when I had it and not spending money when I didnt have it.

I was James Hunt when I should have been Niki Lauda:rotfl:

Karmacat

Thank you for that lovely reply, LL, and your musings on your own financial history.

Downsizing is astonishing, isn't it - I've got *almost* the same number of rooms as before I downsized, but no garage, which makes an amazing amount of difference I was shocked at how much stuff I had when I moved here, and I still had to declutter. I still want to do more - I'm slowly managing it, but its tricky, especially when more "stuff" is needed to build different businesses.

Love what you're saying about decluttering clothes too - my clothes aren't great, and are often second hand, tbh, but when they've got lots of wear left :o:o I'm quite wary of chucking them. Aren't the tiny houses great - I see a lot of that sort of thing on treehugger, including Dutch houses that float, or are amphibious

I'm not a giver-upper either and I consciously try to blow my own trumpet, when relevant, these days I don't think I ever breezed, but near as dammit I was very naive and very critical of people who were looking at a career because it paid well (argh! I can't believe I actually confessed that). And yes, parental attitudes are an issue.

Right. Its ten to two. Time to gear back up. Thanks for your post.

cazmanian_minx

Up-thread a bit, someone was asking for book recommendations and I've found one which I think might be of interest - it's got me gripped, anyway. It's about the relatively new business model of giving something away for free and making money from the small number of consumers who are prepared to pay for extras or an enhanced experience. Think of the game Candy Crush Saga as an example.

Anyway, practicing what he preaches, the author has a completely free taster version of the book here:
http://www.amazon.co.uk/Ways-Money-World-Penguin-Specials-ebook/dp/B00FGUM8EU/ref=la_B0089V3N10_1_1?s=books&ie=UTF8&qid=1394222205&sr=1-1

and the full version is here:
EDIT: link removed because the forum is !!!!!ing out the word in the link as well! Search for the title on Amazon

For some reason, the forum thinks one of the words in the title needs censoring, so forgive the slightly odd spacing, but the book is called The Curve: From Free Load Ers into Superfans by Nicholas Lovell. Very well worth a read by anyone attempting to make money out of something that can be delivered digitally (music, apps, games, words, pictures etc. etc.)

Kayalana99

How is everyone?

My 'I'm not going to be lazy' lasted long. I got up that night I believe and I cleaned most of the house up think OH was a bit shell shocked when he got up....then I got ill. Someones always ill in this house!!! I've been sick this morning but I'm feeling better then I have past few days...I blamed it on staying up most night at first and just being tired but I must of had a bug.

Still today is another day....off I gooo!