Millionaire Challenge

Broken_Biscuits

Broken_Biscuits wrote: »

good day today.
bumper pay cheque including my redundancy payment. Its more than i managed to hold onto by the end of last year and takes me so close to hitting 100k net worth. (almost 10% there!!)

with a nice cushion behind me i can up pension contributions and start investing properly for potential early retirement. Some's going off the mortgage too.

going to aim to save 50% of my new job's salary but have a large cash buffer now (earning 5%) so if some months are tighter then i have no problem dipping in a little to that.


all of my co workers are pretty much spent up to the last penny on cars, new kitchens and gadgets with their payout... But im content. There's nothing i want or need.


could be a life changing amount if only because its changed my approach from just saving to investing for the future.


happy days

Sorry I dont post much anymore, I do intend to get more involved but it would probably take me a day or two of reading to catch up.

Found my old post from the day I was made redundant in January 2015. I was getting excited about almost being 10% of the way to a million from receiving a redundancy payment that totalled more than the amount I'd saved in the whole of 2014.

Most people do their networth calculations in April. I do mine middle December. Allows me mentally just to get on with enjoying Christmas and spending what I like as its all counted up so can get on with the extragence.

I'm now worth just a few quid over 110k.
To put that in perspective in Dec 2013 (when I first started keeping records) was at 68k and 2014 it was 82.5k.

It's been a massive year for me financially, saved hard and invested a lot of time reading up things that should hopefully change my life. I'm 11% of the way there now but to be honest my aims have always been to be financially independent rather than a millionaire and I think I will get to FI before I have a million. Would I keep going at that point just to get to a certain number? Probably not. Im moving more away from pensions (but still contributing 10% each year) so its not tied up should I get the chance to retire early.
2013 nw was 55% in pensions. Now it's about 42%.

Hope to keep increasing my more accessible holdings to get to a point where any financial hurdle can be overcome.

A really good 2016 would see me hit around 125k. Thats the stretching target I'm setting myself, would be nice to be able to say I'm 1/8 a millionaire!

We shall see.

Happy Christmas all, hope you have all been good this year and Santa brings you what you want!

Muhren

Sounds like you are doing great broken biscuits, do you mind me asking how old you are? The reason I ask is that I am in a similar sort of position to you financially.

Broken_Biscuits

Early 30s. Still at least a couple of hundred pay days before I can even consider packing in work.

Muhren

Same sort of age as me then. I'll be interested in how you are going to go about making your million, and pinch some of your ideas!

Kayalana99

lessonlearned wrote: »

One thing I did learn.......I need to think bigger, take a few more chances, Carpe diem and all that......

This is also something that has hit me this week, I am really a small as a small business comes.

My friend has a business idea and wants to borrow 25k (not off me just read that back haha) and somewhere along this conversation I realised just how small I was...I needed 5k for my next jump into photography and it sounds like such a lot of money but the banks would chuck it at me if I applied (that said easier to go through my Dad less red tape even if he does charge slightly higher interest :rotfl:)

I'm VERY interested to see how this plays out for her, and if she had never met me she would never of even considered running her own business...it's been me always saying why she doesn't she do this or this etc and she always comes back with "she's not like me" and wouldn't know how to start but she's had the actual idea of her own merit and she's really serious about following it through...I just worry she won't be able to get the funding and she has no cash to back up the idea her self.

I will actually keep you updated how this plays out because I've never actually known anyone to apply for a business bank loan and it's intrigues me how easy/hard it would be if you have an idea to get a business off the ground from nothing.

Karmacat

Very interesting, Kaya - with all that's going on in the business world, it will be fascinating to see if she manages to get that loan and achieve what she's planning. Here's hoping

lessonlearned

Good morning all.

Well I feel like I've come back to earth with a bump. I definitely need to get my a@@ in gear. Ive done just a bit of a money sort out, ouch...:rotfl:

Must do better.

For next year I have set myself a target of saving £1k a month again. Don't know if I'll manage a whole year of that, doubt it somehow. I have decided to break down the year into 4 quarters. £3k over three months doesn't seem quite so daunting......

I am go to try "paying" myself £1k a month, ie rather than save what's left at the end of the month I'm going to put that £1k Into savings at beginning of the month. I think I read this in Rich Dad,Poor Dad.

So immediately the DDs are cleared, I will transfer what's left into savings, withdrawing enough cash for the month. When it's gone, it's gone. :rotfl:

Plus of course I need to pull my finger out and start earning again.

Kaya - yes I will interested in How your friend gets on with business loans.

When I mentioned my need to "think bigger" this is something I would need to do. I discussed this with some people on the cruise. I think I have been a bit too timid about borrowing in the past.

I have no debts, no borrowings. I do believe in the old adage that cash is king and that if you have spare cash you can often get the best deals and bargains but cash will only get me so far.

One of my multi millionaire friends has no such fears and borrows what I think are eye watering amounts but she doesnt bat an eyelid. Similarly a lady I met on the cruise who is well on her way to that first million has a similar cavalier approach to borrowing.

i think it's time to step out if my comfort zone and be a bit more adventurous. :rotfl::rotfl:

cazmanian_minx

Hooray - missives concluded on the crofts! All that's left to be done is for the executors to sign the transfer paperwork and register it with the Crofting Commission and then I can pick up the keys. Total Adsense earnings from the blog about it are now at £3.32, which isn't bad given I haven't got going with the renovation yet!

Kayalana99

Eep good luck!! :-)

Closed down last night, got one order to do as I made a mistake (and maybe more to come I hope not or INR's...

So happy it's over, and I brought a new camera which is going to be the camera for years to come, I know some very well known wedding photographers also use it.

I've made the same as my Husband this month give or take but I'm not touching the money as I am now paying myself a wage which over the space of the year should even out give or take.

So so glad it's over and I can put my feet up, I've really over done it two nights ago one side of my neck was swollen and I couldn't move because of a headache and my right eye has had a slight twitch...I've really ran myself into the ground but I have had so many people send me thank you messages and saying how much they love them and how they are under the tree etc etc...it's worth it.

Will be doing a massive house sort out now, focusing on my photography, doing some general paperwork with the business and looking forward to Xmas.

Not sure if I am going to be getting that 5k I wanted for my business soon to, interest only but it will suit us for now. My Dad lent me a £1,000 for my camera. (ok I could technically afford it out of the business but I would rather pay monthly and it just comes out of my Dad's offset mortgage account and I pay him more interest...he's not cheap! and as above don't want to touch the money if I can help it)

Broken_Biscuits

Muhren wrote: »

Same sort of age as me then. I'll be interested in how you are going to go about making your million, and pinch some of your ideas!

Short answer = time.

Play around with this
http://monevator.com/compound-interest-calculator/

For me if I put my current numbers in for property value, pensions and savings and then assume I'm going to add, say, £400 a month for savings and £160 a month to pension. Assume a 7 percent return on savings/pension and 5% increase in property value per year then I hit around 1 mil in about 20 or so years.

Just need to move monthly contributions upwards if percents are not as rosy as predicted.

So the plan is frugal living, taking advantage of pension contributions* and investing soundly.

*but not too heavily going into pensions, should I want to consider retiring or slowing down pre 55 years old only to find too much of my wealth is locked up in inaccessible financial vehicles.