Millionaire Challenge

lessonlearned

Good afternoon fellow millionaires to be.....

Welcome luckystepho.....I am In total agreement with Kay..... you have done well, having two btls is a lot more than some people manage to achieve, myself included. So don't beat yourself up.

Re the fear thing.......I think there is nothing wrong with being afraid, only a total idiot never feels fear. The trick is to make that fear work for you, make it help you to be more careful, to think things through rather than just jumping in feet first, let fear help you to be a little cautious and plan ahead.

As for failures and mistakes.....well I agree with whoever said it.....I do think we learn more from our failures than we do from our successes.

Failure, like fear, is what spurs successful people on. I know it sounds cheesy but tend to agree with this saying........It's not how often we fail that's important it's how often we pick ourselves up and try again that really counts.

Well I'm another one glad to see the back of January. Dealing with the aftermath of dad's death was just horrible. Anyway, it's over now, the funeral was last Friday. I have gone through all his papers and done everything I need to do.

Because his will needs to go to probate I have passed it all to dad's solicitor. I could tackle it myself but I just cant facing it a third time. I'll let someone else take the strain and free up my time for more pleasant activities.

I don't know whether it was shock, oR exhaustion but I did contract some kind of flu or virus and have felt pretty rough, but I'm starting to feel much better now,

Moneywise..........I have decided that February will be a time for a financial review and some serious cutting back. So no frivolous spending this month.

So join me if you like for "Frugal February" :rotfl:

I have this week set myself a new challenge.

"A Year to Change My Life".

This is not so much geared to money making as such, although I won't be looking any gift horses In the mouth. I am always open to possibilities and any opportunities that come my may.:D

No my challenge is more of a personal development thing, focussing on getting super healthy, learning new stuff, unleashing my creativity ........oooh er missus.......:rotfl: travel, and just generally having some good times and adventures.

Oh and I really must buy a house......;)

I've had ten years of sadness and sorrow.......time to draw a line. Time to be happy. Time for FUN.

Kay......House prices?? Who can say what lies ahead. Apart from the really nice ones in the best areas houses here are definitely sticking a bit. I do think though that in many ways thats down to sellers being a bit unrealistic. But it's definitely not a particularly "brisk" market.

Try not worry about losing equity. As long as you can pay the mortgage, you can ride it out and it won't matter. It's only if you need to sell or remortgage that low or negative equity becomes an issue.

Sooner or later the market will pick up.

A house is still likely to be one of your best assets, as well as being your home and refuge. I have always regarded my home as my sanctuary. I have always practised "hygge" - long before I knew it had a proper name.

The boys have now finished boarding out the loft so I have been happily boxing up my treasures and putting them into storage. For saying that I have been steadily decluttering I still seem to have far too much "stuff". :eek: however, Im not going to sell anything else for now though until I have moved.

There will of course be more treasures to think about when I go through dad's stuff, but I think this will mainly be photos now and just small sentimental items and memorabilia so shouldnt take up too much space.

It Really is the end of an era for me and time for a new beginning.

Luckystepho

Thanks Kaya and LL, funny thing is I rent where I live- couldn't afford to buy here and so the buy to lets are around an hour's drive away. Everytime I pay out for more repairs, I think this should be it for a while, but then it never is! It is disheartening to see every bit of money I manage to save spent on repairs each month as well as all my profits... I will wait until the valuation comes back and make a decision...

LL I am not surprised you've been feeling rough after what you've been through in the past the few years, hope you are fully recovered from the flu. Your plans for 2017 sound great and I really need to join you on the Frugal February as spent too much over Christmas!! I also have a lot of decluttering to do...

I have finished editing the three guides I am putting on Kindle so just need to write 'blurb' for them and they will be on there by the end of the week!

Gillbrah

Lingua wrote: »

Yearly Plan:

Currently 20, net worth ~£10k
By graduation (2019) = ~50-55k (very variable)

Then (EoY figures):
2020: £70k
2021: £90k
2022: £110k
2023: £140k
2024: £180k
2025: £220k
2026: £260k (turn 30!)
2027: £300k

I'm working on very rough estimates past graduation, so it's more a moonshot than anything else. 300k isn't quite a million, but I don't want to work myself to death for money - instead, I'd like to work hard, retire early(ish) and then do part-time work and entrepreneurial work to cover expenses while my capital works away on producing interest.

The aspirations and assumptions

I made my calculations on a ridiculously low wage over the full 10 years (just 20k/yr with no pay increase) but with additional income of 1k/month which I hope to secure from alternative revenue streams. If that doesn't come to fruition, I'll need an income of around 40k for the shortfall.

No changes to ISAs, or significant changes to tax allowances or tax rates

Savings rising in line with inflation. I have not accounted for any interest on savings or appreciation in value of assets. I wanted to see what I could have at the bare minimum?

Rental Property
The plan (The Plan?) also includes investing in rental property as a passive income source, and learning trades such as plumbing and electrical engineering to reduce maintenance and also provide additional income. It's embarrassing how few people my age can't change a plug socket (I can't ...) - this relies heavily on the rental market remaining buoyant and no further changes to the law, although I planned for outright purchase rather than mortgaging to see if it was feasible.

Stocks and Shares
I also plan to invest heavily in the market, using index funds to keep charges low and also to make sure there is diversity in stock holdings. From what I have been able to read in my research (and please do correct me if I'm wrong!), income made within an ISA is completely exempt from income tax (e.g. earn £20k a year in an ISA, you don't need to pay a penny in income tax). Of course, I won't make this much as my calculations put me at around 70-100k in S&S. The difference is due to whether I choose to invest in a Lifetime ISA.
The recommended safe withdrawal rate for American S&S is 4%. The UK market hasn't tended to perform as well, and a lower rate of 3% is suggested. I'm working with 2%.

Rental income (after a 30% allowance put to one side for maintenance/legal) will be enough to live on and also save further. I don't want to fully retire around 30, but certainly begin the gradual process at that point, e.g., fewer hours, flexibility to work from home, etc. I had planned to retire far later at 55, but I must admit that reading MMM (MrMoneyMustache) has changed my mind quite a bit - what use is saving a huge chunk of money if I don't get all that much time (particularly time in good health) to enjoy it? I don't need thousands a month anyway, I'm quite content with a good book.
-

It's a very optimistic plan, and I know that realistically it may well end up being extended by many many years. I haven't accounted for a future spouse or children, or unforeseen disasters. Still, it's my rough self-guide which I'll be using to see how far along I am.

The millionnaire part will come after finishing work, and hopefully striking upon an excellent business model or two!

Please do critique or pose questions as they'll help to highlight key issues that I may have overlooked.

Cheers
Lingua

Great plan, we have very similar aspirations at the same age. If we knew each other we would definitely be best friends. :beer::rotfl:

Bmth100

Luckystepho wrote: »

Business wise I have a few ideas which I am putting into practice- I have a kindle book bringing in a few pounds each month, which is not much but working on another three kindle books. It’s lovely to see people who ‘get’ business and entrepreneurship as there are very few people in my life I can talk about this stuff with!

Here’s to a great 2017! :beer:

Hey there

If you don't mind me snooping, what sort of book is it you've got on Kindle, and what's in the works?

I'm almost done with my first novel and if it doesn't garner any agent interest (which is very likely these days!) I shall also be self-pubbing.

PoorGuyNextDoor

Giant step forward taken that could see a new income revenue as soon as June/July. Itl be here before we know it. Not talking great amounts of money but starting low who knows how high i could get. Big plans this year, so glad January is out the way as it was horrible!! Welcome to all the newbies iv not spoken to on here yet, i will follow use with interest in 2017, good luck!!

Luckystepho

Bmth100 wrote: »

Hey there

If you don't mind me snooping, what sort of book is it you've got on Kindle, and what's in the works?

I'm almost done with my first novel and if it doesn't garner any agent interest (which is very likely these days!) I shall also be self-pubbing.

Hi Bmth, the one I already has on there is a practical guide to completing a popular ultra race (I like long walks and running although I'm not very fast at it!!)

The other guides are kind of a set detailing races and walks available, a kind of 'bucket list' type of thing... they aren't very long, the first guide sells at a couple of pounds but brings in a steady trickle of sales each month.

I have heard that some people are making quite a bit of income by selling novels on Kindle, I think the trick is to have quite a few. But any passive income stream, no matter if it's just a trickle, is a good thing!

fewgroats

Luckystepho wrote: »

...passive income stream...

I think calling it a passive income stream gives people the wrong idea. A Kindle still needs to be marketed, still needs to have a good cover and so on. You might necessarily receive the money when you worked on the Kindle, but you still need to do spend time coming up with something good and promoting it.

Kayalana99

fewgroats wrote: »

I think calling it a passive income stream gives people the wrong idea. A Kindle still needs to be marketed, still needs to have a good cover and so on. You might necessarily receive the money when you worked on the Kindle, but you still need to do spend time coming up with something good and promoting it.

Actually that's exactly what it is. Passive income is making money whilst you sleep. Other income, such as working for an employee, means you get paid per hour.

Yes of course you never get something for nothing, and hours of work were put into that kindle book (although not ness marketing it as isn't that why you sell it on the Kindle platform so people can find it themselves?) but that is what passive income is because now money comes in on it's own, without you physically having to work per hour to get it.

It's the same as being a landlord, you still have to advertise for the tenants, deal with the legal side, deal with up keep of the property - but it's still classed as passive income.

fewgroats

I never said it wasn't correct.

Luckystepho

Kaya's hit the nail right on the head- creating something once (or getting a property ready) and then making a recurrent income from it for no or very little effort. If you have enough of these income streams you've separated time from money- I can go and work 8 hours at my day job and know I will get paid x amount per hour but no matter how much I get done I won't get paid any more, but then come home and realise I have earnt £10 from my kindle book without having done anything... I could have been in bed or on the beach.

It is quite hard to continually promote a Kindle book unless anyone else knows a way? I guess we could give away free copies in exchange for honest reviews...