Millionaire Challenge

bones85

sat wondering to myself the other i wonder how much and how long it would take me to save half a million pounds, Would take me 20 years if i saved £2000 a month, my wages is half of that

Guess the dream is over hahaha

pjcox2005

bones85 wrote: »

sat wondering to myself the other i wonder how much and how long it would take me to save half a million pounds, Would take me 20 years if i saved £2000 a month, my wages is half of that

Guess the dream is over hahaha

If it helps it's about 15 years with interest of 4% each year compounding, or 25 years if you were saving £1000 a month with 4% interest each year.

droopsnoot

bones85 wrote: »

Guess the dream is over hahaha

Only if the only way you're thinking of attaining the magic figure is by saving from your income. Have a browse back through the thread and you'll see some of the ways that other people are attempting it - some need much more time than others, some need a head for business that not everyone has.


But you're right, if the only way you can imagine you'd ever reach a milestone amount is by savings from income, it's probably not going to happen. Apart from anything else, you'll get so used to saving and not spending over the 15-20 years, once you have reached the figure, you'll be too scared to spend any of it.

lessonlearned

bones85 wrote: »

sat wondering to myself the other i wonder how much and how long it would take me to save half a million pounds, Would take me 20 years if i saved £2000 a month, my wages is half of that

Guess the dream is over hahaha

What.....are you going to give up before you have even started. :rotfl:

Sorry to be blunt but with such a negative attitude and such a narrow way of thinking then you are right, you will never make your target.

If you want to give it a go then first of all you need to learn a bit of basic maths.,....ie how compound interest works and also the Rule of 72 and how to apply it.

And no I’m not going to tell you. If you do the research yourself then it will help you understand it better.

And droopsnout is right.......you need to look at more than one income stream. You also need to understand the difference between appreciating assets which make you more money and liabilities which cost you money.

You will need to learn how to make your assets work for you, and you need to learn how to maximise the money you have so you can make it grow. You need to set up a “Money farm”. :rotfl:

It also helps to live ultra frugally for a while to give your savings a boost so that you can then reinvest. That’s where the real money making takes place, investing for growth not merely relying on monthly savings.

You also need to maximise cash flow and avoid unnecessary debt on items which only depreciate in value.....ie most cars, toys and gizmos.

There are many ways to accumulate wealth and often it’s a combination of earnings, frugal living and shrewd investing.

lessonlearned

Kaya.....any further forward with your decision yet about the potential BTL.

Well I’m just back from my cruise. I had a wonderful time and have come back fully refreshed. I have just realised it’s only 12 weeks till my Amazon trip and what with Christmas and all I doubt that I will be able to achieve much between now and then.

So my plan is to just carry on with some minor decorating, furniture restoration, etc. and get down to the gym and lose at least another stone.

I need to get all my vaccinations sorted out and they will probably make me feel a bit groggy and hold me back a bit so I think I will get them done ASAP.

Other than that no radical plans for now.

A case of Steady as she goes. :rotfl:

0511034

Hi All,

I'm a long time lurker of this thread from the very start (when it actually started off), I have read every post from start to finish and I truly have been inspired by your money making ventures/idea and touched by many of your stories and personal journey’s. So whilst I consider I know you all fairly well, you will have no idea about me.


So by way of introduction, my name is Raj, I am 30 years old and I am a solicitor and have been for the last 6 years. My circumstances have recently changed in that until 6 months ago I worked for a fairly large law firm when the area of law I practiced in died off quite suddenly, as I only practiced in one area of law for 6 years I struggled to find another job in another law firm (at the pay grade I was on) due to not having diversity of practical experience in other legal areas. So 6 months ago I had a mini career change and became a law lecturer at a university local to me. I still hold my legal practicing certificate so I am still a solicitor and can practice law, and go back into practicing law on a full time basis if needing to. I am married to the most amazing woman and I am so lucky and this is worth more than any money or status in the world. My wife also has a very well paid job so jointly between us we have a very good income.


At present we are in an extremely fortunate position to have approximately £10k in savings but we have a very large mortgage (250k mortgage and house worth £340k), although we love our house, in hindsight it will possibly be a massive drain on our money and prevent us improving our savings due to the interest payments. The only saving grace is that we live in a very good area where house prices keep increasing so unless we have a market crash, the gain in value will hopefully even out and offset the loss we are incurring with interest payments.

Anyway, I am also on that elusive quest for millionaire status whilst we are in a comfortable and fortunate position and fully recognise that, I always want to continue to grow and improve in every aspect of my life which is why I am here.


My ideal position is to build a business that will allow us to earn enough money for us to be able to give up work and earn a passive income that can keep things ticking over. My biggest area of weakness (which I know I need to improve upon) is developing ideas to not only grow our savings but also to develop ideas to grow a sustainable business that ideally I could run with my wife. However, I am very academic/bookish and theoretical in my mindset, I am not a very creative or practical person and find it hard to visualise and or come up with ideas to grow a business and our savings (currently sat in a savings account).


I have a few ideas in mind but they all, I would love to get into buying properties as projects and selling them on and another area that interests me is owning a livery yard (my wife owns two horses so we know a bit about this area). Our issue is initial capital and gaining the necessary contacts that could make these ideas ventures work. The fact a passive income appeals to me would indicate potentially starting something online but again I lack any sort of creativity and it looks like most areas of online businesses are over saturated.


So presently I am at a bit of a dead end in respect of how I proceed both with the savings we have and how to start a business (or even what the business idea should be). Lecturing isn’t something I’ve found easy and not something I find I enjoy that much compared to practicing law, it is incredibly stressful and I find myself constantly firefighting which is unlike me. I think it is this that has triggered me to start to try and take action rather than just think about it.


I hope you are all well and thank you for taking the time to read this essay post, now the first one is out the way I certainly will be contributing more regularly.

Kayalana99

Hi Raj,

Very interesting story, nice to hear from you! If I was you I'd re-mortgage the house in the view of raising funds for B2L's...but that's just me ..

Sorry I couldn't be of more help ATM but I was just popping on to say that the B2L probabaly isn't going ahead, having some personal issues right now. My Dad has suggested something about me investing in his property business but I'm just going to see what he comes up with and he's speaking to his accountant, everything is a bit up in the air ATM though.

Hope you had a good time LL and everyone is doing well, I'll update you all eventually.

lessonlearned

Just a quickie to say to Hi and Welcome to Raj.

crv1963

How do you each calculate your net worth? Can this include joint monies eg. house value and pensions that both members of a couple save jointly, or do you have to divide this in half to get an individuals worth?


I'm working on our figures! (Excluding our cars as they are depreciating assets). We'd like to do our worth as a couple as apart from car purchases everything we do we do jointly!


CRV

0511034

crv1963 wrote: »

How do you each calculate your net worth? Can this include joint monies eg. house value and pensions that both members of a couple save jointly, or do you have to divide this in half to get an individuals worth?


I'm working on our figures! (Excluding our cars as they are depreciating assets). We'd like to do our worth as a couple as apart from car purchases everything we do we do jointly!


CRV

We calculate ours on a joint basis, including all assets/liabilities such as the house, savings, pensions, cars etc. although we contribute to separate workplace pensions, we simply include it all in the same pot.

Our circumstances are similar to yours, in the respect everything we have is in joint names really except for cars/pensions but we calculate everything on a joint basis.


Becoming Millionaires / or achieving our respective targets set will be a great deal easier with a support network and team work so we do ours jointly :beer: