Millionaire Challenge

lessonlearned

Luckystepho wrote: »

The jealousy thing is definitely something I need to work on too... I have a very spendy friend who is always going clothes shopping, having facials, drives an expensive car etc, and when I am at work I get texts from her saying she's shopping, having her nails done etc...


I do find myself feeling jealous although every now and then I get an inkling that her finances are not as healthy as she makes out!

It IS sometimes hard not to feel a tad envious but as Kay says the trick is to use these feelings as a way to spur you on to greater and better things. Use these feelings as a powerful motivation tool. It's when they drag you down into a pit of despair and eat away at your soul that these strong feelings of envy become so damaging and destructive. They can demotivate you.

As to the state of your friends finances, then if you have an "inkling" then you may well be right.

Back in the day my husband once commented on some friends in our circle who seemed to "have it all". Beautiful home, flash cars, fancy holidays, designer clothes.....tbh there were times when I felt quite inadequate by comparison but like you I just had a "feeling". Turns out I was right. Shortly afterwards the husband admitted they were over committed and way out of their depth but he was too scared to confront his wife.......so sad. Their marriage was not a happy one.

Just keep going.....it will be alright in the end. What really counts is tenacity and being able to stick it out.

Persistence Pays OFf so Set your targets and just stay focussed.

Never Give Up.

grumbler

arlenewei wrote: »

Try your best and everything is possible

The Following 2 Users Say Thank You to arlenewei For This Useful Post: millionaire in training (Yesterday), rubyrose3435 (Today)


It keeps amazing me how easy it is for a new spammer, building a posts count, to get "thanks" in these parts of MSE forum....


:wall:- naming and shaming

Luckystepho

Thanks Kay and LL, this friend is great fun but can be rather a show off at times so I just smile and let her have her moment. If she is over-committing herself I really hope she feels she can talk to me about it as she knows I've been there with debt and I could support her.



I think modern society encourages people to have it all- the flash cars, fancy holidays, designer clothes, and if you can't afford it just borrow it...

lessonlearned

I think you are right. There is enormous pressure to spend like there’s no tomorrow but I do think the tide is turning.

Apparently there wasn’t the usual high level of Christmas spending this year. Maybe the Brexit effect or maybe more people are trying to live more sustainably.

I think there is also a trend to buy experiences rather than stuff.

Anyway well done on sorting out your debt. A great first step towards accumulating wealth.

troglodyte

Luckystepho wrote: »

The jealousy thing is definitely something I need to work on too... I have a very spendy friend who is always going clothes shopping, having facials, drives an expensive car etc, and when I am at work I get texts from her saying she's shopping, having her nails done etc...

I do find myself feeling jealous although every now and then I get an inkling that her finances are not as healthy as she makes out!

If she constantly feels the need to tell you (and presumably others) what a great time she's having, I can't help feeling that she's finding it all rather empty and is trying to make it all feel worthwhile by making others envy her. If she really was having a fabulous time she'd be too engrossed to be spending her time texting. And I have to say that the thought of spending my days shopping and having facials would bore me to death. Put your phone in a drawer and concentrate your efforts on doing well at work or looking for a more satisfying job!

CornishOptimist

Been a long time lurker on this thread and felt it time to post finally.


I'm 30 and this year I have a bit of a tough year to contend with but I'm determined to be in a good financial position to move forward with my goals.


This year I am getting divorced and I'm unsure what the will cost financially and emotionally but it must happen and I've just got to get through it.


I own my home (with mortgage) and I have only £1,400 in unsecured debt which I am paying off as quickly as I can despite it being 0% until June 2020.


I have an income of roughly £1400 pcm and always budget rigidly (now) haven't always been the best but now I really want to 'grab the financial bull by the horns'.


I am hoping to achieve my goals by having multiple passive income streams. So far P2P, rent from lodger, bank interest, index funds and bi annual dividends are what I get. They net me very small amounts, nowhere near enough to live off of, but I'm hoping to grow them as much as I can.


Anyway, hi gang!


CO x

grumbler

Muhren wrote: »

So I thought that I wasn't going to reach my end of year target of £200k NAV. However I am in the process of remortgaging and my house price seems to have shot up a lot more than expected, which will mean I be closer to £230k when I get round to totaling everything up early in the new year. Which was a very nice surprise to end the year.

It's beyond me why everybody is so obsessed with the price of the house they own, is so happy to see it rising and upset when it falls... :huh:


It's a delusion! Rising prices are BAD for everyone except those who are going to

• die soon and leave the inheritance to their children,
• downsize (very few actually)
• emigrate (again, very few).

The rest fall into two categories.

First don't have any plans of moving. For them the price of their house is irrelevant. It's not their wealth as they cannot spend this imaginable money.

Second want to upsize (most, I guess). For them rising prices is a BAD thing.

Also, it's good for our government, wanting higher inflation (to devalue its debt) and bigger spending (to collect more taxes) fuelled by this delusional rising wealth.

Kayalana99

grumbler wrote: »

It's beyond me why everybody is so obsessed with the price of the house they own, is so happy to see it rising and upset when it falls... :huh:


It's a delusion! Rising prices are BAD for everyone except those who are going to

• die soon and leave the inheritance to their children,
• downsize (very few actually)
• emigrate (again, very few).

The rest fall into two categories.

First have no any plans of moving. For them the price of their house is irrelevant. It's not their wealth as they cannot spend this imaginable money.

Second want to upsize (most, I guess). For them rising prices is a BAD thing.

Also, it's good for our government, wanting higher inflation (to devalue its debt) and bigger spending (to collect more taxes) fuelled by this delusional rising wealth.

If you own an 100k house that you have 10k in, and house prices raise 10% you now have 20k left over at a sale of £110k

You can now buy a 200k house (even if that 200k house was prevouisly a 180k ish house)

If house prices was still at 100k, you might never have been able to afford the deposit on the 200k house.

Or another good situation is your house goes up 10%, you now own around 20% instead of 10% (not exact maths) which means you can now get a cheaper interest rate.

You make some very vaild points, but it is not all negative house prices rising.

Also, if house prices do drop 10% it takes away the control of you being able to sell up / move. That 100k house you bought is now worth 91k, with you owning only 1k of the house - you can no longer afford to move in theory.

Yes you might not have plans too, but it's nice to know you can if you want to.

grumbler

Kayalana99 wrote: »

If you own an 100k house that you have 10k in, and house prices raise 10% you now have 20k left over at a sale of £110k

You can now buy a 200k house (even if that 200k house was prevouisly a 180k ish house)

Yes, and you'll be £180K in debt instead of £90K. Plus a greater risk of getting into the negative equty. And the amount you can borrow depends on your salary too, not just on the deposit.
Nothing to be happy about really. And don't forget the tax and the commission.

If house prices was still at 100k, you might never have been able to afford the deposit on the 200k house.

Good for you. Don't buy it if you cannot afford it. And if the prices don't rise, you would need to save just £10K more to afford it. If your salary is big enough for the mortgage twice as big as your current one, you can easily do this.

Or another good situation is your house goes up 10%, you now own around 20% instead of 10% (not exact maths) which means you can now get a cheaper interest rate.

Yes, this I can understand.

You make some very vaild points, but it is not all negative house prices rising.

Also, if house prices do drop 10% it takes away the control of you being able to sell up / move. That 100k house you bought is now worth 91k, with you owning only 1k of the house - you can no longer afford to move in theory.

Yes you might not have plans too, but it's nice to know you can if you want to.

So, on balance, if the prices remain the same and don't rise, we all have to be happy, not disappointed like most home owners are.
And not much to get exited about if they rise.

little_green

CornishOptimist wrote: »

Been a long time lurker on this thread and felt it time to post finally.


I'm 30 and this year I have a bit of a tough year to contend with but I'm determined to be in a good financial position to move forward with my goals.


This year I am getting divorced and I'm unsure what the will cost financially and emotionally but it must happen and I've just got to get through it.


I own my home (with mortgage) and I have only £1,400 in unsecured debt which I am paying off as quickly as I can despite it being 0% until June 2020.


I have an income of roughly £1400 pcm and always budget rigidly (now) haven't always been the best but now I really want to 'grab the financial bull by the horns'.


I am hoping to achieve my goals by having multiple passive income streams. So far P2P, rent from lodger, bank interest, index funds and bi annual dividends are what I get. They net me very small amounts, nowhere near enough to live off of, but I'm hoping to grow them as much as I can.


Anyway, hi gang!


CO x

hello cornish optimist thanks for getting involved! I'm a noob on this forum too! Best of luck with the divorce. Glad to hear you are grabbing the bull by the horns. Let us know how things go.

Luckystepho wrote: »

I think modern society encourages people to have it all- the flash cars, fancy holidays, designer clothes, and if you can't afford it just borrow it...

this for sure. Social media is full of people posting highlights from their lives. I read a quote once something like "don't let social media rush you, no one is posting their failures".
& it's true rarely people post about the times things don't go well or things didnt work out. people tend not to post about the car /house they didnt buy. And it can seem like overnight success, or endless money pulled from thin air.
It's not even the green eyed monster. As someone said envy is natural so whilst there is an element of that, there are times it's not that I feel envious of what they have or what they have (seem to have) achieved, it's that I feel inferior or inadequate. But I guess it's important to remember that we only see what people want us to see & rarely are we given the full picture.