Millionaire Challenge

helensbiggestfan

Good Morning Everyone.  

Welcome Azadali.  To answer your question.  

To my knowledge none of our contributors have reached the magic £1m - yet.😉

I believe that one of "our readers" has managed the £1m figure but he is not a regular correspondent.  He just wrote in to encourage us and to show that it can be done. 

For myself I went from debts of £30k when the thread began to around £400k in assets and cash.  Although I did give £100k to my kids as deposits for their own houses, so currently around the £300k mark, which was my original target.   I'm happy with  My progress so far  But of course more would be great.......😂

I made a deliberate decision to help my kids get on to the property ladder to give them a head start rather than seeing them being part of "generation rent". I figured give them the money now when they need it most rather than waiting till I pop off.   I intend to live a looooong life. 😂. 

As droopsnoot says the £1m is really a figure of speech, one which I have always interpreted as FIRE. Financial Independence Retire Early. It doesn't mean you HAVE to retire, it just means you have full financial freedom to do what you like doing best without having to rely on that pay cheque.

I tend to agree with droopsnoots definition of passive income.  I take it to mean an income stream which requires some investment in both time and money to get the project off the ground but then once it's up and running it should be both financially rewarding and require minimum time and effort.  

Rental properties can fall into this bracket, although even the most distant Landlord does have to have some input Into the running of their properties, even if they hire an agent to do the day to day stuff.  I think there are few businesses which are entirely "passive" in the true sense of the word, they still need overseeing and monitoring.  Even if everything Is handed over to managers, agents and accountants you still need to keep a watchful eye on your interests because you can't really afford to take your eye off the ball.  

Noticed in the news today that M&S are having to streamline yet again.  They were in trouble before the Pandemic and now they have to restructure again if they are to remain viable.  

We are going through a huge period of transition, we were anyway but Covid seems to be speeding up the process.  Interesting times.  

Danni-R

Thanks for the update HBF. 
I mentioned this thread in my MFW diary but don't think I've actually contributed. 
I agree with your view of Passive Income. I'm still early into looking into this so have no additional incomes but it's great to have a target in mind. 

frostie101

Love to get started on this.

I am working on all three fronts:
Pay: Paying down debts
Save: Saving an emergency fund (had built one but during lockdown, the washer went, the oven broke (element) the bread maker broke, a pipe outside split and the toilet wouldn't flush) so now no emergency fund. 

I know people say to pay debts off first, build an emergency fund and only then invest but for me the motivation comes from doing all three. 

Millionaire Fund of Passive Investments at £970 with monthly passive income of around £5 per month.
A long way to go but at least I have started

droopsnoot

frostie101 said:

Millionaire Fund of Passive Investments at £970 with monthly passive income of around £5 per month.
A long way to go but at least I have started

That's the key. So many people think "I can never build up any decent amount so there's no point trying" then drop £5 on a cup of coffee.

Tropically

I'm working on it hard too. I recently cracked £400,000 but that's split between us as a couple. It's getting easier as each month my investments grow. It took me two years to get from £200,000 to £300,000 but only 10 months to get from 3 to 4. I work four jobs. One full time, three side hustles. 

Danni-R

I'm working on it hard too. I recently cracked £400,000 but that's split between us as a couple. It's getting easier as each month my investments grow. It took me two years to get from £200,000 to £300,000 but only 10 months to get from 3 to 4. I work four jobs. One full time, three side hustles. 

I think it's probably easier as a couple but then you have to share the amount! 
I'm probably not far off £250k between equity in the house, pensions and shares and a piddle amount of savings. With the added bonus that I dont have to split it. 
I have noticed that whilst one pension took a battering my shares have actually bounced back to close to where they were pre-covid which is nice. 
I'm looking at a second income as WFH full time for the time being frees up some time but I'm limited to what I can do as I dont want to go and mix with people. 

Muhren

Hi Danni-R I recognise your name from the DFW board from (luckily) a few years ago. Glad to see you are doing so well now.

Danni-R

Muhren said:

Hi Danni-R I recognise your name from the DFW board from (luckily) a few years ago. Glad to see you are doing so well now.

Hi Muhren!
Nice to hear from you. I wouldn't say I'm doing "so well", just no longer have the crippling anxiety so the world doesn't seem so doom and gloom now! I wouldnt kick a million quid out of bed but I dont think it's as much now as it was 10+ years ago. And for people who own or have equity in a property that can boost your figure in in the challenge. I'm 30 *something* and I dont think I could retire if I won a million £ tomorrow. I'd have a nice life but I'd still have to work.

I've kind of revived my diary so that I can ignore it for a few years and come back and see what I was doing during the pandemic of 2020!

Muhren

Well if you have managed to get over the crippling anxiety that is a massive positive to start with, and your net worth is not to be sniffed at. You shouldn't be so hard on yourself (which to be fair is exactly what I am like).

If someone put a million in my bank account tomorrow I would be handing in my notice the same day! 

Danni-R

Muhren said

If someone put a million in my bank account tomorrow I would be handing in my notice the same day! 

Would you be able to give up work though? 
If I had a million I'd buy a house which round here is £500k+ or I could buy a house somewhere a bit nicer and that would be closer to £800k which leaves me £200k which is nice but I'd need 28 ish years of wages out of that.