Making it big..?

swizzy

Hello Money Experts,

I am a Uni student, quite optimistically looking in the future - I have recently secured a pretty good (reaching into 40% tax band) graduate job. I have managed to gather 5-digit savings from my 2 part-time jobs too.

However, this is all not enough. Before I go any further, I don't want to sound like a spoiled brat - I have no support from parents and I treat this more like a goal, rather than a dream.

I want to increase my financial freedom and significantly improve living standards, whilst I still can (no family, good health). Ultimate goal is for my income to exceed £1m per annum.

I do not know personally anyone who would make it, so don't really have anyone to ask for advice. I don't like risk, so am looking for something I could do in my spare time (after work) that could get me to my goal. Corporate salary won't buy me a property in central London or New York, for example. I would imagine myself in real estate/property, but don't really know how to start. I have also looked into shares/bonds (long-term), but this requires more time, which I don't really have.

I wouldn't really want to quit the job I had fought for so much to take any other risks now, unless I had minimised it and increased odds of success being self-employed - which I haven't done, due to not knowing where/how to go.

What would you advise?

Regards,
Swizzy

System

Try this thread for ideas:

http://forums.moneysavingexpert.com/showthread.php?t=3222528

Good luck to you!

Lighthouse_in_the_dark

swizzy big ideas never heart anyone.

this forum is very good for somethings (and this subsection especially) but in reality its full of people who want to make a couple of hundred quid a month extra.

The enthasis is on surveys and selling stuff on ebay (ebay hasn't been a big earner for at least 10 years)

The reality there is no big reward without at least some degree of risk and dont quite your job over night. think 80:20 principle. most things in life can be outsourced.

what did you graduate in?
use your skills to your advantage!

one last thing give the big corporate look! if your image says your a big brand people will treat you like one!

lincroft1710

swizzy wrote: »

Hello Money Experts,

I am a Uni student, quite optimistically looking in the future - I have recently secured a pretty good (reaching into 40% tax band) graduate job. I have managed to gather 5-digit savings from my 2 part-time jobs too.

Good start

However, this is all not enough. Before I go any further, I don't want to sound like a spoiled brat - I have no support from parents and I treat this more like a goal, rather than a dream.

Only you can make it work

I want to increase my financial freedom and significantly improve living standards, whilst I still can (no family, good health). Ultimate goal is for my income to exceed £1m per annum.

Read as many autobiographies/biographies of millionaires as you can.

I do not know personally anyone who would make it, so don't really have anyone to ask for advice. I don't like risk,

Very few millionaires (except perhaps best selling authors and pop/rockstars) achieved their fortunes without some form of risk. If you could find the magic formula to write best sellers, this would solve your problem

so am looking for something I could do in my spare time (after work) that could get me to my goal.

You will have to be patient, the queue of people wanting to get rich "by doing a few hours work in their spare time", stretches twice round the globe

Corporate salary won't buy me a property in central London or New York, for example. I would imagine myself in real estate/property, but don't really know how to start.

You buy somewhere cheap in an upcoming area, do it up, sell it on at vastly increased price, then repeat the process. Or buy up large tract of agricultural land near to an expanding town/city, wait until planners decide your land should be developed, then sell at huge profit. Or buy properties, let them out, collect rent and sell on when price rises or mortgage paid off

I have also looked into shares/bonds (long-term), but this requires more time, which I don't really have.

Shares/bonds which have good returns tend to be high risk

I wouldn't really want to quit the job I had fought for so much to take any other risks now, unless I had minimised it and increased odds of success being self-employed - which I haven't done, due to not knowing where/how to go.

What would you advise?

Regards,
Swizzy

Final piece of advice, see how the job goes for a year or so.

swizzy

Thanks guys. Your posts are giving me the advice I have asked for.

Two more questions:

1. Investment in property or land (well, anything really) is a risk. How do I minimise it? How do I make a data-based decision? There certainly must be some kind of formulas, assessment matrices, scores etc. that would make me feel more reassured. Do you know any personal stories, or are able to recommend anything?

2. Where do I get the money from? Could I apply for any governmental or private grants? What are the T&C's? I haven't really done anything in this entrepreneurial direction.

2a. Depending on how I've raised the funds, are there any ways to protect myself from failure, except for reducing the risk? Basically, what mechanism can I use that is safest if the investment doesn't work out? If it's a grant, that would be easier. Bank loan of course can cause more problems.

Thanks!

claret_mike

Ahh the risk free million pound a year plan... sounds like theres a book in that.

I think you are thinking about things wrongly to be honest.

Many millionaires have been bankrupts because they have had to make their mistakes to figure out how to be successful. So dreaming of that risk free £1m a year income is highly unlikely.

Read the 4hr work week by Timothy Ferris and that may help you take a different perspective....

As a taste - people naturally believe that if they work harder, climb the career ladder they will earn more and become more satisfied and be able to spend more time doing what they want. Look within any company and those earning more, often are working more hours, have more put on them and work when others are at home enjoying family time.

To earn £1m a year from savings and investments - I would suggest around £20m in savings and investments.

Other way would be sell a company or build a company that provides what you need.

Often people want a £1m lifestyle but often when you ask what they would do with the money, once they have bought the aston and mansion, they want freedom to enjoy life, live well and not worry about how food is put on the table etc.

If you are wanting a quality of life, consider ways to build up a realistic income and have that comes in automatically without the need to work.

How much are you going to be saving from your higher rate tax paid job?

lincroft1710

swizzy wrote: »

Two more questions:

1. Investment in property or land (well, anything really) is a risk. How do I minimise it? How do I make a data-based decision? There certainly must be some kind of formulas, assessment matrices, scores etc. that would make me feel more reassured. Do you know any personal stories, or are able to recommend anything?

You spend time (and possibly money) researching. Take appropriate unbiased professional advice where necessary. There's no formulae apart from the simplistic "Income £99, Expenditure £100, Result - Misery! Income £99, Expenditure £98, Result - Happiness!"

2. Where do I get the money from? Could I apply for any governmental or private grants? What are the T&C's? I haven't really done anything in this entrepreneurial direction.

You use your savings, obtain mortgages/loans which will cost you in terms of interest. There are no grants for trainee millionaires

2a. Depending on how I've raised the funds, are there any ways to protect myself from failure, except for reducing the risk? Basically, what mechanism can I use that is safest if the investment doesn't work out? If it's a grant, that would be easier. Bank loan of course can cause more problems.

You can't buy an insurance policy to protect yourself from failing. You protect yourself by doing your homework and making the safest and most sensible investments. But remember there are only 2 things guaranteed in life - getting older and death.

If things were as easy as you want them to be, everybody would be trying for that 7 figure income. Self made millionaires like Branson, Sugar and Gates all took risks, all had "chutzpah". If you're fixated with risk, then work hard at the day job.

swizzy

Thanks, claret_mike and lincroft1710. I've read the book a few years back.

I think it gets down to actually having the balls to do it.

See below for comments:

claret_mike wrote: »

Ahh the risk free million pound a year plan... sounds like theres a book in that.

I think you are thinking about things wrongly to be honest.

Many millionaires have been bankrupts because they have had to make their mistakes to figure out how to be successful. So dreaming of that risk free £1m a year income is highly unlikely.

I agree, it won't come easy. However, I am after reducing the risk, not eliminating it. I could probably buy a small property tomorrow, but doing it blindly doesn't make me feel optimistic.

Read the 4hr work week by Timothy Ferris and that may help you take a different perspective....

As a taste - people naturally believe that if they work harder, climb the career ladder they will earn more and become more satisfied and be able to spend more time doing what they want. Look within any company and those earning more, often are working more hours, have more put on them and work when others are at home enjoying family time.

To earn £1m a year from savings and investments - I would suggest around £20m in savings and investments.

Other way would be sell a company or build a company that provides what you need.

Often people want a £1m lifestyle but often when you ask what they would do with the money, once they have bought the aston and mansion, they want freedom to enjoy life, live well and not worry about how food is put on the table etc.

If you are wanting a quality of life, consider ways to build up a realistic income and have that comes in automatically without the need to work.

How much are you going to be saving from your higher rate tax paid job?

£800/month

Florasaurus

Hey Swizzy good for you!!

Have you heard of Ramit Sethi?? I would advise you check out his courses, I'm working through his Dream Job course atm, I've got another year and a bit at uni and I've already got a job thanks to this. He does an Earn 1K on the side course as well, which might be something you could look at

Good luck with everything!!

motorguy

swizzy wrote: »

What would you advise?

Genuinely?

I would advise you to rethink your measure of success in life.

claret_mike

£800 a month is a good effort.. 12 months of saving should give you a good start for an emergency fund.

Focus on your career, become a ceo and you could earn what you want or set your expectations high but realistic.

Just by having £1m, you could earn £50k a year without getting out of bed.

You just have to get into your head that it won't be easy and unless you have a particular skill which commands big money, you will have to seek financial freedom the good old fashion way..

Spend less, save more and look for solid ways of investing it to provide you with a return of income.