Wealthy friends... how?

racing_blue

Not sure quite where to put this. I'm interested to know if any of your friends have become wealthy, how in general terms they achieved it.

I am the wrong side of 40 and have kept in touch with a close friendship group from sixth form. Some of us are modestly successful but are never going to be Richard Bransons.

However one of my friends in particular appears to have achieved a lot of wealth since leaving university. He set up a niche business and now owns a group of similar businesses. He was always a risk taker, an extrovert, a networker, and I believe not afraid to hurt people's feelings. He found an edge and exploited it, then employed people to do the day to day work.

What other routes are there?

sweetilemon

People inherite. Get lucky...Some may say the harder you work the luckier you get. Good choices in life - investments, remembering every penny counts.

asajj

The higher the risk, the better the return. Your friend took risk and was lucky, clever, had a good business sense etc. Some people are like that.

Some people spend very carefully. Some people think owning 5 houses to rent is wealth while others thing living comfortable but simple lives with a little bit of savings is the wealth.

It depends what sort of wealth you are talking about. Are you in debt?

Are you able to save at all ?

I don't think there are many other routes out there to be fair.

racing_blue

asajj wrote: »

Your friend took risk and was lucky, clever, had a good business sense etc. Some people are like that.

Yes this is exactly what I am talking about- my friend was clever, unafraid of risk, cocky, charming and did not really care much too about other people. I could see this even as a teenager. It made him exciting to be around.

My personality is very different- I am risk averse, reserved, and am uncomfortable challenging or upsetting colleagues. My limited success is entirely down to years of hard plod rather than creativity.

The reason I ask this question is that I have been thinking about possible routes to material success for my children, with their differing personalities.

asajj

I'm a bit like you too by the way - I'm happy with my life as it is though.
With children, I'm not sure but I found myself having a similar sense for money as my father.

Perhaps like many other things children learn from parents. As a teenager, I wanted to work for a bit of pocket money but my father didn't want me and instead asked me to focus on studies. (I'm not from England by the way - in our culture things are a bit different).

I did eventually start working at university on a part - time basis. It did teach me a lot.

My friends who never had a job until they finished university struggled more. So perhaps it is a good idea to guide children to earn their cash?

I'm not an expert, just mumbling by the way But you asked an interesting question

Wizzbang

I am fairly risk averse too. As a child, I was always the saver and my brother the spender. Consequently, from saving all through my childhood, everything I received for Christmas, Birthdays and had earnt- I had built up a substantial nest egg. By the time I was 20, I had enough to put down a deposit on my 1st flat.

I agree with the above, the best thing you can teach your children is how to be savvy with money. How it's not important to have everything they 'want'. How they can give to help others in need. How they need to earn their money, initially through doing chores for pocket money, then babysitting, pet sitting, paper rounds etc, until they are 16 and can get a part-time job somewhere. Teach them that money is a tool, not the be all and end all. Teach them that who they are is important, not the brand names that they wear. Teach them that credit is to be used sparingly, and that it is better to save up for what they want- like the older generations did. Teach them not to get into debt, otherwise they will spend their whole lives paying someone else's wages!

I think if you can teach them these things, then they will be able to make good choices in their lives.

SailorSam

One of my nephews started an Internet business about 8yrs ago and last time i read about him was on the Sunday Times Rich List worth £200m

racing_blue

SailorSam wrote: »

One of my nephews started an Internet business about 8yrs ago and last time i read about him was on the Sunday Times Rich List worth £200m

Nice work! In general terms are you willing to sketch the route he took to get to that point? Eg. got a degree/ worked in a company / decided to go it alone with the knowledge gained, or something similar? Were there any early clues that he might go down this path?

Wizzbang

racing blue- there is no magic formula to get rich! A lot of it is pure chance. People who made money in the tech markets 10 years ago, wouldn't today, or even those who made money last year. Things move so quickly. You have to have the idea at the right time, and then run with it. So much of the game is about contacts as well, not what you know but who you know. Hence why so many of the rich just get richer, because they can put their children in contact with the right people. In addition, they have the funds to get them started. If you want your children to get rich, then they are always going to have to start their own business. In the early days, that means they won't have much coming in and will probably be living with you for a lot longer!

whitelabel

people who chase money and being rich - usually fail


chase success and not be afraid to fail at first, take appropriate risks
and money is a by product of the success not The success

wiogs

I have a friend who went bankrupt in the early 90's after his family business failed. Family lived in a caravan for a couple of years while he became a salesman.

He saw a gap in the market and went for it.

Now runs a global business with a multimillion pound turnover.

A neighbour was a director of a business that became successful and was bought over, which made her a millionaire.

Neither of them set out to make millions, the wealth is a by product of what they have done.