Millionaires... how?

ratechaser

All of the above is true.

But also in my case it was having a partner who is better and more frugal at managing money that I ever was. Without that, for all my hard work and a bit of good luck in terms of the industry I worked in, timing of house purchases etc... - well, I'd probably still be up to my eyeballs in debt.

BeatTheSystem

Start a business; not many people get rich working for someone else.





If appropriate start the business with partners to share the burden.



Do not borrow if you can help it. There are too many people fall victim to accountant 'authority bias’ who advise to gear up, most times in my experience this is wrong advice.


Not hard work, but focused effort.


Not luck, but learning to recognise and maximising opportunities.

As soon as possible in your journey start and continue to take maximum advantage of the tax system, dividends (as was), pension contributions etc.


Know when to get out.


Sell the business. Pay 10% tax



Stop, reflect, and do something you enjoy, which may or may not be retirement.

atush

We are millionaires (on paper, not in cash).

We did it mainly thru investing monthly from income, and by our main proerpty appreciating. WE built, and stated off with a 100K equity gain. Then over the years it grew in value.

In the meantime (not counted in t he million) we put money away in pensions.

So luck, hard work, and saving/investing.

talexuser

Invest what you can as early as you can into S&S ISA, but get into the house you want as fast as possible, pay off the mortgage as soon as possible (not quite so important at today's interest rates compared with the rates when I did it), then fill your S&S ISA allowance every year with the increased disposable income. If you start off with a moderately good job it is possible, and not even needing London house price increases.

Archi_Bald

More correctly, it would be prudent to ignore JayF23

JayF23 wrote: »

....but as courtesy to him it would be prudent to contact me initially for a chat by e-mail at ..............

I have marked his post as spam.

Archi_Bald

Then remove your broker recommendation and your offer of help by email etc.

On this forum, people help people by posting their suggestions openly, but without punting a special company.

Regardless, nobody on here will take financial recommendations from people who have no track record.

jimjames

talexuser wrote: »

Invest what you can as early as you can into S&S ISA, but get into the house you want as fast as possible, pay off the mortgage as soon as possible (not quite so important at today's interest rates compared with the rates when I did it), then fill your S&S ISA allowance every year with the increased disposable income. If you start off with a moderately good job it is possible, and not even needing London house price increases.

Totally agree about S&S ISAs and investing early. When I started it seemed pointless inside an ISA as there was no tax benefit. 20 years on it would be a massive issue if they were outside the ISA wrapper.

In terms of mortgage I don't agree with paying off as fast as you can. I've found it far better to invest instead which should easily beat 2.5% mortgage rate but obviously if rates are 10% then that's a different issue. 10 years to go until mortgage end and I've now got 3x mortgage amount as investments.

BLB53

If you (or your friend) have a net worth of over £1m: how and when did you (they) get there?

Easy, I started with £2m and used my bank's investment adviser!

Pincher

I didn't even have £100 to buy some ARM shares when it started trading.

Gave the 1988 property boom a miss, and missed out on the negative equity, which my school friends were mired in.

Got a job that paid OK, which enabled me to borrow ~£100k to get started on the property game around 1998. Lost the job in 2000 due to the dot.com crash, but gained a good redundancy package.

So, everything thanks to one job. But it wasn't a job you could just turn up and do. Amusingly, my managers wanted me, and overruled Human Resource, which was snooty about the university I got my MSc from. So, if I had applied through the normal system, I would never have got in, and I would probably be nowhere now.

talexuser

jimjames wrote: »

In terms of mortgage I don't agree with paying off as fast as you can. I've found it far better to invest instead which should easily beat 2.5% mortgage rate but obviously if rates are 10% then that's a different issue. 10 years to go until mortgage end and I've now got 3x mortgage amount as investments.

That's why I qualified my statement regarding today's rates. When I paid off rates were much higher - remember the 15% base rate?

Central banks surely cannot hold these rates for ever, we have a command economy if the only way we can get growth is to have insignificant interest rates which hide the inefficiency of bad businesses to keep them going, and spending based on even more debt?