Becoming Rich

grey_gym_sock

if i have this right, your aim is to have enough income that you can live off that without needing to work.

the simple answer - see http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ - is that how long this will take depends on 1 factor:

Your savings rate, as a percentage of your take-home pay

if your savings rate is 0%, you'll never get there.

if it's 10%, you'll get there in 51 years.

if it's 50%, you'll get there in 17 years.

if it's 90%, you'll get there in under 3 years.

and so on. follow the above link.

if you don't like that answer, you have 2 ways to increase your savings rate: earn more, or spend less. there are lots of ways to work on both of those things. while you can work longer hours, or a second job, it's generally much more effective to get into higher-paid kinds of work, if you can. also, note that spending less doesn't have to mean being miserable. what it should mean is being a ninja with the money you do spend: living the best possible life in the most efficient way.

(pre-emptive note to quibblers: you can argue with MMM's exact figures. but that is beside the point. his figures are in the right ballpark. it's good enough to give you the general idea of how financial independence is possible.)

BananaRepublic

soulman247 wrote: »

Residual income (also called passive, or recurring income) is income that continues to be generated after the initial effort has been expended

Could you explain that in plain English?

bowlhead99

BananaRepublic wrote: »

soulman247 wrote: »

Residual income (also called passive, or recurring income) is income that continues to be generated after the initial effort has been expended

Could you explain that in plain English?

If you record a top music single or appear in a movie you can often get paid a fee for doing it and also have an ongoing residual income where you keep getting paid when people keep using your work, "after the initial effort has been expended" on your part.

He rather confused matters by then immediately giving four examples under his heading of residual income, none of which met his definition (rental income, savings interest, bond interest and p2p investment profits). They would instead fall under a broader category of "passive income" such as as interest, dividends, rents and royalties, where generally you own something of value (like company shares, loans, land and buildings, intellectual property, or a pile of cash in a bank account); you charge someone to use it and sit back passively while the cash rolls in.

Seems like OP is really just looking for a way to make his life easier by getting paid every day without working for it himself every day. I guess that's something we'd all like to do, and is generally what allows most people to retire in the end after 30-40 years of working and building assets.

But OP thinks you would be a mug to work productively fur 30-40 years when you can instead have an easy life by getting loads of passive income instead. Unfortunately he doesn't have any significant cash to invest, nor much in the way of unique skills. So, unable to find a "way out" of the rat race in his early twenties by coming up with his own ideas, he is looking for advice / discussion to help him get the cheese early.

The problem is that if there was an easy way to do it (other than through hard work or being lucky or "coming up with your own ideas") we would all be doing it and so relatively speaking there wouldn't be any more cheese to go around for those of us who didn't want to do the hard work / being lucky thing, didn't have our own ideas, and didn't have capital to invest in the ideas of others.

Gadfium

It's really very, very easy to become rich:

1. Phase 1: Steal underpants
2. Phase 2:
3. Phase 3: Profit.

https://www.youtube.com/watch?v=3zc4bGkU05o

I don't know why you are all making this so complicated....:)

Ray_Singh-Blue

It's strange, but people often plan to die with a lot of assets and several unfulfilled ambitions.

Travelling to China to train kung fu - if you actually have the resources to do this, and you want to, and you realistically can - then why not go for it? That's a sort of richness, the freedom to follow your dream. Living in South East Asia might be another way of feeling rich as your British Pounds go much further.

Richness means different things to different people. Perhaps the easiest and best way to get rich is to redefine what you mean by it. Someone may become affluent by sticking their nose to a particular grindstone for 20+ years. But they may have become much richer in experience by taking a different path.

If you follow your heart, what is the worst that can happen financially? I guess you might come home penniless and have to start from scratch again in the UK. But if that's a worst outcome you can live with then why not go for it.

"Better to regret something you did, than something you didn't do"

Pincher

I haven't read this but I realised it must a gold mine of ideas for exploiting the under class.

Now that the over breeding bunnies have created 7 billion pairs of idle hands, there must be plenty of them who are desperate for a crumb.

For example, an economist recently remarked on a radio programme, how the car wash has totally upset the inexorable progress of substituting human labour by machines. In my local TESCO, the expensive machine is wasting valuable real estate, whereas a manual car wash right next to it is doing a roaring trade.

So, your home work is to read through Das Kapital, and pick out as many ideas for exploiting your fellow man, and woman as you can.

Don't forget organ trading. Now that China is being forced to stop organ harvesting, the demand will INCREASE.

I look forward to your book report.

lennyaitken

You could start binary trading, high risk but also high rewards. But if you will get rich depends on your discipline, willingness to learn and effort you put in.

1. Read a tutorial
2. Open a demo account to play with (check NowBinary for a comparison)
3. Develop your own strategy.
4. Invest a lot of time
5. Be patient!

Ray_Singh-Blue

I'm guessing how lennyaitken wants to get rich is by persuading people to use NowBinary?

bigadaj

By deed poll?

grey_gym_sock

Pincher wrote: »

I haven't read this but I realised it must a gold mine of ideas for exploiting the under class.

Now that the over breeding bunnies have created 7 billion pairs of idle hands, there must be plenty of them who are desperate for a crumb.

For example, an economist recently remarked on a radio programme, how the car wash has totally upset the inexorable progress of substituting human labour by machines. In my local TESCO, the expensive machine is wasting valuable real estate, whereas a manual car wash right next to it is doing a roaring trade.

So, your home work is to read through Das Kapital, and pick out as many ideas for exploiting your fellow man, and woman as you can.

Don't forget organ trading. Now that China is being forced to stop organ harvesting, the demand will INCREASE.

I look forward to your book report.

nowadays, i'm sure you can pay a tiny sum (for you) to somebody (perhaps in india) with about 3 degrees to do this for you.

and you're trying to blag it for free! very cheeky.

(i'm not sure that is what das kapital is about, BTW, but of course i'm too lazy to read it myself )