How can i become rich

rozeepozee

margaretclare wrote:

Hi

I think this was a serious question even though a lot of the replies have been tongue-in-cheek.

The OP doesn't say how old he/she is. Here's what I'd do if I was half a century younger than I am now.

I'd start saving! Seriously saving, a proportion of whatever income I had coming in. I'd also seriously live below my means. I'd never buy anything just because it was 'cool', because my mates had it/did it - I'd always apply Martin's principles of 'Do I want it? do I need it? can I get it cheaper anywhere else?'

Very importantly also, I'd never pay one pennypiece in bank interest, overdraft charges, credit card interest, bounced payment charges, anything at all like that. I'd save in a cash ISA first and foremost and then in an equity ISA, build up equity holdings over the long-term. I'd also pay the maximum yearly allowance into a pension fund, just put it away and forget about it.

Well, that's a beginning, no doubt others can suggest other things. Some would buy a house and avoid paying out money as rent - I think that's very arguable in today's climate. There may be good deals to be had out there. I wouldn't waste money on flash cars just because of 'status' - if I need a car I'd look for the cheapest, most economical to run, something like the 'M' reg Fiesta that we have now!!

A few ideas, but it does depend on how many years you have to do it.

Aunty Margaret

Aunty M you wise woman! I agree. It's what I'm doing and at 31, I gave up my career and now live a far less consumerist life (after I'd practiced as a lawyer for 9 years, so a well paid profession and own business does help!!!). Riches isn't about money to me. It's about being free of the banks and the worry of debt, not havinng to be nice to a boss who behaves like a pig, not needing to do the 9-to5 to pay the mortgage, finance companies, having time to enjoy my life and thinking outside the constructs of the society into which we were born. Not all cultures live this life. Next year, I'm planning to move to India buy a little place on the beach and live on about 4 grand a year....

margaretclare

Hi rozeepozee

Thanks for the kind words. If I look back over my life, if I now had a few of the pounds that I've wasted on the kind of things I listed in my post, I would be a heck of a lot better-off today - and I don't consider I'm badly-off.

It's possible to pay huge amounts to the banks and other lenders - for buying a bigger house than you need, for driving the latest-model car, for buying all the gizmos and 'must-haves' that are paraded before our eyes. Add to that the thousands that it's possible to spend on e.g. a wedding, holidays, Christmas, and you can see what I'm getting at. If everyone kept more of the money that disappears into bank charges, late payment charges or just interest charges, we'd all be a heck of a lot better off because more of it would be within our own control and the banks could pay US interest instead of us paying them!

There's a guy on one of the other threads asking the question: 'Who will lend me £245K?' He wants to buy a bigger house. The interest and the charges that he might pay out on a loan of this magnitude have all escaped his attention, never mind the risks of losing job, higher Bank Rate etc.

You can also see people asking 'Please help - I'm £0000's in debt'. I met a woman once who was asking for help the day before Christmas Eve - the bailiffs were coming the following day. And all because of a few clothes she'd bought on a storecard but never paid. Christmas would be ruined in those circumstances. Beautiful sunny weather like we're having now - you couldn't enjoy it if you were worried about the post coming, the phone or a knock at the door.

Riches to me mean enough to live on without worry, a comfortable home without ostentation, the security of knowing that the essential bills all get paid automatically like clockwork, and the freedom to do the kind of things I like to do.

Margaret Clare

Woby_Tide

deemy2004 wrote:

Thats a good start - Likely your pay will increase by 50% over the next 10 years or so, by which time you will be saving 66% of your wage since you will also be recieiving approx £5k per year in interest

I'm 38 and saving 100% since my interest / capital growth exceeds expenditure,

so the answer to "How do I become rich?" is "never leave home"

margaretclare

Woby_Tide wrote:

so the answer to "How do I become rich?" is "never leave home"

This is not quite as daft as it sounds. I know a very nice man who'd lived at home with his parents, he never married, they died, left him a nice house in a good part of South London, he'd just retired at 60 from some kind of an insurance job, and out of his pension pay-out he'd just bought himself a new top-of-the-range Merc.

So basically all he'd done was go to work, be an active church member, be a good son to his parents, and he retired with not a money worry in the world.

He'd never had things like a mortgage to pay, wedding, wife and kids, all that had passed him by. Nice man, I could have been all right there, but, but...(LOL) he was a bit boring, so for one reason and another, it didn't happen. Just as well probably!

Aunty Margaret

Sofa_Sogood

margaretclare wrote:

So basically all he'd done was go to work, be an active church member, be a good son to his parents, and he retired with not a money worry in the world.

He'd never had things like a mortgage to pay, wedding, wife and kids, all that had passed him by.

I think I'd rather be a little bit poor Margaret

rozeepozee

Someone once said: Marrying for money is the hardest way you'll ever learn.

I'm inclined to agree :rolleyes:

WHOOPS! I meant to type: Marrying for money is the hardest way you'll ever earn

But the other is probably right too!

JasonElse

Work hard and save save save

empfun

The question is, why do you want to become rich?

Sofa_Sogood

empfun wrote:

The question is, why do you want to become rich?

Good question empfun.

I'd rather be happy & healthy than rich, but after reading the Debt Free Wannabe topics ... sometimes it's hard to disassociate them from each other? ?

Mr_Skint_2

Tayus wrote:

how can i become rich?

Well get some Journo skills, Get on TV and radio and give out Advice,
then Start your own Website and become Some Kinda MoneySavingExpert.


:T