Millionaire Challenge

lessonlearned · 7 November 2014 at 5:20PM

YoungBusinessman wrote: »

Just read a fantastic piece of advice in an above post

"its not what you earn that makes financial difference, its how much you hold onto"

that is so true. I saved more on lesser salaries than i have this year where income has peaked!!! Knuckling down eliminating debt so i can make my income work for me. Creating passive income is just a dream in the making for me.

I couldn't agree more.

Treat your money as if you were running your own business, even if you are not already self employed and you work for an employer.

Think of your take home pay as "cash flow" rather than a wage or salary.

My dad always used to say that "cash is king" and although we might be moving towards being a cashless society I think the principle behind his thinking still applies.

Getting rid of debt and freeing up spare money to save and invest is a very important part of increasing wealth.

There's no point in working hard to generate a good income if we let it slip through our fingers......it's only too tempting to let our spending adjust to our increased income.

It took me a long while but I have finally learned thAt having spare money is the way forward. Having spare money has enabled me to snap up some great bargains and save myself a small fortune.

A £1200 bed, brand new still in its wrappers, that I snaffled up for £150.

Another was a caravan for £100.

In both cases the sellers were desperate for some quick money.

Keep a tight rein on the cash flow and stay in control, save and invest and always have a little bit in reserve
so that you can make the most of any opportunities that come Your way.

YoungBusinessman · 11 November 2014 at 7:19PM

Fantastic advice as always, Lessonlearned!!! The last few examples of getting that bed for a bargain price/the caravan aswel also shows the power, oportunites and enjoyment having cash reserves can have!! Im well on the way to getting sorted out debt wise, will be smashing it down next year once winter is over!!!!!

Broken_Biscuits · 11 November 2014 at 7:32PM

well, i wasn't going to post in here until i had read the lot. That's a pretty daunting task in it self. Im up to page 56 so far. I wonder how many original posters still keep track of this and how much nearer ther goals they are?

in conversation with my other half a few months ago, i suggested we could get to the million mark in our lifetimes. She found it very funny... But why not? Im over 30 years til pension age, have a net worth of about 85 grand.. Paid off all my partners debt and recently bought our first home this year. its certainly achievable and something id like to aim for.

now back to reading this mammoth blog!

Kayalana99 · 12 November 2014 at 2:22PM

Hiya Guys,

Been very busy but finally got some spare time this morning :-) Have about two hours left although still plenty to do but for first time in about 2 weeks my eBay is under 10 items to send out and most are awaiting replys for people so out of my control.

It's still pence but I've hit the jackpot, I've got a top listing that's selling brilliantly and I can barely keep up, I've not had many nights that I have been asleep before 12...and I am back up at 7 with kids so to say I am tired is an understatement. We had a busy weekend and I was so tired on Sunday night (we had been out Sat night and hadn't got in till 4am and then back up at 8 with kids lol) that I went to bed at 8pm and got back up at 3am to catch up....I think I've finally caught up proper this morning though had a great night sleep last night even if I was up till 12 again.

I've also smashed my record...I'm on £950 this month so far so comparing that to last month I think it was when I was celebrating going over £1000...I reckon I will be at least on for £2000 this month esp as we are moving closer and closer to xmas.

My youtube videos have to take a back seat for now but I have started with my research...to be fair I think I'll need to do a lot of planning and research before getting started as their is no rush and I'd rather it be done right as the main idea is to get the 'brand' so people would be saying 'Oh you know you should go check out xXx' as people do (like fly lady etc who just pops up when people need to know about cleaning or pixiwoo for make up lol)

Right...back to work for me. I said a while ago some family members have ordered some glitter glasses and still have one of those frames to do then I can sell up my vinyl machine (Yay!)

ETA: I lie, just checked my PP stands at £1010

lessonlearned · 12 November 2014 at 10:04PM

Hi everyone

Kaya - that's fantastic news. Well done you. You've worked damn hard and deserve your success. Keep going.....;)

I'm with you on the tiredness. I m lying here on the sofa absolutely shattered....I really ought to soak my aching body in a mineral salts bath but I just can't summon up the energy. How pathetic is that.

The lovely C is still kindly helping me. She is absolutely fab and a real godsend. I can finally see that progress is being made and it looks like I shall meet my target of licking this place into shape in time for Christmas.

Hi Broken Biscuits and welcome to the thread. Yes of course you can make a £1m. You have youth and time on your side.

btw your name reminds me that when I was a child my dad would buy us a bag of broken biscuits from the market on a Saturday night. It was all he could afford.

Unfortunately Tink, the creator of this thread hasn't posted for a while but Young Businessman has been around since the beginning and still keeps in touch. People tend to dip in and out as time allows.

Re targets. Well for me I think a target of £1m might be a stretch (although never say never:rotfl:) so I set myself a personal goal of £300k in ten years.

I'm now 5/6ths of the way to my personal target, with 7 years to go. And 25 per cent of that £1m target, so good steady progress.

I have already given away £100k to my sons (part of my tax planning and exit strategy in case I need to retire should my health take a dive). Tbh I can't see me ever retiring and doing absolutely nothing - it's just not my style. I think I'm the sort of person who would always want to have some kind of little business ticking away in the background.

Anyway enough prattle - it's time for the Apprentice. :rotfl:

gallygirl · 12 November 2014 at 10:36PM

Kayalana99 wrote: »

I've also smashed my record...I'm on £950 this month so far so comparing that to last month I think it was when I was celebrating going over £1000...I reckon I will be at least on for £2000 this month esp as we are moving closer and closer to xmas.

ETA: I lie, just checked my PP stands at £1010

Superb :T. Best put the videos on hold for now - I assume there will be a lull in the New Year?

PS - never heard of pixiwoo - off to explore :rotfl:.

Broken_Biscuits · 13 November 2014 at 7:09PM

I think if i got near the million mark and i was in my late 50s or early 60s i would just stop short of the magic number and swap the cash for stress free life without work!

my current trouble is that nearly all of my money is locked up in either the house ir pensions. My short term aims over the next 5 years are to build up much more of a cash deposit while still overpaying the house and topping up the pension. About 30k would be nice... i saw a really good looking investment, a cheap flat with a really high yield with tennants already in place. Unable to take advantage though... So increasing available cash and not just net worth is a must.

i read that house prices are expected to rise 30% in the next 5 years. Who knows where prices will be in 30 years time? If history repeats itself there will be a lot more millionaires just through property.
its not unbelievable that the average family home could end up at half a mil!

a few extra expenses for me this month. A new shirt, tie and shoes are needed to tidy up for a couple of interviews i have lined up.. Hopefully will give me added edge as both are probably a little beyond my reach!

still should bank about £500 this month.. Not terrible but not really worthy of a millionaire in training!

gallygirl · 13 November 2014 at 10:01PM

Broken_Biscuits wrote: »

still should bank about £500 this month.. Not terrible but not really worthy of a millionaire in training!

Keep that up for 15 years, with 3% interest, and you're not that short of 100k. Not too shabby :T. Gotta love compound interest

.

lessonlearned · 14 November 2014 at 12:22AM

Broken Biscuits - £500 into a savings pot is not be sneezed at, especially if you can get one of those high interest regular savings accounts. They do have max limits on how much you can save each month though so you might need to open more than one account.

Check out the best savings accounts guide.

Good luck with the job interviews.

Broken_Biscuits · 14 November 2014 at 2:10PM

thanks, yeah just opened the TSB one. Will top that up over the next few months.

does every one subscribe to monevator.com? i find that quite useful.

a table on there previously about whats needed to make a million opened my eyes to how much is needed.

How much must you save a month to make a million?
The following table tells you how much you need to save every month to make a million within different time periods, and with different rates of growth.
Simply read off the growth rate in the top row and the length of time you can endure until you’ve got your million pounds. Where time and growth intersects is the monthly amount you’ll have to save:
4%
6%
8%
10%
12%
15%
5 years
£15,061
£14,322
£13,621
£12,958
£12,330
£11,449
10 years
£6,795
£6,125
£5,516
£4,964
£4,464
£3,802
20 years
£2,739
£2,195
£1,746
£1,381
£1,087
£754
30 years
£1,455
£1,021
£705
£481
£325
£178

If you think that is possible that your home that you live in could be worth 400k, and that you could get 6% returns from shares, passive investments, pensions and perhaps Peer to peer. then really you only need about 60% of what the 6% section says over 30 years if you were starting with zero and have a mortgage for your own home.

so about £600 a month savings and your property (or propreties) hitting at least £400k will get you there. like i said, i think there will be a lot of millionaires over time.

Millionaire Challenge

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free