Millionaire Challenge

Yes - the steady 50 to 60 mph definitely saves on fuel. I think I read somewhere 55 gave the optimum in fuel efficiency. Also not carrying extra weight so not driving around with a boot full of junk. A bit difficult when you have to carry tools around though. Also keeping your tire pressure at the right level is supposed to help with fuel economy.

Kitty - nice to see you back……Of course you want to spend as much time as possible with your son. They are little for such a short time. Enjoy.

I know what you mean about Al & Cornish Optimist getting into "Millionaire Mode" when they are in their 20's. Great stuff.

I wish I had been a little bit more savvy at that age. Never mind, it's never too late. And you are only 41 - that's nothing - I can give you 21 years:rotfl: However, I'm not ready to give up just yet.

Just remember those two golden words "Compound Interest".

Albert Einstein called it "The most powerful force in the universe".

Here's how it works with savings.

Imagine you are a twin and your mum makes you and your sibling a gift of £10,000 for your 16th birthday. (Nice Mum;)

She offers a choice. One of you gets £10,000 every year until your 65th birthday, the other one gets a one off payment of £10,000.

There are two small prerequisites to the gift.

1. The money cannot be touched until your 65th birthday.

2. The one who gets only a one off lump sum of £10,000 gets guaranteed yearly interest to make up for not receiving £10,000 per year.

Which sibling comes out best.

Now for the sake of argument and ease of calculation (because my maths aren't that hot) let's assume a guaranteed rate of interest of 10% (yes I know - in our dreams - but in the past it was entirely possible to get a 10% return).

At year 10 - sibling 1 will have banked £100k (£10k per annum x 10 years). The other will have £23K - not so great.

However,

After 49 years it's time to collect the money.

Sibling 1 will have £490,000 (49 years at £10K pa)
Sibling 2 will have £970,172. An initial stake of £10K, no further payments just the interest left to grow.

The secret is that the growth of compound interest is exponential. The big money comes at the end, because it is at year 40 that the investment zooms into the stratosphere.

So it doesn't matter how little just start saving. Put it somewhere and watch it grow.

Now apply the same formula to debt and watch what happens.

Let's say you borrowed £10K at aged 16, with an interest rate of 30% (quite common with some credit or store cards) and didn't repay it back until you retired at aged 65.

How much would you owe.

You might find this difficult to believe but it would be a staggering £3 billion.

Needless to say we won't even discuss payday loans - they can be as much as 4000%.:rotfl:

So yes, if you are starting your Millionaire Journey whilst your are in your 20's then if you make the right choices there is a very good chance that you will get there quite easily by the time you retire.

With a bit of increased effort you can bring the timescales forward.

Apparently, on average, it takes around 20 years to make that 1st million.

Of course some people don't take that long.

al6n wrote: »

LL I think you mean £490,000 lol not £49,000! But still wow at the 10K being worth 970k! I know a 10% interest rate is just a dream at the moment but...wow.

Yes of course that should read £490K and not £49K - a daft typing error. I'll go back and correct it.

Re working out the £10k per year, plus 10% interest - noooooo it would make my head hurt!!! But I guess it would be pretty awesome…...

Good luck with the matched betting. I just couldn't cope with it but lots of people do seem to have a good success rate.

Feeling a lot more positive about things, we've been away last week ...spent way to much money but I've been so stuck in a rut that I didn't realise just how much I needed it until I was back.

I kept saying before about my 'set back' as I didn't really want to admit it on here but same time ever since it happened I'd started to lose confidence in my business ~ I was doing so well with it and boom... I felt like I was back to square one...so I was plodding along doing what I had left but not doing anything to make it grow.

I've had some real time to think and get my head straight and I am back...ready to move..ready to go ahead.

FYI. It was my own fault...but I had to stop selling my most successful / profitable line because it was copyrighted. I knew I shouldn't of done it, at first it a few harmless sales but then it took off and I was selling 100's if not over a 1000 total ....and I knew I should of stopped but I didn't and the next thing I had the crisp white letter that only a lawyer would use and I got off lightly to say the least...

My minds racing atm...I'm looking for a 'business' everywhere I go but all I see is needing £££....I am looking for the million dollar idea but it's always blocked by needing money & time..(and when I say needing money I mean my latest idea would of probably needed a few million to do anyway and would only of been a copy cat business)

I'm sitting here wondering why I can't tap in...the fact that my street alone is 8 or so houses that together are probably worth close to a million just on my little street...money is everywhere...yet we only earn so little between us.

It's the big question...HOW do we do it...


1. Research businesses, keep my eyes open ~ Does it cost a lot to set up? Is the profit margins worth while?
Can someone else run it for you once its set up? Can you repeat it?

2. Grow my business I have ~ research new products, grow the lines.

3. Focus Focus Focus

LL - So sorry to hear your news, I know its not much but someone once said to me their are no words you can say to comfort someone in death, but just to be with them ~ to let them know they are loved and cared for and a shoulder to cry on if needed.

& take care to look after yourself as well.

Hi all. Welcome to all newbies.

We have good news last week, OH is being made permanent and I finish my course next month :j So everything is looking positive.

LL - I am really sorry to hear your news, what can I say? You have been a tower of strength on here and to your family. Have some family time and come back when you're ready. All my love & hugs x

FLC Great story - I wonder if the headmaster ever knew!! Good luck with little FLC - hope all goes well. And……….ok yes you are going to be very busy for a while with little time for building up to that £1m but never say never. You can try later.

Kayalana - sorry to hear about your little blip but you've got off with a light warning and you've learned a valuable lesson about copyrights. My son is a research engineer/scientist in alternative energy (yes it really is Rocket Science:rotfl::rotfl:) and we were only talking about IPR (Intellectual Property Rights) the other day. Very complicated. Next time if you are in doubt then just run your ideas past a good solicitor. And of course if it has legs then make sure you apply for any patents or IPR's.

GothrockChic - great news about your OH's permanent job and on your nearly finishing your course. All steam ahead now.;)

Al & Cornish - don't worry about getting a "big idea". You are doing the right thing by just getting started - saving (never forget the power of compound interest:rotfl:) If you want to invest then it's best to be debt free and have a few savings under your belt. You need to start your "Money Farm" and for that you need savings.

Often wealth comes from a series of small ideas, building step by step, not from one blinding flash of inspiration. OK small ideas are less dramatic but they can be just as exciting and rewarding.

Well not a lot to report. OH a bit up and down - me too if I'm honest. Some days I get an energy surge and can make some progress, some days I just feel drained and it's all I can do to function at the most basic level.

OH seems pretty relaxed now. It's almost as if his consultant's prognosis has lifted a burden off his shoulders. Sounds daft but it's almost as if he has been given permission to stop fighting his illness. He sleeps a lot, eats little and is quite happy watching TV and dozing most of the time. When it's warm and sunny either myself or the carers wheel him into the sunshine where he reclines in his wheelchair and dozes.

He has given me all his instructions about his funeral, disposal of his ashes etc so that's one thing less to think about. Sounds a bit morbid but actually we had quite a few giggles making plans. He seems content and serene.

I've done nothing on the money making front and have just checked in on the builders from time to time. I am delighted with the kitchen - considering how little I've spent it really looks fab. Even the builders have commented on how good it looks for the budget.

I chose a mid range kitchen from Howdens, kitted it out with fully integrated appliances for a really modern sleek look. I got those on-line and saved a small fortune. I chose real wood worktops - again bought online so they only cost me roughly the same as a laminate top from the DIY sheds, stainless steel splash back and up stands. The finishing touch is the floor tiles - ceramic but they look like natural slate. All topped off with a nifty little designer radiator, more expensive than a normal rad but worth that extra little bit because it does add to the "wow" factor. Less than £5K for the lot but it looks much more expensive. My builders reckon it looks good enough for a magazine advert. Just need to buy some nice blinds, accessories etc

The floor tiler is also a keen gardener and he mentioned my landscaping efforts. He was impressed - especially when I told him how little I had spent. :rotfl: - less than £50.

I told him to keep all the spare tiles to one side and not chuck them. I shall use them for some garden mosaics. He looked a bit confused until I told him what I had in mind and then he just grinned and said "What a good idea, I'll pinch that one".

At every stage I am keeping back and reclaiming as many materials as I can. All in good MSE fashion.

Untreated "good" wood is being used by DS1 - either on his own jobs or if the pieces are too small then they will go in his wood burner for free heat next winter. Good scap metal will be sold. Spare tiles/offcuts will be used to make mosaics. A couple of spare mirrors will be used in the garden as a design feature. Left over mirror will again be used in mosaics.

As they say "A penny saved is a penny earned". And of course, the lower our renovation budgets, the more profit we make when we come to sell…….

Enjoy the Bank holiday - although the weather does look a bit disappointing. I have some planting to do.