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How does getting rich work?

  1. Mar 22, 2003 #1
    OK, I have at most 20 healthy and very active years left of my life. I want to bank at least $1 million in that time. I know that money doesn't necessarily make you happy but I want to see if I can be good at making money and leave something for my kids and grandkids.

    What do I need to do to start making lots of money from today? I don't want to get bored in the process (I hate business and office work and meetings). I don't want to have to have a staff and I don't want to have to go and get an MBA.

    How does getting rich work if you are not from an already rich family or clan?
     
  2. jcsd
  3. Mar 22, 2003 #2

    Greg Bernhardt

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    Invest and save. Wages and salaries alone don't create wealth.
     
  4. Mar 23, 2003 #3
    Sensei and Greg, Thanks for the advice. I have had a very active and international life so far and haven't given much thought to career or owning stuff. In fact, I can't get worked up about owning stuff; it doesn't motivate me.

    The advantages to this lifestyle approach are obvious: I have been able to live in half a dozen countries, haven't had to worry about valuable stuff in one country while I am living in another; I have enjoyed freedom and have learnt that it is very hard to starve if you are comitted to do anything in order to be happy.

    There are disadvantages too. I have not built up any savings (but there again, I have no debts, no credit card bills, no laons, etc), have a lousy pension plan and own only one piece of property and a bit of land in Europe (which is where I will go and live, if I suddenly become beggar poor).

    Not so long ago, I suffered a severe back injury and this has, for the foreseeable future, stopped my active, globetrotting life. So I am having a rethink and have decided to use my remaining productive years to raise money to pass on to my family when I pass on. I don't really need the money and I don't need to own more stuff but my children will all need a good education and I know that costs a lot of money.
     
  5. Nov 21, 2007 #4
    Well

    Well, most people rely on the price of their houses to go up to build equity. I don’t think that will work very well now in the near future.
    I suppose if you have a good salary and save a lot and place it in good investments you may make your million. I haven’t worked out the exact compound interest but if you were to put aside $2000 a month for the next twenty years I recon that would make your million (you would save 480 000 and the compounding will hopefully get you the rest...).

    Alternatively, if you were to have an idea for a product or service and were to start a business you could make a lot more by the time you sell... but this carries a much higher degree of uncertainty.
    Cheers and good luck, I am in the same situation!
     
    Last edited by a moderator: Nov 21, 2007
  6. Nov 21, 2007 #5
    The good news is that you do not need a lot of money to attend college in Europe and you probably get a very low interest loan for this in any case, so your children may not need your money!
     
    Last edited by a moderator: Nov 21, 2007
  7. Nov 21, 2007 #6

    FredGarvin

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    Thread necromancy!
     
  8. Nov 21, 2007 #7

    Integral

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    LOL! I didn't even notice. I moved it out of Engineering... was wondering why Greg responded to something obviouly way out of place! 2003 was a different era!
     
  9. Nov 21, 2007 #8

    BobG

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    Collect one penny off the street today.

    Collect two pennies off the street tomorrow.

    Collect four pennies off the street the day after that.

    Repeat, doubling the number of pennies you collect each day.

    You'll be rich before you know it.

    Dang! I can't believe I just told you that for free! I should have put that in a book!
     
  10. Nov 21, 2007 #9
    A penny here, a penny there and before you know it you've got two cents.
     
  11. Nov 21, 2007 #10

    Evo

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    Robin Hood Dialogue from Time Bandits

    Robin Hood: The poor are going to be absolutely thrilled. Have you met them at all?
    Randall: Who?
    Robin Hood: The poor.
    Randall: The poor?
    Robin Hood: Oh you must meet them. I'm sure you'll like them. Of course they haven't got two pennies to rub together but that's because... [nudges Randall] they're poor.
    [Merry men behind Robin Hood indicate to Bandits and onlookers that they should laugh hysterically]
    Robin Hood: Oh yes and believe you me, the poor are going to be, well not just absolutely thrilled, but also considerably less poor, aren't they Redgrave?
    Redgrave: [Gibberish]
    Robin Hood: You see- what did he say?
    Marion: He says yeah, what with Christmas coming up and all.

    http://en.wikiquote.org/wiki/Time_Bandits
     
  12. Nov 21, 2007 #11
    Buy the house you rent for college housing. Charge your roommates rent to cover the mortgage. When you finish school, buy an additional multi-family house and rent the other part to cover the mortgage, move again and rent out the other part you lived in, buy another multi family house and do the same...

    My nephew did that and now he owns about 50 properties including, a couple of ocean front hotels and several half million dollar vacation homes. He currently oversees management of his properties (he has rental companies doing the actual management tasks).
     
  13. Nov 21, 2007 #12

    chemisttree

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    When you go out shoot'in for some food, aim at the ground 'cause that's where "...up through the ground comes-a-bubblin crude." Over $98 a barrel for the stuff today.
     
  14. Nov 21, 2007 #13
    Is the US economy even going to be around in twenty years? With all the crises looming, such as oil, water, and phosphorus shortages, will my 401k still exist?
     
  15. Nov 21, 2007 #14

    chemisttree

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    This doesn't work. I paid a nice man on the TV $299.98 for this plan. It came in a 3-ring binder that had several glossy pages inside with 3 cassette tapes. The plan always falls apart after day 20 to 23.
     
  16. Nov 21, 2007 #15

    Chi Meson

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    4 years 7 months, 28 days. I think that's a new record!

    What happened to N_Quire, anyway?
     
  17. Nov 21, 2007 #16
    Maybe he was re_quired elsewhere.
     
  18. Nov 21, 2007 #17

    BobG

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    I know what you mean. If I could have made it to day 21, I would have had enough money to pay for the hernia operation I needed after day 19.

    Average Asking Price Hernia Repair

    It just simply amazes me that pennies could be that worthless.
     
    Last edited: Nov 21, 2007
  19. Nov 21, 2007 #18
    You went about it all wrong. Collect a penny in half a day, the next penny in a quarter of a day, then a penny in an eighth of a day, and so on, you'll be infinitely rich at the end of the day.
     
  20. Nov 21, 2007 #19

    BobG

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    Better yet, it will be an infinitely long day. You'll live forever! Kind of like Sisyphus.
     
  21. Nov 21, 2007 #20
    Oh dear, what have I done. No it won't make the day last any longer. It's still a regulation 24 hour day.
     
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