“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
- attributed to Albert Einstein
- attributed to Albert Einstein
New most helpful quote on how to be a millionaire/ billionaire
- Thread starter GON
- Start date
I'm beyond content not chasing accumulation of wealth. I'm not knocking the ones that are passionate about the process. I wonder how many people's lives are miserable going down that rabbit hole because their passion is misguided. Or, they miss living because of a dream?
Sorry for my non-contribution post to this thread on the tricks to becoming a millionaire! Carry on!
Sorry for my non-contribution post to this thread on the tricks to becoming a millionaire! Carry on!
I have friends like this; they spend what they make, and a little more. Personally, I've always been opposite. I recently retired with a nice 401k nest egg, and a paid off house. Several friends questioned why I was retiring at 63, at which point I said that I've got enough money to live off of. Many, stared at me in disbelief, because they can't say the same.
Imagine a stock broker. Much of the gains they achieve are won through hard work through research. So, said broker could make more money by researching more, as compared to them spending time cleaning the house or doing house/yard/car maintenance. That's the gist of the reference made earlier, anyway.
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Maybe, but it is possible to enjoy doing those things for yourself. Also, scheming is not making money, doing is. Still, doing requires doing it right.
The secret to accumulating wealth remains spending less than you make. Back in the 80s I had a client who was an elevator maintenance man. He made over $100K per year, yet he had credit card debt. Someone who makes $400K per year and spends it all is not going to accumulate wealth. Someone who makes $60K per year and always puts some aside will always have more then the $400K guy in the end.
Chasing money will never make you rich. No way. The five things I wrote have nothing to do with chasing money. They are traits for lack of a better word.
That may be true. But just like lotto winners. that is not the norm. That is an aberration.
Its higher than 50%. Anyone associated with SBA will tell you that. Then they are stuck with debt and bankruptcy.
Getting to millionaire status with just the basics - sure. Getting to billionaire status - probably requires a little more luck, some connections, and maybe even a few shady dealings here and there.
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My dad was similar. I have album books of him where when he was around 40, he was hob nobbing with heads of state. My favorites are seeing him with the guy who said (misquoted/misconstrued), “I’m in control here,” when Ronald Reagan was shot.
Yet he never turned connects into wealth, and he never got himself a Cadillac (doesn’t look like I ever will either). But one of his alma maters has a 5% acceptance rate so my dad was an edumacated man.
Said this before I broke the fuel line to his Buick 350 4 bbl. Quick trip to the plumbing supply for a pipe, tube bender and flare kit, and he bent a new one into shape.
I do love in the video I posted how he makes the inverse logic point that debt is truncated and wealth could be infinite and how this skews the net wealth mean. Debt can be used to some advantage, but can be a silent killer even with the logical/legal truncation. It could be thought of getting a loan from the mafia. It's almost as bad but not swimming with the fishes bad.
I scratched together enough capital to start my own business by working for others.
Went to "work" every day, seven days a week, to make it profitable.
I was an owner operator. I worked, but, for myself. The hardest things for me to learn were the
delegation of work. Getting an employee to do the tasks asked of them in a manner I would
deem acceptable. Spending money to make money was another lesson not easily learned.
It's easy to spend others money. Not so easy when it's hard earned and not plentiful.
Pay yourself 1st. Not always possible as a startup.
After 20 or so years I became good at all three.
Ultimately working 6 days a month while I negotiated a new land-lease and sold the center
using a FSBO website.
I will be fine moving forward unless I am blessed with being the oldest known man on earth.
God Bless America
Went to "work" every day, seven days a week, to make it profitable.
I was an owner operator. I worked, but, for myself. The hardest things for me to learn were the
delegation of work. Getting an employee to do the tasks asked of them in a manner I would
deem acceptable. Spending money to make money was another lesson not easily learned.
It's easy to spend others money. Not so easy when it's hard earned and not plentiful.
Pay yourself 1st. Not always possible as a startup.
After 20 or so years I became good at all three.
Ultimately working 6 days a month while I negotiated a new land-lease and sold the center
using a FSBO website.
I will be fine moving forward unless I am blessed with being the oldest known man on earth.
God Bless America
In my case it was a matter of survival, due to my own fault. I did not know where it would lead nor did I believe I could ever be well off. I just wanted the impossible dream; to have a roof over my head.
As a CPA, it is hard getting people to understand being self employed means sometimes, or even usually, having to work 60 hours, or more, per week.
Someone made a comment about how many businesses with SBA loans fail. I call that the danger of being over capitalized.
I know it is off topic, but I specifically remember that moment. I always took it to mean he was in charge right there, not trying to take over the country.
I owned a business wherein I had employees. Eventually it got to the point I didn't have to be in the office every day, but it took a lot of hard work to reach that point.
These days I have consulting business, which is just me and the wife. I formed it solely to pursue a hobby for which we are compensated. The business aspect is just for tax purposes.
_____ morals and values are more important than being a millionaire.
A person can have great wealth and at the same time be morally bankrupt.
.
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I hear it’s hard for a camel to pass through the eye of a needle.
I know several small business owners. Some of them are dang near broke, most are middle/upper class and do well for themselves, only few are really well off. All of them seem to work themselves a lot. Some seem to do it because they have a passion or dream they are chasing. Others seem to do it because they don’t want to be in the corporate world.
One of these small business owners in particular I used to do a lot of business with in my old job. He would always say “must be nice” when I would tell him I couldn’t do something because I was on PTO. My response was always “well, we’re hiring, if you’re interested.”
He has much nicer stuff than me, and more money, but I can tell you I live a much more balanced and fulfilling life. He also has had a lot of health problems due to stress and other extremes.
If you can figure out how to be wealthy and own your own business without working yourself to death then more power to you; you’ll be in the minority from what I’ve seen.
One of these small business owners in particular I used to do a lot of business with in my old job. He would always say “must be nice” when I would tell him I couldn’t do something because I was on PTO. My response was always “well, we’re hiring, if you’re interested.”
He has much nicer stuff than me, and more money, but I can tell you I live a much more balanced and fulfilling life. He also has had a lot of health problems due to stress and other extremes.
If you can figure out how to be wealthy and own your own business without working yourself to death then more power to you; you’ll be in the minority from what I’ve seen.
I had a couple small businesses, Amsoil, and a "real" a job. Just Amsoil now, 25+ years.
Small home biz:
Hates: Shipping stuff. people. tax time. annual report time. Unheated, uncooled garage. Borrowing $20K to buy $50K worth of materials. Receiving and unloading $50K worth of materials by myself.
Likes: Tool time! I mean most of the tools we needed. Time by myself. Paying back $20K in a month of so.
PLUS: Not one business did I bankroll myself, or even use any personal savings. Credit card a couple times. Paypal even had good terms if you can believe that for material loans.
Small home biz:
Hates: Shipping stuff. people. tax time. annual report time. Unheated, uncooled garage. Borrowing $20K to buy $50K worth of materials. Receiving and unloading $50K worth of materials by myself.
Likes: Tool time! I mean most of the tools we needed. Time by myself. Paying back $20K in a month of so.
PLUS: Not one business did I bankroll myself, or even use any personal savings. Credit card a couple times. Paypal even had good terms if you can believe that for material loans.
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The SBA seems, at times, to overlook the dangers of borrowing too much.
The same happens with student loans. It is easy to lend money when taxpayers are
on the hook in the event of default. Banks love an SBA guarantee. Who wouldn't.
Loan originators are paid either way. What could go wrong?
Realizing I could no longer enjoy working for others nor ignore the money they made
from my hard work it was easy to work 7 days a week to insure the success of my venture.
I have had a lifelong fear of debt. I realize there is necessary (good) debt.
The costs (interest) of borrowing money is something many don't consider in their
quest for nice things. Debt service should be explained in High School.
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