How did you do it? Financial Success Thread

[Howard Treesong]

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From Howard Treesong: I would have made an argument for 20% of the realized gain and been entirely satisfied with 10%. Had I been on the other side from OP, I probably would have offered 50 and let myself get talked up to 75.

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I know this is probably how big business works. But, if we take a step back and look at this - how is this any different than the union worker wanting more money when “he” makes the big corporation so much money?

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The difference is that the decision isn't leveraged. If management decides to pay a union worker $1/hour more and must then multiply that out times the number of hours and the number of workers, it's a massive decision. Here, it's just one guy in a one-off situation. To me, that difference is huge.

Success matters. If I were the OP's boss, I would have said "If you get it right, we'll take care of you. If you get it wrong, your job is at risk." If he lost $750K instead of making that, I'd fire him.

[Howard Treesong]

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Maybe I'm just weird, but the thought of waiting 40 years to retire/become wealthy just doesn't appeal to me. I think Scorpion Man's post was very representative of what it takes for success; someone smart who is both willing to work harder and take more (calculated) risks than everyone else. I really enjoyed reading that post.

One other thing it got me thinking about is you can't just blindly follow the trends. I can't tell you how many people I know tell me "I plan on making a little money and then getting into real estate because that's where the money is." Yeah, you could still make a lot of money if you are really good at it but the market is filled with millions trying to do the same. Find a new market that is just getting started (BEFORE it is getting hot) and learn everything there is to know about it if you really want to give yourself a chance for financial riches.

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In theory, Caby, you've got it right. To risk a tautology, though, risk is risky. For every guy that succeeds down the path you're contemplating, there are a dozen that fail and end up with little or nothing but regret. Talent matters, and you may well have it -- which increases your chance of success. But you can't violate the principle that risk comes with a price.

The traditional grinder method has a much better chance of success but a correspondingly lower payoff.

I don't mean to discourage you, by the way: far from it. Rather, be aware of the consequences.

[Howard Treesong]

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Putting money into an index fund doesn't somehow lock it in, though. The power of a compounding investment early in life pays dividends later when you will find business ventures. Having an extra 100k because you were smart at age 21 is invaluable.

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seriously though, is there anyone that doesn't know this? anyone that is smart enough to make 6 figures when they are 20 years old has invariably been told to stick it in an index fund. this to me doesn't take a ton of brains and is pretty standard. being smart is taking that X dollars you made and putting it in something that is going to make you abnormal returns over time, the index fund simply seems like a safe bet to me.

i agree, having an extra 100k because you chose to put your money in an index fund rather than leaving it in your checking account is great. i guess i am hoping that in 30 years that extra 100k will be insignificant compared to the money i have made by working harder and taking more risks than everyone else along the way.

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There are several guys I know that plowed a ton of money into solar energy in the eighties on exactly the theory you're contemplating. Of the four that did, one made a nice recovery and two ended up in permagrinder jobs. I haven't seen the fourth. Smart guys, all -- compadres of mine at MIT. Visions of the future are necessarily uncertain and perforce risky. Again, not intended to be a discouragement.

[fatgirl_lover]

diablo you have a tendency to say "have smoe thoughts on thsi thread i will get back to it later" and not do it. glad you did it here, always great when you post on a topic in detail.

[fatgirl_lover]

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The easiest way to financial success is just saving as much as you can every year, putting it in an index mutual and leaving it alone. It's not sexy or exciting. It just works.

MM MD

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This is what they taught us in college and I always disagreed with it. This is the easiest way to living a comfortable life when you are retired.

I think young people should be more concerned with busting their asses to do something your peers are not than simply saying "i'll put 20% of my pay into an index fund and then 40 years later I'll be able to afford to retire."

Maybe I'm just weird, but the thought of waiting 40 years to retire/become wealthy just doesn't appeal to me. I think Scorpion Man's post was very representative of what it takes for success; someone smart who is both willing to work harder and take more (calculated) risks than everyone else. I really enjoyed reading that post.

One other thing it got me thinking about is you can't just blindly follow the trends. I can't tell you how many people I know tell me "I plan on making a little money and then getting into real estate because that's where the money is." Yeah, you could still make a lot of money if you are really good at it but the market is filled with millions trying to do the same. Find a new market that is just getting started (BEFORE it is getting hot) and learn everything there is to know about it if you really want to give yourself a chance for financial riches.

tc

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hey TC definitly agree with your mindset 100% here. good post, bruiser.

[TheWorstPlayer]

if i put away 20% of my pay and work for 40 years i'll kill myself if my retirement is only 'comfortable'. i'm planning on more like 15% of my pay and working for 20 years and having a [censored] awesome retirement.

[IronFly]

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if i put away 20% of my pay and work for 40 years i'll kill myself if my retirement is only 'comfortable'. i'm planning on more like 15% of my pay and working for 20 years and having a [censored] awesome retirement.

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I don't want to hijack this thread, but I'd like to hear you elaborate on your plans for this. Basically I don't think its going to happen, but I suppose alot depends on what you get paid and what you mean by a [censored] awesome retirement. Perhaps you could start another thread?

[hobbes9324]

Yeah, well....sounds good.

The original question was about financial success, not how to live the "baller" dream lifestyle. For most people, having an automatic low six-figue income and being debt free at 55 would be a SCREAMING success.

Every day at work I see elderly people from shithole nursing homes who ended up in the nursing home because they couldn't afford the dog food they'd been living on for the past few years.

If you're smarter AND luckier AND more disciplined than everyone else, have at it. But if you're not as smart as you think you are, I'd suggest developing a taste for ALPO.
You're going to need it

MM MD

[Howard Treesong]

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Every day at work I see elderly people from shithole nursing homes who ended up in the nursing home because they couldn't afford the dog food they'd been living on for the past few years.

If you're smarter AND luckier AND more disciplined than everyone else, have at it. But if you're not as smart as you think you are, I'd suggest developing a taste for ALPO.
You're going to need it

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Alpo avoidance is a hell of a motivator, isn't it? I'm well out of the Alpo zone; I think I've guaranteed Mrs. Treesong and I a retirement at least at the Hamburger Helper level -- but even though that's true, I still occasionally feel the fear of an Alpo-filled twilight of my life. Not often, but boy, when that one hits, it really grabs you by the short-and-curlies, doesn't it?

Nice bedside manner, doc.

[john voight]

Are all the successful ppl in this thread doing stuff (ie: working, not if retired) they love, or, loved when they were young (ie: it was an aspiration)?

I like music, movies, tv and designing, (ie: drawing, websites, outfits, interior of houses, other gay things, etc..) . However, I am trying to keep them hobbies and not careers, meaning I will likely spend lots of time doing what I do not love 100%

I'm only 21, so I have a lot to learn. This is a great thread for all the young guys, thanks. Keep the stories coming.