how hard is it to become wealthy? - Page 6

Kneel B4 Zod · #51 05-03-2006, 04:59 PM

I know some guys who came from banking before going to B School. they were making a couple hundred thousands dollars/ year as single 23 year old guys in NYC, and didn't manage to save anything. their simple answer why: taxis and coke.

MaxPower · #52 05-03-2006, 05:00 PM

Gorie,

I lived in New York city for 7 years, never making more then 12 thousand dollars a year. I never felt deprived of anything. Now I make considerably more and by your stanadards I am probably wealthy. But I am not wealthy. I have no complaints. I live comfortably and I don't want for anything.

Things change when you get older, your job responsibilities change, your family situation changes, your tastes change. Situations arise where you need to use your money to help a family member. You also start saving for the future. A higher paying job usual forces you to spend more money on clothes and other things.

I don't think anyone making $150K a year should complain about anything, but they are not wealthy. They have to opportunity to become wealthy.

Personally, I don't really care if I am ever wealthy or not. Anyone can live a comfortable life and be finacially secure as long as they live within their means and make smart decisions about money.

prohornblower · #53 05-03-2006, 05:00 PM

If you put $3K away into the stock market at age 18, you'll be worth I believe over $2M by retirement. Without ever putting another penny in.

So, it's not that hard. Problem is, most kids want to buy I-Pods, DVD's and drugs, and other horrible investments.

Gunny Highway · #54 05-03-2006, 05:02 PM

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just read the responses and see many are getting rich and wealthy backwards

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Shaq is RICH... but the white man who signs his paychecks is WEALTHY.

Oprah is rich, but Bill Gates is wealthy.
If Bill Gates suddenly woke up with Oprah's money, he'd slit his throat.

/Rock

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Yeah...that's backwards.

edfurlong · #55 05-03-2006, 05:03 PM

How realistic is %10 over the long term? I have a fairly sizable trust that won't be available to me for about eight years. My father has been managing it and I've looked it over but I'm pretty clueless when it comes to these things.

Kneel B4 Zod · #56 05-03-2006, 05:03 PM

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If you put $3K away into the stock market at age 18, you'll be worth I believe over $2M by retirement. Without ever putting another penny in.

So, it's not that hard. Problem is, most kids want to buy I-Pods, DVD's and drugs, and other horrible investments.

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mmm hmm. but $2m is worth far less in tomorrows (30 yrs) dollars than it is today

prohornblower · #57 05-03-2006, 05:06 PM

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If you put $3K away into the stock market at age 18, you'll be worth I believe over $2M by retirement. Without ever putting another penny in.

So, it's not that hard. Problem is, most kids want to buy I-Pods, DVD's and drugs, and other horrible investments.

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mmm hmm. but $2m is worth far less in tomorrows (30 yrs) dollars than it is today

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No sh.it. It's still a ++++++++++++++++++++++++++++++++++++++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++++++++++ EV investment.

gusmahler · #58 05-03-2006, 05:07 PM

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How is $150,000 a year not wealthy for a single person? Say you take home $90,000 after taxes. In NY or SF, drop $2000 a month on rent,

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It's difficult (though not impossible) to find a place in SF or NY for $2k/month (at least for a family. A lot easier for a single person).

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Its difficuilt im sure if you want to look like you make 150K a year. What i still don't understand is that if someone making 150K a year can barely have any pocket money every month, then how do all the janitors, denny's waitresses and cab drivers, do it?

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Take it from someone who has looking for a place for $2k month in the Bay Area. It's nearly impossible to find a 3 bedroom home in a decent area for $2k per month. We found one, but all of our neighbors think its a bargain--"the landlords could easily have gotten $2500 for it." And the house is only 1200 sq ft. (If you looked at my house and have never lived in SF or NY, there's no way you'd guess it cost $2k/month). The other places we looked at for $2k/month were either apartments or in bad neighborhoods.

(Again, I have a family, so I'm talking about places for families. A single guy could easily find a 1 BR for $2k/month.)

I do understand where you're coming from. I've seen people complaining that you can't find anything decent in the Phoenix area for under $500k. Trust me, I lived in the Phoenix area for 9 years. Even with the recent boom in prices, it's still trivially easy to find a place for under $300k. The people who say that are the people you're talking about--the people who want to look like they make a lot of money.

But in the SF area (and NY), prices are so out of whack that it is true that it's difficult to find a decent place for $2k/month.

duk · #59 05-03-2006, 05:07 PM

El D,

Valid points. Those are certainly things a wealthy person would do. Or at least the things that someone living a wealthy lifestyle would do.

I think the problem is that I have been using my lifestyle as a point of comparison. I don't know anyone who pays over $2500 a month for rent, and wouldn't think of spending $800 a week on going out, but those are reasonable things for a wealthy person.

I suppose my argument is that it isn't difficult for someone earning that much to become wealthy, whereas I incorrectly claimed that they are wealthy.

RacersEdge · #60 05-03-2006, 05:07 PM

People spend their money they have on houses, cars, country clubs, vacations, etc. You get a raise - you get a better car, a bigger house, etc. Very few can live below their means so they can save and invest.

If you want a book on the subject of how millionaires behave, read The Millionaire Next Door. The stereotype of welathy people not spending much money is pretty much nuts on according to this book.