Different types of wealth - Page 2

guids · #11 07-09-2007, 05:21 PM

I also am not really advocating a blow your money approach, if I wasnt clear. Im 25, single, live in a 900sqft 2 room apartment, I could afford a nice 2 bedroom house, but I pay 200/mo in rent, its a trade off that Im wiling to deal with that I dont necessarily think is a "trade off", its just that I dont need a 2 bedroom, so why pay all that extra money when I can get a bigger return putting my money elsewhere. Other than my car, and a bunch of gadgets/clothes, I live pretty cheaply, the reason I do this though, is so that I have as much "disposable" income as possible if I find a high risk, but possible high-reward place to put my money.

guids · #12 07-09-2007, 05:24 PM

If you arent rich by teh time you are 50, imo, it was a waste to save all that money. I also think people are over estimating how hard it is to turn a 90k to 150k/ yr job with a wife and kids into enough money that you have enough disposable income and extra leisure time to do what you want by age 55.

Nicholasp27 · #13 07-09-2007, 05:27 PM

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type 1 wealth seems like masturbation, and fairly stupid to have as a goal.

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type 1 is the only one that is actually WEALTH

the others are just RICH; as soon as the paychecks stop coming, u are BROKE

wealth is having enough passive income to fit your desired lifestyle...u can't be broke because u get fired like u can if u are rich

guids · #14 07-09-2007, 05:30 PM

[ QUOTE ]
[ QUOTE ]
type 1 wealth seems like masturbation, and fairly stupid to have as a goal.

[/ QUOTE ]

type 1 is the only one that is actually WEALTH

the others are just RICH; as soon as the paychecks stop coming, u are BROKE

wealth is having enough passive income to fit your desired lifestyle...u can't be broke because u get fired like u can if u are rich

[/ QUOTE ]

wealth is having enough passive income to fit your desired lifestyle...

99% of people will either have just enough passive income to live a fairly meager life, or be too old to really enjoy it.

to be young and rich imo, you need to take larger risks than putting money in a savings account, or buying 1 piece of property. Yes, its probably much much less stressful, and easier to stick your extra money into an account and get 5%, or to buy some property so you have some passive income of 50k a year when you are 55, but Id much rather deal with teh risk associated with trying to become a millionaire before 30.

emon87 · #15 07-09-2007, 05:34 PM

[ QUOTE ]
If you arent rich by teh time you are 50, imo, it was a waste to save all that money. I also think people are over estimating how hard it is to turn a 90k to 150k/ yr job with a wife and kids into enough money that you have enough disposable income and extra leisure time to do what you want by age 55.

[/ QUOTE ]

This is what type 1 is all about. I might not have explained it well. But basically, rather than spending all your money, you take a hit in the amount of stuff you buy now in order to have freedom later in life. Later NOT being 85 - later being like 55 (or earlier).

My dad is a good example of type 1. We by no means live poorly - we live in one of the nicer areas inside the Seattle city limits, buy nicer foods, etc. However, the company he worked for was bought out about 10 years ago, and he was offered a demotion or a comp. package. He chose the comp. package and basically retired. He was an accountant, and he still does some accounting work for a couple of lawyer friends, but not much. So at age 55, he does whatever he wants to do and doesn't worry about how much money he has - he can live off of the income that his passive streams provide (along with my mom's smallish income).

emon87 · #16 07-09-2007, 05:36 PM

[ QUOTE ]
[ QUOTE ]
type 1 wealth seems like masturbation, and fairly stupid to have as a goal.

[/ QUOTE ]

type 1 is the only one that is actually WEALTH

the others are just RICH; as soon as the paychecks stop coming, u are BROKE

[/ QUOTE ]

This is true, but you see my point. Is it really better to be wealthy, or is it more worth it to spend the money doing what you enjoy and work more?

Kneel B4 Zod · #17 07-09-2007, 05:37 PM

[ QUOTE ]
If you arent rich by teh time you are 50, imo, it was a waste to save all that money. I also think people are over estimating how hard it is to turn a 90k to 150k/ yr job with a wife and kids into enough money that you have enough disposable income and extra leisure time to do what you want by age 55.

[/ QUOTE ]

my landlord is maybe 45, not sure. he just sold my building (6 apts) and 2 others, each of them for about 1.5m. if he wanted he could easily have $300k in annual income from this cash...this fits right into Type 1.

(he's actually reinvesting into 1 large building instead, which will also generate income)

but anyways, his story isn't that unique, and he's not that old.

Nicholasp27 · #18 07-09-2007, 05:39 PM

u can become wealthy at a young age; if u can amass 5mil, then at even 5%/year that's 250k/year...if ur lifestyle is how u want it at that income level, then u are wealthy

if i wanted to be rich, i'd become a doctor and make a few hundred k/year working my ass off...i'd rather be wealthy, living off of passive income, so i can do what i want with my time...i value my time more than a rolex or a bentley

guids · #19 07-09-2007, 05:40 PM

[ QUOTE ]
[ QUOTE ]
If you arent rich by teh time you are 50, imo, it was a waste to save all that money. I also think people are over estimating how hard it is to turn a 90k to 150k/ yr job with a wife and kids into enough money that you have enough disposable income and extra leisure time to do what you want by age 55.

[/ QUOTE ]

my landlord is maybe 45, not sure. he just sold my building (6 apts) and 2 others, each of them for about 1.5m. if he wanted he could easily have $300k in annual income from this cash...this fits right into Type 1.

(he's actually reinvesting into 1 large building instead, which will also generate income)

but anyways, his story isn't that unique, and he's not that old.

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a little different situation than what type 1 wealth is though. Im assuming he is a full time real estate/landlord etc? Im not saying that you cant become very rich in real estate, but thats your full time job, its much different than working as an accountant, and putting X amount of dollars away so that sometime you can buy some property.

guids · #20 07-09-2007, 05:43 PM

[ QUOTE ]
u can become wealthy at a young age; if u can amass 5mil, then at even 5%/year that's 250k/year...if ur lifestyle is how u want it at that income level, then u are wealthy

if i wanted to be rich, i'd become a doctor and make a few hundred k/year working my ass off...i'd rather be wealthy, living off of passive income, so i can do what i want with my time...i value my time more than a rolex or a bentley

[/ QUOTE ]

ya, no [censored] sherlock, really? you can become wealthy young if you amass 5 million? gee, who would have thought.

the point is, you arent going to amass 5 million dollars if you are working as an accountant/doctor/office manager.