What are your tips for acquiring wealth and riches?

[stl_08]

Listen to peoples ideas but in the end of the day do what you think is the right idea,I would much rather fail due to my own decisions then other peoples. Also be happy with modest returns and low risk.
And the last 1 enjoy being a stinge!!

 

[Spanning Tree]

I agree with everyone here when they say that it's important to sacrifice and not spend much so you can save as much as possible. Most people talk about Ferraris, Rolexes, and so forth, but I think the biggest money wasters are new cars, children, and houses. It's cheaper to buy a second-hand car, cheaper to be childfree, and cheaper to either live in your parents house or in a $5000 second-hand commercial van parked in a parking lot you can purchase for about $30,000.

When it comes to investing, I think it's important to constantly be studying. Never ever stick with one rule, e.g. invest in gold or investing in BHP, STW, etc. No investment is always good because, if it were, everyone would invest in it, there would be a bubble, and it would be a bad investment. You constantly have to be researching, reading public sentiment, studying economics, etc.

 

[stl_08]

I agree with everyone here when they say that it's important to sacrifice and not spend much so you can save as much as possible. Most people talk about Ferraris, Rolexes, and so forth, but I think the biggest money wasters are new cars, children, and houses. It's cheaper to buy a second-hand car, cheaper to be childfree, and cheaper to either live in your parents house or in a $5000 second-hand commercial van parked in a parking lot you can purchase for about $30,000.

When it comes to investing, I think it's important to constantly be studying. Never ever stick with one rule, e.g. invest in gold or investing in BHP, STW, etc. No investment is always good because, if it were, everyone would invest in it, there would be a bubble, and it would be a bad investment. You constantly have to be researching, reading public sentiment, studying economics, etc.

No children and live in a van? U gotta spend money on somethings man. The by of having wealth is to make the lives of people you love more enjoyable

 

[prawn_86]

Yeh i would rather live in an apartment than a van, no matter how much it 'saved' me...

 

[Julia]

What sort of wealth and riches and success are you talking about, Solly? The financial kind, or the other kind?..............

Very evocative post, Bunyip. And I doubt anyone would disagree. But to be able to enjoy what you've described the underlying wherewithal has to be acquired, as you well know.

I think it's much easier to be appreciative of nature in the knowledge one's financial needs are taken care of.

 

[bunyip]

Very evocative post, Bunyip. And I doubt anyone would disagree. But to be able to enjoy what you've described the underlying wherewithal has to be acquired, as you well know.

I think it's much easier to be appreciative of nature in the knowledge one's financial needs are taken care of.

True enough, Julia - your financial needs must be taken care of if you're to enjoy what I describe.
Even so, I think most people would be surprised at how little such a lifestyle really costs. Anyone who owns their own home and has a modest income - even someone on the aged pension - can sit on their veranda and enjoy nature. Even people who don't own their own home can do the same.
The other activities I describe - barbeques, picnics, kayaking etc, are also available to us all. Just about every town and region in the country is abundantly supplied with public recreation facilities for our enjoyment, all free of charge.
I'm fortunate to live on acreage surrounded by nature. But even that doesn't cost as much as most people would think. In fact if you're prepared to live out of town - I'm 15 minutes from a major regional city - you can often buy acreage properties for a similar or smaller price than your average suburban house block.
Not only that, but acreage blocks allow you more flexibility with regard to housing.
Most housing blocks in cities come with a caveat that forces you to build a new brick home. Acreage blocks out of town are frequently not subject to such stringent conditions.
I bought my house for eight thousand dollars. I moved it from Brisbane to my acreage block, painted it, polished the floors, set it up with rainwater and bore water, planted sixty odd trees in a two acre garden. All up the project came in at just a touch over sixty grand, plus land cost.
It's a beautiful big 1960's era house of the size and style they just don't build any more....five big bedrooms, high ceilings with ornate cornices, open plan spacious living.
All up between house and land costs, I got out of it much cheaper than if I'd have chosen to live in town. And I have a much more pleasant environment to live in. Country living may not be for everyone, but it suits me down to the ground and it doesn't cost the earth.

 

[Fleeta]

My youngest daughter has just left school and is already putting this plan into action. She's working for a year before starting uni, and she already has two bank accounts and is putting 30% of her fortnightly pay into her investment account.
My eldest daughter will finish uni at the end of this year and is mad keen to start implementing her personal wealth creation plan.

Are your daughters single by any chance bunyip?
Wouldn't you rather them find a rich man, so they could stop and give you grandchildren??

 

[doogie_goes_off]

Never give up an idea without getting paid for it. If you are paid for ideas, keep any old ones you had in a bunch of notes or a file separate to your work, there may be a business in it later in life when new opportunities arise or you get more experience.

 

[awg]

Are your daughters single by any chance bunyip?

my personal favorite...marry a rich woman..either be born into a wealthy family!

I was taught the principle of compound interest as a child, and the concept that for it to work, you must always save a % of your income. (at least 10%)

invest in quality assets in a low tax environment.

live a long time.

take all reasonable measures to minimise risk of total wipeout.

when i went thru a stage of earning quite a high income, I made a point of investing 50% of my disposable income in equities, the other 50% went on toys, holidays and lifestyle.

I have some great memories, but that particular equity investment 50% is now 300K.

learn as much as you can about finance/economics/investment...if you do that you can try to time the market with respect to entry/exit/leverage etc.

all this talk about spending our way to equilibrium has left me a bit unsettled.

I always try to save a %, so that my capital base always grows, however because my capital base has shrunk over the last 12 months, I have had to take a pay cut, and am unable to save much at all this year.

I was always taught the only acceptable debt is for income or asset improving purposes, although I am more flexible, I dont know whether the country/world is better off with people who spend up, or like me who save 10% of their income and are largely self-reliant

 

[bunyip]

Are your daughters single by any chance bunyip?
Wouldn't you rather them find a rich man, so they could stop and give you grandchildren??

LOL

Yep, all four of them are single and good lookers, and they're all smart like their mother.

Marry a rich man?....sounds pretty good to me, as long as he looks after his father in law! But I'd like them to be rich themselves - and I don't doubt they will be - just in case the rich husband turns out to be a dud!

Lots of grandchildren?....I like the sound of that too, but hopefully they'll get married and put themselves on the road to riches first.

 

[Spanning Tree]

Never give up an idea without getting paid for it.

Are you getting paid for that idea? Any new motivational books coming out soon?

 

[Spanning Tree]

No children and live in a van? U gotta spend money on somethings man. The by of having wealth is to make the lives of people you love more enjoyable

I'd rather drive a Ferrari than a Toyota but sometimes sacrifice is necessary. Someone suggested walking to me but that actually costs more because of time costs.

What I mean is that you should not have a child early in your life because that is when you should be saving up to exploit compound interest. You should have children later in life.

 

[nulla nulla]

1. Spend other peoples money not your own;
2. Charge a commission for setting the deals up;
3. Charge an ongoing management fee per annum that is not linked to results;
4. Franchise your business model; and if all else fails
5. Turn to prostitution, it is the oldest and most enduring business in the history of mankind.

 

[So_Cynical]

Most rich people ive met, got rich my being very conservative and frugal, the general rules seem to be.

• Don't spend money (no travel, no fine foods/drinks, no entertainment etc)
• Stay in the same job
• Have low expectations
• have a disciplined saving plan
• Get Married to suitable person...stay married
• Don't take any risks

 

[Wysiwyg]

Most rich people ive met, got rich my being very conservative and frugal, the general rules seem to be.

• Don't spend money (no travel, no fine foods/drinks, no entertainment etc)
• Stay in the same job
• Have low expectations
• have a disciplined saving plan
• Get Married to suitable person...stay married
• Don't take any risks

I think that is really important because two people working achieves excellent results when one income is saved and invested.My high school mates that are still married all have comfortable lifestyles and their wives contributed more income in some cases.

 

[bunyip]

Most rich people ive met, got rich my being very conservative and frugal, the general rules seem to be.

• Don't spend money (no travel, no fine foods/drinks, no entertainment etc)
• Stay in the same job
• Have low expectations
• have a disciplined saving plan
• Get Married to suitable person...stay married
• Don't take any risks

You wouldn't have a hope in hell of becoming wealthy with a plan like that!

Don't spend money?
Nonsense....people who set goals for creating personal wealth realise that they need some enjoyment in their lives, otherwise they'll never stay on track towards achieving their goals. Of course they spend money and enjoy life, including spending on social life and recreation - they just don't go overboard about it. They're frugal, sure, but they still spend money. But they plan their spending, whereas many people have no plan at all - they simply spend their money as fast as they get it, then wonder why they never seem to get anywhere.

Low expectations?
Rubbish...you do your homework, you buy a house in a growth area, you have big expectations about the capital growth of real estate in that area. Similarly with any other investment - people would never invest money if they didn't have a reasonable expectation of the investment paying off handsomely.

Don't take any risks?
That's rubbish too. You make money by investing your money and other peoples money. All investment carries some risk. People with their heads screwed on assess both the risks and potential rewards of investments, and go ahead if the odds are stacked heavily in their favour.

Stay in the same job?
I doubt if there are many rich people who have been in the same job since they first joined the workforce.
People who plan on creating personal wealth are usually go-getters who look for opportunities to advance themselves. Getting a better job is one way of doing that.

 

[Glen48]

So what is every one following FX. PM's, OZ bank's, OZ Mining, OS, ???

 

[stl_08]

I'd rather drive a Ferrari than a Toyota but sometimes sacrifice is necessary. Someone suggested walking to me but that actually costs more because of time costs.

What I mean is that you should not have a child early in your life because that is when you should be saving up to exploit compound interest. You should have children later in life.

Maybe I am only saying this due to my youth and ignorance, but you should go without now in your younger years (that's why I don't have a car at 17) and then u will have enough money to support kids at a younger age, not at a age when it is convenient for you, well that is my plan, I hope I am not offending anybody, and I am aware that at 17 in I'm my dream World and will get a rude shock when I do get into the real world

 

[beerwm]

Most rich people ive met, got rich my being very conservative and frugal, the general rules seem to be.

• Don't spend money (no travel, no fine foods/drinks, no entertainment etc)
• Stay in the same job
• Have low expectations
• have a disciplined saving plan
• Get Married to suitable person...stay married
• Don't take any risks

jeeze.. way to suck the fun out of being wealthy,

x 2

 

[jersey10]

get into as much debt as possible and ensure that the money you generate from that debt pays for the cost of the debt and more!