What are your tips for acquiring wealth and riches?

[nunthewiser]

donate to my convent . im sure karma will fix you up in goodness for years to come

amen

a nun

 

[bunyip]

What are your tips and techniques in acquiring wealth and riches ?

Are there things you'd liike to share ?

Are there things you do everyday that help you on your way to success ?

Let's hear from as many as possible.....

Solly

You've gone quiet since starting this thread.
You must have some profound wisdom to share with us on the topic of acquiring wealth and riches - let's hear your ideas.

 

[Wysiwyg]

Gleaning information.

 

[So_Cynical]

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

Not my plan Bunyip...was stating the fact that many of the rich people ive met are rich because they

• 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

Call it Nonsense and rubbish....whatever - its absolute fact.

How many people in Sydney are millionaires simply because they brought a house 30
years ago, stayed in the one job and didn't get divorced...there's thousands of em.

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

x 2

Yes all these people were wealthy and sad pathetic people...one guy owned 6
houses in a Sydney beach suburb and for something to do, mowed the lawns and
did the gardening at all his rented property's.....pathetic.

 

[Solly]

Solly

You've gone quiet since starting this thread.
You must have some profound wisdom to share with us on the topic of acquiring wealth and riches - let's hear your ideas.

Ok bunyip fair enough...here's a copy & paste from a post I did in the Storm thread regarding wealth etc... I'll add a few more soon..



Here are a few of my beliefs, It may not be what you expect. These views are not unique to me, it's probably just restating obvioius things.
I'll try and revist later as I'm heading out now and I really don't like typing from my Crackberry.

First of all you must define what you want.
Is it a new house, a certain amount of money, a better life by doing something or taking some type of action etc, developing a new product.

This is the most important step. You cannot reach a destination if you don't know where you are travelling to. Don't say things like a I want to have heaps of money. Be specific to the point and head for it.

Determine what you mean by wealth/riches.
Money does not equal riches.
Living in the biggest tin shed on the hill with views to the island doesn't always mean wealth. This is equally important.

Think back to some of the happiest times in your life, see that is a definition of riches. I bet you didn't think back to a time you checked you statement of position or bank balance.

Set a time frame, set milestones, pick a realistic end date to arrive.

How will you do it, Plan your strategy and implement it.
Be willing to fine tune your course.

Surround yourself with people or have access to people who are much smarter than you.

Listen more than you talk, never be afraid to ask questions.

Remember it's all about the journey, enjoy it.

During the take-off roll, be prepared to abort before V1, when you Rotate you are committed to that course. If things go bad after that brace and prepare for impact. Always be have a seat near the exit, always have an exit strategy.

Be prepared to really make huge mistakes, take a breather pick up the pieces and start again

It's a boring & tiring life travelling around strapped in row 1A.

Avoid people that impede your progress,

Be firm but fair.

Stick with your decisions, if you are wrong, admit it, build a bridge and get over it. Move to the next task.

Always live with in your means.
Never buy any article, car, house, clothes, just to impress others.

You don't necesarily need to own something to have access to enjoy or use it. Many things are free or can be accessed in a "pay per use" manner.
It's still "yours" for that time.

Always "pay" yourself first, before paying others.

Never watch Today Tonight or A Current Affair nor any other mind numbing TV.

Google the name: Hyman Minsky. Read and consider his theories.

Never, Never, chase something just for dollars.

I'll elaborate more later....

But it's really all about, pre-planning, implementation, handling variation and steering things to a successful completion. No matter what the task is.

Managing your available time is critical. Time management is simple but has huge payoffs. I call it Time Management Leverage.

Having a JOB ( Just over Broke ) is a good thing, you don't need to own a business or corporation to be rich.

Never be greedy, we live in one of the richest, wealthiest places in the world, cherrish this land.

 

[bunyip]

Yes all these people were wealthy and sad pathetic people...one guy owned 6
houses in a Sydney beach suburb and for something to do, mowed the lawns and
did the gardening at all his rented property's.....pathetic.

Nobody builds up a property portfolio of 6 houses in a Sydney beach suburb without taking some risks.
There's always the risk of property investment going wrong - look at what's happened with US real estate for example - although that's unlikely if you do your homework and invest in the right places. Nevertheless the risk is always there.

Even buying just one house carries some risk, albeit a small risk.

 

[beerwm]

Not my plan Bunyip...was stating the fact that many of the rich people ive met are rich because they

• 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

Call it Nonsense and rubbish....whatever - its absolute fact.

How many people in Sydney are millionaires simply because they brought a house 30
years ago, stayed in the one job and didn't get divorced...there's thousands of em.



Yes all these people were wealthy and sad pathetic people...one guy owned 6
houses in a Sydney beach suburb and for something to do, mowed the lawns and
did the gardening at all his rented property's.....pathetic.

Has anyone told you that you're So_Cynical? :

 

[So_Cynical]

Nobody builds up a property portfolio of 6 houses in a Sydney beach suburb without taking some risks.
There's always the risk of property investment going wrong - look at what's happened with US real estate for example - although that's unlikely if you do your homework and invest in the right places. Nevertheless the risk is always there.

Even buying just one house carries some risk, albeit a small risk.

Com on Bunyip...hindsight tells us that eastern suburbs Sydney beach side real estate
was where the saying "safe as houses" came from, this guys didn't have a portfolio..he
owned houses, got them one at a time and payed cash for the first 2, worked a simple
factory job and lived super frugal...its not rocket science.

Its buy and hold.

 

[Spanning Tree]

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

The last two seem contradictory. Marriage is very risky. You can reduce the risk by getting a prenup, but if you do you may as well just hire a prostitute.

 

[Julia]

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

Not at all an offensive idea. Imo you're on the right track.

 

[Nero64]

Date as many woman as you can and marry the richest one.

It doesn't matter if she is overweight, boring or ugly. Just say that you love her each day and she will leave you alone; In bed that is.

Always be nice to the mother-in-law as well.

Ooops! coming to bed honey.....I better get off this computer she is calling me now

 

[Julia]

The last two seem contradictory. Marriage is very risky. You can reduce the risk by getting a prenup, but if you do you may as well just hire a prostitute.

The connection between a prenup and hiring a prostitute escapes me.

 

[So_Cynical]

The last two seem contradictory. Marriage is very risky. You can reduce the risk by getting a prenup, but if you do you may as well just hire a prostitute.

I was always under the impression that prenups in Australia are worthless, Not legally enforceable...am i wrong?

I love google..Pre-Nuptial Agreements Australia http://www.pre-nuptialagreements.com.au/summary_of_law.htm

Child and Spousal Maintenance Provisions in Financial Agreements (Section 90E)

Provisions in the financial agreement dealing with the maintenance of a spouse, child or
children to the agreement is void unless the provision specifies:

* The name of the party (spouse, child etc) for whose maintenance provision is made
* The monetary sum or value of property attributable to the maintenance of the party

However, any agreement on child maintenance can be overrided by an assessment made
by the Child Support Agency.

Court Powers to Alter Spousal Maintenance (Section 90F)

No maintenance provision in a financial agreement excludes or limits the power of a court
to make a maintenance order if the court is satisfied that when the agreement came into
effect, the circumstances were such that, taking into account the terms and effect of
the agreement, the party would have been unable to support himself or herself without
an income tested pension, allowance or benefit.

 

[bunyip]

Com on Bunyip...hindsight tells us that eastern suburbs Sydney beach side real estate
was where the saying "safe as houses" came from, this guys didn't have a portfolio..he
owned houses, got them one at a time and payed cash for the first 2, worked a simple
factory job and lived super frugal...its not rocket science.

Its buy and hold.

Of course it's not rocket science - it's simply buy and hold real estate investment just like I do myself.
You do your homework, you select areas that you believe have the potential for significant capital growth, you borrow money for the investment. It's probably the safest of all investments.
But it still carries some risk, albeit a small risk.
Your blokes are saying don't take any risks. Well they did - every investment carries risk, some more than others. Real estate is one of the safest investment because the risks are small and the potential rewards are great.

You don't have to convince me of the safety of investing in real estate in growth areas.....I do it myself.
You seem to think I'm saying that real estate investment is risky. I'm not - I'm merely pointing out that it not possible to invest money without taking some risk.

This acquaintance of yours with six houses - is he one of those who told you the following?.....

1. (no travel, no fine foods/drinks, no entertainment etc)(no travel, no fine foods/drinks, no entertainment etc)

2. Have low expectations

3. Don't take any risks

On Point 1 - Do you seriously think he (or any of the other people you spoke about) never went anywhere for a holiday that involved travelling away from home? Do you really believe he never took his wife or family to a restaurant for a nice meal, or never had friends over for a barbeque and a few beers, or dinner with a bottle or two of good wine?
Do you really believe that he spent absolutely nothing on entertainment - not even a single dollar?
Do you believe he lived like a monk?

On Point 2 - Do you really think he would have made substantial real estate investments in a Sydney beach suburb if he had low expectations about the future growth prospects of the area?
My guess is that he did his homework and recognised that the area was primed for substantial growth. His expectation, quite reasonably, would have been that substantial growth would be accompanied by substantial capital gain.

On Point 3 - Do you really believe that your friend wasn't aware that every investment carries some risk. He sounds like a smart man to me - he would have been well aware of what can go wrong with real estate investment, but he would have assessed that risk as being miniscule in comparison to the potential rewards. So he decided the very small risk was worth taking, and he went ahead and took it.

The rich people you spoke to were talking in generalities, but you've taken them literally.
I believe they were trying to convey to you the importance of being frugal in spending habits, in particular keeping a tight rein on money-wasting expenses like booze, restaurants, parties, entertainment, overseas travel etc.
I believe they were stressing the importance of having realistic expectations about investment performance. It wouldn't be their style to invest in risky speculative stocks in the hope of a 100% return in a few weeks. They preferred more conservative investments like real estate.
They were clearly wise and frugal in their spending habits, but they sure as hell didn't live like monks.
They leaned towards low risk investments after assessing the risk vs the rewards.
They sound like pretty smart people to me. Just don't take them literally when they tell you don't do this and don't do that. None of them are suggesting you should never buy a bottle of beer or wine or a restaurant meal, or travel somewhere for a holiday. They're simply telling you that you need to keep a tight rein on your expenses.
If you showed them Post 16 on this thread in which I outlined the advice I gave to my kids, I reckon they'd be pretty much in agreement with me.


One more point....anyone with six houses in a Sydney beachside suburb does indeed have a property portfolio.

 

[So_Cynical]

This acquaintance of yours with six houses - is he one of those who told you the following?.....

1. (no travel, no fine foods/drinks, no entertainment etc)(no travel, no fine foods/drinks, no entertainment etc)

2. Have low expectations

3. Don't take any risks

etc

The 6 houses guy i met once while installing Foxtel satellite for one of his tenants...he
happened to be there mowing the lawn i said to the customer, who's that old guy
mowing the law...hes says hes the landlord/ owner.

Confused i say...why is the owner who is clearly over 65 years of age moving his tenants
lawn, the reply was that he likes to keep busy as he is retired and lives off the rents from
his 6 houses (Maroubra) he has nothing to do so likes to mow the lawns...and his tenants
don't mind getting there lawns mowed for nothing.

So installing a dish takes a while...he finishes the mowing and we strike up a convo...and
i get stuck into him (light heatedly) as to why he likes to mow lawns at his age, turns out
hes a simple fellow with simple needs and simple tastes, he gives me the spin about saving
money and living simply.

He was just one of many people ive met over the years that has gotten comfortably
wealth by doing very little, mostly simple folk with simple tastes and needs, that made
simple investment choices.

To be fair back in the 60 etc there was pretty limited investment choices for the masses
and alot less to spend money on....things have changed.

When i said he didn't have a portfolio of investments, i meant that i doubt he would know
what a portfolio was or even have the vaguest concept of investing to a plan..and he was
just one of many ive met that would fall into the category of "accidental millionaire" as in he
never set out to be a millionaire just went about living his life and one day woke up a millionaire.

 

[Spanning Tree]

Trying to mimic accidental millionaires I don't think is the best idea. I think most real estate millionaires are accidental millionaires because most people buy a house to live in and they are lucky to have purchased before the global real estate boom.

The connection between a prenup and hiring a prostitute escapes me.

I wouldn't get a prenup because it shows your spouse that you don't trust her or him, so it really kills off all the romance and reduces marriage to prostitution.

 

[nunthewiser]

LOL

 

[trillionaire#1]

buying vacant land on the outskirts of town worked for us
just spend an eon badgering council until they rezone it residential.

 

[michael_t_f]

Yes all these people were wealthy and sad pathetic people...one guy owned 6
houses in a Sydney beach suburb and for something to do, mowed the lawns and
did the gardening at all his rented property's.....pathetic.

I reckon this bloke is probably just a control freak and just does this to keep an eye on his propeties.

 

[kincella]

I am glad the story was told about the guy actually enjoyed mowing the lawns...the tenants get the work done for free....usually tenants do not do gardening...and in fact can kill a garden that cost thousands of dollars and years to build...gardens can add 20-50k value on a standard property...

I pay for the gardeners on my props...after losing a magnificent japanese maple...irreplaceable as an aged tree

I know a friend...looking forward to his early part time retirement...guess what he is looking forward to ....gardening...includes mowing the lawn...
he is in a high stress work environment...so something as simple as mowing the lawn is stress free...and the exercise is healthy....
they too have 6 properties...but only 5 gardens...he bought a set of 6 units for about 60,000 back in the 80's...they are still cheapies worth about a million bucks today...returns about 70,000 pa or 7% todays market...
his case...it was not accidental...it was planned for his retirement...he looked forward 30 years....
lucky...well not really...his superfund is down about 70% from when he first considered retirement over a year ago....but thank god for those IP's

oh and his pushy wife..is one of those women who just loves buying properties...she handles all matters...uses no agents to rent...scrutinizes the tenants herself..collects the rents...its like a part time job to her...she bought 5 props from about 2000-2003...upgraded the PPOR to a bigger place...no intention of selling any of the props etc....enjoying the higher rents..