Why do you build wealth? What's your end goal?

[tech/a]

and once I get there I won't be worrying about money

Interested in where "there" is and when it is--relative to time to 85.
What in $$ terms "there" is also.

 

[kingcarmleo]

To own my own company and travel the world doing deals

 

[tothemax6]

Why? Better than not.
End goal? No end, just a direction.

 

[sptrawler]

Wealth or money only gives you more options. It doesn't necassarily make you happy or even contented. It just gives you the option to do things that may cost more than someone else can afford. However just because you payed for something doesn't mean there is more enjoyment.
What better enjoyment than just sitting with your partner or a couple of friends and enjoying a nice red and a cheese platter together. Or sitting with you brother or sister maybe your son, daughter or grandchildren and doing a bit of fishing on a lovely sunny day.
If you have enough to put a roof over your head, food on the table and do the above and you have your health. You are indeed a wealthy person.
Sometimes we just need to sit, reflect and smell the roses.
Now where the hell is that red.

 

[awg]

Interested in where "there" is and when it is--relative to time to 85.
What in $$ terms "there" is also.

I have a preference to grow capital by above inflation and drawdown.

So if allow 3% for inflation and 4% drawdown, multiply expenses by that amount, and that gives a breakeven amount.

I would prefer to leave at least 1% margin in return for safety.

So based on an 8% after-tax return, I can estimate how much capital is needed on a more conservative portfolio, so long as I can accurately forecast my current and future expenditure.

(Because we are not quite there yet, I seek a higher yield,
would like to be able to retire my partner & kids at uni r xpensive, so have been doing the calcs, getting close!)

Capital should therefore continue to grow at above inflation.

This also means a decent estate can be left to your heirs, or you can spend up on yourself or other projects later in life.

Alas, because of uncertainty, GFCs, greed, etc, one also feels that it is prudent to build an asset base that is well beyond what would be suggested in the above basic calculations, just in case the ar$e drops out of the financial systems again.

You also have to estimate on a best guess basis how long you gonna live

 

[Smurf1976]

Exactly.

the question for a lot is : Do you percieve things to be better now?

I think my life is, but many people say that they preferred simpler times, with no work on weekends, family barbecues, single person working, lots of kids to enjoy, quarter acre block and so on..... you know the things most gave up for what? - 1 hour drive to and from work 8-6 job, small yard, 1-2 kids, high stress levels, and 3 plasma tvs.

Borrowing money they don't have, to buy things they can't afford, to impress people they don't like...

Personally, I like my 11 year old car that the insurance company values at $4700 and I don't want a new one. But I like knowing that I could pay cash for a brand new car straight from the showroom if I wanted to, even though I have no intention of doing so anytime soon.

 

[Bill M]

Interested in where "there" is and when it is--relative to time to 85.
What in $$ terms "there" is also.

The "there" is when my wife finishes her part time work and we both hit age 55. We haven't completed our Super setup because most of our assets are outside it and need to live off them in the mean time but we are slowly moving them over now. The $$ terms are different for everyone so there isn't much point in commenting on that other than to say a passive income from low risk assets that increases with inflation for the rest of our lives, that is the end goal.

 

[white_crane]

I'd love to be able to big difference to many lives.

Beer. Beer and hookers.

Or I could just go with this :alcohol:

I was saving for a death star, but I keep hearing how property is going to crash. So I guess I will have to settle for beer atm.

Much to learn, you still have.

 

[sptrawler]

Just had a pertinent thought.
Your end goal is probably to have enough money that even if you only have it earning bank interest it is enough.
If you only have enough that you need to pay someone to make more than bank interest, you don't have enough.

 

[Reasons]

Just had a pertinent thought.
Your end goal is probably to have enough money that even if you only have it earning bank interest it is enough.
If you only have enough that you need to pay someone to make more than bank interest, you don't have enough.

Pretty much right; and to refine that thought slightly further, basing that amount on interest rates being low.

 

[matty77]

enough money to live in the suburb I want to live in with a nice house.

more importantly enough money to give to my kids so they have the best opportunities in life. (but my retirement comes first!)

 

[Reasons]

...more importantly enough money to give to my kids so they have the best opportunities in life. (but my retirement comes first!)

I think you have the right idea about your retirement coming first and once you attain that financial status, if you have done that well you then have the opportunity and resources to do useful things for your kids in considered ways that they can learn from. (I always considered it to be a bit like having to save yourself first before you can save others). If you have not done so already, it is really worthwhile reading 'The Millionaire Next Door'; by Stanley / Danko for their research perspective on kids and your money amongst other things.

 

[Jhenry]

I suppose this probably spawns from the old cliché where " the love of money is the root of all evil." Well my desire for money is to have the best standard of life possible. To provide a comfortable life for my family and to ensure a comfortable retirement.

 

[damien275x]

So I dont have to work for any c*nt boss and can live on my own terms I'm not going to prostitute my way through 9-5 Mon-Fri til im 65 and basically dead. My parents wasted their lives, and no offence, but wasted their time with kids who are now ungrateful little pricks who don't appreciate what they have and always want more LOL Stuff that. It's all or nothing, and I don't want to hear people telling me to stick my money in ING 6% interest, that's not how you get rich!

I like the rich guy at work who gave me the advice.. Look at what your parents did, then don't do it. Sure they were frugal, saved, were conservative, now all they have are some average cars, a home, and a pension. Cool, not what I want after wasting 50 years of my life thanks. They didnt even travel much either.

 

[mazzatelli]

My family were always in-the-money, but I contributed for my folks as a token of thanks for raising me and also for my little sibling.

Other than that, for my own freedom to experience life to the fullest. Material things only bring short lived joy....

 

[Wysiwyg]

The less financial wealth one has, the more other people determine your life outcomes. Eventually I want to drop all the monkeys off my back with complete financial self sufficiency thus experiencing what is important to me.

 

[Caveman]

Talking Why do you build wealth? What's your end goal?
Because me Dad did.

 

[Tyler Durden]

I like the rich guy at work who gave me the advice.. Look at what your parents did, then don't do it. Sure they were frugal, saved, were conservative, now all they have are some average cars, a home, and a pension. Cool, not what I want after wasting 50 years of my life thanks. They didnt even travel much either.

They could be worse off.