Advice to become wealthy

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runner23
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Re: Advice to become wealthy

Post by runner23 »

A study of Denmark by Gustaf Bruze, a researcher at the Karolinska Institute in Stockholm, showed that about half of the expected financial gain of attending college derived not from better job prospects but from the chance to meet and marry a higher-earning spouse.
RandomDude
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Joined: Sat Mar 21, 2015 3:02 pm

Re: Advice to become wealthy

Post by RandomDude »

runner23 wrote: Wed Nov 22, 2017 3:52 pm A study of Denmark by Gustaf Bruze, a researcher at the Karolinska Institute in Stockholm, showed that about half of the expected financial gain of attending college derived not from better job prospects but from the chance to meet and marry a higher-earning spouse.
One of the primary reasons for me to go to University at 25 was to drastically increase my exposure to women who would be intelligent, higher earners, better looking and have cool accents compared to the lazy fat trollops I was surrounded by in my home town!

It worked too!
skjoldur
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Re: Advice to become wealthy

Post by skjoldur »

JoMoney wrote: Wed Nov 22, 2017 3:38 am How to become wealthy?
Save more than you spend. Earn more.
How you earn your money is another matter, but it's not likely to be coming from excess gains in shrewd day-trading or other securities trading. I would suggest focusing on your career and income there.
Maybe some other ideas here:
https://books.google.com.au/books?id=so ... edir_esc=y
Image
Hah, that picture also shows many of the best paths to becoming broke.
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knpstr
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Location: Michigan

Re: Advice to become wealthy

Post by knpstr »

JoMoney wrote: Wed Nov 22, 2017 3:38 am How to become wealthy?
Save more than you spend. Earn more.
How you earn your money is another matter, but it's not likely to be coming from excess gains in shrewd day-trading or other securities trading. I would suggest focusing on your career and income there.
Maybe some other ideas here:
https://books.google.com.au/books?id=so ... edir_esc=y
Image
I do 3 out of 10!

**Well I consider "marry rich" to be off the table now as I am already married, so lets call it 3 of 9!
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius
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IlikeJackB
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Re: Advice to become wealthy

Post by IlikeJackB »

Da5id wrote: Wed Nov 22, 2017 7:54 amGrey Poupon?
Pardon me?
"Do what you will, the capital is at hazard." Justice Samuel Putnam, Harvard College vs Amory, 1830. The "Prudent Man Rule."
richyg12
Posts: 37
Joined: Wed Jan 09, 2013 3:08 pm

Re: Advice to become wealthy

Post by richyg12 »

Someone else will always be younger, richer , more beautiful , have a sexier partner

There is a Buddhist proverb which I love - "Enough is a feast".

Try and think about it in Thanksgiving - it can be humbling and make you think about an excess of food/drink/gifts etc.
GCD
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Re: Advice to become wealthy

Post by GCD »

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Last edited by GCD on Mon Mar 30, 2020 5:21 pm, edited 1 time in total.
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racy
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Re: Advice to become wealthy

Post by racy »

Oldsport-
I copied this from somewhere, I don't remember. But, I liked it and saved it.
racy

How To Get Rich

1) Make a lot of money

a. Get well educated AND learn a trade/job skills/a profession that pays well. It is much easier to have a high net worth when you have a high income
b. Don’t stop learning when you leave formal schooling
c. Work hard
d. Be willing to take reasonable risks
e. Consider being an owner rather than an employee

2) Don’t spend a lot of money
a. Start saving early. Remember that every dollar you save in your twenties and thirties is 8 times as valuable as one saved in your fifties
b. Don’t be all hat and no cattle
c. Rent your lifestyle (Don’t buy a boat, a time-share, a second house, a plane etc) Keep your fixed expenses low so when hard times come you can cut your lifestyle back rapidly
d. Realize that buying a house or cars that are too expensive for you will likely keep you from getting rich. The big things matter most
e. Be prudently frugal and selectively extravagant. Be sure that you are spending your money on the things you value most
f. If you can’t afford to pay cash for it, you can’t afford it. The only exception is a house (because it will generally appreciate at just over the rate of inflation), where the rule is if you can’t afford to put 20% down and use a 15 year fixed mortgage you can’t afford it
g. Marry well, marry once, marry someone who shares the same thoughts, or with whom you can work out an acceptable compromise beforehand, on “The Big Four” (Money, Religion, Kids, and Sex) and STAY MARRIED
h. Credit cards aren’t for credit; if you have paid interest at a higher rate than 3% or paid a late or over-the-limit fee more than once you shouldn’t use a credit card

3) Make your money work as hard as you do
a. Read at least one good basic personal finance book, one good investing book, and one good behavioral finance book. Consider Personal Finance for Dummies, The Boglehead’s Guide to Investing, and Why Smart People Make Big Money Mistakes and How to Avoid Them.
b. Get the market return; use fixed asset-allocation, index mutual fund investing as your default strategy
c. Minimize taxes. Know the basics of the tax code, max out tax-advantaged savings accounts, and use them to your advantage
d. Keep investing expenses low
e. Understand basic financial calculations and lingo. Understand compound interest, the time value of money, financial risk, and the expected rate of return of various financial assets. Know how to use the excel functions-FV, XIRR, PMT, PPMT etc
f. Simplify your financial life. Put bills on automatic payment and investments on automatic withdrawal. Minimize the number of accounts you hold and the number of investments you have as much as possible
g. Understand why your savings rate matters a lot when you’re young and very little as your approach retirement. Understand why your investment return matters little when you’re young, more as you approach retirement, and a great deal during your first decade after retirement. Understand the concept of a safe withdrawal rate
h. See the end from the beginning. If you fail to plan you plan to fail. Have a written investment plan you can refer to when contemplating portfolio changes.

4) Don’t lose your money
a. Insure well against catastrophe-Life, Disability, Health, Liability, Property but self-insure whenever possible using a safe, liquid emergency fund (High benefits/limits but high deductibles/ waiting periods). Self-insure against medical expenses by maintaining a healthy lifestyle. After you retire, consider long-term care insurance to insure against having an extended period of dependence at the end of your life. Don’t mix insurance and investments. Cash-value (non-term) life insurance and variable annuities are generally products meant to be sold, not bought.
b. Get rich once, get rich slowly. Good investing is boring investing
c. Hire professionals to teach you, not just to “do it for you.” This includes accountants, estate attorneys, real estate professionals, and investment advisors. Be sure to bounce the advice you’ve received off someone with no conflict of interest in the transaction, realizing that no one cares about your financial success nearly as much as you do. If you are reasonably well-educated and interested, you can teach yourself to do your own taxes, sell your own house, and invest your own money
_________________
1) Invest you must 2) Time is your friend 3) Impulse is your enemy
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
gougou
Posts: 348
Joined: Thu Sep 28, 2017 7:42 pm

Re: Advice to become wealthy

Post by gougou »

bottlecap wrote: Wed Nov 22, 2017 7:40 am I bet people whose goal is to become wealthy are the least likely to achieve it.
I bet that people who don't even think or try will never become wealthy. People who think about being wealthy and try to become wealthy at least have a chance.

OP, I think the best way to become wealthy is to be able to use other people's money. This means either investing other people's money, borrow other people's money to invest yourself, or take a cut in the transactions of other people's money.
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