Ways to build wealth. How to?

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Topic Author
newyorker
Posts: 1635
Joined: Sun May 17, 2020 7:59 am

Ways to build wealth. How to?

Post by newyorker »

How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
livesoft
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Re: Ways to build wealth. How to?

Post by livesoft »

You missed that one has to not spend away their income. That is, one way to help build wealth is to not even need wealth.
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babystep
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Re: Ways to build wealth. How to?

Post by babystep »

newyorker wrote: Sat Jul 24, 2021 10:24 pm

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
Leverage and tax. Click on the search box and find several threads talking about advantages of real-estate as well as disadvantages.
Marseille07
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Re: Ways to build wealth. How to?

Post by Marseille07 »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
Just keep DCAing. RE is fine too, but you need to do a lot of legwork in terms of finding deals, preparing properties for tenants, manage tenants etc etc.
Topic Author
newyorker
Posts: 1635
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Re: Ways to build wealth. How to?

Post by newyorker »

babystep wrote: Sat Jul 24, 2021 10:36 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
Leverage and tax. Click on the search box and find several threads talking about advantages of real-estate as well as disadvantages.

Leverage for sure. I want to get into RE but its complicated.

Wonder if it is good to buy investment properties. Multifamily? Sfh? And its quite like stock picking except that it is difficult if I buy a property far from my home.
Topic Author
newyorker
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Re: Ways to build wealth. How to?

Post by newyorker »

Marseille07 wrote: Sat Jul 24, 2021 10:44 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
Just keep DCAing. RE is fine too, but you need to do a lot of legwork in terms of finding deals, preparing properties for tenants, manage tenants etc etc.
I agree. Thats what i think i should learn. But you are right Dca is simple.
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David Jay
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Re: Ways to build wealth. How to?

Post by David Jay »

newyorker wrote: Sat Jul 24, 2021 10:44 pm Leverage for sure. I want to get into RE but its complicated.

Wonder if it is good to buy investment properties. Multifamily? Sfh? And its quite like stock picking except that it is difficult if I buy a property far from my home.
Most importantly, you need to determine if you want passive investments or a part-time job. Residential real estate requires a pretty significant amount of attention.
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H-Town
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Re: Ways to build wealth. How to?

Post by H-Town »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
Time is the ultimate currency.
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NewMoneyMustBeSmart
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Re: Ways to build wealth. How to?

Post by NewMoneyMustBeSmart »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?
Make more than you spend and invest the difference wisely.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein | *Everything I write here is an unreliable opinion*
tibbitts
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Re: Ways to build wealth. How to?

Post by tibbitts »

newyorker wrote: Sat Jul 24, 2021 10:24 pm Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
I don't understand why you'd ask this, since you've clearly posted enough that you must be aware of the endless debates through the hundreds of threads regarding the pros and cons of owning and managing rental real estate.
UpperNwGuy
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Re: Ways to build wealth. How to?

Post by UpperNwGuy »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
OP, I've been reading your posts since you joined bogleheads, and you seem very confused about your financial life. I think you should consider getting a financial advisor to help you work through your many questions.
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JoeRetire
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Re: Ways to build wealth. How to?

Post by JoeRetire »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?
Spend less than you earn.
This isn't just my wallet. It's an organizer, a memory and an old friend.
jharkin
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Location: Boston suburbs

Re: Ways to build wealth. How to?

Post by jharkin »

Read The Millionaire Next Door by Thomas Stanley. It’s based on a long running research study into how most self made people actually built their wealth.
YeahBuddy
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Re: Ways to build wealth. How to?

Post by YeahBuddy »

H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.

Wow, congrats! I'm sure the (higher?) double incomes help as well! I don't know of anyone locally in my tax bracket that's in that type of position. And I know some very cheap people with decent incomes.
Light weight baby!
halfnine
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Re: Ways to build wealth. How to?

Post by halfnine »

Get impregnated by a wealthy man (dependent on country laws)
Provide a service to wealthy people who value their time more than their money.
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Sandtrap
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Re: Ways to build wealth. How to?

Post by Sandtrap »

newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
A.
1
Are you an employee now?
Do you generate substantial income? (high income, high tax bracket, professional?)
2
Do you have small business experience?
Define "small business"?
IE: neighborhood convenience store, sandwich lunch truck, part time Roto Rooter Drain Cleaning, Handyman?
3
Define owning a large business? Can you simply own a large business now?
Do you have a degree in business? Or, experience in a family or generational business?
4
Do you have experience in high tech, digital media, etc.
Do you work for Facebook, Google, Apple, etc, and have professional and/or executive experience there?

B.
1
The more your "net" income the more you have to invest.
The higher your income stream and "net income" thereafter, the more you have to invest.
IE: Net income for a minimum wage hourly worker is different than a PhD Engineer in a good position. Given "net" ability. LBYM
2.
Ditto: Market investing is only but an important part of a total personal financial strategy, it is not the "only" factor to wealth accumulation.
3.
Do you have experience in R/E residential or commercial income property management, investing, etc.?
How much to you have to invest?
IE: A full cash purchase of a 4 plex unit near you or within a few hours of driving distance?
IE: A small down payment of less than $50,000 of which you are thinking of "leveraging" to make the most out of what you have but don't know what to do with it and still have to work at your full time job to pay rent and bills?
Do you own your own home? Is it paid off in full?
4
Investing in the stock market, index funds, or any investing done well is "not simple" and those who think it is will underestimate what is involved and possibly get burned.
It is indeed "simple" from a certain point of view of having enough knowledge to understand the parts and pieces, etc. But, at that point, "simple" is semantics and individual POV only.
IE: changing a "spark plug" is simple. . . on a single cylinder lawn mower but different when it is stuck in 2 pieces in a Ford modular engine head.

*You mention "wealth". Can you define wealth? Substantial wealth? How much to "you" is "wealth" in numbers?

Actionably:
Can you financially afford to purchase a 4 plex or 6 plex residential R/E in "your area" in a "good neighborhood"?
Do you have a sound business plan, financial plan, etc, to do this?
Owning and managing R/E income property is a business and requires savy "business Finance/Financial" talents. Do you have this?

Actionably:
Your question and query can best be answered as it applies "to you" comprehensively by posting a "full portfolio review in forum format" so suggestions will be in that context vs for each person's scenario which doesn't apply "to you" in a very useful way specifically.

dislaimer:
There are endless ways of approaching things per the OP's "Financial" situation and query based on each person's unique knowledge and real life experience and opinonions. This is just one "Financial" POV.

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Topic Author
newyorker
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Re: Ways to build wealth. How to?

Post by newyorker »

halfnine wrote: Sun Jul 25, 2021 6:52 am Get impregnated by a wealthy man (dependent on country laws)
Provide a service to wealthy people who value their time more than their money.
Unfortunately I am a man so i cant get pregnant 😂
Topic Author
newyorker
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Re: Ways to build wealth. How to?

Post by newyorker »

UpperNwGuy wrote: Sun Jul 25, 2021 6:23 am
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
OP, I've been reading your posts since you joined bogleheads, and you seem very confused about your financial life. I think you should consider getting a financial advisor to help you work through your many questions.
Thank you sir. I agree. I am going back and forth of spend all i earn vs save up. I will look for flat fee financial advisor for sure.
Topic Author
newyorker
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Re: Ways to build wealth. How to?

Post by newyorker »

Sandtrap wrote: Sun Jul 25, 2021 7:01 am
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
3.
Do you have experience in R/E residential or commercial income property management, investing, etc.?
How much to you have to invest?
IE: A full cash purchase of a 4 plex unit near you or within a few hours of driving distance?
IE: A small down payment of less than $50,000 of which you are thinking of "leveraging" to make the most out of what you have but don't know what to do with it and still have to work at your full time job to pay rent and bills?
Do you own your own home? Is it paid off in full?
4
Investing in the stock market, index funds, or any investing done well is "not simple" and those who think it is will underestimate what is involved and possibly get burned.
It is indeed "simple" from a certain point of view of having enough knowledge to understand the parts and pieces, etc. But, at that point, "simple" is semantics and individual POV only.
IE: changing a "spark plug" is simple. . . on a single cylinder lawn mower but different when it is stuck in 2 pieces in a Ford modular engine head.

*You mention "wealth". Can you define wealth? Substantial wealth? How much to "you" is "wealth" in numbers?

Actionably:
Can you financially afford to purchase a 4 plex or 6 plex residential R/E in "your area" in a "good neighborhood"?
Do you have a sound business plan, financial plan, etc, to do this?
Owning and managing R/E income property is a business and requires savy "business Finance/Financial" talents. Do you have this?

Actionably:
Your question and query can best be answered as it applies "to you" comprehensively by posting a "full portfolio review in forum format" so suggestions will be in that context vs for each person's scenario which doesn't apply "to you" in a very useful way specifically.

dislaimer:
There are endless ways of approaching things per the OP's "Financial" situation and query based on each person's unique knowledge and real life experience and opinonions. This is just one "Financial" POV.

j :D
This is such a good post and comment that i would like to thank you. Just everything i was in need of.

I do not have any experience of managing r/e but willing to learn if i need to. Looking for a something moderate around 500k-1M

I do own a home in mortgage but can pay off mortgage anytime. Interest rate is low so i am just keeping it for now.

How does one even find 4 plex or 6 plex? Is it done thru residential real estate website like zillow? Or more of commercial real estate website? Also, my friend told me that 4 plex attracts ppl who are more likely deadbeat tenants bc they cant afford condo. Is this true?
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Sandtrap
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Re: Ways to build wealth. How to?

Post by Sandtrap »

newyorker wrote: Sun Jul 25, 2021 8:14 am
Sandtrap wrote: Sun Jul 25, 2021 7:01 am
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
3.
Do you have experience in R/E residential or commercial income property management, investing, etc.?
How much to you have to invest?
IE: A full cash purchase of a 4 plex unit near you or within a few hours of driving distance?
IE: A small down payment of less than $50,000 of which you are thinking of "leveraging" to make the most out of what you have but don't know what to do with it and still have to work at your full time job to pay rent and bills?
Do you own your own home? Is it paid off in full?
4
Investing in the stock market, index funds, or any investing done well is "not simple" and those who think it is will underestimate what is involved and possibly get burned.
It is indeed "simple" from a certain point of view of having enough knowledge to understand the parts and pieces, etc. But, at that point, "simple" is semantics and individual POV only.
IE: changing a "spark plug" is simple. . . on a single cylinder lawn mower but different when it is stuck in 2 pieces in a Ford modular engine head.

*You mention "wealth". Can you define wealth? Substantial wealth? How much to "you" is "wealth" in numbers?

Actionably:
Can you financially afford to purchase a 4 plex or 6 plex residential R/E in "your area" in a "good neighborhood"?
Do you have a sound business plan, financial plan, etc, to do this?
Owning and managing R/E income property is a business and requires savy "business Finance/Financial" talents. Do you have this?

Actionably:
Your question and query can best be answered as it applies "to you" comprehensively by posting a "full portfolio review in forum format" so suggestions will be in that context vs for each person's scenario which doesn't apply "to you" in a very useful way specifically.

dislaimer:
There are endless ways of approaching things per the OP's "Financial" situation and query based on each person's unique knowledge and real life experience and opinonions. This is just one "Financial" POV.

j :D
This is such a good post and comment that i would like to thank you. Just everything i was in need of.

I do not have any experience of managing r/e but willing to learn if i need to. Looking for a something moderate around 500k-1M

I do own a home in mortgage but can pay off mortgage anytime. Interest rate is low so i am just keeping it for now.

How does one even find 4 plex or 6 plex? Is it done thru residential real estate website like zillow? Or more of commercial real estate website? Also, my friend told me that 4 plex attracts ppl who are more likely deadbeat tenants bc they cant afford condo. Is this true?
R/E is Investment is a business is “Finance”

Topics too long and detailed to cover in this thread.
So…please….
Feel free to PM me as you wish.

Aloha
j🌺
Wiki Bogleheads Wiki: Everything You Need to Know
Dottie57
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Re: Ways to build wealth. How to?

Post by Dottie57 »

livesoft wrote: Sat Jul 24, 2021 10:27 pm You missed that one has to not spend away their income. That is, one way to help build wealth is to not even need wealth.
+1

You can build wealth by not spending a high percent of your income. Invest unspent money in 401k and Roth mostly.
Last edited by Dottie57 on Sun Jul 25, 2021 3:18 pm, edited 1 time in total.
Dottie57
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Re: Ways to build wealth. How to?

Post by Dottie57 »

H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
Triple digit golfer
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Re: Ways to build wealth. How to?

Post by Triple digit golfer »

Dottie57 wrote: Sun Jul 25, 2021 3:18 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
Yes, and maybe even some other good fortune. This is quite tone deaf. I'd say even double the median income and living well below one's means wouldn't get to a $3.5 million portfolio by mid 30s unless a lucky investment was made. To get there the "old fashioned" way requires an excellent income.

I make a good income and we live below our means, but not like paupers. We have a seven figure portfolio in our mid 30s. Along with my hard work, I was blessed with parents who paid for my education and a couple of good, timely job changes. Oh, and I was born in the U.S.A.
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anon_investor
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Re: Ways to build wealth. How to?

Post by anon_investor »

Triple digit golfer wrote: Sun Jul 25, 2021 3:24 pm
Dottie57 wrote: Sun Jul 25, 2021 3:18 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
Yes, and maybe even some other good fortune. This is quite tone deaf. I'd say even double the median income and living well below one's means wouldn't get to a $3.5 million portfolio by mid 30s unless a lucky investment was made. To get there the "old fashioned" way requires an excellent income.

I make a good income and we live below our means, but not like paupers. We have a seven figure portfolio in our mid 30s. Along with my hard work, I was blessed with parents who paid for my education and a couple of good, timely job changes. Oh, and I was born in the U.S.A.
I thought the old fashioned way was inheritance...
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Robert T
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Re: Ways to build wealth. How to?

Post by Robert T »

.
May be of interest
https://twitter.com/naval/status/1002103360646823936

Another quote from him: "People who live below their means enjoy a freedom that people busy upgrading their lifestyles can't fathom".
.
Dottie57
Posts: 12349
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Ways to build wealth. How to?

Post by Dottie57 »

Triple digit golfer wrote: Sun Jul 25, 2021 3:24 pm
Dottie57 wrote: Sun Jul 25, 2021 3:18 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
Yes, and maybe even some other good fortune. This is quite tone deaf. I'd say even double the median income and living well below one's means wouldn't get to a $3.5 million portfolio by mid 30s unless a lucky investment was made. To get there the "old fashioned" way requires an excellent income.

I make a good income and we live below our means, but not like paupers. We have a seven figure portfolio in our mid 30s. Along with my hard work, I was blessed with parents who paid for my education and a couple of good, timely job changes. Oh, and I was born in the U.S.A.
For contrast, I didn’t make 3.5mm in my entire lifetime. I did however get past the second bend point for SS. So you are doing exceedingly well - Congrats.
MTF
Posts: 57
Joined: Fri Mar 23, 2018 2:36 pm

Re: Ways to build wealth. How to?

Post by MTF »

H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
Ha - you must have some extra sauce, though. You don't end up with 3.5m, a paid off house and a beach condo - in your 30s or at all - just by living below your means as a wage earner. You have to have massive wages.
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Ways to build wealth. How to?

Post by Toons »

It is not how much you make but how much you keep
Stay out of debt
Stick to a budget
Do NOT live up to your means
save and or invest raises if possible
Contribute as much as possible to your retirement accounts.
Working diligently on discerning Wants and Needs,while in working years.
Let Compounding do the heavy lifting of the portfolio (In equities-Reinvesting)
Once the snowball starts rolling,as time marches on
(It Works) :wink:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Jimsad
Posts: 903
Joined: Mon Mar 20, 2017 5:54 pm

Re: Ways to build wealth. How to?

Post by Jimsad »

Dottie57 wrote: Sun Jul 25, 2021 3:18 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
+1
However much you save this is not possible without a large income
Jimsad
Posts: 903
Joined: Mon Mar 20, 2017 5:54 pm

Re: Ways to build wealth. How to?

Post by Jimsad »

MTF wrote: Sun Jul 25, 2021 4:41 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
Ha - you must have some extra sauce, though. You don't end up with 3.5m, a paid off house and a beach condo - in your 30s or at all - just by living below your means as a wage earner. You have to have massive wages.
+1
It will be helpful to know how much were the ‘wages’
Triple digit golfer
Posts: 10430
Joined: Mon May 18, 2009 5:57 pm

Re: Ways to build wealth. How to?

Post by Triple digit golfer »

Dottie57 wrote: Sun Jul 25, 2021 4:41 pm
Triple digit golfer wrote: Sun Jul 25, 2021 3:24 pm
Dottie57 wrote: Sun Jul 25, 2021 3:18 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
To have 3.5m in your 30’s you also need very good income.
Yes, and maybe even some other good fortune. This is quite tone deaf. I'd say even double the median income and living well below one's means wouldn't get to a $3.5 million portfolio by mid 30s unless a lucky investment was made. To get there the "old fashioned" way requires an excellent income.

I make a good income and we live below our means, but not like paupers. We have a seven figure portfolio in our mid 30s. Along with my hard work, I was blessed with parents who paid for my education and a couple of good, timely job changes. Oh, and I was born in the U.S.A.
For contrast, I didn’t make 3.5mm in my entire lifetime. I did however get past the second bend point for SS. So you are doing exceedingly well - Congrats.
Thank you, and congratulations! The recent market surge has gotten us to $1.1 million and we feel very fortunate to be in the position we are in. We live in a middle class neighborhood and have many friends with young kids like us and some of the families are struggling even with two incomes. My wife stays home with our daughter and I am very thankful every day that we're able to do that.

We bought a house that was about twice my income. I think most people exceed that by a decent margin. We drive 5 and 8 year old Hondas. And we've never bought our daughter a single article of clothing because she has two grandmas who have that covered. Looking at her wardrobe, I figure that alone has saved us about the equivalent of her college education. :)
Topic Author
newyorker
Posts: 1635
Joined: Sun May 17, 2020 7:59 am

Re: Ways to build wealth. How to?

Post by newyorker »

Robert T wrote: Sun Jul 25, 2021 3:41 pm .
May be of interest

https://twitter.com/naval/status/1002103360646823936

Another quote from him: "People who live below their means enjoy a freedom that people busy upgrading their lifestyles can't fathom".
.

I clicked expecting another twitter garbage but this is some solid stuff.

“When you're finally wealthy, you'll realize that it wasn't what you were seeking in the first place. But that's for another day.” Deep stuff
dvvader
Posts: 274
Joined: Fri Nov 22, 2019 6:07 pm

Re: Ways to build wealth. How to?

Post by dvvader »

H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
I think something crazy must have happened…

viewtopic.php?f=1&t=215417&p=3308683#p3308683

Regardless, congrats on your success!
Bogleheads® emphasize regular saving, broad diversification, and sticking to one's investment plan regardless of market conditions.
Topic Author
newyorker
Posts: 1635
Joined: Sun May 17, 2020 7:59 am

Re: Ways to build wealth. How to?

Post by newyorker »

dvvader wrote: Sun Jul 25, 2021 8:36 pm
H-Town wrote: Sat Jul 24, 2021 10:59 pm
newyorker wrote: Sat Jul 24, 2021 10:24 pm How does one build wealth?

I think of it as income and investment.

For income, one can do

1) make money as an employee
2) own a small business
3) own a large business
4) own a really large business (like facebook tesla and etc)



For investment, one can do
1) invest in the stock market
2) invest in real estate
3) invest in single stock/crypto/etc - most risky but highest potential.

Invest in stock market is pretty simple. I just put into s&p. However i think there should be an advantage of doing real estate. Do you guys know what i should do?

Buy other house and rent it out?
Multiunit rental?
You only need one. As livesoft alluded to above: "Live below your means"

We didn't do anything crazy. We are just a couple of wage earners, save and invest in Vanguard index funds. At mid 30s, we have built up 3.5M portfolio (>50x annual expense), a paid off main residence, and a beach condo. Secret sauce? The one and only: live below your means.
I think something crazy must have happened…

viewtopic.php?f=1&t=215417&p=3308683#p3308683

Regardless, congrats on your success!

Damn must be bitcoin or amc/gme
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