Ways to build wealth. How to?
Ways to build wealth. How to?
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?
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?
Re: Ways to build wealth. How to?
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.
Re: Ways to build wealth. How to?
Leverage and tax. Click on the search box and find several threads talking about advantages of real-estate as well as disadvantages.
-
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Re: Ways to build wealth. How to?
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.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?
Re: Ways to build wealth. How to?
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.
Re: Ways to build wealth. How to?
I agree. Thats what i think i should learn. But you are right Dca is simple.Marseille07 wrote: ↑Sat Jul 24, 2021 10:44 pmJust 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.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?
Re: Ways to build wealth. How to?
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.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: Ways to build wealth. How to?
You only need one. As livesoft alluded to above: "Live below your means"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?
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.
- NewMoneyMustBeSmart
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- Location: Midwest
Re: Ways to build wealth. How to?
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*
Re: Ways to build wealth. How to?
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.
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- Joined: Sun Oct 08, 2017 7:16 pm
Re: Ways to build wealth. How to?
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.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?
Re: Ways to build wealth. How to?
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.
Re: Ways to build wealth. How to?
H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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!
Re: Ways to build wealth. How to?
Get impregnated by a wealthy man (dependent on country laws)
Provide a service to wealthy people who value their time more than their money.
Provide a service to wealthy people who value their time more than their money.
- Sandtrap
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- Joined: Sat Nov 26, 2016 5:32 pm
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Re: Ways to build wealth. How to?
A.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?
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
Re: Ways to build wealth. How to?
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.UpperNwGuy wrote: ↑Sun Jul 25, 2021 6:23 amOP, 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.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?
Re: Ways to build wealth. How to?
This is such a good post and comment that i would like to thank you. Just everything i was in need of.Sandtrap wrote: ↑Sun Jul 25, 2021 7:01 am3.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?
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
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?
- Sandtrap
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- Joined: Sat Nov 26, 2016 5:32 pm
- Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.
Re: Ways to build wealth. How to?
R/E is Investment is a business is “Finance”newyorker wrote: ↑Sun Jul 25, 2021 8:14 amThis is such a good post and comment that i would like to thank you. Just everything i was in need of.Sandtrap wrote: ↑Sun Jul 25, 2021 7:01 am3.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?
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
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?
Topics too long and detailed to cover in this thread.
So…please….
Feel free to PM me as you wish.
Aloha
j
Re: Ways to build wealth. How to?
+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.
Re: Ways to build wealth. How to?
To have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
-
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- Joined: Mon May 18, 2009 5:57 pm
Re: Ways to build wealth. How to?
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.Dottie57 wrote: ↑Sun Jul 25, 2021 3:18 pmTo have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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 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.
- anon_investor
- Posts: 15111
- Joined: Mon Jun 03, 2019 1:43 pm
Re: Ways to build wealth. How to?
I thought the old fashioned way was inheritance...Triple digit golfer wrote: ↑Sun Jul 25, 2021 3:24 pmYes, 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.Dottie57 wrote: ↑Sun Jul 25, 2021 3:18 pmTo have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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 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.
Re: Ways to build wealth. How to?
.
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".
.
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".
.
Re: Ways to build wealth. How to?
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.Triple digit golfer wrote: ↑Sun Jul 25, 2021 3:24 pmYes, 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.Dottie57 wrote: ↑Sun Jul 25, 2021 3:18 pmTo have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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 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.
Re: Ways to build wealth. How to?
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.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
Re: Ways to build wealth. How to?
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)
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)
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Re: Ways to build wealth. How to?
+1Dottie57 wrote: ↑Sun Jul 25, 2021 3:18 pmTo have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
However much you save this is not possible without a large income
Re: Ways to build wealth. How to?
+1MTF wrote: ↑Sun Jul 25, 2021 4:41 pmHa - 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.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
It will be helpful to know how much were the ‘wages’
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Re: Ways to build wealth. How to?
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.Dottie57 wrote: ↑Sun Jul 25, 2021 4:41 pmFor 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.Triple digit golfer wrote: ↑Sun Jul 25, 2021 3:24 pmYes, 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.Dottie57 wrote: ↑Sun Jul 25, 2021 3:18 pmTo have 3.5m in your 30’s you also need very good income.H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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 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.
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.
Re: Ways to build wealth. How to?
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
Re: Ways to build wealth. How to?
I think something crazy must have happened…H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
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.
Re: Ways to build wealth. How to?
dvvader wrote: ↑Sun Jul 25, 2021 8:36 pmI think something crazy must have happened…H-Town wrote: ↑Sat Jul 24, 2021 10:59 pmYou only need one. As livesoft alluded to above: "Live below your means"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?
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.
viewtopic.php?f=1&t=215417&p=3308683#p3308683
Regardless, congrats on your success!
Damn must be bitcoin or amc/gme