I want to become wealthy so badly but I don't know how

[Grinners]

Wow you have plenty to learn. 5% interest will not even keep up with inflation. Your money today will be the same value or less 25 years from now. With a well diversified portfolio you can expect about 10% interest. Some years much better. I'm sitting on 43% gains so far this year.

An inflation rate of 5%... That is very, very high.

The fact that you even mentioned 43% gains in a year takes away from your overall argument. To have had gains this great, you took a very large risk... or did something illegal. What goes up must come down.

And no, my money isn't in Congo. It is in Australia... a market typically more stable than the US.

[TheCreature55]

Close to 9%! Who with? I woulda put more than $5,000 of 40k i wreckon.

With ANZ bank, the reason I didn't put more in is because the value of my stocks has taken a hit recently (for obvious reasons, lol) and now would not be a good time to sell them.

[Jdanmc]

Wow you have plenty to learn. 5% interest will not even keep up with inflation. Your money today will be the same value or less 25 years from now. With a well diversified portfolio you can expect about 10% interest. Some years much better. I'm sitting on 43% gains so far this year.

That's not necessarily true, the average annual inflation rate for the US has been less than that over the past 30 years. But nonetheless, something like that could be a part of a greater portfolio.

Normally, when banks and financial planning companies do their calculations nad projections and stuff they say "assuming an annual rate of return of 8%" and that I think is considered sort of the benchmark average for well diversified portfolios over the past decades.

[TheCreature55]

Wow you have plenty to learn. 5% interest will not even keep up with inflation. Your money today will be the same value or less 25 years from now. With a well diversified portfolio you can expect about 10% interest. Some years much better. I'm sitting on 43% gains so far this year.

lol how have you managed to get a 43% return in 6 months???

[SlapBassist]

lol, the sad thing is I've actually thought of this... but the chances of finding a girl with all the suitable qualities of a wife who is also rich is pretty slim. I don't want to deal with an annoying old hag for my whole life just because she is rich - I don't want money that badly

lol thats what divorces are for

[maxiderm]

Wow you have plenty to learn. 5% interest will not even keep up with inflation. Your money today will be the same value or less 25 years from now. With a well diversified portfolio you can expect about 10% interest. Some years much better. I'm sitting on 43% gains so far this year.

average national annual inflation is 3% just sayin...

[Jdanmc]

lol how have you managed to get a 43% return in 6 months???

He probably is heavily weighted in energy stocks, maybe. But those kinds of things are meaningless. A long-term investor doesn't look at his 2 month rate of return because this week it could all wash away. But when you look at the chart over a period of years, it starts to establish a better pattern, day to day volitility in stocks is meaningless, it can be based upon anything, a newspaper article, some big dump, and is totally unrelated to the long-term value of a company.

[My_Friend]

Don't sacrifice your health, family and friends in your quest to become rich. Money isn't everything.

[A New Era]

An inflation rate of 5%... That is very, very high.

The fact that you even mentioned 43% gains in a year takes away from your overall argument. To have had gains this great, you took a very large risk... or did something illegal. What goes up must come down.

And no, my money isn't in Congo. It is in Australia... a market typically more stable than the US.

Haha you do realize that inflation is much higher than what the government says. Just go back in time and calculate the rise in costs of simple items like gas, food, movie tickets, etc and you will be surprised. My mutual funds are doing great and have kept pace with last year. Also I made a couple great investments including Visa (V), Corning (GLW), and Yahoo(YHOO). You can stick to your savings account if that's how you want to retire "wealthy".

[Grinners]

He probably is heavily weighted in energy stocks, maybe. But those kinds of things are meaningless. A long-term investor doesn't look at his 2 month rate of return because this week it could all wash away. But when you look at the chart over a period of years, it starts to establish a better pattern, day to day volitility in stocks is meaningless, it can be based upon anything, a newspaper article, some big dump, and is totally unrelated to the long-term value of a company.

Unless the company goes bankrupt over-night, in which case it is directly related to the long-term value of the company

[ToucanLamp]

These things are all relative, in the place where you can get a 7% annual interest rate on a savings account, you're going to end up paying 10% a year if you want to get a mortgage to buy a house.

And a real investor won't be bragging about 43% returns on the year. If he was speculating and put a huge sum into a couple companies and it jumped that much, hey he got lucky and should jump out while he's ahead. But Warren Buffett put it best in determining the difference between an investor and a speculator. An investor is buying a share in a company to share in it's future success as a generator of profits and growth. A speculator is buying a share and hoping that the stock price will go up. The price of a share is based purely upon demand for it and is not necessarily linked in any way to how good the company is or what it's future prospects are. It would only be that way if every single person investing their money was a keen business person and did all their research, and that isn't the case.

[A New Era]

Also the sooner you can star a retirement account the better. Starting a Roth IRA at 20 and maxing it out each year will leave you with a large amount of money when you retire. Also the tax benefits are outstanding. If you have the option for a company matched 401k hit the employer match limit each year along with the maxed Roth IRA.

[Grinners]

Haha you do realize that inflation is much higher than what the government says. Just go back in time and calculate the rise in costs of simple items like gas, food, movie tickets, etc and you will be surprised. My mutual funds are doing great and have kept pace with last year. Also I made a couple great investments including Visa (V), Corning (GLW), and Yahoo(YHOO). You can stick to your savings account if that's how you want to retire "wealthy".

CPI, in my opinion, is a very accurate estimate of inflation. Furthermore, the reserve bank and government in many countries act completely independently, so there is no chance of the government influencing the results.

Taking into account over 100 relatively common different types of items purchased in metrapolitan cities is comprehensive enough in my opinion.

Furthermore, i don't think that petrol should be taken into account for inflation. It is a diminishing substance, thus it will increase in price more than that of other items, its effects (increases in transport/cost of production) - however - should.

[Jdanmc]

Unless the company goes bankrupt over-night, in which case it is directly related to the long-term value of the company

Yeah but a company won't go bankrupt on the day to day up and down waves unless there is something genuine wrong. A company is at least worth something permanent in that it owns assets. If a quality stock goes bankrupt overnight it's going to be for some shocking reason that you certainly couldn't have forseen, ie. Enron or Bre-ex. Diversification! That's how you minimize the risk of the chance that this happens.

[FreakNsty]

if you're looking by the time you are in the twenties, poker would be your best bet. Buy poker books, play online, get known, go to vegas, win.

[A New Era]

These things are all relative, in the place where you can get a 7% annual interest rate on a savings account, you're going to end up paying 10% a year if you want to get a mortgage to buy a house.

And a real investor won't be bragging about 43% returns on the year. If he was speculating and put a huge sum into a couple companies and it jumped that much, hey he got lucky and should jump out while he's ahead. But Warren Buffett put it best in determining the difference between an investor and a speculator. An investor is buying a share in a company to share in it's future success as a generator of profits and growth. A speculator is buying a share and hoping that the stock price will go up. The price of a share is based purely upon demand for it and is not necessarily linked in any way to how good the company is or what it's future prospects are. It would only be that way if every single person investing their money was a keen business person and did all their research, and that isn't the case.

Not bragging just saying that market situations right now are HIGHLY speculative right now and because of that there is great chances to make money. Yahoo was in and out but both corning and visa I am long on because of the sound fundamentals of both companies.

[strong_penor]

You mentioned that you are 19 years old. First off, you will not be extremely wealthy in two or three years. However, I can offer some advice about how you can go about getting a very lucrative job in a growing firm, where getting a job is likely based solely on luck or family connections.

Research what mid-size company you would love to work for. Arrange for an interview. Describe that you would love to work at least 40-hours a day for approximately 6-months for a senior associate without receiving any pay in order to learn more about the business. Make sure that they know that you understand that there is no guarantee that you will ever be offered a job. Basically, make sure they know that you are asking for no commitment from them.

After they pair you up with a senior associate who doesn't mind having another free secretary around, do all you can to suck up to that person. Work your ass off to complete projects that you are assigned. Take initiative in suggesting things you can do to improve or supplement the business of the associate. You need to seem fascinated about the business and the success of the said associate. Your goal is to become friends with him.

When the 6-month period is almost over, say that you would like to stay for a couple more months. Do the same thing for another 6-months. I am almost certain that if you had pulled this off correctly and logistically, you would have developed a friendship with the senior associate and he would bend backwards to get you a job if you meet all other qualifications (e.g. have a degree if required).

[r33t]

www.intrade.com

[feardafronfz3]

what would i be living on for a year with no salary????

[Grinners]

So work a year for free to get a job... strong short-cut to wealth :P

[FreakNsty]

what would i be living on for a year with no salary????

x2. 40 hours a week for free is alot

[Superion]

There are so such thing as being so wealty cause you never satisfy no matter how much you have.

You are only as wealhty as you want to be.
Take me for an example, i broke the Million mark a few months back and now i want more.

I wish i'm not greedy but money is an addiction.

[strong_penor]

So work a year for free to get a job... strong short-cut to wealth :P

It is very likely to work precisely because of so few people trying it. I have landed a dream job at a small investment fund in precisely this way (actually, I worked about 50-60 hours a week for free). Frankly, there aren't any guarantees when doing this. Your senior associate may end up being a selfish ******* who just doesn't give a **** (although the implication is that you should be able to tell what kind of a person he is within the first few weeks).

[Jdanmc]

I've always sort of wondered though, what is the massive attraction with being rich that so many people think would just instantly make their life all gleeful.

The only thing I can think of that wealth would really provide great opportunity for would be to do a lot of travelling, but then, in this day and age you don't even have to be wealthy to travel to all sort of exotic places. I find it hard to see how owning expensive cars, clothes, a big house, really in the whole scheme of things makes your life any better beyond the pleasure it gives to the kind of person who places such a high value upon wealth and luxury.

If I ever get wealthy it will simply be a by-product of working hard at the job I enjoy. Making it your ultimate aim is just creating a big chance of setting yourself up for disappointment and being something which has no guarantees, you stand a good chance of living a very unfulfilled life. Being wealthy is only as important as you personally decide it is. There's no rule which says that all the people who never earn more than 100k/year in their life are going to have a ****ty time being alive and everyone above that is already in heaven. It's all in your head.

[TheCreature55]

You mentioned that you are 19 years old. First off, you will not be extremely wealthy in two or three years. However, I can offer some advice about how you can go about getting a very lucrative job in a growing firm, where getting a job is likely based solely on luck or family connections.

Research what mid-size company you would love to work for. Arrange for an interview. Describe that you would love to work at least 40-hours a day for approximately 6-months for a senior associate without receiving any pay in order to learn more about the business. Make sure that they know that you understand that there is no guarantee that you will ever be offered a job. Basically, make sure they know that you are asking for no commitment from them.

After they pair you up with a senior associate who doesn't mind having another free secretary around, do all you can to suck up to that person. Work your ass off to complete projects that you are assigned. Take initiative in suggesting things you can do to improve or supplement the business of the associate. You need to seem fascinated about the business and the success of the said associate. Your goal is to become friends with him.

When the 6-month period is almost over, say that you would like to stay for a couple more months. Do the same thing for another 6-months. I am almost certain that if you had pulled this off correctly and logistically, you would have developed a friendship with the senior associate and he would bend backwards to get you a job if you meet all other qualifications (e.g. have a degree if required).

I can see that working, but it seems like an awful lot of time and effort just to end up getting a job. I would like to think I have a decent chance at obtaining a graduate position in my field with my uni results, work experience in the field and the effort I have devoted towards learning more about this career. Time is the most important thing to building wealth IMO due to compound interest so I don't see how I can really spend a full year not earning money. I wouldn't start earning money until I reached 23 years old with this approach.

There are so such thing as being so wealty cause you never satisfy no matter how much you have.

You can only as wealty as you want to be.
Take me for an example, i broke the Million mark a few months back and now i want more.

I wish i'm not greedy but money is addiction.

How did you manage to break the 1 million mark at 22? Even I'm not that optimistic lol

[TheCreature55]

I've always sort of wondered though, what is the massive attraction with being rich that so many people think would just instantly make their life all gleeful.

The only thing I can think of that wealth would really provide great opportunity for would be to do a lot of travelling, but then, in this day and age you don't even have to be wealthy to travel to all sort of exotic places. I find it hard to see how owning expensive cars, clothes, a big house, really in the whole scheme of things makes your life any better beyond the pleasure it gives to the kind of person who places such a high value upon wealth and luxury.

If I ever get wealthy it will simply be a by-product of working hard at the job I enjoy. Making it your ultimate aim is just creating a big chance of setting yourself up for disappointment and being something which has no guarantees, you stand a good chance of living a very unfulfilled life. Being wealthy is only as important as you personally decide it is. There's no rule which says that all the people who never earn more than 100k/year in their life are going to have a ****ty time being alive and everyone above that is already in heaven. It's all in your head.

The main reason is so that I can travel and have fun, and secondly so I can live in a nice place.

I absolutely agree with your second paragraph though. Thankfully though I enjoy the field that I'm studying in and I find the stock/property markets very interesting as well (believe it or not, lol). I'm not trying to say that people earning low incomes are not going to be happy, since I don't want to mirror my situation onto other people who have different beliefs, upbringings, etc. All I know is that this is something that I want personally.

[Superion]

How did you manage to break the 1 million mark at 22? Even I'm not that optimistic lol

Own your own business will get you there.

[TheCreature55]

Own your own business will get you there.

Owning my own business is one of the ways to wealth that I've seen. However, the fact that 9 out of 10 businesses fail within 5 years, that I have quite little starting capital, and that it is hard to think of an idea that hasn't already been taken and used (believe me, I've spent a lot of time thinking of ideas).

From what I can see, to have made $1 million in small business at the age of 22 you are a pretty rare exception...

What does your business do, if you don't mind me asking?

[Superion]

I own my own cafes.

In the past couple of year i have been quite heavily involved in Real Estate. Currently have 4 properties, 3 rented out and living in 1.

It really come down to how much research you put into it before starting or buying the business.

Personally, my best advice for anyone that want to be self-employed or whatsoever, don't start your own business, save enough and buy a business that is already well establish unless you are extremely good at that field and knows that you can differated yourself but that alone is not enough, locations, set-up, systems, customers services etc.... So many factors involving in running a sucessful business.

Good luck.

[momo5]

live below your means for 1-2years and save and you will be wealthy, i'm talking live off walmart jeans and wearing old outfits all the time, eating ramen noodles etc, and living below your check live like you working at mcdonalds for living.

also in your 20's if you save 25$ a week by age 60 you will be a millionaire, now take that into consideration and save all your extra money every check for years and years and you will be wealthy. I'd say it's awesome to be instantly rich 18-30 but if you can be wealthy by 30 you will have some fun.