Millionaires

[JPWRana]

Re: Millionaires

When we lived in florida, cruises were our vacation of choice and we went on one every year. we stayed on the bottom floor, in the cheapest cabin usually for about $400 each. $800 total (you get all your food and entertainment free) But that was 20 years ago and I have cruised all I want to.

20 years ago... paying $800?!?!? Isn't that quite a bit of money for 20 years ago?!?!

I was just trying to make the point that you can save your money to become a millionaire without giving up a few pleasures in life... Cars are my husband's one vice, and since he has worked 7 days a week for most of the last 29 years, I tend to let him have a nice car once in a while. (he is a workaholic and loves it)

what about having 2 work 7 days a week?!?! Looks like it didn't leave too much time for kids, wife, church, family, friends, work around the house, etc.

Is that what helped you guys to stay well off?!?! Him working EVERY SINGLE DAY of the week?

[flash]

Re: Millionaires

I'm going to stick up for Ima Saver here.

First, "need" is a very personal thing. Taking time to be with loved ones, relaxing, gaining mental health and perspective, nothing wrong with that, or calling it a need. It is a need. Cruises may be a personal choice, but what's wrong with that?

Deciding what your goals are is also personal. I don't recall she ever said she had a goal of reaching a million dollars and was depriving her family until then, or that she was blowing money she didn't have.

Most wealthy people I know don't set out with a specific goal in mind. They are goal-oriented, but it's not the get-a-million-and-retire goal, or the never-have-enough goal. They are all very much individuals, with individual and very personal goals, needs, wants, desires. And less judgemental towards other people.

[katwoman]

Re: Millionaires

I think we're scaring JPWRana.

Millionaire next door types didn't set out to be millionaires. They're just more frugal and don't worry about keeping up with the Jones'. They're also very risk averse and plan for emergencies.

Those are just good habits. Think about it. If everyone set a goal to save a fixed percentage of their income and shoot for a reasonable rate of return, it is probable that a million is reached over their lifetime! It just seems hard given the rampant consumerism we've all been accustomed to.

[DivaJen]

Re: Millionaires

I think we're scaring JPWRana.

Millionaire next door types didn't set out to be millionaires. They're just more frugal and don't worry about keeping up with the Jones'. They're also very risk averse and plan for emergencies.

Those are just good habits. Think about it. If everyone set a goal to save a fixed percentage of their income and shoot for a reasonable rate of return, it is probable that a million is reached over their lifetime! It just seems hard given the rampant consumerism we've all been accustomed to.

Well put!

[Ima saver]

Re: Millionaires

Actually, $800 for two people, food, room, entertainment was not that expensive for a whole week, even 20 years ago. We saved up for it and looked forward to it. Several times, my mom wanted me to go, so she paid for our room.
As far as working 7 days a week, my husband can not stand to sit still. When he is home, he is cleaning the house, the car, the garage, etc. Plus he is self employed, so I go and see him all the time, he takes off when he wants. In 29 years, I have never seen him sit down in the daytime, saturday or sunday and read a newspaper or watch tv.
Retire, that is something we will never do. Having money to live comfortably is all we really want. I think some of my husband has rubbed off on me. I hate to sit still, so I jog at night when watching the little television that we do watch.
Also, if you had read my other posts, you would have learned that my husband and i go out on a date every night. Never in 29 years have we sat apart from each other, if we can't sit next to each other at a restaurant, then we leave.

[PrincessPerky]

Re: Millionaires

If a dude loves to work, why can't he? He likes it! I personally was looking at DH this morning in wonder of how bored I will be when my youngest leaves the house, really I don't want to 'retire' (I am a SAHM) at 45, I would be bored! I like my job! I am guessing IMA's DH does too, why not let him? (and btw they have no kids, though if they did I bet the kids coiuld help him work, and from posts some of that work he does is at home, for his home)

oops posteed and missed a page...

[JBinKC]

Re: Millionaires

I have calculated my net worth at roughly 2.3 million dollars and I only have averaged about 25K in salary at my job which provides me enough cash flow for everyday living. It has been done mainly through financial transactions like buying distressed property and reselling it at a later date or individual stocks in the stock market and coupled with being extremely frugal. I netted a 180K gain on a 4K investment in my Roth IRA in the mid 90s on Iomega the stock that has given me enough capital to get to this level. The key to success is acquiring it through longer term financial transactions as the tax rates are low to nothing on this source of income.

[Ima saver]

Re: Millionaires

Wow, JBinKC, that is great!! Especially since your salary is so low. Are you single?

[katwoman]

Re: Millionaires

I have calculated my net worth at roughly 2.3 million dollars and I only have averaged about 25K in salary at my job which provides me enough cash flow for everyday living. It has been done mainly through financial transactions like buying distressed property and reselling it at a later date or individual stocks in the stock market and coupled with being extremely frugal. I netted a 180K gain on a 4K investment in my Roth IRA in the mid 90s on Iomega the stock that has given me enough capital to get to this level. The key to success is acquiring it through longer term financial transactions as the tax rates are low to nothing on this source of income.

This is another good way of doing it.

I'm curious about the RE. Didn't you take a capital gains hit each time? I'm assuming you didn't live in the properties but flipped them instead.

[Ima saver]

Re: Millionaires

I would like to sell my house, take the profit and move every two years, but I am too lazy to pack up and move everything. Seems like a good way to make money.

[JBinKC]

Re: Millionaires

I am single and that is half the reason why I have been able to do it.

Regarding my real estate transactions I bought a town home in 1991 for 44K and a rental for 24K within a year span and used the two year residence rule in the sale of my townhome and I then moved into my rental where I still reside. I sold my townhome tax free in late 1997 mainly to pay for my taxes due on my Roth IRA Conversion which I did in the same year. I made my Roth Conversion at 176K where I used the installment method to pay the taxes.

[katwoman]

Re: Millionaires

Ahhh!

There's that 2 year rule for RE in action.

[Ima saver]

Re: Millionaires

We will probably put our house up this spring just to see if we can get what we want for it!

[laceshawl]

Re: Millionaires

I agree, there is nothing wrong with ima saver spending money on cruises since she is paying cash for it and not neglecting her svaings. It sounds like she has a very good balance between being responsible and enjoying her money. It's not like people I know who run up expensive holidays on their credit cards and then complain about not being able to afford to save for retirement.

[Ima saver]

Re: Millionaires

Thanks laceshawl. We have a seperate vacation fund that we use for vacations. If my husband draws a set of house plans (which he doesn't do often), I put the money in that vacation fund and we always paid cash for trips. Our last one week vacation was in 1999, so we don't splurge very often. Now it is just weekend trips to Gatlinburg, Tn.