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keep it simple dump 500 into a mutual fund at age 18 and watch it grow try a calculator its mind
blowing....start with your bank
Putting $500 a month into a mutual fund will maybe earn you a million by the time ur 70, at which point with inflation a million will be equivalent to about 300k in today's money. Hardly enough to retire on IMO.
Nothing wrong with this concept but you NEED to diversify, property, business and other investments are all necessary. And if you want to do it young you have to take some risks.
Assuming you're not going to get picked up by Hollywood or become some top-line musician or athlete, you have two options:
1. Bust your ass in getting to the top at the very best schools and then getting into the very cream of the crop, most prestigious business institutions in the world. Those will typically involve some sort of an investment bank, hedge fund, venture capital, or private equity organization. You will work like a dog and have absolutely no life, but stick to it and you will have many millions.
2. Drop out of school and use a great idea to start a company. Maybe you'll want to come over here to Silicon Valley for this one. Gain some people around you, pitch your idea to angel investors and later venture capital firms and gain funding. Deliver through proof of concept and scalability milestones and make it through series B and C fundings; then pump the company up and either go public or else sell out to a large corporation looking for acquisitions. Again, you will work like a dog and have absolutely no life. And it's highly risky and you stand a good chance of ending up with nothing. But make it through and you will be richer than Midas.
Both of these ideas are improved greatly if you are brilliant, ruthless, and willing to zealously undergo almost inhuman amounts of work.
If it was easy, a lot of people would be doing it.
Maybe somewhere along the line as you grow older, you'll come to realize that zealously chasing money this way has a tendency to entail significant personal costs that may paradoxically enslave rather than free you, and that even if you eventually make it, it mainly just means that you will have a tremendous amount of money bags around you when you soon inevitably die and turn to the same dust as every other living thing. Life is short, and you can't take it with you.
Why would it enslave you? Think about the guys that made Instagram, yea I'm sure the worked non stop for years but now they've got millions at what 30 years old. I'd imagine for them and many other it was more than worth it. They can do what ever they want and not even have to think about what the price tag is.
Why would it enslave you? Think about the guys that made Instagram, yea I'm sure the worked non stop for years but now they've got millions at what 30 years old. I'd imagine for them and many other it was more than worth it. They can do what ever they want and not even have to think about what the price tag is.
Because what you don't see is that for everyone one person who makes celebrity status with outsized wealth gains at a young age, there are literally tens of thousands who put all that in and don't make it.
That's the nature of risk. The up-front costs are extremely high, both personally and financially; the back-end rewards are potentially high but very tenuous. In hindsight, it's easy to say it was "worth it" if you were the winner.
What you don't read about in the papers is the multitudes who sacrificed personal lives, family time, raising kids, everything at the alter of wealth...and ultimately didn't make it. Or made a lot of money and had no time for anything else in their lives...and regret what it cost them.
What you don't read about is some of the callous and destructive things that people do to themselves and others or what they become in their zeal for that payout.
What you don't read about is how even with all the wealth, it doesn't necessarily make for a happy person or a longer, better life.
All you read about is the 1 in 1,000,000 success story and the fancy Lamborghinis, mansions, etc.
I'm not saying no one should be the next Mark Zuckerberg. Clearly, people don't need help there. There will always be the next rich person, and they deserve what they earn - many are good people. What I'm saying is that it isn't for everyone, and it's not always as brilliant and happy as it may seem to us in the tabloids. And even the extremely rich, powerful as they seem, will soon turn to dust. Life is short.
Because what you don't see is that for everyone one person who makes celebrity status with outsized wealth gains at a young age, there are literally tens of thousands who put all that in and don't make it.
That's the nature of risk. The up-front costs are extremely high, both personally and financially; the back-end rewards are potentially high but very tenuous. In hindsight, it's easy to say it was "worth it" if you were the winner.
What you don't read about in the papers is the multitudes who sacrificed personal lives, family time, raising kids, everything at the alter of wealth...and ultimately didn't make it. Or made a lot of money and had no time for anything else in their lives...and regret what it cost them.
What you don't read about is some of the callous and destructive things that people do to themselves and others or what they become in their zeal for that payout.
What you don't read about is how even with all the wealth, it doesn't necessarily make for a happy person or a longer, better life.
All you read about is the 1 in 1,000,000 success story and the fancy Lamborghinis, mansions, etc.
I'm not saying no one should be the next Mark Zuckerberg. Clearly, people don't need help there. There will always be the next rich person, and they deserve what they earn - many are good people. What I'm saying is that it isn't for everyone, and it's not always as brilliant and happy as it may seem to us in the tabloids. And even the extremely rich, powerful as they seem, will soon turn to dust. Life is short.
There is some truth to this, however many successful people as you said are very knowledgable on their industry. So I'd say it's more so an element of knowledge than luck, I personally know a guy who's started and sold 2 successful business and is currently running his 3rd company now. He doesn't even work that many hours, no one keeps getting lucky again and again like that. He has extensive knowledge of his industry and has used that knowledge to become successful.
Most multimillionaires are not famous IMO. There not on TV they don't run cool hip companies. They spot needs in the marketplace and create a service to fill the need. Saw an article the other day about a guy that started a medical waste disposal business and he's netting 1 million a year. He's not famous, not on MTV. In fact you'd never even know he was rich but he is, and there's thousands of people out their just like him.
BTW money does bring happiness anyone who argues otherwise is either broke or ignorant.
BTW money does bring happiness anyone who argues otherwise is either broke or ignorant.
I really don't think it is this simple. There are actually large-scale social studies on this, and they're a bit all over the map. Some say that happiness keeps going up into the stratosphere with income; others say it only works up to a point. A recent study found that big city residents tend to trade off happiness for money. Certainly, being destitute and not having basic needs met is a problem that will surely be linked with less happiness.
From my personal experience and what I can observe from others around me, I can tell you this... I'm no millionaire, but my wife and I are doing pretty well here in Silicon Valley and approaching $400K gross. We own a home here on the peninsula, which is no small feat. We're doing well and the money is good, but it isn't bringing me excess happiness. In many ways, my life is harder and less care-free now than when I was fresh out of college. I work a lot of hours, and let me tell you... SV is just packed with well-to-do workaholics. It makes it very difficult on my family.
I have a little girl who is the light of my life, and I miss nights and weekends with her. She is only little once. I want to provide well for her future, but what really makes me happy is being able to spend time for her and be there with her as she experiences life, together with my wife who I love... rather than being buried in spreadsheets, emails, and stress-inducing firedrills. We sometimes think of pulling the escape cord and downsizing to a simpler way of life where we have time to just be instead of hurrying all the time.
Not that I'm asking anyone to throw me a pity party; we're extremely fortunate. I'm making the choices and tradeoffs. All I'm saying is that in my experience, there are genuine tradeoffs involved here. And when my life is over, if I have a chance to reflect, it will be on my daughter and my wife...and my family and friends, and the experiences I had with them. Not on how many hours I spent in the office, how many zeroes I had in my bank account, and whether or not I had a more expensive car than the rich Joneses down the street (oh yes, there is plenty of that going on around here as well).
That's just my $0.02... others' mileage may of course vary...
I really don't think it is this simple. There are actually large-scale social studies on this, and they're a bit all over the map. Some say that happiness keeps going up into the stratosphere with income; others say it only works up to a point. A recent study found that big city residents tend to trade off happiness for money. Certainly, being destitute and not having basic needs met is a problem that will surely be linked with less happiness.
From my personal experience and what I can observe from others around me, I can tell you this... I'm no millionaire, but my wife and I are doing pretty well here in Silicon Valley and approaching $400K gross. We own a home here on the peninsula, which is no small feat. We're doing well and the money is good, but it isn't bringing me excess happiness. In many ways, my life is harder and less care-free now than when I was fresh out of college. I work a lot of hours, and let me tell you... SV is just packed with well-to-do workaholics. It makes it very difficult on my family.
I have a little girl who is the light of my life, and I miss nights and weekends with her. She is only little once. I want to provide well for her future, but what really makes me happy is being able to spend time for her and be there with her as she experiences life, together with my wife who I love... rather than being buried in spreadsheets, emails, and stress-inducing firedrills. We sometimes think of pulling the escape cord and downsizing to a simpler way of life where we have time to just be instead of hurrying all the time.
Not that I'm asking anyone to throw me a pity party; we're extremely fortunate. I'm making the choices and tradeoffs. All I'm saying is that in my experience, there are genuine tradeoffs involved here. And when my life is over, if I have a chance to reflect, it will be on my daughter and my wife...and my family and friends, and the experiences I had with them. Not on how many hours I spent in the office, how many zeroes I had in my bank account, and whether or not I had a more expensive car than the rich Joneses down the street (oh yes, there is plenty of that going on around here as well).
That's just my $0.02... others' mileage may of course vary...
I see your point here. And time is certainly more valuable than money, all I'm saying is all other things being equal more money is better. I don't make 400k a year "a little less than half actually" but I work from home damn near every day. I'm constantly focused on ways to expand my business, I have no kids or wife or anything. Pretty much just have a work hard play hard lifestyle right now so working more hours isn't really that big a deal. I plan to be working twice as hard but making 3-4 times as much in the next 2 years, don't mind the extra work at all. I'm guessing the op has a similar mindset to me. It's all a mater of what you want out of life forgoing money to spend time with your kids can be more rewarding than making the money but seeing your kids grow up.
I honestly don't want to wait till I'm in my 40's or 50's. I've read a lot of articles about young guys in their 20's and 30's that come up with a good idea or do something entrepreneurial and become millionaires. I'm looking into something more in those means, not working in a corporate job for 20+ years. I want automated and residual income, serious money.
Well I have few connections at this point with big four and kinda secret info about getting in. But I would suppose my plan B would to work for a similar big company that has a lot of opportunities and high pay or even a corporation and work my way up. Maybe start a business or company but I need capital.
If it were that easy, everyone would be doing it.
Great ideas are a dime a dozen, it's executing on the idea, combined with the right resources, commitment and luck that turns into something.
You're only 18, a lot is going to happen to you in the next 20 years. Marriage, kids, job gain/loss, etc, etc, etc.
As a wise man once said: "I had all these great plans and then life happened".
Best you can do. Get your BS, get your grad degree. Invest as much as you can as early as you can and take advantage of compounding interest.
$300k in retirement is actually about what most people's total pension value (not 401k, the old school pension) is worth. It's more than double the value in most people's 401k when you include those who are still working.
It's more or less in line with what most people have in their 401k when they retire.
Yeah, I'm looking for serious ways though. I see hundreds of people on "Shark Tank" or people who sell products or have companies online and make loads of passive income. I'm thinking something that would take off. I am aware that it isn't easy, but I am willing to try.
And I don't agree with the comments about not getting married because it is almost inevitable to avoid falling in love. You cannot control that many times. Plus if your wife has the same money values and makes good income, it can help to increasing wealth.
Does anyone have anything else to say? I appreciate the MMM forum, it has a lot of good resources.
Are you starting college with debt? If so then you will have a harder time after you graduate paying off the debt from the 4+ years of college.
Be smart with your finances, control your money and do not let it control you, invest wisely, seek the knowledge of others who have been successful yet cautious, don't get credit cards, don't purchase an overpriced fancy vehicle, don't purchase an over priced too big for you home, live modestly and don't collect a bunch of material stuff that does nothing but clutter the house and collect dust.
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