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I have been investing in the stock market for the past four years. I started out with four thousand dollars and the highest i ever had was 67 000. I have taken some pretty bad beatings but recently i haven't had any luck. I am down to 1 200. And I don't think I can raise the money back again
So if you are rich how did you do it?
Well, you've taken your lumps, all right.
After a huge reverse 7 years ago, my wife and I have picked ourselves up off the floor and have steadily worked to the point that our net worth is close to a million. Hopefully, with any luck, we can retire in about ten years.
So I'm not saying we're rich. But here's how we got to this point:
1) Put your money into investments FIRST, before everything else. It should be a budgeted item, not something you do when there's money left over. Why? Because there's never money left over.
2) There's no quick fix. Slow and steady wins the race. Sure, throw some money at a bargain stock here and there in hopes that it pays off big. But for the most part, you need to be in reliable investments that have a long-term track record. The scenario you describe tells me that you sunk your money into a stock that was the Flavor of the Week and paid the price.
3) Live Within Your Means. I'm serious about this one. When we bought our house for $350,000, I was amazed at the mortgage brokers telling us that we could really buy a house that was closer to $700,000. We drove a 13-year old car until the wheels practically fell off. We buy all the majority of our groceries at Sam's. We don't take three vacations a year. We don't buy it unless there's cash in the bank.
I'm not saying it's easy. We live in a very prosperous neighborhood, surrounded by people who enjoy conspicuous consumption. However, we also know that a large number of these people live paycheck to paycheck. So stop thinking in terms of what you want, and think in terms of what you need. Distinguishing between wants and needs is a crucial step in conserving your money.
4) After you have a decent kitty, only gamble with money you can afford to lose. In our case, we had an opportunity to purchase commercial real estate. We looked long and hard at the prospectus, and made sure we were dealing with a reputable firm. The investment started cash flowing three months after we bought in. That being said, we have turned down other opportunities because the exposure was way too high.
I think you can count your blessings and appreciate what you have while still focusing on wealth accumulation. I am content at where I am yet am always trying to improve in many areas. Increased wealth is but one reward for self improvement.
I agree with this 100% I also have worked at building a bit up, and having enough to be comfortable, but I won't do it to the exclusion of the real important things in life. I want to look back when I am 50 or 60 and remember sunsets and my kids playing on the beach under the red sky. Not look back and remember jobs and co-workers or investment portfolios I had "back when" (I'll have both, but the memories of time spent with friends and family will be the much sweeter ones.)
I agree with this 100% I also have worked at building a bit up, and having enough to be comfortable, but I won't do it to the exclusion of the real important things in life. I want to look back when I am 50 or 60 and remember sunsets and my kids playing on the beach under the red sky. Not look back and remember jobs and co-workers or investment portfolios I had "back when" (I'll have both, but the memories of time spent with friends and family will be the much sweeter ones.)
I agree completely. I have had all the material possessions I always thought I wanted when I didn't have them. Once you have them, they are just things. I now think of wealth in terms of happiness. The things that make me happy are not my cars and houses. Watching my 2 year old climb on a jungle gym makes me happy. Looking at the pictures my 4 year old drew for me makes me happy. Time with my family and my in-laws makes me happy. You can take away all the material stuff and I will still be wealthy because you took away the least important things in my life. The OP seems hopeless, but I'm sure he will realize this one day.
That article is me in a nutshell. I have a very nice Federal pension and a mid 7 figure inheritance, but I wasn't happy. I actually viewed the inheritance as a pain in the arse...I have no interest in finance and investing, etc. I already had everything I needed or wanted anyway...but I have never been much into possessions anyway...my newest car is a '98! After my retirement, I got so bored, I started driving a school bus for something to do.
That was the best thing I ever did BECAUSE I met my wife on the bus job. She is the most beautiful woman I have ever seen. Her ex left her with 6 kids and she was having a really tough time. When we met, she had no idea that I had any money, and I didn't tell her for a good while (didn't want a golddigger!). Anyway we married about 3 years ago and I've grown to love her kids as well. I'm not going to spoil them, but they will attend the college/university of their choice (2 already are), and graduate with zero debt. It makes me happy that my parents money is going towards molding 6 productive citizens. My wife is still her frugal self and scolds me royally if I am too extravagant with gifts, etc.
Happiness for me is providing a nice life for this wonderful gal and her kids!
That article is me in a nutshell. I have a very nice Federal pension and a mid 7 figure inheritance, but I wasn't happy. I actually viewed the inheritance as a pain in the arse...I have no interest in finance and investing, etc. I already had everything I needed or wanted anyway...but I have never been much into possessions anyway...my newest car is a '98! After my retirement, I got so bored, I started driving a school bus for something to do.
That was the best thing I ever did BECAUSE I met my wife on the bus job. She is the most beautiful woman I have ever seen. Her ex left her with 6 kids and she was having a really tough time. When we met, she had no idea that I had any money, and I didn't tell her for a good while (didn't want a golddigger!). Anyway we married about 3 years ago and I've grown to love her kids as well. I'm not going to spoil them, but they will attend the college/university of their choice (2 already are), and graduate with zero debt. It makes me happy that my parents money is going towards molding 6 productive citizens. My wife is still her frugal self and scolds me royally if I am too extravagant with gifts, etc.
Happiness for me is providing a nice life for this wonderful gal and her kids!
What a wonderful story! Put a smile on my face. I'm not into material possessions either. To me, the best thing about having a little money is the freedom it gives us to spend time with our kids as well as the ability to improve the lives of others. That's exactly how I'd like to give away my money - to help educate kids and maybe improve this world a small bit.
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