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Old 05-29-2013, 06:37 PM
 
Location: None of your business
5,466 posts, read 4,016,052 times
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Quote:
Originally Posted by LordSquidworth View Post
No, it's not much anymore. You're not rich. You're comfortable.

But...

The first million is the hardest. Gets easier after that.
I've heard this saying "The 1st million is the hardest and it gets easier after that". Why do you think that is?
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Old 05-29-2013, 06:43 PM
 
86,946 posts, read 84,349,857 times
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you can invest more money more aggressively. it took me 50 years of life for the first mill and only 9 years for the 2nd. the deals got bigger and bigger .
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Old 05-29-2013, 06:46 PM
 
Location: Henderson, NV
585 posts, read 869,202 times
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Quote:
Originally Posted by Eric Fred Norris View Post
I mean of course its a big deal since it means you can live comfortably in most places in the world, but is it anywhere near the life changing benchmark that it used to be?

I'm about to cross that mark this year and I still feel pretty poor. Am in my 30s, no debt, no inheritance, no kids or wife. Still pinch pennies and clip coupons. I don't think I'll feel secure ever no matter how much I have socked away, which sounds terrible. Then again, I'm Asian and am expected to care for my parents, who have no retirement saved away whatsoever.
that feeling of insecurity is actually common these days. If you consider inflation and a bunch of other economic factors that I don't understand like taxes and other things, many people who are in your circumstances are not feeling secure especially with the downturn and slow recovery. A million dollars isn't the big life changing thing it used to be. Becoming a millionaire seems to be getting slighty more common these days.

Here is an article I found on a similar subject:

Why the Rich Don
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Old 05-30-2013, 12:55 PM
 
Location: East Coast of the United States
21,119 posts, read 22,373,502 times
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Quote:
Originally Posted by tonylu View Post
A million dollars isn't the big life changing thing it used to be. Becoming a millionaire seems to be getting slighty more common these days.

Here is an article I found on a similar subject:

Why the Rich Don
That's because here in America our expectations about comfortable living are much, much higher compared with those of people living in most of the world.
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Old 05-30-2013, 02:03 PM
 
706 posts, read 1,207,343 times
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Quote:
Originally Posted by mathjak107 View Post
you can invest more money more aggressively. it took me 50 years of life for the first mill and only 9 years for the 2nd. the deals got bigger and bigger .

is it because you keep winning prizes on this message board? ha ha..Just teasing

That is pretty impressive. I would love to have half a million
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Old 05-30-2013, 02:22 PM
 
706 posts, read 1,207,343 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
One of the fastest growing segments of the middle class is the middle class millionaire. Not that I like how they figure that assesment out. I would not include the wealth of my home. I have to live somewhere. Still I am living in a home that could have been purchased new for less than $20,000 when it was built. I am thinking that someone in the 1960's who was a millionaire could have bought all 20 homes on my street and still had $600,000 left over. Last month a home sold on my street for $380,000. A Million would purchase 2 and you would have $240,000 left over. To make this simple lets just devide $1million by $20,000 = 50 homes x 380,000= $19,000,000. Now I am not exactly sure that home prices were in 1962 but I do know that my parents paid $13,000 in 1965 for a smaller home than I live in now. My home was built in 1962. Still it should be somewhat of a good reference point. My thought being is that you would need to multiply $1million by 19 to come out in a similar range.

You bring up a very interesting topic. What does everything feel real estate prices will appreciate at moving forward? The invention of easier mortgages (not just high risk mortgages that caused our most recent downturn) and lesser downpayments have really created higher prices. How much more can we really expect prices to appreciate?
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Old 05-30-2013, 02:48 PM
 
Location: Palo Alto
12,152 posts, read 7,603,520 times
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Quote:
Originally Posted by eRayP View Post
I've heard this saying "The 1st million is the hardest and it gets easier after that". Why do you think that is?
Compound interest and the underlying exponential math.

That and the fact that fixed costs are only variable when you alter units of production.

In other words - everyone pays rent and mortgage and a car payment and the grocery bill. Keep your fixed costs relatively static and every additional dollar is just free, investable cash.
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Old 05-30-2013, 03:12 PM
 
86,946 posts, read 84,349,857 times
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Quote:
Originally Posted by dshawg1 View Post
is it because you keep winning prizes on this message board? ha ha..Just teasing

That is pretty impressive. I would love to have half a million
thats okay, winning the prize cost me more than 2x that amount. we decided to upgrade our camera gear and still haven't stopped. with my wife and i both loving photography we end up buying 2 of everything.
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Old 05-30-2013, 03:23 PM
 
Location: East Coast of the United States
21,119 posts, read 22,373,502 times
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Quote:
Originally Posted by eRayP View Post
I've heard this saying "The 1st million is the hardest and it gets easier after that". Why do you think that is?
Theoretically, it should take you the same amount of time/effort to grow your money from $1 million to $2 million that it did to grow from $100,000 to $200,000.

You're simply doubling your money at that point.
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Old 05-30-2013, 03:33 PM
 
86,946 posts, read 84,349,857 times
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maybe ,maybe not . in our case we went from owning a single rental property to buying a share in an actual real estate holding company leveraging us as much as i could to raise the money to buy in.

the risks grew as well as the potential for gains.

we bought into rent stabilized apartments over looking central park with tenants that we could not remove .

our gamble was hoping they each took a 100k for a lease buy out so we could sell the properties.

7 out of the 9 took advantage and the profits for all of us were huge.

having more enables you to committ more to larger deals.

Last edited by mathjak107; 05-30-2013 at 04:03 PM..
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