U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-30-2013, 03:43 PM
 
Location: Palo Alto
12,152 posts, read 7,781,854 times
Reputation: 4186

Advertisements

Quote:
Originally Posted by BigCityDreamer View Post
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.
Assuming you don't add any additional capital...
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-31-2013, 01:06 PM
 
Location: North Idaho
27,727 posts, read 37,475,034 times
Reputation: 60171
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?
It is because you get rich by having your money work for you. First, you have to accumulate enough money to have it go to work. Then the more dollars you have working, even if each dollar earns the same, there are a lot more of them.

If you can make 10% and have one dollar, it earns you 10 cents. If you have a million dollars, each one of the them earning 10%, it adds up to $100,000.

Now, you aren't going to find much to invest that 10 cents into, but with 100,000, you can find a place to put it where it is earning money for you.

Plus, many of the really good money making deals cost a high buy-in. The really good investment opportunities can't be bothered with the guy who has $100. But the guy who can invest half a million or more can get in on it. More money opens up more and better opportunities.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 01:31 PM
 
91,688 posts, read 89,001,557 times
Reputation: 66281
yep, the deals get bigger you can have access to.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 02:26 PM
 
Location: Los Angeles, Ca
2,884 posts, read 5,499,148 times
Reputation: 2753
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?
I've heard this a lot. I think it has to do with....

-The fact that you're starting from a standing position. I.e. you grew up, went to school. Had expenses. Maybe tried different things (businesses).

You may have been "part of the crowd" for the first 15-20-25 years of your life. Then you broke away from that, and became rich. There's a lot of inertia you have to overcome to make your first million. Friends, family may not believe you. You have to change your own thinking.

-Why it would get easier after that. I think you have more experience. You know what you're doing. It takes relatively less effort from them.

For example, Warren Buffetts story. The first million, he needed the right investing philosophy, cash to work with, investors who would trust him. Now, he can make a million (billions) in his sleep.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 02:30 PM
 
Location: East Coast of the United States
22,114 posts, read 23,323,689 times
Reputation: 18726
Quote:
Originally Posted by oregonwoodsmoke View Post
Plus, many of the really good money making deals cost a high buy-in. The really good investment opportunities can't be bothered with the guy who has $100. But the guy who can invest half a million or more can get in on it. More money opens up more and better opportunities.
I think I read somewhere that you are required to have a portfolio of at least a $1 million to invest in certain kinds of highly lucrative stocks.

I guess I'll know if/when I get there. lol.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 02:35 PM
 
Location: Palo Alto
12,152 posts, read 7,781,854 times
Reputation: 4186
Quote:
Originally Posted by BigCityDreamer View Post
I think I read somewhere that you are required to have a portfolio of at least a $1 million to invest in certain kinds of highly lucrative stocks.

I guess I'll know if/when I get there. lol.
Look up "accredited investor".
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 02:40 PM
 
91,688 posts, read 89,001,557 times
Reputation: 66281
The buy in we made took 500k. It was a huge educated gamble. I was shell shocked the day the deal went through .

But as luck had it right after we bought in a few tenants accepted the buy out offer and we paid back the money with only 1sale.

I rather be lucky than smart any day.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 02:41 PM
 
Location: Cape Cod
17,713 posts, read 11,653,564 times
Reputation: 28096
a million still sounds like ALOT and it is so hard to get there but when you live in a expensive place like I do, Cape Cod, it doesn't go far when it comes to housing. Do you want a small shack on the water so you can fall out your front door and land on the beach this Summer? A million might get you there but it depends on the town. We have had folks come to town with big eyes and bigger wallets then leave town after seeing what their money will get them.
I don't think a million dollars is what it once was especially when our GOV. has surpassed the "B" and now talks in terms of Trillions!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-31-2013, 03:39 PM
 
Location: East Coast of the United States
22,114 posts, read 23,323,689 times
Reputation: 18726
Quote:
Originally Posted by TrapperJohn View Post
Look up "accredited investor".
Yeah, that's what I was thinking of. Have to tuck away that knowledge somewhere for potential future use.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-02-2013, 12:19 PM
 
Location: East Coast of the United States
22,114 posts, read 23,323,689 times
Reputation: 18726
.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top