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.
Well, um duh. That was a really ignorant statement on your part. Investing and gambling are not the same thing. If you think only in terms of earning income from wages (the wage slave mindset), you will most likely always be poor or in danger of falling into poverty.
The returns I used were real life 15 year returns for those funds.
Nobody gets rich putting their money in savings accounts. Most savings accounts don't even keep up with inflation, so that is it's own kind of risk that people like yourself ignore. The overwhelming majority of people with $1,000,000 or more have money invested in stocks and bonds.
Almost no one with $1M or more has it all in bank savings accounts. The wealthy understand you have to take some (prudent) risks with your money in order to make money. "Prudent" being the operative word. Keeping all your money in a savings account that won't keep up with inflation is not prudent. Neither is living payday to payday.
Putting some money in savings and some in a long term investment that invests in a mix of stocks and bonds would be one (but not the only) example of prudent money management.
Last edited by mysticaltyger; 03-29-2011 at 06:11 PM..
It sounds like a lot of the savings are because of uncertainty about the future. If you knew for a fact what your job would be and what you would earn you could spend your money much more efficiently.
From most of the posts if you compare gross salary to expenses the ratio seems pretty low, usually about 25%. I spend about 25% it tells me a lot of people are overworked and spend too little, but what else can you do?
Except that at 25K a year, it would take 80 years to make that easy $2 mil gross pay.
From the age of 18 to 66, one works about 100,000 hours. You can make a million working at McDonalds or WalMart for $10 an hour. If you can double that, there's your two million.
From the age of 18 to 66, one works about 100,000 hours. You can make a million working at McDonalds or WalMart for $10 an hour. If you can double that, there's your two million.
Well if you add inflation that 1 million over 40 years goes down to 300K
I spend about 50K a year on booze and women, the rest I waste.
OK, here's the real answer:
I spend about $45K a year for property tax, utilities, food, gasoline, entertainment.
I save about $45K a year (401K, 529, mutual funds). The rest I give the state and federal government. Someday I should ask my wife what she does with her money.
Well, um duh. That was a really ignorant statement on your part. Investing and gambling are not the same thing. If you think only in terms of earning income from wages (the wage slave mindset), you will most likely always be poor or in danger of falling into poverty.
The returns I used were real life 15 year returns for those funds.
Nobody gets rich putting their money in savings accounts. Most savings accounts don't even keep up with inflation, so that is it's own kind of risk that people like yourself ignore. The overwhelming majority of people with $1,000,000 or more have money invested in stocks and bonds.
Almost no one with $1M or more has it all in bank savings accounts. The wealthy understand you have to take some (prudent) risks with your money in order to make money. "Prudent" being the operative word. Keeping all your money in a savings account that won't keep up with inflation is not prudent. Neither is living payday to payday.
Putting some money in savings and some in a long term investment that invests in a mix of stocks and bonds would be one (but not the only) example of prudent money management.
Investing IS a gamble. Ask anyone who's lost money "playing" the market. You've heard of capital losses? And how you can only take $3000 a year?
At this stage my investments generate more than my salary does . Except for a few down years it has been that way for many years now for us as the amount in our portfolio increased over time.
I went through 3 jobs the last year and still have the same portfolio.
You tell me which one is gambling.
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.
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.
That was a really ignorant statement on your part. Investing and gambling are not the same thing. If you think only in terms of earning income from wages (the wage slave mindset), you will most likely always be poor or in danger of falling into poverty.
