New most helpful quote on how to be a millionaire/ billionaire

[GON]

I'm beyond content not chasing accumulation of wealth. I'm not knocking the ones that are passionate about the process. I wonder how many people's lives are miserable going down that rabbit hole because their passion is misguided. Or, they miss living because of a dream?

Sorry for my non-contribution post to this thread on the tricks to becoming a millionaire! Carry on!

I am not sure this thread is about chasing wealth.

The thread is about the very high returns by doing the boring stuff with excellence, and making it a passionate priority to doing the boring stuff.

Just think around the house the boring stuff and how it can pay off huge/ save huge money:

• Installing drain tile not letting the foundation get damaged
• Fixing the roof not letting water get into the attack and ruining the insulation
• fixing a small crack in the driveway before it gets bigger
• Deep cleaning the house, then cleaning the house every week
• Power washing and applying protectant to a wood deck
• Resealing the driveway every other year
• Removing sentiment from a water heater
• Installing and maintain a water softener
• Trimming trees and shrubs annually
• Recaulking bathroom showers and tubs
• Recaulking the exterior of a home

All the above could be and often are overlooked by a homeowner. If any/ all of the above boring stuff is overlooked, zero short term pain/ loss. Over the years, if these boring items are neglected, a nice home turns into a house that can't pass inspection or sell for full value.

Further- the boring stuff might not be even doing the above tasks. The boring stuff might be formally documenting and publishing these tasks in advance, completing the task, and doing a written after action review on every task to include materials used, costs involved, life of the materials used, how to improve the task next time needed, etc. And then doing a semiannual formal inspection prior to the task being needed again to see what needs to me improved, modified for the next time the task needs to be done.

 

[GON]

The flip side of that was my dad, who had more education than I had, and in real dollars earned more than I ever did, but did not have good practical skills.

He was always getting the plumber or electrician in, and taking his cars to the garage for expensive repairs. He died with very little financial net worth, and a bunch of racked-up credit cards. He owed more on the mortgage than he'd paid for the house.

My ability to do home and car maintenance and repairs allowed me to live more cheaply than Dad did, and allowed me to retire younger than he did, with a paid-off house, a reasonable pension, and (hopefully) adequate savings for my wife after I'm gone.

I've also been able to help friends and family save money by doing car and home repairs and maintenance for them.

So, part of the whole wealth-building equation is controlling spending.

Part of the rationale for me here in Canada, where we bear a higher tax burden than many parts of the U.S., is the realization that a dollar earned is only worth 50¢, whereas a dollar saved is worth 100¢.

Thanks for sharing the story about your Dad.

Life experience has pointed me to the understanding that people that earn a lot and don't keep it, owe a lot of money, but are very hard workers often lack one thing. A mentor. Your Dad was responsible for his actions, but wonder how things might have come out different financially when your Dad passed away had your Dad had a rock solid mentor from a very young age.

Of note- a person must select their mentor- one can't ever be assigned a mentor. It cracks me up when a boss/supervisor says they are a mentor for their subordinates. The boss can be a trainer/ teacher/coach but can't be a mentor unless the mentee selects them.

 

[Japanese]

Someone told me that the way to make money isn’t to sell your time, but to profit off of others’ time. Only when you have enough folks that you are profiting off of their time and knowledge, can you truly make money.

I was thinking this same thing yesterday while driving. And another a bit bold quote came to mind:
"If you don't build your dream, someone will hire you to help build theirs." - Tony Gaskins Jr.

Although, if you have a well paid job, you can build your dream even working for somebody else.

 

[Sam_Julier]

You're not gonna obtain wealth by working for someone. The idea of a business succeeding is extremely difficult. No one estimates the cost of operating a business based on employees. Payroll, workmens comp, double social security and any Benefits. Rent, utilities, insurance.It adds up very quickly. I've reluctantly invested in 3 businesses.In the last five years all have failed. Not from a lack of them trying. The way to accumulate wealth. Is through property. Yes I understand it is new longer two thousand and eight. Where you could purchase one hundred and fifty thousand dollar homes. And now it's worth over eight hundred thousand dollars. The corresponding increase in value increases the rent you're able to charge. Easy ROI. Commercial property non retail is even greater ROI. Under 5 thousand square feet units are the highest rent per square foot. Concrete industrial tiltups in southern california are the most lucrative to lease. Although the most lucrative small businesses in my complex are mom and pop c n c machiners.

How do you define wealth?

 

[Astro14]

People with money work at making money. They don't spend time changing the oil in their car, they pay someone to do it while they scheme on making more money. I'm paraphrasing an article I read, but the approach seems right in my experience. The hard part is building up some wealth early, so you have someone to play with.

That seems an overly broad set of generalizations.

How would you define “people with money”?

How do you know what they do?

“Scheme on making more money” has a really pejorative connotation.

Perhaps they just pay attention to their investments, and have some wisdom about how to manage them.

 

[Nessism1]

That seems an overly broad set of generalizations.

How would you define “people with money”?

How do you know what they do?

“Scheme on making more money” has a really pejorative connotation.

Perhaps they just pay attention to their investments, and have some wisdom about how to manage them.

There are many articles on this subject. Here is a snip about one such article...
https://www.getrichslowly.org/wealthy-habits/

Habits of the wealthy - They outsource, outsource, outsource. Wealthy people are aware of where their skills and talents lie, and they play to those strengths. They know when it’s better to delegate a task to somebody who’s better at it. Or they know when to outsource because their time is better spent elsewhere.

This is not the article I was referencing previously, but the idea is the same. The wealthy focus on activities that make more money. They don't try to save by doing tasks that take them away from higher level activities that generate wealth.

Here is another, same thought process...
https://www.forbes.com/councils/for...-the-wealthy-follow-that-its-wise-to-emulate/

6. Valuing Their Time​

If the time it takes to clean your house is more valuable than the cost of bringing in someone to help you clean your house, outsource it. I can make $XX in the two hours it takes me to go to the grocery store, shop and get home. It will cost me $X in tips to have someone else do it for me. Eliminating these distractions also helps production, thus further raising that value. -

 

[Astro14]

There are many articles on this subject. Here is a snip about one such article...
https://www.getrichslowly.org/wealthy-habits/

Habits of the wealthy - They outsource, outsource, outsource. Wealthy people are aware of where their skills and talents lie, and they play to those strengths. They know when it’s better to delegate a task to somebody who’s better at it. Or they know when to outsource because their time is better spent elsewhere.

This is not the article I was referencing previously, but the idea is the same. The wealthy focus on activities that make more money. They don't try to save by doing tasks that take them away from higher level activities that generate wealth.

Here is another, same thought process...
https://www.forbes.com/councils/for...-the-wealthy-follow-that-its-wise-to-emulate/

6. Valuing Their Time​

If the time it takes to clean your house is more valuable than the cost of bringing in someone to help you clean your house, outsource it. I can make $XX in the two hours it takes me to go to the grocery store, shop and get home. It will cost me $X in tips to have someone else do it for me. Eliminating these distractions also helps production, thus further raising that value. -

While I have heard this principle previously, it really, only, applies if you’re able to spend that time working to make the additional money. Like a lawyer, who adds billable hours.

If you’re salaried, for example, you’re not able to spend those extra hours in direct earnings, and the principle becomes more nebulous. Less certain. When I was active duty Navy, I worked hard, but putting in extra hours at work didn’t earn me a penny more. So, I did everything - fixed cars, built furniture, painted and renovated houses - all of it because the cost savings was, actually, extra earnings.

So, in that case, insource, insource, insource led to the extra money for investing.

You still didn’t answer the critical question - what do you consider “wealthy”?

You talk about “people with money” - well, OK, define that. How much money does it take to be “people with money”?

 

[Nessism1]

You still didn’t answer the critical question - what do you consider “wealthy”?

You talk about “people with money” - well, OK, define that. How much money does it take to be “people with money”?

I agree that my comment is generalized. Using the term "people with money" or "wealthy" is basically the same, and there are countless articles on the internet referring to the behavior of "the wealthy", so why pick on my usage?

That said, I imagine that people where their time is particularly valuable would have a new worth north of, say, $10M. I'm just making this up, though.

 

[Nessism1]

While I have heard this principle previously, it really, only, applies if you’re able to spend that time working to make the additional money. Like a lawyer, who adds billable hours.

What about a person that builds wealth by investing in real estate of rental properties? They need to research things like occupancy rates, rental rates, equity growth of rental properties, interest rates, etc. All this takes time.

A friend is an investment broker, and he spends huge hours researching market trends, sales vs expenses of companies, all sorts of things like this, before he invests in a company.

Or someone in the entertainment industry. Endlessly reading scripts, looking for the "right" project for their career. Living in so Calif like I do, I know people that spend big hours doing these sorts of things.

It's not as simple as "billable hours". You are thinking on too low a level.

 

[blain450]

How do you define wealth?

That's an easy one.
Having more new shiny stuff than your neighbor, right?

63 years of walking this earth has taught me a few things about "wealth".
* A Giant truck with wheels that extend way out from the body. "Loud" is good, especially if it whistles when you take your foot off the accelerator. Shiny rims on super low profile tires and purple or blue underbody lighting.
* For housing, lots of bedrooms and bathrooms. An in-ground pool much bigger than any neighbors.
* Personal appearance has got to be in the latest designer duds, dripping in gold and as many wearable tech devices as I can possible use.

All that may be flashy, but what really counts as "wealth" is having a wife that has stuck by your side, through thick and thin for almost 45 years.

 

[Greenbeforeblue]

My grandpa told/taught me something that allowed me to retire at age 49, making more than I ever did when I worked.

"It ain't how much you make, it's how much you keep"

Thanks grandpa

 

[Astro14]

What about a person that builds wealth by investing in real estate of rental properties? They need to research things like occupancy rates, rental rates, equity growth of rental properties, interest rates, etc. All this takes time.

A friend is an investment broker, and he spends huge hours researching market trends, sales vs expenses of companies, all sorts of things like this, before he invests in a company.

Or someone in the entertainment industry. Endlessly reading scripts, looking for the "right" project for their career. Living in so Calif like I do, I know people that spend big hours doing these sorts of things.

It's not as simple as "billable hours". You are thinking on too low a level.

It’s not that I think on a low level, it’s that I don’t agree with the “outsource, outsource, outsource” contention.

The linked article made several points, and most of them are good, but on that one I disagree.

It’s simplistic, and fails to account for many situations. It may work if you’re growing your business and can focus more effort on that growth. It may work for some whose time at work is far more valuable than their time on menial tasks.

But the direct opposite approach is what allowed me to invest 35 years ago by freeing up enough of my salary to invest. Insourcing enabled me to keep enough of what I earned to save and invest.

So, on that point, I will continue to disagree.

Further, the “outsource” mentality has been a rationalization for luxury spending on the part of lots of people that I know. My neighbor, for example, who owns a small business, has a cleaning service. Part of the “outsource” philosophy.

But that neighbor has virtually zero wealth. They spend too much. They don’t save enough. They have rationalized the outsource to their detriment.

Perhaps more people should insource, eschew excess spending, put in some more honest work via DIY, thereby expanding their available resources, and focus on the efficient management of their resources, particularly their cash flow, to achieve long term wealth.

 

[Nessism1]

It’s not that I think on a low level, it’s that I don’t agree with the “outsource, outsource, outsource” contention.

The linked article made several points, and most of them are good, but on that one I disagree.

It’s simplistic, and fails to account for many situations. It may work if you’re growing your business and can focus more effort on that growth. It may work for some whose time at work is far more valuable than their time on menial tasks.

But the direct opposite approach is what allowed me to invest 35 years ago by freeing up enough of my salary to invest. Insourcing enabled me to keep enough of what I earned to save and invest.

So, on that point, I will continue to disagree.

Further, the “outsource” mentality has been a rationalization for luxury spending on the part of lots of people that I know. My neighbor, for example, who owns a small business, has a cleaning service. Part of the “outsource” philosophy.

But that neighbor has virtually zero wealth. They spend too much. They don’t save enough. They have rationalized the outsource to their detriment.

Perhaps more people should insource, eschew excess spending, put in some more honest work via DIY, thereby expanding their available resources, and focus on the efficient management of their resources, particularly their cash flow, to achieve long term wealth.

I have a mental hang-up in regard to paying people to do work for me around the home, when I'm able to do it myself instead. For example, where I live, 90% of the homeowners have a gardener service, but I do my own. My yard is bigger than most, but it's still small, and I can't bring myself to paying someone. Same for home cleaning. It's amazing how many people pay for this work.

This said, I just paid a boat load of money to have the plumbing fixed in my house (thread in the home fix up forum). I saved on some things, but paying on others. I'm NOT rich, but I am better off than some. While the plumber guys are working their butts off, I'm inside, drinking a beer, banging out comments on BITOG, and checking Google Finance. It was an up week on the S&P, and my gains came close to covering the plumbing work! Win Win!

 

[JeffKeryk]

There are lotsa ways to gain wealth, but I believe the highest potential for success is simply to let time work for you. This is true because money that you have right now can be invested and earn a return, thus creating a larger amount of money in the future.

I often speak to Silicon Valley opportunity; being in such a place is a huge advantage. "That's where the money is".

As far as investing, the sooner you start, the better. I like tech stocks over the long run but balance is smart. I am a contingency planner. And property is critical because you hafta have a place to live.

Employment is a critical piece, as you spend a lot of your life working. You are lucky if you can do something you like that business values.

I agree with @Astro14 with in sourcing what you can do, especially if you like the work. It can be rewarding. I have never paid for an oil change, brake job, etc. The savings over the years have to be in the tens of thousands. And nobody cares about my cars as much as I do.

Remember cars are depreciating assets! Don't buy that fancy car until you can pay cash for it, your house is paid off and you have $1M growing in the market.

Does this sound excessive? Good! Set your goals high!

You can thank me later. Now get to work. It ain't gonna happen on its own.

 

[2005jettatdi]

Some years back, I was shoveling snow off the parking lot at my office. Yes, snow in Arizona. A guy walking by told me I was using my time wrong. No, I was doing what I wanted to do. You are never using your time wrong when you are doing what you want to do. Others have their priorities, I have mine.

 

[RooflessVW]

Earlier today I read a quote on key tasks to be a millionaire / billionaire. The content was primarily focused for people wanting to start/ run a business but I think the principal applies to many aspects of any business/organization.

The quote " one has to master the boring stuff".

Your mileage may vary, but I will be using this quote for many applications for years to come.

Supplemental, I am a firm believer that a self employed person that has to go to work to make money does not own a business, just has a job. One becomes a business owner when he/she doesn't have to go to work and the business runs as usual.

There is no ethical way to become a billionaire

 

[Dave Hess]

People are more likely to hit a million dollars if they accept the fact they are middle class and save / budget / invest their money they would normally squander on unnecessary crap.

Social Media is a terrible cancerous poison that too many people trying to be someone they are not.

Way too many people trying to impress their friends, family, neighbors, coworkers, etc… spending money to portray a fairytale lifestyle.

I remember the day I hit a million in my brokerage account and it didn’t phase me one bit. Just a number on the screen. Imagine doing 95 mph on highway and then you hit 100. Nothing really happened.

 

[JeffKeryk]

There is no ethical way to become a billionaire

Interesting comment... I don't personally know any billionaires but I know some who are easily worth $500M. C-Level Silicon Valley...
Certainly their decisions helped as well as hurt a lotta people. Business is brutal. Capitalism is brutal. Winners and losers.

I have a couple of friends who just got laid off after close to 30 years at basically 1 company, if you count an acquisition...
There are no guarantees in life. There is also no fair. Change is the only constant. Winners and losers...

 

[Owen Lucas]

Getting to billionaire status - probably requires a little more luck, some connections, and maybe even a few shady dealings here and there.

I'll tell you how I did it when I get there!

 

[Pablo]

There is no ethical way to become a billionaire

So inheritance is unethical?

There are ethical ways despite many interesting current examples