Just curious, but is anyone here willing to admit that they have a total net worth of over a million dollars. I know this is a personal question, and not really anyone's business but their own.

Nut if they would be willing to share I would love to know what you think was the biggest factor in reaching that milestone.

Again sorry to pry, but I have been reading The Millionaire Next Door and it just got me to thinking...

This is Texags, everbodys a millionaire.

Actually I know this answer - Me , 32 years as Investment and Wealth manager , owner - 1) maximize contributions to a company savings / 401k plan , IRA's , etc over a long period ; 2) own a home and work to payoff over a long period ; 3) set-up a personal investment account , even if zero to start - Have automatic withdrawals from your checking , even if very small to start - Increase over the long term as possible ; 4) be an owner , start your own business if possible - The first three more in your control , 4th is bonus if that works out - Do these and you will get there !

Everybody I know that has become a millionaire did so because they started their own business. You're not going to get rich working for somebody else. They said it takes hard work, ability to take risks, and a little luck.

And don't forget the lucky sperm club card

Yes and it's called a husband and wife both working for 30+ years and maxing out pre tax 401Ks for most of those years.

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The richest one percent of this country owns half the country's wealth: 5 trillion dollars. One third of that comes from hard work, two thirds of it comes from inheritance, interest on interest accumulation to widows and idiot sons and what I do -- stock and real estate speculation. It's bull****. Ninety percent of the American people have little or no net worth. I create nothing; I own. We make the rules, Buddy, the news, war, peace, famine, upheaval; the cost of a paper clip. We pull the rabbit out of the hat while everybody else sits around their whole life wondering how we
did...you're not naive enough to think we're living in a democracy are you, Buddy? It's the free market. You're one of us now...take advantage of it. You got the killer instinct, kid, stick with me. I got things to teach you...

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Go work overseas as an expat. Make a ton of bank and save almost all of it. I moved back to Houston last year after 4 years in Australia. My after tax savings was more than triple that when I worked in the US.
FYI I'm an engineer for Big Oil. I realize that not everyone has an opportunity to pack up and move across the world but its an awesome experience (both culturally and financially) if you get a chance.

Income generating real estate. Buy as much as you can and let it pay for itself over 15 or 20 years. Look for deals with creative financing that help you avoid putting 20% down.

Maxing contributions to 401k and 403b.
Driving cars for a long time
Very little debt
Will make more in retirement because we both will get a pension
Very Blessed.

I know more of them than the average person (because of the line of work I'm in)...and 90% of them got there by starting their own business, and working like a beast to get it where it is today.

If you don't own your own business, then what the poster said above (with the 1-4 list) is most applicable. Just put your head down, start funneling money to different savings/investment accounts, live well below what you make....and start GRINDING!!! Poke your head up once a year to see where you are, then promptly put it back down again and keep cranking. Just "doing" it is the biggest step in the process.

Keep in mind it's going to take 20-25% of what you make to send your kids to college and retire. So you better start early and go hard.

Making 3 consecutive bets on black with re-invested earnings, then switching it to red. It may not be for everyone.

Many who you would think are millionaires are in fact NOT millionaires - because they spend every dime they make and have an insane amount of debt.

I read somewhere once that the most common vehicle owned by a millionaire was a Ford F150. This was because there are more farmers that are by definition millionaires than there are big shots. There is a lot of truth to that around these parts. Had a client pass away a couple years back that lived in a worthless shack but had almost $2mil in savings bonds in the bank. Crazy!

Yes: high income, low expenses, delayed gratification, and a commitment to investing.

I may be in the minority, but I think becoming a millionaire is very doable. My personal goal is to have a total net worth over $1MM by the time I reach 40 and I think I am well on my way. Now I realize a lot could change between now and then but I don't think it is that far out of reach.

For some who may be interested, the blog "Mr Money Moustache" is a very interesting read and relative to this topic. I started reading it at the recommendation of someone else here on this board.

I’m gonna hit a million in net worth this year at age 38. For me a lot of it was being in the right place at the right time and hitting it big on a couple of investments. Also worked two jobs, the one with my degree and I have been farming on the side for about 10 years now. I would also compare my cheap assness with anybody so I have had some cash available when I needed it. I’ve never owned a car worth more than $7500, and that was when I was a fresh college grad and dumb.

My formula: Worked at Valero in the early 2000’s when the stock price went from 10 to 70. Had my entire 401k in company stock plus I was getting stock options. Sold out completely in the upper 60’s which turned out to be the top. Took that money and bought a farm for about $250k. Spent some more money on it and developed the property for irrigation. With the bubble going on with farmland right now, it just appraised at over $1 million. There have also been some business investments that have flopped over the years but my preference is to have my money in something I can control and understand vs the stock market. Don’t just be satisfied with “the stock market has returned x% over the last 100 years”. That doesn’t tell you anything about the next 10. Spend time looking for better opportunities, they’re out there.


[This message has been edited by Jack Boyett (edited 1/31/2013 8:27a).]

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Many who you would think are millionaires are in fact NOT millionaires - because they spend every dime they make and have an insane amount of debt.

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Man, you're not kidding.

I know a guy with title loans against his Bentley and rolls. Guy couldn't rub two nickels together without selling a bunch of stuff. He "looks" rich, but his Net Worth is tiny.

Keep your head down and your lifestyle reasonable. Every raise, put half on auto deduct into an investment acct. increase your lifestyle some, but save for the future.

Remember, the tortoise wins Every time.

i read 'millionaire next door' when i was around 28 or 29...

set a goal of being a millionaire by 35... i think i hit it around 36

i did not own my own business during this time, but my income was relatively high(er), but volatile

paid off house at 35... my wife quit working around 31... we focused and paid off most all debt (except for house) by 30

clothes, food & cars will get you every time

-we drive cars for 10 years
-we pay ourselves first (401k, iras, investments)
-we really watch our food budget
-just like 'mnd', i've never owned a watch over $200 [edit - bought a running watch for over $200 once ]
-we started investing pretty early... & used vanguard mutual funds w/low expenses

all that being said... being a millionaire is not the end all be all...

the security that comes with a paid off house & enough savings to last a major recession is much more desirable than just being a millionaire

just like in 'mnd', we enjoy doing 'cheap' things... like kid sports and family nights... we also enjoy volunteering & charitable giving

the blessing is not in being wealthy...but being able to do good things with your wealth

highly recommend reading mnd, millionare mind and a bible study group called '7'

[edit - two more must reads... 'Enough' by John Bogle, founder of Vanguard & 'Unconventional Success' written by David Swensen that runs Yale's endowment]

stay away from all the get rich quick crap like 'rich dad, poor dad'

good luck in your journey

[This message has been edited by Ag92NGranbury (edited 1/31/2013 9:12a).]

[This message has been edited by Ag92NGranbury (edited 1/31/2013 9:14a).]

[This message has been edited by Ag92NGranbury (edited 1/31/2013 9:24a).]

Being a millionaire ain't what it used to be.

When a nice car is $50k,
a nice house is many multiples of that,
taxes take > 50% of income (I am adding ALL taxes here),
health insurance for a couple might exceed $20k a year,
jalapenos are $0.99/pound (just kidding)

Generally...work hard for a long time and live below your means.

I don't think I'm there yet. My whole goal is to really build a machine (mostly rental properties) that generates passive and semi-passive income so that I can make at least $8000 to $10,000 a month before I ever get out bed. I think I will be there in about 10 years or less (would make me about 50). With my lifestyle, I can live on that for sure by itself.

Of course, that machine would be worth over $1 million, but I am not worried about the value on paper, it is the income it will generate that will provide the freedom.

I am probably not the most frugal guy in the world, but I do teach my kids "we only use our money to buy things that help us make more money." It is a little oversimplified, but easy to understand for a 7 and 5 yo.

Some others have hinted at this, but nobody has directly stated that financial momentum is really important. Dividend reinvestment and compound interest is huge over time.

The other thing I would suggest to you all is that there is a very large difference between being cheap and being frugal. I define being cheap as constantly band-aiding problems and doing stupid things like not buying health / home owners insurance to save a few bucks - only to have this catastrophically come back and kick your butt.

Finally, avoid impulse decisions of all kinds.

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"clothes, food & cars will get you every time"

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That is where all my money goes. And to add to the list, sporting events and gambling.

food... so much money on food...

This is turning in to an amazing thread...great advice all around.