Want To Be Rich????

reefmate75

Member
Hello im here to talk about all them americans that want to be rich, and how they can do it earning as little as some of us do, this is not talk on how to get rich quick as "really" getting rich is a slow and a life long endevor AND BEING SMART with your money is the only way to get rich
im starting this thread just becuase im board, and money is what i know, well and welding to as thats what i do for a liveing hahaha
anyways im going to start this out with a little story about myself,
i was 18 years old and bygoly i knew it all!!! i knew how to borrow money! and borrowing money was how i was going to get rich, so i had to build my credit right? so i got a creditcard and i used it spairingly as i knew the % was a rip off but i wanted my credit to go up, in 6 months i got my credit up and had 7!!! yes 7 credit cards with a ballance of around 20 thousand in debt on them and remember i was still 18 and though i was going to be rich...how stupid i was!
well on with the story 7 cards, 20k in the hole but my credit was 760ish and i got aproved for a duplex i was going to live in one side and rent the other side out for more then half of the total morgage, smart right? no it wasnt smart that was the one thing i did that i will never forget as that is my driveing force to not take debts
needless to say without getting all the way into the story, the 1800 a month morgage and the 1000 a month credit card payments would be enough to put a 18 year old in the ground, i was earning around 2100 a month at my job was good for 18 years old, and i also was getting 950 for the other part of the duplex well i didnt get as much for the rent as i was thinking i would and then i ended up liveing it felt like off of my credicards i was paing cards with cards and paying morgage with cards and my money i made shessh i dont even remember where that went it was somewhere in there but it just wasnt enough, card debt went to around 45 thousand in the hole and i couldnt take it anymore, i sold the duplex and moved back in with my mother...embarassing to say the least as she always told me to take it slow and never pay more then i made, remember i was 18 almost 19 now i did all this withen 1 year of being out of my mothers house
but luckly i sold the duplex for 37k more then i paid for it as i got a good deal on it and was a reason i bought it, that 37 thousand went to the cards, and i paid the rest of the cards off withen 6 months thanks to my mother for letting me stay with her, she was a HUGE help in my live for teaching me to stand on my own feet, i begged and begged her to get me out of my gam but she said my life was my life and i had to find a way to get out of it on my own
(remember people that my own mother told me to take it slow and dont get into deep many times, and she could have easily paid off my debts and i under stand now why she didnt) the only help she gave me was support and a place to lay my head
 

reefmate75

Member
part 2
after i moved back in with mother and she had refused to bail me out ( shes a saver also and has a lot of money ) i was pissed angry and felt like she didn't care about my future, but if she would have bailed me out i wouldn't have learned, and would have probably done it again, why? because mommy would have been there to take care of me she would have been my crutch that i would have depended on.. instead she made my legs solid and taught me many thing about money, but she was no where near where i am now with money she understands a few things about money...do not take debts, if you cant pay cash you cant afford it
i read probly 6 books on how to make money, i didn like most of them, as a lot of them said to do it the way i had already failed at taking DEBT to make money, you know that line, you have to have money to make money?? that's where a lot of books lead you wrong, its not true, YOU WORK TO MAKE MONEY AND YOU MAKE YOUR MONEY WORK FOR YOU!!!!
i invest now for the last 9 years its gone from me putting 200 a month into IRA/MUTUAL funds to 600 to IRA/MUTALs AND 250 for my kids collage so i save 850 a month to my future and my kids future, but they do not know im saveing for their collage as they will get the same lession my mother gave to me befor she died back in 2003, when they are ready to go to school, i will tell them that they have money for their loans that they took and that this lump sum of money is the only mone that they would ever see from me as im will not be their crutch
you work and invest all the money you do not need to live a humble life, and when i say HUMBLE I MEAN HUMBLLLLLEEEEEEE
 

reefmate75

Member
part 3
im doing this because i see alot of people hurting for money that shouldn't be, im a welder like i have said before i make around 60k a year but the other welders i work with make what i do and cant scrape by and i understand why but i cant go preaching about money at work i have done it before and people laugh and say well if you have that much money and know how to make alot of money WHY ARE YOU WORKING STILL well ill tell you guys this, you cannot retire on less money then you currently make, im 28 years old now and i have alot of working years left in me, its not right to be lazy and lose it all when you work so hard for what you have now why would you waste all that, its HARD WORK PEPOLE knowing you have money sitting there and you shouldn't touch it, but after awhile you stop thinking like that after you see how much money you have but more importantly how much money you put in VS. how much is there, if you saved 100 dollars a month from the time you was 18 to 60 you would be a millionaire!!!! but yet you put more then that into social security every month and that retierment will never hit 1 million
i would like to invite anyone that is having a problem with money to post or PM me it doesnt matter which ever you feel is best for you, and you will not liek what i have to say, im not going to be mean, i will be onist and strightforward, it might sound mean but that is not what im tring to do please understand that im tring to help people that are in need of help
 

pontius

Active Member
Originally Posted by reefmate75
http:///forum/post/2533938
if you saved 100 dollars a month from the time you was 18 to 60 you would be a millionaire!!!! but yet you put more then that into social security every month and that retierment will never hit 1 million
I would like you to explain this. by my math, $100 a month for 42 years doesn't come anywhere close to a million. in fact, $1000 a month for 42 years doesn't even come close to a million, even with a good rate of return.
 

reefforbrains

Active Member
Dont know how to read what you have written. I dont know if your just venting or actually expecting comments.
My only spin is- How about just spending less than you earn.....
If you want something, then save for it.
Second mortgages are for family members critical opperations....Not shiny new Trucks and garages full of toys.
I am NOT wealthy by any means but my family is debt free and I get everything I want. I like to think I am humble, but honestly I more feel that I am just not an idiot with my money and it pays off. Time and time again it shows when your talking to a friend and they are shocked when they learn how much my income actually is vrs my activities and hobbys.
sorry if it turned into MY rant. lol
-RFB
 

reefmate75

Member
well depending on which mutual fund you choise which you shouldnt chose any mutual fund that dosent have atleast a 10 year track record with 12+% intrest
say you put a 100 into a IRA/mutual every month for a year, not the first year but the next year when it is in that fund for the full year on a 14% incress you started with 1200 from the 100X12 from the year befor, so that 1200 alone would have made you 168 dollars in the next year, for the first year it wouldnt bring as much becuase it wasnt all in there at the same time at the start of the year
did you under stand that? the most powerful force on earth is compounded intrest!!
 

reefmate75

Member
Originally Posted by ReefForBrains
http:///forum/post/2533961
Dont know how to read what you have written. I dont know if your just venting or actually expecting comments.
My only spin is- How about just spending less than you earn.....
If you want something, then save for it.
Second mortgages are for family members critical opperations....Not shiny new Trucks and garages full of toys.
I am NOT wealthy by any means but my family is debt free and I get everything I want. I like to think I am humble, but honestly I more feel that I am just not an idiot with my money and it pays off. Time and time again it shows when your talking to a friend and they are shocked when they learn how much my income actually is vrs my activities and hobbys.
sorry if it turned into MY rant. lol
-RFB
YAY the biggest part of makeing it in retierment is knowing that debt is what will kill you in the long run, you are better with money than 60% of americans already with not haveing DEBT (other then your home)
that is the key, you just said it, live on less than you make! and save the rest! im not saing you cant have money that is set aside for hobbys, i mean i spend 250 a month on this hobby, but i buget for it, and if i dont use that 250 it gose into my money market account for a rainy day (that money is not being saved for anything other then for when something gose wrong like my 96 cavalier blows a engin then i will buy another 1-2k car and drive it to the ground again)
 

t316

Active Member

You are on your way, but you ain't there yet
Go back and re-read every word that you have posted
 

reefforbrains

Active Member
I dont battle with the neighbors for who has a bigger house.
I do battle with the logic that saving without a plan kills life.
The logic of- Saving the moneies I spent on an extended adventures currently could have afforded me 3 or even 4 identical trips when I am in my golden years is rubbish to me. I adore my wife and shes great, but even I dont want to see her in a bikini when we are in our 70's. Its a fine line, but saving just to save can and does kill life.
I live NOW, not to be misunderstood with living like there is no tomorrow....but that there still IS a today.
Spend less, live happy.
Oh yeah...and dont forget to spey and neuter your pets.
-RFB
 

reefmate75

Member
Originally Posted by T316
http:///forum/post/2533979

You are on your way, but you ain't there yet
Go back and re-read every word that you have posted

which part? i read it, it makes sence to me but i have always been hard to understand in words,
some of the words are missing letters at the end but it is readable
and for the persons posting that life is to be lived for the now....if your not saveing you will regret it when you go to retier on SS, its not going to be enough to live when you cant work! wouldnt it be nice to know if your car blew up you could buy another one without a loan?
and this thread wasnt ment for people who are no hurting it was ment for people who need help and understanding on what their doing wrong not for the people makeing it so far in life
 

stdreb27

Active Member
You forgot the part where you said, oh and don't get suckered into an expensive hobby like salt water fish.

For the math in me if you are adding 100 dollars a year at 8% of real growth in a mutual fund for 42 years. (subtracted 12% of average mutual fund growth minus 4% inflation you'll have about 400,000 dollars. divide that by say the current tax rate of 15% (that is the target of a hike by many politicans wanting to tax the rich) You're left with about 340,000 dollars. Now all that is assuming that you don't increase your monthly deposit. And that still would be something you could live off of for 5 years at 60,000 dollars a year of retirement income.
 

stdreb27

Active Member
But that being said, it is wonderful in my mind someone who actually understands the value of self dependence, hard work, and saving a few bucks.
 

mgatdog

Member
ReefForBrains;2533993 said:
I adore my wife and shes great, but even I dont want to see her in a bikini when we are in our 70's.
Shame on you! The money you save can get your wife a face lift,tummy tuck and etc etc etc.
Then at 70 she would be hot. As I tell my wife there is no trailer hitch on caskets.So why leave it behind for somebody to fight over cause one got more than the other.
 

reefraff

Active Member
100 bux a month aint gonna make you a millionaire.
My wife spent 18 years at a company that placed 10% of her annual salary into her 401K fund.That would have been a little under 200 a month at her starting pay and about 330 when she left 18 years later. It was in a balanced mutual which was a mistake but not a huge one, she didn't get hammerd in the crash of 87' etc and once we got married I moved it around which helped bring up the rate of return the last 7 years or so she was in the plan. Even so it was only worth around 90 grand when she left..
 

digitydash

Active Member
Originally Posted by stdreb27
http:///forum/post/2534066
You forgot the part where you said, oh and don't get suckered into an expensive hobby like salt water fish.

For the math in me if you are adding 100 dollars a year at 8% of real growth in a mutual fund for 42 years. (subtracted 12% of average mutual fund growth minus 4% inflation you'll have about 400,000 dollars. divide that by say the current tax rate of 15% (that is the target of a hike by many politicans wanting to tax the rich) You're left with about 340,000 dollars. Now all that is assuming that you don't increase your monthly deposit. And that still would be something you could live off of for 5 years at 60,000 dollars a year of retirement income.
Depends on if you still pay tax on that money you put into the IRA/Mutual fund.If you pay tax now when you want to take from it you won't have to pay uncle sam.
 

stdreb27

Active Member
Originally Posted by digitydash
http:///forum/post/2534934
Depends on if you still pay tax on that money you put into the IRA/Mutual fund.If you pay tax now when you want to take from it you won't have to pay uncle sam.
true, but comeon how much longer will the democrats be kept at bay from taxing investments into oblivion. By the time we are 65, it will be taxed. After all we do need to save social security and pay for medicare.
 

reefmate75

Member
Originally Posted by reefraff
http:///forum/post/2534550
100 bux a month aint gonna make you a millionaire.
My wife spent 18 years at a company that placed 10% of her annual salary into her 401K fund.That would have been a little under 200 a month at her starting pay and about 330 when she left 18 years later. It was in a balanced mutual which was a mistake but not a huge one, she didn't get hammerd in the crash of 87' etc and once we got married I moved it around which helped bring up the rate of return the last 7 years or so she was in the plan. Even so it was only worth around 90 grand when she left..
the only 401Ks i would reccomend are the ones which the company matchs part of or all of your contributations, anything over and above their contribute is probly one of the worced places for your money to go (other then a CD)
i have a 401k i put into also i do not count that as part of my retierment i kinda use that as my emergancey fund, but they are good because alot of companys have a match plan along with the 401K plan and if they are offering you might as well take it, and 401Ks do not draw intrest like mutual funds ENLESS they are set up with mutual funds, every comapny plan is diffrent, like mine is a mutual 401K plan, i get to pick which mutual funds that my contributes go into and i even get to see the track records of each mutual fund
 

reefmate75

Member
Originally Posted by stdreb27
http:///forum/post/2534066
You forgot the part where you said, oh and don't get suckered into an expensive hobby like salt water fish.

For the math in me if you are adding 100 dollars a year at 8% of real growth in a mutual fund for 42 years. (subtracted 12% of average mutual fund growth minus 4% inflation you'll have about 400,000 dollars. divide that by say the current tax rate of 15% (that is the target of a hike by many politicans wanting to tax the rich) You're left with about 340,000 dollars. Now all that is assuming that you don't increase your monthly deposit. And that still would be something you could live off of for 5 years at 60,000 dollars a year of retirement income.
the problem with your thinking is that a IRA grows TAX free because a IRA is a retirement fund, but each person is only allowed to put in 4500 into a IRA each year and if your smart you wouldn't choose a mutual fund to put into your IRA that had less then 12% on average, if you dont want to take me saying that saving 100 dollars a month for 40 years would make you a millionaire then call your local investment office, like Shaw finical is who i use,
and so far my IRA has never had less then 10% a year growth and that was even threw 9/11 and then again there is probly going to be a short one again but my avrage is 13.6% total on my IRA/mutuals and that intrest growth is NOT taxed and is compounded EVERY time they go up from day to day, although you never expect to get 13.6 after 20-30-40 years of saveing it will probly average out to around 10-12 depending on which mutual funds you put into your IRA
and dont forget about compounded intrest, thats where most of the money comes from...like ive said befor compounded intrest is the most powerful force on earth and i do belive Thomas Jefferson said them first, i get them all mixed up but one of them said it dangit! hahaha
 

reefmate75

Member
Originally Posted by stdreb27
http:///forum/post/2534964
true, but comeon how much longer will the democrats be kept at bay from taxing investments into oblivion. By the time we are 65, it will be taxed. After all we do need to save social security and pay for medicare.

the government is wanting to tax every thing because they dont know how to spend money and feel like they dont have any, and guess what??? thats JUST like 70% of Americans DOCTERS filing bankruptcy?? common that is just stupid...theyu dont save for anything, and a DEMOCRAT Bill Clenton had the devicate the lowest befor BUST ****it all up again, if Bill would have been in office another 4 years the US wouldnt have a devacet, but again this thread wasnt started for what the goverment dose and if WE THE PEOPLE DIDNT WANT IT TO HAPPEN then we shouldnt let it happen, WE ARE the people that run this goverment
and someones going to blast me for this but i do belive the wealthy should be taxed more, i belive in the 7% flat tax, and there SHOULDNT be a cap on taxs from esstates, they just move that cap up from 2 million to 3.5 millon to protect the small family oparated farms out there, but if your farm is worth more then 3.5 millon then your not struggling now are you? but yet thats when you start to get the tax break, WHY? becuase you worked harder? or did you inhearit that farm, or land or house, or what ever,
 
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