How do I get rich

[Aurel]

Another piece of advice: if what you want is a Porsche, don`t get it new. And, analyze what you like in a Porsche: the looks, the handling, the performance...? Porsches range in prices from ~$5k to north of $200k. Some give you better bang for the buck than others. Which one do you want? For me, it is an older air cooled one that I can work on. Actually, I almost get more satisfaction working on it than driving it these days.

[Racerbvd]

Originally Posted by Aurel

Another piece of advice: if what you want is a Porsche, don`t get it new. And, analyze what you like in a Porsche: the looks, the handling, the performance...? Porsches range in prices from ~$5k to north of $200k. Some give you better bang for the buck than others. Which one do you want? For me, it is an older air cooled one that I can work on. Actually, I almost get more satisfaction working on it than driving it these days.

Very true, in the local PCA, there are many boxter leasers, some like to look down on old cars (more than once it was suggested that I sell my old cars and buy a new one) but I like my old Carrera, and funny, it is worth more than many of the Newer cars the posers lease, and unlike many of them, I OWN it.. I have more fun driving my 2.0 914 at the track than I had when I had the C4..

[LeeH]

What do you consider "rich?"

As many have stated here, living below your means and self employment is definitely going to get you moving in the right direction (Millionaire Next Door stats). If you do go out on your own it would really be nice if your wife were contributing to help pay the bills while you get started. Being underfunded will quickly sink your new venture and, in turn, (stastically speaking) do the same to your marriage.

You say "rent" is expensive, so I have to assume you don't own your home. How's the college savings going? Retirement fund? Funding the fun car before these things is no way to build wealth. I always find it interesting how financially diverse we are here on a site devoted to luxury/sports cars.

[andyt11]

Running your own business isn't without it's pitfalls. Certainly not the easy answer. Although I would agree with something that was stated further up. You won't get rich working for someone else.

I think you should move. You need to get your housing costs down so you can buy your own home and still afford to put some money away each month for what you really want. A 911.

[Tishabet]

Originally Posted by Don Plumley

Truly "rich" people have enough funds to support the lifestyle they enjoy and the time to enjoy it.

Nailed it!

[silverwhaletail]

Originally Posted by tabs

... Perhaps rental property.

Tabs is right. Again.

[fastfredracing]

Originally Posted by Racerbvd

Work, work work, save, don't dispose of your income, save it, don't waste your money on what everyone else has or wants get what you need, save for it..

This, work , work , work, and after you are done working, work some more. Most of the money I spend is on something that will make me more money (tools, rental property, cars to be flipped , equipment etc...) Cars are usually not an investment, but I try real hard not to get to far upside down into any of my personal toy/want cars.
Instead of renting a nice apartment when my lady and I were looking for somewhere to live, I bought a fixer upper city house, that was dirt cheap, I moved out in 3 years, rented it out for 8, made a little money on it, and then sold it at a profit. Lots of little" bases hit" like this instead of always swinging for the home run, will add up over the long haul.
I have spent most of my weekends for the last 10 years working on something that would either make me money, or prevent me from spending a ton of money. I don't pay the roofer, I don't pay the furnace man, I remodel my own house, I fix my own cars. I look to purchase things that I need used. I will attempt to repair the clothes washer before I dump $600.00 for a new one.
I think the key to being successful if you are poorly capitalized , is to work hard, and be frugal, and make smart decisions .
I am far from rich, but at 42, I am just starting to see the fruits of my labor, and all the sacrifices I made as a young man pay off. I will never be rich or even wealthy , but there is a good chance that I will not have to work in my mid fifties. I of course will. And Unless there are lottery winnings involved, I will never own a "new" Porsche.
Good luck

[Scuba Steve]

Originally Posted by pwd72s

6-14-21-33-34-42 Keep trying.

The numbers you're looking for are 4, 8, 15, 16, 23 and 42.

But a serious answer to the question as best I can, since "rich" is a highly subjective term... Don't be afraid to move. I got where I am today by taking on difficult projects within the company I've been with for 8 years, and these projects were located all across the country. I'd spend 3 months in Seal Beach, another month or to in Birmingham, other times in different spots in the northwest... The work hours weren't always what people would normally want (sometimes I was in charge from 7pm to 9am), but the good part was that it didn't last forever, you meet some great people and it really helps broaden your experience. You can't be too adverse to "permanent" relocation, as well. I moved across the country 3 or 4 times within the last 6 years but the end result is being a sr. level engineer.

This sort of thing had a horrible effect on marriages, but I wasn't married at the time. I had a dog, a 55gal fishtank and a friend who would come to my place every other week and run the 924S for a bit while I was out of town. Divorce within my group of coworkers with a similar lifestyle was rampant.

It's more effective in my opinion to expand your earning potential than to cut costs, but you have to keep those under control as well. At first I had a reasonable (small, cheap) house for a single guy in a lower-middle end neighborhood. In other words, on my street alone there were at least 4 or 5 copies of my house, however many of my neighbor's, ... But it was safe and got the job done. Living beyond one's means, whether by mortgage or by credit can decimate someone's potential to invest in the future.

Once you've finally "made it," you'll find that your personal bar has been raised yet again. If I were to show myself when I started all this last year's W2 I'd have been amazed, but sitting here in 2012 I don't exactly feel "rich." My surroundings are much nicer and paychecks are larger, but you wind up thinking a bit more about what you can invest in rather than taking time off from the madness to go on vacation somewhere like you may have before. Your focus will move on from one thing to the next without you even knowing it.

But in your case it really goes back to the definition of "rich." Yours is a clearly-defined, measurable standard. Mine is as well, since I like to fix or restore things and now have the time and means to do it. I'm afraid that the person who wants X amount of net worth will never be rich though, since their bar will continue to raise because they don't feel the difference from before / after they're worth that amount. Really, they should be jealous of you because I know some like that and they don't know the peace that they're missing.

[lane912]

Originally Posted by Aurel

Another piece of advice: if what you want is a Porsche, don`t get it new. And, analyze what you like in a Porsche: the looks, the handling, the performance...? Porsches range in prices from ~$5k to north of $200k. Some give you better bang for the buck than others. Which one do you want? For me, it is an older air cooled one that I can work on. Actually, I almost get more satisfaction working on it than driving it these days.

DING-
1966 912 X2
on 40k a year
they are a project, when I am done I will have the car I want and that is better than being "rich"

[flipper35]

Learn about explosives ad start a company that does blasting for roads, quarries... or demolition. Seriously.

[wdfifteen]

Originally Posted by szyzygy

Any of you rich dudes out there, please share your success stories and advice.

I never thought about getting rich. It was never my goal. I'm probably not rich by SoCal standards, but I've done pretty well. I had a career in aerospace engineering, which was a lot of fun, and started my business as a hobby because I thought it would be fun, too. In two years I was making more money and having more fun at my hobby than in my job, so I had to make a decision. I struck out on my own and never looked back.
Notice how many times I mentioned "fun?" I think that was the key for me.

[on2wheels52]

Predatory lending
Jim

[HardDrive]

I can make you rich in a week.

Hop on a plane with me, and we'll travel by car around India for a week. It will change you, trust me.

[red-beard]

Originally Posted by HardDrive

I can make you rich in a week.

Hop on a plane with me, and we'll travel by car around India for a week. It will change you, trust me.

I one up you. Make it Pakistan. I lived in India and in Pakistan. I doubt 20 years has changed much.

[RWebb]

Originally Posted by pwd72s

Don said it well...

"Truly "rich" people have enough funds to support the lifestyle they enjoy and the time to enjoy it."

So, let's try to put some numbers on that...

What net worth is required for a minimum enjoyable lifestyle. Assume an old Porsche is included (since some old 911 owners like to look down on new cars) and a decent house in a decent neighborhood (not a high priced place like SoCal or Manhattan), health insurance, utilities (hey - even throw in cable if ya wanna). Let's also assume that all travel will be via the Porsche.

What have you got?

maybe work backwards to get the income stream required to support the monthly budget, x 12 for a year and then come up with your net worth based on the amount required to generate that yearly income + 15% for federal (Romney level) taxes + xx% for state taxes

[Racerbvd]

Originally Posted by wdfifteen

I never thought about getting rich. It was never my goal. I'm probably not rich by SoCal standards, but I've done pretty well. I had a career in aerospace engineering, which was a lot of fun, and started my business as a hobby because I thought it would be fun, too. In two years I was making more money and having more fun at my hobby than in my job, so I had to make a decision. I struck out on my own and never looked back.
Notice how many times I mentioned "fun?" I think that was the key for me.

Big key right there, lots of ways to make good money, but;
1) You have to be happy doing it or at least somewhat enjoy it.
2) You have to still like & respect yourself.
I could make a lot more money if I moved to another market, I turned down a very good offer years ago, because I like the area I live in (and yes, I had traveled & lived in other states at the time) and didn't want to move to another state, even for close to 6 figures and had a nice place to live.
On the 2nd, the most import (at least in my book) is when you look in the mirror everyday, you have to be happy with who you see..
Remember, when you work for yourself, there is no 5 days a week and 9 to 5, plus, you are the last to be paid..
I

[pwd72s]

Originally Posted by RWebb

So, let's try to put some numbers on that...

What net worth is required for a minimum enjoyable lifestyle. Assume an old Porsche is included (since some old 911 owners like to look down on new cars) and a decent house in a decent neighborhood (not a high priced place like SoCal or Manhattan), health insurance, utilities (hey - even throw in cable if ya wanna). Let's also assume that all travel will be via the Porsche.

What have you got?

maybe work backwards to get the income stream required to support the monthly budget, x 12 for a year and then come up with your net worth based on the amount required to generate that yearly income + 15% for federal (Romney level) taxes + xx% for state taxes

Aye, there's the rub..one man's "enjoyable lifestyle" may be considered pauper level by another. So, I laugh at those financial magazine articles that say one needs $XXXXXXXX to be able to retire.

[azasadny]

I don't have much $ at all, but I'm wealthy in many ways...

[RWebb]

yup Paul - I hear ya -- that's why I phrased it the way I did minimum but with an old fun car.

[Hugh R]

Fidelity and others say you should draw no more than 5% of your 401K per year, maybe less in today's market. Say $1,000,000 in the 401k that equates to $50,000/year. Top tier payout on SS is something like $2,400/month if you retire at 66 (my wife and I have maxed out on the SS contribution limits for decades). So double that for me and the wife. Call it another $55K/year. However, above a certain amount of "draw from the 401k/IRA they start taxing SS and of course your IRA/401k which were pre-tax to begin with.