Let's All Become Millionaires Motivation Thread

Create an Account or Log In

Membership is free. Simply choose your username, type in your email address, and choose a password. You immediately get full access to the forum.

Already a member? Log In.

@Tarantado wrote:

It's more than just saving though. Most people don't know HOW to invest their money, which is definitely an issue. But for sure, at least saving regularly is a good start.

Where have you been for the last five months?
@SoCalMama wrote:

Where have you been for the last five months?

Wow, it really has been five months.... I'm sorta back now. I felt like the threads in this forum got to be too repetitive, so I took a break and I transitioned over to Reddit for a bit.

With that being said, anything I missed on the forum?!

Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 29 year old male and willing to travel! Badged for Denver International Airport.
@Tarantado wrote:

@SoCalMama wrote:

Where have you been for the last five months?

Wow, it really has been five months.... I'm sorta back now. I felt like the threads in this forum got to be too repetitive, so I took a break and I transitioned over to Reddit for a bit.

With that being said, anything I missed on the forum?!
Nah, not really. Apparently, I am an alcoholic. LOL

I have a new coworker who reminds me of you. He is 26. He just paid off his car. He's saving up to buy a house ASAP. We're in So Cal, so he's looking at something around $500K, and it won't be pretty.
The linked article regarding wealth and happiness around the world grabs me more than an admonition to become a millionaire. Think the pineapples in Costa Rica account for the greater happiness in the poorer country, but who knows...


[www.visualcapitalist.com]

Winter is an etching, spring a watercolor, summer an oil painting and autumn a mosaic of them all. - Stanley Horowitz
As long as I could have my same knowlege. The Problem I had with being 25 was lack of life experience. But sure I would like to look 25 and feel 25. Has anyone seen the tv show called YOUNGER.. I would recommend it's about a 40 year old who had pretended to be 26 in order to get a job working in Publishing. She looks 45 to me when she was around older people but she blended in well with younger looking people. It is really a great show one of my favorites.
Here is the trailer:
[www.youtube.com]

So technically it depends on how you look. Some can pull it off with work just to LOOK younger is like winning the lottery. Exercise, Supplements, botox, restylane, EXERCISE, weight loss, and getting out there and doing fun things. Maybe we won't be 25 but we can shave off a few years off our look and retain the knowledge. I'm trying to age super slowly myself. We don't think about these things when we're younger. I wished I had moisturized more, ignored many people who got under my skin, and moved to L.A. when i was a bit younger. But it didn't happen that way so ... I just thought this was interesting topic.
25 was many lifetimes ago. Heck, yesterday was already many lifetimes ago! Recently, a sales professional informed me that I do not look old enough to match my driver's license into. This was not an age compliance shop. It was personal. Mama needed some good new clothes! (I was applying for the store credit because I wanted the discount. They needed to see my ID.) Before I could stop myself, I demurred and said it was due to the great products that the store sold. Why couldn't I just say, "Thank you"?!

Winter is an etching, spring a watercolor, summer an oil painting and autumn a mosaic of them all. - Stanley Horowitz


Edited 1 time(s). Last edit at 08/25/2019 08:21AM by Shop-et-al.
@shoptastic wrote:

What foods do you buy that are cheap, healthy, and filling?
Looking for more ideas to save. smiling smiley
Try Clara's Depression Cooking channel: [www.youtube.com]
Biggest food saving is to cook from scratch and use meat as a condiment rather than main dish.

Seriously, nobody cares that you're offended.

(Yes, I stole Hoju's tagline.)
@SoCalMama wrote:

Nah, not really. Apparently, I am an alcoholic. LOL

I have a new coworker who reminds me of you. He is 26. He just paid off his car. He's saving up to buy a house ASAP. We're in So Cal, so he's looking at something around $500K, and it won't be pretty.

Lol how so? If it's not more than an average 1-2 serving of alcohol a day, you're doing just fine.

Hmmmm, is he also Asian? But as for purchasing ~$500k homes, Denver's also creeping up that range, it's insane!... Finding ANY positive cash flowing investment homes are like finding needles in a haystack smh.

But my doppleganger should be fine if he's good with his money and credit to aim for a 5% down (if he doesn't have enough for 20%), considering how incredibly low the mortgage rates are right now!

Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 29 year old male and willing to travel! Badged for Denver International Airport.
I love her stories btw. I learned she passed away some time ago but she lives alive and well on YT. She has some wonderful foods and her stories that go along are timeless. I love this channel. Thanks for sharing it and I hadn't visited in a while. She lived during Depression.
@Tarantado wrote:

@SoCalMama wrote:

Nah, not really. Apparently, I am an alcoholic. LOL

I have a new coworker who reminds me of you. He is 26. He just paid off his car. He's saving up to buy a house ASAP. We're in So Cal, so he's looking at something around $500K, and it won't be pretty.

Lol how so? If it's not more than an average 1-2 serving of alcohol a day, you're doing just fine.

Hmmmm, is he also Asian? But as for purchasing ~$500k homes, Denver's also creeping up that range, it's insane!... Finding ANY positive cash flowing investment homes are like finding needles in a haystack smh.

But my doppleganger should be fine if he's good with his money and credit to aim for a 5% down (if he doesn't have enough for 20%), considering how incredibly low the mortgage rates are right now!

Yes he’s Asian. He thought he was Vietnamese until 6 months ago when he found out he was actually Chinese. He has good credit, so I told him to try for 20% but if he can’t do it, go for any first time home buyer program.
Today, I completed two bonused shops, fed the hubby, and achieved ten percent of my merch/shop goal which officially commences tomorrow. Last week, I earned one-fifth of that goal. I think this is good for incremental gains. If nothing else, it was painless and let the kitchen be clean for a few more minutes! grinning smiley

Winter is an etching, spring a watercolor, summer an oil painting and autumn a mosaic of them all. - Stanley Horowitz
@Tarantado wrote:

@Jbrz123 wrote:

His math doesn't add up. $100/month * 40 years = $48,000 put away. Even if you factor in an annual rate of return of 7% you'd still only end up with ~$250,000. 7% is optimistic when you account for inflation.

You would need an annual rate of return of ~12.5% over 40 years to get to $1 million which is most likely a impossible.
I completely agree with you that the math isn't adding up. In regards to the returns though, when accounting for inflation, history has shown that a 7% return IS realistic (refer to the history of the S&P 500 index). This of course, will only occur with CONSISTENT investing, month to month, for the long term. As for Dave Ramsey's math, $100 per week as opposed to $100 per month is more realistic on becoming a millionaire by the time you retire by simply dumping into a no-fee index fund.

The math does "work" (caveats coming) as stated above (in my earlier post) for:
$100/month at 10% return rate over 40 years = about $500,000
$200/month at 10% return rate over 40 years = about $1M
$100/month at 12% return rate over 40 years = about $1M

Ramsey was using a high growth fund netting 12-14% annually (nominally - not effectively with inflation-adjusted, which no one in the financial industry does ...maybe big numbers sound better??, lol). I agree with those who say that is unrealistic to find. Such a fund is so rare as to be a unicorn. Plus, one would have to track the management to see that it does not change over decades.

The "problem" is that 10% is 1% off historic norms. smiling smiley We've averaged 9% (not 10) over the past century in U.S. stock performance. And that 1% is HUGE over many decades. It's the difference between a few hundred thousand potentially. You can use the same government compound interest calculator I posted earlier to get exact figures:

[www.investor.gov]

It's interesting what 1% can mean over many years!

$200/month at 10% over 40 years would nominally make you a millionaire.

@Niner wrote:

Buy VTSAX and call it a day. Don't sell and contribute a set amount monthly. If you start in your 20's, it's like $100/month, at 40, it's around $1200/month, to have the same amount of money at 65.

VTSAX is okay, Niner, as is a S&P 500 index fund. But, I personally would not stop there. Even Warren Buffet doesn't say to just invest in a S&P 500 index fund (although, he does say to do so primarily). He recommends a certain percentage allocated to bonds as well. But, he's much more conservative on bonds, as they don't yield much. I think his recommendation is around 10-20% to bonds, which is a much smaller allocation than typical financial advisors suggest. But, the math checks out, I think (will look up specifics). There's also the argument that people are living much longer these days and so you may need more equity exposure than you think. A traditional 60/40 (stocks/bonds) or 60/30/10 (stocks/bonds/cash) mix may not be enough if you live a decade or two...or three longer than expected.

But, for me, I also invest outside the U.S. strategically as well. There's a near perfect correlation for a region's stock market over-performance and how it does in the future. It's practically a see-sawing back-and-forth, back-and-forth. When the U.S. has out-performed and valuations have been ridiculous, as leading up to the 1929 crash, 2000-2001 dot com bubble, and right now (where valuations are sky high - Warren Buffet's favorite overvaluation indicator being the market cap-to-GDP ratio, which shows we're super high currently), stocks have almost always under-performed (been flat or seen negative gains) for a long period of time in that region afterwards. We saw after the 2000-2001 crash that stocks took until 2007 to recover. During the dot com boom, emerging markets were horrible. But from 2001-2008, emerging markets skyrocketed. Then from 2008-2019, they have been crushed.

Based on things like the Schiller/CAPE ratio, the U.S. SHOULD (although, nothing is absolutely guaranteed) have a lengthy period of under-performing after the next recession and emerging markets should rise. EM is cheap right now, but the demographics (both population and standard of living growth = rising consumerism and economic growth) should drive strong growth there for the next decade or more.

Historically, stocks always mean revert and return to normal valuations after bubbles burst.

Edited 4 time(s). Last edit at 09/28/2019 10:33PM by shoptastic.
re: 1%...

Maybe those $2 ms bonuses aren't so bad after all? winking smiley

(I know, I know...$2 doesn't even make the shop worthwhile...just saying...$2 here and $2 there...it adds up...even 1% more is huge over time!)
For those without gold or silver exposure (I own the GLD and SLV ETFs - bought at $121 and $16.00 average prices, respectively), you may want to consider a 5% portfolio exposure. It isn't too late - especially silver, as it's price ratio to gold is near record differentials still (it's come down a little bit from about 90 to 1 earlier this year, but still a huge valuation gap that always closes and thus has more upside).

I always try to hold at least 2.5 to 3% and never higher than 10% (too much, imho) and currently have 8% or so (have gained about 15% in precious metal appreciation this year from lower levels). My optimal level is 5% usually. But, I'll often fluctuate between 2.5 and 7 or 8 frequently.

As global central banks lower interest rates and possibly go back to QE (quantitative easing) soon to try to fight off global recession, precious metals like gold and silver:

a.) serve as a hedge against inflation (QE's money printing)
&
b.) serve as a superior alternative to negative yielding bonds throughout the world (both nominal and real) and cash (which loses value to inflation at 2% a year)

With around $17 trillion in negative yielding debt (where someone pays to loan money out, instead of getting interest back) around the world and low interest rates in the U.S. (which generate negative real returns after accounting for 2% inflation), precious metals have an edge as a store of value and even a source of gain. Just from a supply and demand and valuation perspective, PMs will likely "outcompete" terrible negative yielding bonds and cash for a while in the coming years.

Two very good articles from Lyn Alden Schwartzer on gold and silver:
[seekingalpha.com] (Feb. 20, 2019)

[seekingalpha.com] (Sep. 18, 2019)

I follow her work and think she writes some of the best pieces on investing at various places, including Seeking Alpha. Able to relay complex information that even lay people can understand.

Edited 2 time(s). Last edit at 10/01/2019 06:44PM by shoptastic.
There are always interpretations and predictions. All financial pros do the best they can with the information they receive. No one has a crystal ball, but many accomplish good outcomes and some can even explain trends, histories, and decisions well. So, thank you for another resource for financial information. smiling smiley



@shoptastic wrote:

....

Two very good articles from Lyn Alden Schwartzer on gold and silver:
[seekingalpha.com] (Feb. 20, 2019)

[seekingalpha.com] (Sep. 18, 2019)

I follow her work and think she writes some of the best pieces on investing at various places, including Seeking Alpha. Able to relay complex information that even lay people can understand.

Winter is an etching, spring a watercolor, summer an oil painting and autumn a mosaic of them all. - Stanley Horowitz
Shoptastic,
Buying the market was what we used as a comparison to active investing, when I was in grad school for finance and investing. But, to be perfectly straight, the VTSAX is not what broke a million, it was the education and hard work, which allowed for a higher salary. Increased income is the easiest route. I invest around 25% in stocks and am about 50% in real estate, but what enables the any % in anything, is the education and hard work. Mystery shopping lets me reduce my spending, which increases/preserves income.
Sorry, only registered users may post in this forum.

Click here to login