How do people get rich?

Spanish Eyes

Look at "old money" families. They are still frugal, not showy and could buy and sell us all. What are their tactics for becoming wealthy and keeping it? As a pp said, look back the generations and how did they accumulate their wealth in the first place, to be passed down by inheritance. Are they all Protestants or are there any old money Catholics out there?

Sorry to bring religion into it, but given our history it has to be said.

New Money is often borrowed but it looks rich. I always remember my Grandfather saying this. And he had little at the time.

dxhound2005

Avatar MIA wrote: »

A million over 40 years (estimated working life) is €25k per annum - and not a lot of money. You'll not squirrel half of that away unless you remain living with and on your parents.

If you spend part of it buying a house that could be worth €300,000 to whoever gets it when you die. Every household wastes on average about €1,000 a year buying food which is thrown away without being eaten. There is massive waste of heat, electricity and petrol. It would not be hard to be more frugal.

ardinn

dxhound2005 wrote: »

142 billion what? And apparently he spends a lot of time away from work.

Wtf do you think I mean what?

"He is worth 142bn apparently" is what I said

What did you think I meant - Skittles?

And if you meant € or £ or $ then who cares - 142 billion anything is fairly decent!

Franz Von Peppercorn

dxhound2005 wrote: »

Most of the people on this thread will have taken home more than €1 million in wages during their lifetimes. If they lead very frugal existences they could easily pass on half of that in legacies.

That would involve living poor so your legacies can live rich. It isn’t being rich.

Anyway - who are the rich. The term millionaire was devised when they were rare. If billionaires are the real rich then nobody posting here is rich.

I don’t think a millionaire is rich these days.

Avatar MIA

dxhound2005 wrote: »

If you spend part of it buying a house that could be worth €300,000 to whoever gets it when you die. Every household wastes on average about €1,000 a year buying food which is thrown away without being eaten. There is massive waste of heat, electricity and petrol. It would not be hard to be more frugal.

Tell me how are you buying a house that could be worth €300k on an average wage of €25k per annum. People do waste a lot of money on food, but being clever about that isn't going to make your (I'm assuming) only child rich. BTW, do you realise how expensive kids are?

Be frugal with their upbringing and they'll do you proud with the nursing home they pick for you :P

Franz Von Peppercorn

dxhound2005 wrote: »

If you spend part of it buying a house that could be worth €300,000 to whoever gets it when you die. Every household wastes on average about €1,000 a year buying food which is thrown away without being eaten. There is massive waste of heat, electricity and petrol. It would not be hard to be more frugal.

Having to live frugal isn’t rich.

Is the assumption here that rich people are frugal? Bollocks. Rich people spend lots of money in most cases.

dxhound2005

ardinn wrote: »

Wtf do you think I mean what?

"He is worth 142bn apparently" is what I said

What did you think I meant - Skittles?

And if you meant € or £ or $ then who cares - 142 billion anything is fairly decent!

I couldn't find any figure for him anywhere close to 142 billion of anything. Where did you get it from?

Spanish Eyes

Franz Von Peppercorn wrote: »

That would involve living poor so your legacies can live rich. It isn’t being rich.

Anyway - who are the rich. The term millionaire was devised when they were rare. If billionaires are the real rich then nobody posting here is rich.

I don’t think a millionaire is rich these days.

A millionaire is rich if they can spend the million. It is often tied up in mortgages and borrowings against assets worth that amount or more though. Same with some billionaires too I'd guess.

All on paper.

dxhound2005

Avatar MIA wrote: »

Tell me how are you buying a house that could be worth €300k on an average wage of €25k per annum. People do waste a lot of money on food, but being clever about that isn't going to make your (I'm assuming) only child rich. BTW, do you realise how expensive kids are?

Be frugal with their upbringing and they'll do you proud with the nursing home they pick for you :P

I did say they took home a million. So if someone wants to assume 25K per year that is take home pay.

TripleAce

This: https://www.amazon.co.uk/Millionaire-Fastlane-Crack-Wealth-Lifetime/dp/0984358102

dxhound2005

Franz Von Peppercorn wrote: »

That would involve living poor so your legacies can live rich. It isn’t being rich.

Anyway - who are the rich. The term millionaire was devised when they were rare. If billionaires are the real rich then nobody posting here is rich.

I don’t think a millionaire is rich these days.

What is the point of paying out €1000 of earned money every year for food just to put it in the bin? Changing that is not forcing anyone to live poor.

howamidifferent

If you're a woman, sell your fanny. If you're a man, find a woman willing to sell her fanny.

Avatar MIA

dxhound2005 wrote: »

I did say they took home a million. So if someone wants to assume 25K per year that is take home pay.

Even a take home pay of €25k a year isn't going to get you a €300k house. Not even close.

Franz Von Peppercorn

Spanish Eyes wrote: »

A millionaire is rich if they can spend the million. It is often tied up in mortgages and borrowings against assets worth that amount or more though. Same with some billionaires too I'd guess.

All on paper.

A lot is tied up. Not all. The bitcoin billionaires are now millionaires because it was all in bitcoin.

That’s by the way one way to become rich - use or invent technological changes. Smart rather than hard work.

Nobody becomes rich by saving 1,000 € a year in food costs.

Franz Von Peppercorn

dxhound2005 wrote: »

What is the point of paying out €1000 of earned money every year for food just to put it in the bin? Changing that is not forcing anyone to live poor.

What’s it got to do with being rich?

dxhound2005

Avatar MIA wrote: »

Even a take home pay of €25k a year isn't going to get you a €300k house. Not even close.

I didn't come up with the figure of 25K. I read that in 2014 the average take home pay in this country was €800. I was being very conservative with my €1 million take home pay figure. It could easily be €2 million.

Avatar MIA

dxhound2005 wrote: »

It could easily be €2 million.

Then you should have said that. What you did say was many people here would have a take home pay of €1m and should easily be able to pass on €500k. It didn't stack up. If you increase it to take home pay of €2m, should they be able to pass on €1m? Just accept what you posted was a brainfart and move on...

dxhound2005

Franz Von Peppercorn wrote: »

What’s it got to do with being rich?

Anyone who doesn't spend money on food to put it in the bin will be richer.

mariaalice

I don't know any billionaires but do know a few well-off individuals unless they inherited money they tend to all be of a type and a lot of its luck and timing.

It wasn't the love of money or wanting to drive a car with a badge or a luxury lifestyle or the like, it was wanting security for their family and a bit of freedom.

They had the skills and contacts to do it could be a QS or a small builder who dabbled in a small bit property developments but were careful and didn't get caught out ended up being well off by their fifties.

Worked away for a few years and made money.

Were very lucky with the business they were in worked their way up and became a partner.

Avatar MIA

dxhound2005 wrote: »

Anyone who doesn't spend money on food to put it in the bin will be richer.

Is a relative term. It certainly doesn't mean rich, unless you're comparing to the poorest in Sub-Sahara Africa.

Franz Von Peppercorn

Avatar MIA wrote: »

Is a relative term. It certainly doesn't mean rich, unless you're comparing to the poorest in Sub-Sahara Africa.

Save 1,000 per year on food per year and after a millennium you’ll have a million. Don’t forget that.

That’s how all the rich get rich.

Mutant z

Depends some get there by being hugely successful at a particular field while others such as the Queen and the rest of the royal family inherit their wealth its purely the luck of bring born into a particular family for some people.

Andrew Beef

I think that pension funding is a great way to build real wealth. We earn pretty good money and could live a more lavish lifestyle than we do. But instead we divert more money into our pension funds. My sole aim is to ensure that at least our kids and their kids will be comfortable. If everyone gets a good education and a decent appreciation for money and how hard it is to acquire, hopefully they’ll be responsible and one or two smart ones will emerge and make decent money.

endacl

Thespoofer wrote: »

I know a guy who bought a lottery ticket before, he won almost 17 million euros.

Was he wealthy before he bought it?

jsd1004

Andrew Beef wrote: »

I think that pension funding is a great way to build real wealth. We earn pretty good money and could live a more lavish lifestyle than we do. But instead we divert more money into our pension funds. My sole aim is to ensure that at least our kids and their kids will be comfortable. If everyone gets a good education and a decent appreciation for money and how hard it is to acquire, hopefully they’ll be responsible and one or two smart ones will emerge and make decent money.

To be rich you have to take calculated gambles. With increasing risk there is increasing reward.

dxhound2005

A significant number of people own their homes outright. The most common way to achieve this would be using earned income to pay off a loan taken out to purchase the property. Another stat I read is that seven out of every ten homeowners over 50 are mortgage free. Probably inherited wealth and gifts from living relatives featured in the process as well. Whether this is any indicator of wealth depends entirely on each persons definition. But it demonstrates that a big chunk of the population can achieve this status despite what was written in this thread earlier.

http://www.cso.ie/en/releasesandpublications/ep/p-cp1hii/cp1hii/tr/

Census 2016 also reveals significant changes within the owner occupier categories .i.e. owned outright or with a loan or mortgage.

The total number of households with a mortgage was 535,675 in 2016, down by 8 per cent when compared with 2011 (583,148). In contrast, homes owned outright increased by 8 per cent (from 566,776 to 611,877). This was a reversal of trends seen in the 2002, 2006 and 2011 censuses where owner occupiers with a loan were the largest tenure category throughout the State.

Also this country is noted for our very high savings ratio. I read years ago that there was €100 billion in individual savings with the associated banks. There is probably another €20 billion in State Savings, and whatever is in the Credit Unions. I think it would be very feasible for a large proportion of the population to pass on €500K to the next generation. That could set them up for a future of riches.

bear1

Solomon Pleasant wrote: »

That sounds like a very difficult situation, sorry to hear that.

Yeah it's not easy and as I said it's depressing having to deal with it day in day out.
But I'll do as much as I can possibly do to get us back.


*pulls balaclava down and floors the engine to the banks doors*

WellThen?

You can be incredibly smart, work very hard or be lucky enough to be given it.

robindch

Deleted User wrote: »

I am so fed up with just about making ends meet month to month. What jobs are the wealthy people doing?

One guy I know set up a company perhaps twenty years ago, developed some software which after years of work, became the world leader in its area. He sold the company a few years back, and presumably paid tax at 33% on the sale - I don't believe Revenue even sent him a thank-you note for the large sum of money they received.

Over that twenty years, the guy wore his fingers to the bone and showed a dedication to the team, the industry and his customers like I've never seen.

I'm not saying that everybody can have a world-beating idea or have the skills and dedication to be able to bring it to fruition, but hard, honest work in the right area over a long time certainly does have the power to make somebody financially comfortable.

Rubberchikken

They work hard. They take risks. Maybe they win the lottery. What they dont do is spend time whining anout being poor.