How do people get rich?

20Cent

Bribe a government minister for a lucrative license.

The J Stands for Jay

dxhound2005 wrote: »

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.

And that's where you need to put your money if you don't want to be rich.

Spanish Eyes

McGaggs wrote: »

And that's where you need to put your money if you don't want to be rich.

That deposit figure is from all the lump sums that Civil Servants got over the years surely.

Avatar MIA

dxhound2005 wrote: »

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.

Yes, if everyone lived frugally and saved up €500k the economy would... Have you thought this through?

My parents and a lot of their parents have paid their mortgages off. A lot of that generation would have bought out a council home or bought a house for less than €30k. You may be right in one sense, the current generation may be able to leave €500k to their kids, but only if €500k was what an average hatchback car was being sold for.

BTW, if everybody did as you suggest, would everybody be rich?

dxhound2005

Avatar MIA wrote: »

Yes, if everyone lived frugally and saved up €500k the economy would... Have you thought this through?

My parents and a lot of their parents have paid their mortgages off. A lot of that generation would have bought out a council home or bought a house for less than €30k. You may be right in one sense, the current generation may be able to leave €500k to their kids, but only if €500k was what an average hatchback car was being sold for.

BTW, if everybody did as you suggest, would everybody be rich?

Everybody in this country is rich if you compare us to sub Sarahan Africa. Which is what you did. Another person on the thread defines being rich as:

To me being rich is having a good healthy backup fund, a house with no mortgage, no debts, and good health. Who needs anything more than that.

So it is all a matter of opinion.

paddylonglegs

Hi OP,

I imagine what you are trying to grasp is, how can you be in a situation where you can spend money on things you like, without having to look at your bank balance every time, while being able to support your family comfortably?

To start, I think you need to consider a beginning. It sounds like you're working in a full time job, is there something you are good at that you can develop and offer as a service to people outside your job? Is there then a way of scaling this to offer this to a large group of people that will pay for it? For example, if you're say, a teacher, could you offer grinds or offer a simpler way of understanding a subject? Then, develop this way into a book or lecture or webinar/online tutorial that a lot of people could buy? Scaling like this can be rewarding if you have a good service to offer. I know it's jumping way ahead, but it's just an example.

By starting at the beginning and starting small, you can achieve end goals quicker. I have a friend that sells some products online, a small amount at the moment, but he says that if he can cover his phone bill every month, then that's a win. Then next year if he can cover his phone bill and his internet bill, he's progressed. It's good to put things in perspective for yourself, rather than asking yourself "how can I get rich? My friend who has covered his 2 bills, can now either reinvest his money, or spend it on something he likes. I know this is all incredibly simplified, but I think it's really important that you start with easy to manage goals.

If you had asked the same question about how to become rich twenty years ago, you wouldn't have had as many options as you have today. Ireland is tiny with a tiny market, the Internet is huge with a worldwide market. If you can apply your experience, a hobby, aninterest, or just study loads of tutorials on YouTube, be clever and find a market you can sell to.

You might not be rich straight away, but if you can cover that phone bill, then you can treat yourself to a nice lunch you deserve

Best of luck

dxhound2005

McGaggs wrote: »

And that's where you need to put your money if you don't want to be rich.

Keep below €100 grand and it is safe. Buy some Bitcoins if you want to be rich.

bear1

dxhound2005 wrote: »

Keep below €100 grand and it is safe. Buy some Bitcoins if you want to be rich.

You'd have to be mad to bet on Bitcoins now. It has lost 50% of its value in over a month.
Unless of course you mean short stocking it?

Avatar MIA

dxhound2005 wrote: »

Everybody in this country is rich if you compare us to sub Sarahan Africa.

This I agree with you on, however, we both know (open to correction) this is not what the OP meant as rich.

dxhound2005

Avatar MIA wrote: »

This I agree with you on, however, we both know (open to correction) this is not what the OP meant as rich.

I am so fed up with just about making ends meet month to month. What jobs are the wealthy people doing? Do they work multiple jobs? When I take on more hours I get caught with tax so it ends up making only a small difference which is disheartening. Lots of people in the same situation I am sure has anyone any tips on how to get out of this situation? Career change perhaps? I live frugally so can’t cut back anywhere else.

It is very possible that she would be happy to have a mortgage free home and double her present take home pay. Backed up with €100K in government guaranteed savings. Some other people think you have to be a Premiership footballer to be rich. Who knows.

dxhound2005

dxhound2005 wrote: »

I am so fed up with just about making ends meet month to month. What jobs are the wealthy people doing? Do they work multiple jobs? When I take on more hours I get caught with tax so it ends up making only a small difference which is disheartening. Lots of people in the same situation I am sure has anyone any tips on how to get out of this situation? Career change perhaps? I live frugally so can’t cut back anywhere else.

It is very possible that she would be happy to have a mortgage free home and double her present take home pay. Backed up with €100K in government guaranteed savings. Some other people think you have to be a Premiership footballer to be rich. Who knows.

A mortgage free home where my income was mine to pay bills and use for discretionary purchases would be my idea of rich. I don’t need to be on holiday every few months just have a little savings, nice lifestyle and not living week to week.

dxhound2005

Deleted User wrote: »

A mortgage free home where my income was mine to pay bills and use for discretionary purchases would be my idea of rich. I don’t need to be on holiday every few months just have a little savings, nice lifestyle and not living week to week.

I have no idea what age you are, but that situation comes to a lot of people in later years. They say youth is wasted on the young, but I think wealth is sometimes wasted on the old.

The way things are going, wealth is being concentrated much more in the retired group in society. And with the extraordinary increase in longevity there will be very many fewer workers compared to retired people in the not too distant future.

evosteo

Get rich by understanding how to use money to make money. If your earning while your sleeping your doing well

the_syco

Stacksofwacks wrote: »

wealthy people also know their way round tax and company law or have good accountants to tell them these things. Its all a bit of a myth anyway, the more people earn the more they tend to spend or it goes to the taxman

It comes down to your accountant. A good accountant will tell you how to buy things will save you having to pay the taxman, but you'll own the item, not the taxman.

ardinn wrote: »

Apparently yer man who owns Amazon (hes worth 142bn apparently) never takes a day off works every daylight hour just studying and buying companies.

Some people that are rich are unable to just "turn off" what got them rich. Have talked to a few financial advisers through a previous job, some who'd be retired 6 years ago, but would be a consultant to someone else still, as the old guy enjoyed his job too much too stop.

milli milli

dxhound2005 wrote: »

The way things are going, wealth is being concentrated much more in the retired group in society.

Well it’s not called the Grey Pound for nothing.

What I’ve noticed about rich people that I know is that they are thrifty with money - not necessarily frugal, but they look after their pennies and aren’t ashamed to shop in cheaper places to save money (and even buy secondhand items).
They then have more money for holidays, house renovations, etc.
And these people aren’t keeping up appearances, but just really good at budgeting.
(These rich people are family members so that’s what I’ve observed.)

Beasty

Studied hard, worked hard, got lucky - right place, right time

The point about the "grey" wealth is you can't take it with you. They will either spend it, pay tax out of it, and/or pass it on to the younger generations

McMurphy

begbysback wrote: »

May I put myself forward for option 2 please, in case there are any wealthy ladies passing through - I'm single, have good manners, hold the door open n stuff, I'm fairly handsome with a good sense of humour, I'm low maintenance emotionally and fairly easy going - pm me if interested

Pm sent.

YFlyer

Ask the guy that can't read Mayweather.

muppetshow1451

Inherit money,rob a bank,become a politician,fraudster,win the lotto,get lucky in investments.

The J Stands for Jay

Spanish Eyes wrote: »

That deposit figure is from all the lump sums that Civil Servants got over the years surely.

I'm sure the civil servants have spent at least some of their lump sums. Not all of them could resist the Toyota Corolla or a bit of decking.

The J Stands for Jay

dxhound2005 wrote: »

Keep below €100 grand and it is safe. Buy some Bitcoins if you want to be rich.

But it's not remotely safe from the onward march if inflation, that's eroding your spending power like the Colorado River through the Grand Canyon.

Wibbs

bear1 wrote: »

You'd have to be mad to bet on Bitcoins now. It has lost 50% of its value in over a month.

+1. One good rule of thumb in the boom/bust cycle the world is in is buy when people are selling, sell when people are buying. Sounds obvious but it seems not as far as general society goes. Bitcoin was worth a punt when it wasn't on the average persons radar, it's too well known now so whatever profit you might make will be significantly smaller than if you bought into them when only a minority knew of them(and chances of it all going tits up are large).

Similar kinda story with property. Buy in falling or stagnating markets, sell in rising markets.

Working for someone else can certainly make for a great salary, but for the vast majority it doesn't lead to anything like riches. Even if you're getting a large salary the entity you work for is making more than they're paying you(unless they're idiots).

If you do go out on your own make the business scalable and not about you. If the business is you it can be hard to expand, delegate and hand over to others because your customers will want to deal with you.

Try and get to a point where the money works for you and you do less work for the money. That bit's the most important in my humble. You can pretty much always earn more money, but you can't earn more time. That's your most valuable asset of all.

Koala Sunshine

I don't think bitcoin is a good bet right now, that's simply because there are other superior cryptocurrencies which are a better long term bet. Now is a great time to buy some of the promising cryptocurrenciesas as markets are down.

Franz Von Peppercorn

dxhound2005 wrote: »

Everybody in this country is rich if you compare us to sub Sarahan Africa. Which is what you did. Another person on the thread defines being rich as:

To me being rich is having a good healthy backup fund, a house with no mortgage, no debts, and good health. Who needs anything more than that.

So it is all a matter of opinion.

Actually all of us are poor compared to the rich including sub Saharan Africans.

Koala Sunshine

Franz Von Peppercorn wrote: »

Actually all of us are poor compared to the rich including sub Saharan Africans.

The average Irish person today is richer than Kings and Queens of 400 years ago.

Franz Von Peppercorn

dxhound2005 wrote: »

I am so fed up with just about making ends meet month to month. What jobs are the wealthy people doing? Do they work multiple jobs? When I take on more hours I get caught with tax so it ends up making only a small difference which is disheartening. Lots of people in the same situation I am sure has anyone any tips on how to get out of this situation? Career change perhaps? I live frugally so can’t cut back anywhere else.

It is very possible that she would be happy to have a mortgage free home and double her present take home pay. Backed up with €100K in government guaranteed savings. Some other people think you have to be a Premiership footballer to be rich. Who knows.

Premiership footballers? - there are people so much richer than premiership footballers they can afford to buy loads of them.

Franz Von Peppercorn

Koala Sunshine wrote: »

The average Irish person today is richer than Kings and Queens of 400 years ago.

Benefiting from technological growth isn’t the same as wealth. My house is smaller than a medieval kings stables. As for my staff - nonexistent.

NinetyTwoTeam

In this late stage capitalist utopia, if you're not rich now, you're not gonna be. The rich have most of the money but they want even more. in fact that's basically what adult life for the middle and working class is - working to make profits for the rich, while desperately trying to stop every organization of rich **** out there - government, corporations, utilities, etc. from fleecing you for the little crumbs (your wages) the capitalist class throws down for it's workers. if the workers are left with too much left over, they might not put in their 40 hours and profits will fall.

luckily, they make sure there is a recession every once in a while to make sure the poor stay desperate to maintain employment.

Try to focus on whatever have now that makes you happy and be grateful for it.

If you don't have anything that makes you happy, get a dog. Or a cat, if a dog is too much work for your current schedule. Or a blow up doll, they make really realistic ones now (or so I hear.)

NinetyTwoTeam

By the way, as regards bitcoin, an old gambler once told me, 'When everybody's at it, everybody loses their shirt.'

now he was talking about horse racing tips but i look at bitcoin the same. once every tom dick and harry, even morons i know that couldn't even switch a computer on, are talking about it, I think the gold rush is about to run dry.

Assuming that you're not born into wealth, then it comes down to your life choices. The skills that you have developed and whether they suit the markets that are currently available. Working for someone is part of the rat trap wherein you won't make enough within a decade to be independent. Regardless of the salaries that you're earning, there will be costs that will rein in your ability to save money effectively. Which is why those with good jobs typically take 30-40 years of working until they become "comfortable".

It really comes down to your comfort zone. Are you willing to step outside your comfort zone and attempt something, fail. attempt again, and again etc. All the books I've read about those who have become successful failed repeatedly on the way, but didn't surrender to that despair. Oh, there was definitely some luck involved, but it was engineered luck.

So, you find a niche and become an expert on that area. Provide a service, or product that is in demand. Technology is the big area now, especially in regards to programming, particularly if you're skilled in internet technologies. There's heaps of money floating around waiting to be snatched by those capable of designing new and effective programs consistently. The days of getting rich from one program or one idea have mostly gone. But, the opportunities are there.

Far moreso, than designing a product, implementing and selling which is the most common method by people. The markets are saturated with product ideas, and the chances of success are very slim.

Personally, I'm upskilling. I have a variety of business degrees but they're pretty useless. I've started learning a variety of programming languages. Web-related programming for the small quick jobs, and a few other languages to develop for the next boom on the internet.

Javascript is massive for gaining work right now, as is anything related to cloud technology. Smart city/system technologies are also in huge demand from any of the technology hubs. AI Development for all manner of devices and systems seems to be the next major area and is no longer limited to computer science or math nerds. VR is also making huge strides so anyone with a more artistic side coupled with some basic programming can get great opportunities.

The problem is that the internet made the world rather small in terms of skills. There are so many talented people out there and you're competing with them. At the same time, the rise of online tutorials for everything... provides you with a perfect chance to develop new skills.

I learned the basic programming languages in about 3 months, I'm struggling with javascript (apparently its easy, but I'm not enjoying it), CSharp I'm enjoying for game development and heuristic learning software development. I'm looking to get into AI development too. I did try the whole web design area but honestly, it bores me to tears. Same with blogging and the usual passive income avenue. I'm also working my way towards mastering Blender, and becoming a comfortable 3D Modeller of characters and Architecture.

And it's hard work. Frustrating. Makes me regularly feel like a muppet, but it's got to be done. Independent living is a far better option than being tied to a particular job, especially the way things are going with employment contracts.

I doubt I'll ever be "rich", but I'm already on my way to being comfortable. Comfortable with savings (and a reliable pension) is the long-term step. I'd highly recommend to everyone to start upskilling in, at least 2 programming languages now. It's the future. There's no security anymore at being tied to one industry or skillset.