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How to get rich without getting lucky

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Re: How to get rich without getting lucky

#481

Earlier quoted context omitted.

If I recall right, Mr. M.M. defines retirement basically as financial independence, regardless of how you spend your time. Working because you want to is very different from working because you have to, so I'll buy it. And as far as I know, he and his wife earned their money in tech jobs. The math is believable: let's say your household makes $130,000 a year (which I haven't done), and lives on $30,000 a year (which…

No you need to work 15-20 years, depending on tax rates. Unless you meant 130k after tax (which is doable today for many engineers).

You're missing the part where you invest the money as you save it.

Re: How to get rich without getting lucky

#482

Earlier quoted context omitted.

To live off of $30k/year, you only need $750k saved, not $1MM (@ 4% annual withdrawal rate).

Don't forget to include the percentage required to offset inflation. EDIT: Missed that this was for a fixed period of time - 30 years. But... what happens if you live more than 30 years past your retirement? It would really suck to retire on $750,000 (or $1M) savings at 45, and live to be 100.

I know it's not what most people want, but if you retired to a country with a low cost of living that $1M would be more than enough to live really comfortable till you die.

Re: How to get rich without getting lucky

#483
post #269

Earlier quoted context omitted.

spending a lot of effort on living frugal. There's just something off-putting about the thought of spending decades living frugally There's a whole range there. You don't have to live on ramen. But you can be really aggressive about insurance premiums, utility bills, etc. You can learn home & auto repair & maintenance. You can make major life structure choices (Can your family live with one car?). These all can make…

You can learn car & auto repair & maintenance. As someone who knows a lot about car and motorcycle maintenance, repair, and modification, this is not good advice, and I see it all over. You're far better off simply buying a new, cheap compact and taking it to Walmart for oil changes. You will come out far ahead of the person who invests money in tools and space, and time into learning how to do something that is so e…

Oil changes are pretty easy to do.

Also, walmart f*cked my drain pan, so it had to be fixed for ~$150.

I will do my own oil changes now.

Re: How to get rich without getting lucky

#484
IMHO there is a lot of terrible advice here.

"Go slow and you'll make it" puts a cap on success and is not very stimulating. If your idea of life is sitting in a room under a roof you nominally own watching TV with an up-with-the-Jones' car, you've already lost.

In youth while time rich invest in yourself to develop skills and experience, focusing if possible on areas others miss and cannot learn effectively through formal educational programs (eg. R&D, deep science, extensive practical knowledge in a trade, languages, travel and worldliness, etc.). Never allow rigid formal education to destroy your innate curiosity - cherish it: it is the most powerful force for learning and achievement that you have.

Be a talented generalist, not a specialist. High value and high growth opportunities do not emerge consistently from one area but rather general industries. A capacity to absorb and manage cross-disciplinary knowledge rapidly and effectively is worth ten times more than extreme specialization, 99 times out of 100. Don't over-skill in areas that age fast (eg. programming frameworks, design fads, many formal qualifications, etc.).

In young adulthood invest in a partner, they will be your strongest asset in times of need and provide strength, a sounding board and risk-hedging as an alternate actor for all future ventures. If you can, find one from another culture and continent with a different passport, perspective and language... this will give you and any children half a world more options in the future.

Take risky career path moves. Following a crowd might help you to survive, but never to thrive. Just make sure you accrue some capital so that you have options.

Finally, invest in high leverage opportunities in potentially high growth businesses in which you hold substantial equity. If you can't find one, start one. By the time you've done a couple (ideally in a couple of sectors or markets) you'll be worth funding by deeper pockets (read: superpower obtained - partially outsource venture risk) and quite capable at executing. Your first successful exit will place you ahead of your peers, who you will feel empathy and pity for realising they have wasted decades conservatively limiting their own life experience.

Re: How to get rich without getting lucky

#485

Earlier quoted context omitted.

this happened to my family as well. The amount of money you can save by being frugal is very limited. IMO you're better off living a reasonable lifestyle and focus on income rather than expenditures.

Disagree, the amount that can be saved by being frugal is pretty great. Lots of people throw money at cars, eating out, expensive hobbies, new electronics/gadgets... etc. etc. The point is find eliminate spending on stuff that doesn't really make you happier, and focus on the things that do. Also, find cheap hobbies, reading, etc. etc.

depends on your lifestyle and income I guess. If you have high income and high expenditures you have the choice between immediate pleasures or early retirement, and that choice isn't so clear cut imo.

for software guys like mmm I'd wager that it's better to take the time and energy used on frugality and instead try to develop alternative income streams, which ironically is exactly what mmm did.

regrets over $10-30 purchases seem like a complete waste of time to me... https://www.newyorker.com/magazine/2016/02/29/mr-money-musta...

Re: How to get rich without getting lucky

#486

Earlier quoted context omitted.

Don't forget to calculate the increasing maintenance cost, gas cost, and risk of using an older car.

If you buy an American car, the maintenance isn't so bad. The taxes are low on older cars, as well as insurance. The risk is real, there's been excellent progress in crashworthiness.

In America maybe? Here the maintenance on a car is insane, Canada.

Re: How to get rich without getting lucky

#488
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Re: How to get rich without getting lucky

#489
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Re: How to get rich without getting lucky

#490
post #190

Earlier quoted context omitted.

People seem to be forgetting this one: to better the world by building or investing in new companies that do good things for their customers, employees and society, or by contributing to important non-profit causes.

We're at an the point where we shouldn't ever discuss that without explicitly adding "... minimizing the environmental damage and consumption of natural resources". "I'll provide X" needs to be immediately though about on the terms that it will cost the planet (and everyone living in it) Y. This is not exactly what you posted, but related: I'm not an environmental nut, I just think that this 'we create wealth' discou…

So, my comment was adding to the parent's suggested reasons that "enlightened" (i.e. not scrooge) people would want to be rich.

I pointed out that one that was overlooked (but that IHMO is the most important), is to re-invest it in making the world better.

Making the world better for the future is implied in that, and I think that's what you see in, for example, Elon Musk's efforts to make electric transportation viable and ubiquitous, along with the some of the philanthropic efforts of Gates, Buffet, etc.

Sure there are some bad actors who believe it's fine to plunder and trash the earth for short-term benefit, but the trend is in the opposite direction, and it's becoming far more commonplace, even among traditionally very destructive companies like petrochemical companies, to invest substantially in innovations and projects that reverse the damage and create benefits for the future. That's happening because more and more people are demanding it.

Don't forget also, that just as people who were inventing technologies and making medical discoveries 100 years ago were making improvements that benefit most of us living today, inventions of today will benefit future generations.

None of this is black and white; there are benefits and costs in everything, and it's important to be mindful of both as we progress and ensure things stack up positive in the end.

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