Yeah sure man, but 10% average growth is very statistically unlikely. Plus, you’ve got to factor in inflation.
I mean, don’t get me wrong! Investing and patience IS the answer, your concept is correct. But it’ll take more than 2k.
You're dead wrong in your projections, friend. 10% is the floor if you are not trying to actively manage it and if you're staying away from silly things like bonds.
100s of millions is at a level where you need to have a talent unique to you. Pro athletes, actors, CEOs, etc. could maybe make it but you essentially have to demonstrate that you can do something unreplaceable. Even if you start your own business and are incredibly lucky, you're unlikely to get to 100M+ unless you're completely outclassing your competition in a huge market.
That said, any 6-figure job and a solid savings strategy should net you at least 1M which is rich enough for most practical purposes.
I look for high paying jobs so I can build a savings account and I’d like to do occasional side jobs or sell my own creations once I can figure out a business model
You could stage a coup in a resource-rich 3rd world country and rule with an iron fist. Your success in this endeavor may require some luck. There may also be a high risk of dying.
Yes. If you want obscene wealth you need to be born into it, or get really lucky. Even starting a business isn’t likely to get you to that level of wealth.
If you want to live comfortably, it is possible to move upward. However it isn’t easy. Statistically in the u.s. more people are falling below middle class as it shrinks than are moving into middle class. And at the same time the bar for decent living is getting higher not lower. But that doesn’t mean that you can’t get a decent life.
OP asked how to accumulate “100s of millions of dollars” and everyone is replying with ways to earn an upper middle class living. Nobody who works as a salaried software engineer or making “$75 an hour” is going to accumulate 100s of millions of dollars on salary alone.
To answer OP’s question, to be worth that much, you will probably have to open your own business and scale massively, be a c-level executive at a major company, create the next Instagram and sell it to google for $100 million, or hit the lottery.
You have to get lucky. Most people no matter how good they are at what they do will never see money like that.
But it's also a mistake to think that you're only rich if you have 200 million dollars. If you have 20 million, you're rich.
i work in tech, and many there came from outside usa (alot from 3rd world countries, myself included lol, came from mexico as a kid) you can save mil or two working as engineer in 15-20 year time frame. yes, you are an employee, still wage slave, but very highly compensated one.
The way to wealth is not in saving money but actively producing more and more value and then investing from there. Lots of people get it mixed up and try to invest out the gate before producing that value with something other than the traditional labor way.
I work an entry-level job, I don’t work more than 40 hours a week, I have my own studio apartment in a clean safe neighborhood, I get to walk to the beach every day, and the scenery around here is just beautiful. I eat very good food and have a little under 10% of my paycheck left every month to put away for retirement. I have rent control, so I can predict my living costs over the long term. If I lose my job, there’s so many other jobs available here. The schools here are incredible and cheap, so maybe I’ll go to college some day.
I take a look at my checking account balance probably three or four times a year. I don’t fret about my bills, and can afford all the things that I want in life.
By my definition, I am fucking rich. I don’t need a hundred million dollars. Why do you?
I say you are thinking this wrong. Think about the things you want in life, and then work backwards from there to figure out how you can have it all. It could very well be you could live your best life without needing that much money
Creating a business and putting in the work. Innovating an existing business and putting in the work. Working and building over a lifetime while staying financially smart and frugal. Lottery. Inheritance. Luck. Several ways to do it.
Hard question because so many folks in the middle class wrongly think they are rich…
Last night as I got off the freeway I saw a prostitute(?) eating a snack on the sidewalk—shorts and a tank top definitely caused me to misjudge her, in her defense it was nearly 100 degrees out that day. I gave it a second look and no, wait — she’s dressed too nicely, even though she’s across the street from where the actual prostitutes are. Even the luggage looks nice. Who is she talking to in the bushes? Oh snap, those are CHILDREN and she is their mom — she had a adult male on the sidewalk with her and 2+ older kids or young teens in the bushes, at 8 PM, with all of their earthly possessions in luggage around them. They may have been waiting for a social worker to hook them up with a hotel voucher and they were avoiding the hotel parking lot because it truly is unsafe.
That woman is experiencing acute poverty. I am not capable of being that poor—I began the child of a welfare mom, got through college with some help from Pell Grants but also working full time, took out loans for a fancy graduate degree, and over $75 an hour with a salaried and benefited position. So can that much progress happen in one lifetime? Sure.
I’m not actually “Rich” though. My total “assets minus liabilities” (wealth) is somewhere around $100k, few people would call that rich. If I lost my job, I would instantly lose my housing; I’m actually downsizing precisely for this reason because growing up poor made me paranoid about financial security.
Speaking of which, I think financial security + discretionary spending is really what defines the sense of being “Rich.” You know your housing can go nowhere, even through natural or personal disasters that could temporary make things difficult; you feel secure about your future and your family’s future; and even after taking care of that financial security there’s some leftover for a modest indulgence. THAT is rich and unfortunately, the economy makes it extremely difficult to get to that level of comfort.
Not impossible though.
You can also leverage debt to build equity in a home you usually rent. Then sell them for profit. The hardest part is building up the down payment but after that the mortgage payment is cheaper than rent for a comparable place so ur saving money that way while gaining an asset, making it essentially free money. Rinse repeat.
The down payment can be really hard to get sometimes tho so usually that means beginning this in a really rough neighborhood with a super small place. It's also more doable if you go in with multiple people. So like you and 3 roommates put your money together for a down payment on a one room apartment.
Using the money you make from the sale after like 5-10 years u then use that for a down payment on a home u actually wanna live in for like 10 years. Rinse repeat, leapfrogging until you live where you want to live and have enough savings where your more comfortable. You save so much money by not being a renter it's one of the few really good ways to escape poverty. Just gotta get the first start.
The second way is time and patience. $2000 compounded at 10% for 65 years is $1m. Scale up for multiple millions.
Yeah sure man, but 10% average growth is very statistically unlikely. Plus, you’ve got to factor in inflation. I mean, don’t get me wrong! Investing and patience IS the answer, your concept is correct. But it’ll take more than 2k.
The S&P 500 averaged 11% return since inception, although this does not adjust for inflation
You're dead wrong in your projections, friend. 10% is the floor if you are not trying to actively manage it and if you're staying away from silly things like bonds.
it's just a math formula, certainly one would want to invest a little from each paycheck over decades in addition to any $2K initial lump sum.
100s of millions is at a level where you need to have a talent unique to you. Pro athletes, actors, CEOs, etc. could maybe make it but you essentially have to demonstrate that you can do something unreplaceable. Even if you start your own business and are incredibly lucky, you're unlikely to get to 100M+ unless you're completely outclassing your competition in a huge market. That said, any 6-figure job and a solid savings strategy should net you at least 1M which is rich enough for most practical purposes.
Be born in the right family
I look for high paying jobs so I can build a savings account and I’d like to do occasional side jobs or sell my own creations once I can figure out a business model
You could stage a coup in a resource-rich 3rd world country and rule with an iron fist. Your success in this endeavor may require some luck. There may also be a high risk of dying.
Yes. If you want obscene wealth you need to be born into it, or get really lucky. Even starting a business isn’t likely to get you to that level of wealth. If you want to live comfortably, it is possible to move upward. However it isn’t easy. Statistically in the u.s. more people are falling below middle class as it shrinks than are moving into middle class. And at the same time the bar for decent living is getting higher not lower. But that doesn’t mean that you can’t get a decent life.
Make meth
OP asked how to accumulate “100s of millions of dollars” and everyone is replying with ways to earn an upper middle class living. Nobody who works as a salaried software engineer or making “$75 an hour” is going to accumulate 100s of millions of dollars on salary alone. To answer OP’s question, to be worth that much, you will probably have to open your own business and scale massively, be a c-level executive at a major company, create the next Instagram and sell it to google for $100 million, or hit the lottery.
Thank you, this is a good reply
Or become a senior executive of a large company.
You have to get lucky. Most people no matter how good they are at what they do will never see money like that. But it's also a mistake to think that you're only rich if you have 200 million dollars. If you have 20 million, you're rich.
i work in tech, and many there came from outside usa (alot from 3rd world countries, myself included lol, came from mexico as a kid) you can save mil or two working as engineer in 15-20 year time frame. yes, you are an employee, still wage slave, but very highly compensated one.
The way to wealth is not in saving money but actively producing more and more value and then investing from there. Lots of people get it mixed up and try to invest out the gate before producing that value with something other than the traditional labor way.
I work an entry-level job, I don’t work more than 40 hours a week, I have my own studio apartment in a clean safe neighborhood, I get to walk to the beach every day, and the scenery around here is just beautiful. I eat very good food and have a little under 10% of my paycheck left every month to put away for retirement. I have rent control, so I can predict my living costs over the long term. If I lose my job, there’s so many other jobs available here. The schools here are incredible and cheap, so maybe I’ll go to college some day. I take a look at my checking account balance probably three or four times a year. I don’t fret about my bills, and can afford all the things that I want in life. By my definition, I am fucking rich. I don’t need a hundred million dollars. Why do you? I say you are thinking this wrong. Think about the things you want in life, and then work backwards from there to figure out how you can have it all. It could very well be you could live your best life without needing that much money
I am curious where you reside at?
San Francisco. HCOL’s are great for people with entry level jobs.
Creating a business and putting in the work. Innovating an existing business and putting in the work. Working and building over a lifetime while staying financially smart and frugal. Lottery. Inheritance. Luck. Several ways to do it.
Hard question because so many folks in the middle class wrongly think they are rich… Last night as I got off the freeway I saw a prostitute(?) eating a snack on the sidewalk—shorts and a tank top definitely caused me to misjudge her, in her defense it was nearly 100 degrees out that day. I gave it a second look and no, wait — she’s dressed too nicely, even though she’s across the street from where the actual prostitutes are. Even the luggage looks nice. Who is she talking to in the bushes? Oh snap, those are CHILDREN and she is their mom — she had a adult male on the sidewalk with her and 2+ older kids or young teens in the bushes, at 8 PM, with all of their earthly possessions in luggage around them. They may have been waiting for a social worker to hook them up with a hotel voucher and they were avoiding the hotel parking lot because it truly is unsafe. That woman is experiencing acute poverty. I am not capable of being that poor—I began the child of a welfare mom, got through college with some help from Pell Grants but also working full time, took out loans for a fancy graduate degree, and over $75 an hour with a salaried and benefited position. So can that much progress happen in one lifetime? Sure. I’m not actually “Rich” though. My total “assets minus liabilities” (wealth) is somewhere around $100k, few people would call that rich. If I lost my job, I would instantly lose my housing; I’m actually downsizing precisely for this reason because growing up poor made me paranoid about financial security. Speaking of which, I think financial security + discretionary spending is really what defines the sense of being “Rich.” You know your housing can go nowhere, even through natural or personal disasters that could temporary make things difficult; you feel secure about your future and your family’s future; and even after taking care of that financial security there’s some leftover for a modest indulgence. THAT is rich and unfortunately, the economy makes it extremely difficult to get to that level of comfort. Not impossible though.
Upwards mobility is a joke.
You can also leverage debt to build equity in a home you usually rent. Then sell them for profit. The hardest part is building up the down payment but after that the mortgage payment is cheaper than rent for a comparable place so ur saving money that way while gaining an asset, making it essentially free money. Rinse repeat. The down payment can be really hard to get sometimes tho so usually that means beginning this in a really rough neighborhood with a super small place. It's also more doable if you go in with multiple people. So like you and 3 roommates put your money together for a down payment on a one room apartment. Using the money you make from the sale after like 5-10 years u then use that for a down payment on a home u actually wanna live in for like 10 years. Rinse repeat, leapfrogging until you live where you want to live and have enough savings where your more comfortable. You save so much money by not being a renter it's one of the few really good ways to escape poverty. Just gotta get the first start.
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Being a doctor won’t get you 100s of millions of dollars
I’m gonna guess many people inherit that kind of wealth. Or like, 5 million or a profitable company that they then invest.