Age you think you'll be a millionaire?

[Henry]

How old do you think you'll be when you reach your first million dollars (net worth)? If you're already a millionaire, what age?

[Dave Kaminski]

I hope to reach the 1m net worth by 25. I'm opening a franchise this year and currently working on a couple investment property deals. I figure it should be halfway there by 22.

In lieu of AK's post below mine, I only plan to build my net worth for financial freedom so I may spend more time helping others as often and as efficiently as possible. I also owe my parents more than money can buy, as well as my mentors and close friends. I hope to spread knowledge and good cheer for a long time, and hope to have plenty of time to do it.

[A.K.Light]

I'd say some time in my 30s. However, I'm not really sure if I want to be a millionaire yet.

I'm sure I can live quit a great life without being a millionaire, so I'm just shooting for that first. If I need millions of dollars to do whatever I'll be doing in the future, then I'll probably already be in my 30s since it's not a specific goal of mine.

[kthdsn]

Why is everyone so interested in accumulating such a ridiculous amount of money? Since money transferred rather than created, there is a limited amount to go around. Making that much money means you are taking that much money away from others. Why not just earn what you need and leave it at that?

[Colin]

I've pretty much given up on ever having such definite goals. I'd be happy as a clam to be rolling in that sort of money, but I've come to realize that such fixed monetary goals with fixed time deadlines can be extremely counter-productive.

Think of it this way: if you follow the advice of a lot of goal-setting gurus, you end up writing your goals down on Post-It notes and sticking them on your bathroom mirror, the fridge and on your computer monitor. They're there to constantly remind you of what your goal is. At first this can even be motivating, but as the days drag on, being constantly reminded of your goal is only a reminder of what you don't currently have. Every day you're reminded of a lack of something in your life; the void between where you are now and where you want to be. It can create a spiral of negative thinking that can cause you to reject your goals outright, thinking that you're never going to be able to achieve them.

It's far healtier to create an objective based reality for yourself, rather than a goal orientated one. What do I mean by that?

Have objectives that you can work on here and now, that you can reflect back on each and every day. These objectives should be actions and principles that would have ultimately led to your goal anyway (if you would have stated explicit goals, which you shouldn't!).

Let's look at this with an example from my own life. Most of my own personal development is focused on my daily trading and investing; I'm constantly looking to make myself a better trader.

I once had goals such as: I want to be a full-time trader, such that I'm financially indepedent by my 35th birthday (which was about 2 years away at the time). The enormity of the task and the stark deadline I had given myself soon led me to question my ability to ever accomplish such a huge undertaking.

Once I realised the futility and counter-productiveness of such goals, I scraped using them. In its place I developed an objective that I could work on day-to-day, something that I could measure myself against in the here and now.

My current objective is to trade profitably and consistently, following my trading plan. My objective has to allow for flexibility, as you don’t always end up exactly where you had planned. Focusing on a goal prevents you from being open and flexible to alternate opportunities that come along.

An objective allows you to positively reinforce your actions each and every day. Before you know it, who knows what great things you'll have accomplished.

[Colin]

Originally Posted by kthdsn

Why is everyone so interested in accumulating such a ridiculous amount of money? Since money transferred rather than created, there is a limited amount to go around.

Ah, money can be such a nebulus thing.

You are incorrect in stating that money can never be created. Your central bank (the Bank Of England), and most other central banks (such as the European Cenral Bank and the Federal Reserve Bank in the US), can quite happily create money right out of thin air each and every day. Such is the wonder of living in a world of fiat currencies and fractional reserve banking systems.

It is a fascinating subject, and you might find a book such as 'The Creature from Jekyll Island' by G. Edward Griffin enlightening.

Alternatively, watch Aaron Russo's latest movie: 'America: Freedom to Fascism', where he takes an indepth look at the Fed and what a fiat currency such as the dollar has gotten us. You can watch the full movie free on Google video here (link is approved and sanctioned by Aaron Russo and appears on their offical website).

[annie]

Originally Posted by kthdsn

Why is everyone so interested in accumulating such a ridiculous amount of money? Since money transferred rather than created, there is a limited amount to go around. Making that much money means you are taking that much money away from others. Why not just earn what you need and leave it at that?

WOW...of all places to see a quote like this, I would expect this the last place on earth to read....there is a limited amount of money to go around.

There really isn't. Maybe "paper-wise"...but no, they'd create more if the economy could sustain it.

First of all, a million dollars in net worth isn't really that much. Not if you're thinking about a nice home and decent investments. My husband doesn't want to retire until we have 3 mil in investments...so the $750,000 house doesn't count!

Here's why I think it's a great desire to acquire a million dollars....because you can get out of the rat-race. You can live off the passive income...and devote your life to your cause. At approximately $100,000 return on your $1 million investment, that should give you just enough to support a family and contribute both financially and time-wise to your "causes".

It's a great goal.....

Acquiring more than a million or two.....too worldly for me....then you have begin "worrying" about your money and it takes up a lot of time and creates stress in how to take care of all your stuff....but that's just me. (and I don't know from experience...just have friends in that boat!)

annie

[mattinglot]

Originally Posted by kthdsn

Why is everyone so interested in accumulating such a ridiculous amount of money? Since money transferred rather than created, there is a limited amount to go around. Making that much money means you are taking that much money away from others. Why not just earn what you need and leave it at that?

That's not entirely true. You have a good point in that simply taking money from one person and transfering it to another simply makes one poor and another rich. A game of poker with your friends is an example. Economics actually recognizes this when computing GDP. If that's how you get rich then there is an ethical question there, particularly if you accumulate more wealth than you require.

However money CAN actually be created as well! It is all the time in fact. When you create a product or perform labor of value to people then you are creating or contributing something new, and thus there is a net gain there. Money is just a very convienent form of holding value so that the value you create may be exchanged easily for other forms of value created by others (so that we aren't still trying to barter 5 oxen for six baskets of fish). If this is the path someone chooses to fortune then they are creating gain rather enriching themselves through another's loss. I won't get into exactly how the money supply works (first year macro econ does this) but suffice it to say that a country cannot arbitrarily print money to create more wealth (see what happened in Germany after WWI). There is real value behind, which can be created through positive contributions.

All this being said, my friend and I decided back in high school that 28 is a good age for your first million. Time will tell if this manifests

[Henry]

Originally Posted by mattinglot

That's not entirely true. You have a good point in that simply taking money from one person and transfering it to another simply makes one poor and another rich. A game of poker with your friends is an example. Economics actually recognizes this when computing GDP. If that's how you get rich then there is an ethical question there, particularly if you accumulate more wealth than you require.

However money CAN actually be created as well! It is all the time in fact. When you create a product or perform labor of value to people then you are creating or contributing something new, and thus there is a net gain there. Money is just a very convienent form of holding value so that the value you create may be exchanged easily for other forms of value created by others (so that we aren't still trying to barter 5 oxen for six baskets of fish). If this is the path someone chooses to fortune then they are creating gain rather enriching themselves through another's loss. I won't get into exactly how the money supply works (first year macro econ does this) but suffice it to say that a country cannot arbitrarily print money to create more wealth (see what happened in Germany after WWI). There is real value behind, which can be created through positive contributions.

All this being said, my friend and I decided back in high school that 28 is a good age for your first million. Time will tell if this manifests

Good info. How old are you now Matt? Millionaire status at 28 would be phenomenal.

[helgi]

Paul Graham wrote about this distinction between money and wealth in How to Make Wealth.
I had always thought of money as a finite entity, and of economics as a zero sum game, but that article turned that whole illusion on its head for me.

Although my head doesn't want to let it through yet -- the zero sum illusion is hard to shake

[Jill]

No million here, nor any desire for it. (Although a million isn't very much these days.) I'm happy with the amount I currently have. I can pretty much do whatever I want, and I'm not even close to having a million. Living frugally is its own reward!

[Henry]

Originally Posted by Jill

No million here, nor any desire for it. (Although a million isn't very much these days.) I'm happy with the amount I currently have. I can pretty much do whatever I want, and I'm not even close to having a million. Living frugally is its own reward!

Amen sister. Frugality is the way to go.

[placebo]

it's kind of tricky question. Imagine that someone gives you 1 milion now. What would you do with it? Most of people will be scared of losing the many, every investment will be "not easy to choose", they will simply live in fear.

What would you do if you're milionare from your age of 30 till age of 60. What will you do then? You'll be adjusted to live comfortably and money is gone. Are you going to be able to handle that?

[Dave Kaminski]

Originally Posted by placebo

it's kind of tricky question. Imagine that someone gives you 1 milion now. What would you do with it? Most of people will be scared of losing the many, every investment will be "not easy to choose", they will simply live in fear.

What would you do if you're milionare from your age of 30 till age of 60. What will you do then? You'll be adjusted to live comfortably and money is gone. Are you going to be able to handle that?

If you're a millionaire at age 30, not only should you be able to increase your worth, you should have the knowledge of money that you can start from scratch without much trouble to a decent sustainable net worth again. You certainly wouldn't be the first person to do it.

[Leonard]

Making a million is not entirely impossible. In fact, every single one of us are millionaires in our lifetime. That is, if we save every single cent of our salary for the next 40 years (average of $2.5K a month). Needless to say, that is not possible.

And annie is right, it does take a couple of millions to retire comfortably, and still being able to sustain the current lifestyle.

Most millionaires, especially self-made ones, are more careful with how they spend their money. They lead normal lives, without driving fancy cars and dining at luxurious places. They are frugal. People like these will multiply their wealth, and not lose their millions.

I believed I have digressed. Anyway, my goal is to make my first million in 2 years, before 27.

[Henry]

Originally Posted by Leonard

Making a million is not entirely impossible. In fact, every single one of us are millionaires in our lifetime. That is, if we save every single cent of our salary for the next 40 years (average of $2.5K a month). Needless to say, that is not possible.

And annie is right, it does take a couple of millions to retire comfortably, and still being able to sustain the current lifestyle.

Most millionaires, especially self-made ones, are more careful with how they spend their money. They lead normal lives, without driving fancy cars and dining at luxurious places. They are frugal. People like these will multiply their wealth, and not lose their millions.

I believed I have digressed. Anyway, my goal is to make my first million in 2 years, before 27.

A million in 2 years? Are you almost there?

[Zach]

I'm hoping as soon as possible, but my reasons for wanting to be a millionaire are probably different than most people's.

[Dbarker]

45, three years from now.

Originally Posted by Zach

I'm hoping as soon as possible, but my reasons for wanting to be a millionaire are probably different than most people's.

What would those reasons be Zach? I'm thinking along the same lines and know that is the reason I haven't made it yet. I've been wanting it for the wrong reasons, but that is changing. It isn't about me having moneyonly for myself, it's having the ability to help others by having it.

[Milo Riano]

Here's why I think it's a great desire to acquire a million dollars....because you can get out of the rat-race. You can live off the passive income...and devote your life to your cause. At approximately $100,000 return on your $1 million investment, that should give you just enough to support a family and contribute both financially and time-wise to your "causes".

What's wrong with the rat-race? As long as you enjoy the journey then I see no problem with it. As long as you get to cash out 50 million dollars by the age of 50 then that would be fine really.

[thadroe]

It's amazing to see the diversity of goals out there. Some people want a million, some want more, some don't want it at all. Some want to stay away from the rat race, some want to embrace it.

This is what is wonderful though and what keeps things in balance naturally. We all have our own goals and our own purpose...the important thing is that it fulfills what we feel our purpose is and it helps us enjoy the journey of life.

I fully intend to reach 1 million in the next 2 years...and intend to push beyond that as much as I can. However, it's not really for the sake of having money. I could be very comfortable on far less. The whole reason for that goal is to remove myself so far from concerns about money that I have maximum flexibility to live out my purpose. Also, I feel that the more I have, the more I can put it to use in positive ways to make even more of an impact on society. So ultimately, I want to have large sums of money as a tool to help others.

Thad

[Zach]

Originally Posted by Dbarker