Comments on: Another Millionaire At 33? http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: kwsventures http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4585 kwsventures Thu, 04 Sep 2008 23:51:01 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4585 Get a 2nd job or income. I got a 2nd job 17 years ago, working about 10 hours per week extra. It is a consulting job averaging about $40.00 per hour. My hours are very flexible. I usually work a couple of hours a night on weekdays only.It has given me about $19k of extra cash every year. I have made over $300k in extra money in the last 17 years. I have never spent this extra money. I have tracked every dime I have made. I have invested it in stocks that raise dividends every year. My cash flow is great now. What did I give up? Well, I have watched no stupid sitcom TV shows in 17 years. I have never seen American Idol or Dancing with the Has Beens. I am not familiar with any of those shows. I hear people talking about those shows during the workday at my day job. I basically gave up nothing and set myself up with financial independence. Get a 2nd job or income. I got a 2nd job 17 years ago, working about 10 hours per week extra. It is a consulting job averaging about $40.00 per hour. My hours are very flexible. I usually work a couple of hours a night on weekdays only.It has given me about $19k of extra cash every year. I have made over $300k in extra money in the last 17 years. I have never spent this extra money. I have tracked every dime I have made. I have invested it in stocks that raise dividends every year. My cash flow is great now. What did I give up? Well, I have watched no stupid sitcom TV shows in 17 years. I have never seen American Idol or Dancing with the Has Beens. I am not familiar with any of those shows. I hear people talking about those shows during the workday at my day job. I basically gave up nothing and set myself up with financial independence.

]]> By: RajK http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4573 RajK Sat, 30 Aug 2008 00:21:16 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4573 Agree with JD, the Rodrigueses don't make enough to face higher taxes under Obama, they would need to add over $100k to their income just to make the minimum threshold. They will see a TAX DECREASE under Obama's plan just like anyone else making less than $250,000 a year (95% of the population). Like JD I also make over $250K per year and don't mind paying a little more if the middle-class can finally get some relief. And to Frugal you mention most people won't be able to increase their income in-line with inflation, you need to look at history and you'll see that except for the last 8 years incomes have always risen higher than inflation since the Great Depression. This past 8 years marks the first time since the Depression that incomes haven't kept up with inflation. The high inflation we're seeing is due almost exclusively to the weak dollar, while America has always had a strong dollar policy this is the first administration that never acted on it. When you have a huge budget deficit and need to be increasingly dependent on the Chinese and Arabs to fund operations this is what you get. Agree with JD, the Rodrigueses don’t make enough to face higher taxes under Obama, they would need to add over $100k to their income just to make the minimum threshold. They will see a TAX DECREASE under Obama’s plan just like anyone else making less than $250,000 a year (95% of the population). Like JD I also make over $250K per year and don’t mind paying a little more if the middle-class can finally get some relief. And to Frugal you mention most people won’t be able to increase their income in-line with inflation, you need to look at history and you’ll see that except for the last 8 years incomes have always risen higher than inflation since the Great Depression. This past 8 years marks the first time since the Depression that incomes haven’t kept up with inflation. The high inflation we’re seeing is due almost exclusively to the weak dollar, while America has always had a strong dollar policy this is the first administration that never acted on it. When you have a huge budget deficit and need to be increasingly dependent on the Chinese and Arabs to fund operations this is what you get.

]]> By: Tom http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4535 Tom Thu, 21 Aug 2008 19:58:55 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4535 They will never make their goal, unless they walk into a sizable inheritence. They were highly lucky on their first real estate sale, and, won't fare as well on their current properties, as they are under water on both. Are they selling them asap? They'll pay 6% to sell, plus they are losing money on a monthly basis since they own in the Phoenix area. Owning that much Microsoft stock is an ignorant and perhaps greedy play (probably only the former). Even if they make their goal of $1 million by age 40, then what? Live off of that??? Hardly. Mine as well become a pauper. There plans are pie in the sky. They will never make their goal, unless they walk into a sizable inheritence. They were highly lucky on their first real estate sale, and, won’t fare as well on their current properties, as they are under water on both. Are they selling them asap? They’ll pay 6% to sell, plus they are losing money on a monthly basis since they own in the Phoenix area. Owning that much Microsoft stock is an ignorant and perhaps greedy play (probably only the former). Even if they make their goal of $1 million by age 40, then what? Live off of that??? Hardly. Mine as well become a pauper. There plans are pie in the sky.

]]> By: QuittingTheDayJob http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4534 QuittingTheDayJob Thu, 21 Aug 2008 16:36:51 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4534 The key issue in building wealth isn't savings. It's not building up debt. Personally I heard financial advisors state to "pay yourself first"...nice advice...if you don't owe huge amounts to credit cards, etc. These people at least have savings, but >$400K in rental mortgages...Nah...they need to back off the quantity of properties, lower the liabilities (yes lowering cash flow) in order to reduce their debt exposure. (Don't tell me that it's good debt either. No debt is good.) The key issue in building wealth isn’t savings. It’s not building up debt.
Personally I heard financial advisors state to “pay yourself first”…nice advice…if you don’t owe huge amounts to credit cards, etc.
These people at least have savings, but >$400K in rental mortgages…Nah…they need to back off the quantity of properties, lower the liabilities (yes lowering cash flow) in order to reduce their debt exposure. (Don’t tell me that it’s good debt either. No debt is good.)

]]> By: JD http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4533 JD Wed, 20 Aug 2008 17:53:22 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4533 At an income of $174,000 they don't make enough to have to worry about a tax increase under Obama. He was talking about raising taxes (by 4%) on individuals making over $250,000. I make over $250,000 and don't mind having to pay an extra 4% on that last part of my income given the state of our economy and burgeoning deficit. I will also see an increase in my payroll taxes, currently because I earn a high income I pay less in payroll taxes than most of you. Right now you only pay payroll taxes on the first $100,000 of your income and nothing more. So if you earn less than $100,000 you pay just as many dollars in payroll taxes as someone who makes $10,000,000. For people earning less than $100k payroll taxes are a big tax that no one ever talks about in politics since it doesn't effect rich people. If I were earning a middle class salary I would be pissed as hell about that. Mind you that is individual income too, assuming both the Rodriguez husband and wife work their net tax increase under Obama would be zero (both in income tax and in payroll tax). In fact for over 95% of wage earners this would be the case, the people who would see a tax increase are people like myself who make over $250,000 a year (and this will probably change to applying only to people making over $365,000 per year). At an income of $174,000 they don’t make enough to have to worry about a tax increase under Obama. He was talking about raising taxes (by 4%) on individuals making over $250,000. I make over $250,000 and don’t mind having to pay an extra 4% on that last part of my income given the state of our economy and burgeoning deficit. I will also see an increase in my payroll taxes, currently because I earn a high income I pay less in payroll taxes than most of you. Right now you only pay payroll taxes on the first $100,000 of your income and nothing more. So if you earn less than $100,000 you pay just as many dollars in payroll taxes as someone who makes $10,000,000. For people earning less than $100k payroll taxes are a big tax that no one ever talks about in politics since it doesn’t effect rich people. If I were earning a middle class salary I would be pissed as hell about that. Mind you that is individual income too, assuming both the Rodriguez husband and wife work their net tax increase under Obama would be zero (both in income tax and in payroll tax). In fact for over 95% of wage earners this would be the case, the people who would see a tax increase are people like myself who make over $250,000 a year (and this will probably change to applying only to people making over $365,000 per year).

]]> By: westwest888 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4531 westwest888 Wed, 20 Aug 2008 15:21:50 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4531 I was being sarcastic. Even on a six figure income it's difficult to get ahead. I'm also a Ron Paul fan and I still champion his ideas. I was being sarcastic. Even on a six figure income it’s difficult to get ahead. I’m also a Ron Paul fan and I still champion his ideas.

]]> By: max http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4530 max Wed, 20 Aug 2008 10:16:54 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4530 It does not make me sad or happy...I asked that only because you said "For obvious reasons, Rodrigues will most certainly exceed my net worth at the age of 40." It does not make me sad or happy…I asked that only because you said “For obvious reasons, Rodrigues will most certainly exceed my net worth at the age of 40.”

]]> By: Frugal http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4529 Frugal Wed, 20 Aug 2008 04:16:54 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4529 Max, My net worth is scaled down by a fixed factor. Why don't you read carefully? Whether I have more or less than Rodrigues, does it make you sad or happy?? Westwest888, Rodrigues are already paying $30K in taxes. And they're decent people too, tithing $18K every year. I think we all forget that taxing the rich is usually counter-productive as a whole society. Communism is the ultimate form of that taxing the rich. And in a communistic society, the productivity of the entire society reaches to the lowest point. A balance is needed no doubt. But more taxes is not a solution to a excessive government. And that's why I support Ron Paul. Max,

My net worth is scaled down by a fixed factor. Why don’t you read carefully? Whether I have more or less than Rodrigues, does it make you sad or happy??

Westwest888,
Rodrigues are already paying $30K in taxes. And they’re decent people too, tithing $18K every year.

I think we all forget that taxing the rich is usually counter-productive as a whole society. Communism is the ultimate form of that taxing the rich. And in a communistic society, the productivity of the entire society reaches to the lowest point. A balance is needed no doubt. But more taxes is not a solution to a excessive government. And that’s why I support Ron Paul.

]]> By: jasonp http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4528 jasonp Wed, 20 Aug 2008 02:08:35 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4528 Nice discussion on these folks <a href="http://www.bogleheads.org/forum/viewtopic.php?t=22103" rel="nofollow">here</a> Nice discussion on these folks here

]]> By: max http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4527 max Tue, 19 Aug 2008 23:23:58 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4527 Since you have only less than 500k net worth right now...they are already ahead of you at age 27!!! Since you have only less than 500k net worth right now…they are already ahead of you at age 27!!!

]]> By: westwest888 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4526 westwest888 Tue, 19 Aug 2008 17:30:11 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4526 Obama would make those Rodrigues' pay their fare share! Knock that down to $60k of savings a year. Obama would make those Rodrigues’ pay their fare share! Knock that down to $60k of savings a year.

]]> By: Scott @ The Passive Dad http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/comment-page-1/#comment-4525 Scott @ The Passive Dad Tue, 19 Aug 2008 17:13:59 +0000 http://www.1stMillionAt33.com/2008/08/another-millionaire-at-33/#comment-4525 Your example shows how lifestyle and consistent savings will lead to creating wealth. I recall reading about a Veterinarian in Money magazine that made over $100k a year but also had over $36,000 in debt that was hurting his savings goal. They also didn't have the basic emergency savings account. Makes you scratch your head how a Dr. has a hard time saving just $5,000. If it's hard for a Dr., it's just as hard or more, for someone making $40k a year. If the Rodrigues' can save $90k a year, good for them! That is a tremendous goal. Your example shows how lifestyle and consistent savings will lead to creating wealth. I recall reading about a Veterinarian in Money magazine that made over $100k a year but also had over $36,000 in debt that was hurting his savings goal. They also didn’t have the basic emergency savings account. Makes you scratch your head how a Dr. has a hard time saving just $5,000. If it’s hard for a Dr., it’s just as hard or more, for someone making $40k a year. If the Rodrigues’ can save $90k a year, good for them! That is a tremendous goal.

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