Become a millionaire. It’s easier than you think

Milano

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I believe interest is added to your income, so it depends on your top tax bracket.

In a TFSA, nada.
Tax-free interest exemption in SA maxes out somewhere around R25k p.a.? Then the taxation on interest works out extremely high as not much in the way of offsets. But offshore in a high interest low tax economy it looks better. In which case USD, Euro and GBP are out in terms of earning decent interest.

There are perhaps a small handful of currencies worth looking at in regions taxing at 5% or lower while offering decent interest on fixed deposits. Not without the inherent currency risks associated with exotic currencies. Not that the rand is without major deprecation risks too of course. Then you still need to consider resident vs non-resident with new SARS legislation.
 
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Daruk

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Start your own business. Start another. Hustle for a few years and you could net far more. You control your wealth.
Not that easy in our current environment. Die young can be added to that. There's plenty stress to be had from running your own business in SA.
 

Daruk

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Something most people are brainwashed with.

Make big student loans
Save 10-20% of your income
Buy cheap cars
Cancel all luxury treats
Don't buy expensive food and drinks
Save and penny pinch your life way
Trust in pensions, stock markets until you what, 60/65 so you can retire "rich"? Also called wealth in a wheelchair :)

Just no. You have been hoodwinked by financial gurus. You're not in control of your wealth by investing in unpredictable and uncontrollable markets.
Tell us about the risks with investing 10-20% of your monthly income...
 

bratwurst

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Not that easy in our current environment. Die young can be added to that. There's plenty stress to be had from running your own business in SA.
Agreed. It's not easy. However, it can be far more rewarding. I could say the same about investing in the current environment. Your investments might be worth Nada in 30 years if the economy goes belly up. So after 30 years of penny pinching you could get zilch. By starting your own business you could reap rewards far quicker and enjoy a wealthier life far earlier.
Tell us about the risks with investing 10-20% of your monthly income...
I kinda answered that already. Diversify. See above.

Im not saying don't invest, but investments shouldn't be the only channel you're relying on to accumulate wealth. It's based on hope.
 

3WA

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Tax-free interest exemption in SA maxes out somewhere around R25k p.a.? Then the taxation on interest works out extremely high as not much in the way of offsets. But offshore in a high interest low tax economy it looks better. In which case USD, Euro and GBP are out in terms of earning decent interest.

There are perhaps a small handful of currencies worth looking at in regions taxing at 5% or lower while offering decent interest on fixed deposits. Not without the inherent currency risks associated with exotic currencies. Not that the rand is without major deprecation risks too of course. Then you still need to consider resident vs non-resident with new SARS legislation.
If you have a spouse, two people, max out both TFSAs (R5.5k per month), you'll have a million capital invested in ~15 years. Excluding any growth. But you have to share it with your spouse until you can outlive them.
 

diapason

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If you have a spouse, two people, max out both TFSAs (R5.5k per month), you'll have a million capital invested in ~15 years. Excluding any growth. But you have to share it with your spouse until you can outlive them.
At that point the deceased spouse's account is no longer tax-free in terms of income.
 

RedViking

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Feb 23, 2012
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Becoming a millionaire is so 20 years ago. Million USD. Now that is a different story.
 

RedViking

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Why work 24 hours, put most of your money away to get interest, stop living for 40-50 years just so you can retire in wealth when you basically on your way out and a stranger to your family.

Real investment:
- Time with wife and kids and other valuable friendships
- Live every day to the fullest
- Don't fill your life with meaningless things.
- Whats left you invest

Cheers.
 

Daruk

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Why work 24 hours, put most of your money away to get interest, stop living for 40-50 years just so you can retire in wealth when you basically on your way out and a stranger to your family.

Real investment:
- Time with wife and kids and other valuable friendships
- Live every day to the fullest
- Don't fill your life with meaningless things.
- Whats left you invest

Cheers.
To be fair most of those needn't involve spending.
 

Daruk

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Agreed. It's not easy. However, it can be far more rewarding. I could say the same about investing in the current environment. Your investments might be worth Nada in 30 years if the economy goes belly up. So after 30 years of penny pinching you could get zilch. By starting your own business you could reap rewards far quicker and enjoy a wealthier life far earlier.I kinda answered that already. Diversify. See above.

Im not saying don't invest, but investments shouldn't be the only channel you're relying on to accumulate wealth. It's based on hope.
Except that having your own business is a bit like investing your income as an employee. I challenge you to make the monthly income some professionals make on their salaries with your own business... And it's a lot more stress free. Even with your own business. You're either spending it or saving it. Not sure what you think you're doing with it?
 

3WA

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Sep 25, 2012
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Why work 24 hours, put most of your money away to get interest, stop living for 40-50 years just so you can retire in wealth when you basically on your way out and a stranger to your family.

Real investment:
- Time with wife and kids and other valuable friendships
- Live every day to the fullest
- Don't fill your life with meaningless things.
- Whats left you invest

Cheers.
Me and the girlfriend save money by sitting at home and looking at each other’s faces.
 

RedViking

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Feb 23, 2012
Messages
26,682
To be fair most of those needn't involve spending.
Not necessary. But they require time. Time is more valuable than money. But if ones view is to make as much money to retire, you will need time. Less time with the things that matter.

Obviously I am taking in mind that there should be a balance and wisdom in how you manage and spend finances. But time invested in family and the things that matter comes before money to retire 'wealthy'.
 

bratwurst

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Oct 15, 2008
Messages
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Why work 24 hours, put most of your money away to get interest, stop living for 40-50 years just so you can retire in wealth when you basically on your way out and a stranger to your family.

Real investment:
- Time with wife and kids and other valuable friendships
- Live every day to the fullest
- Don't fill your life with meaningless things.
- Whats left you invest

Cheers.
+1

Not sure what you think you're doing with it?
Read redvikings post above. Wealth to me is freedom. As a professional you slave away 40+ hours a week for 40 years. For what? To retire "rich"? You're loosing out.

What if told you that you could net that 1million a year after only a few years of hustling in your own business? No need to slave away and save for 30+ years to get there. That 1 million I already net, and I most definitely am not working 40+ hours for it - not anymore.

Not sure we on the same page here though. I am only pointing out there are better ways to net a million without having to wait 30 years.

People always come up with excuses. Get up and do it. If others have done it, you can do it. What's stopping you?
 

Daruk

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+1



Read redvikings post above. Wealth to me is freedom. As a professional you slave away 40+ hours a week for 40 years. For what? To retire "rich"? You're loosing out.

What if told you that you could net that 1million a year after only a few years of hustling in your own business? No need to slave away and save for 30+ years to get there. That 1 million I already net, and I most definitely am not working 40+ hours for it - not anymore.

Not sure we on the same page here though. I am only pointing out there are better ways to net a million without having to wait 30 years.

People always come up with excuses. Get up and do it. If others have done it, you can do it. What's stopping you?
If you're working for others, you're doing it wrong. Any work agreement is a contract, whether you're sending an invoice, doing VAT returns and paying employees a salary or receiving a salary yourself.

If you have a business and work a 40 hour week, you're not going to get far, especially with a new business.

Most people who run their own business like to talk about the "freedom" like people on Facebook posting stories about living their best life. I live in freedom whether I'm my own boss or not. I still have to pay the bills and feed the kids. I'm more free now as a consultant to work a 40 hour week than I ever was as a regular business owner in the service sector.

I have absolutely no problem with being an entrepreneur, I have an issue with people claiming you can get wealthy while not investing or saving money.
 
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cguy

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Read redvikings post above. Wealth to me is freedom. As a professional you slave away 40+ hours a week for 40 years. For what? To retire "rich"? You're loosing out.

What if told you that you could net that 1million a year after only a few years of hustling in your own business? No need to slave away and save for 30+ years to get there. That 1 million I already net, and I most definitely am not working 40+ hours for it - not anymore.

Not sure we on the same page here though. I am only pointing out there are better ways to net a million without having to wait 30 years.

People always come up with excuses. Get up and do it. If others have done it, you can do it. What's stopping you?
Entrepreneurship generally has higher potential, but lower expectation. It definitely makes sense if you’ve got a real edge.

If you don’t have an edge: I’ve seen so many people struggle with their business(es) for years, strangely enough still patting themselves on the back because of their “freedom”, while desperately seeking customers so they can pay their bond.

The best way to become a (real) millionaire for a skilled individual is to move to a high paying country/area.
 

bratwurst

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Joined
Oct 15, 2008
Messages
4,150
If you're working for others, you're doing it wrong. Any work agreement is a contract, whether you're sending an invoice, doing VAT returns and paying employees a salary or receiving a salary yourself.

If you have a business and work a 40 hour week, you're not going to get far, especially with a new business.

Most people who run their own business like to talk about the "freedom" like people on Facebook posting stories about living their best life. I live in freedom whether I'm my own boss or not. I still have to pay the bills and feed the kids. I'm more free now as a consultant to work a 40 hour week than I ever was as a regular business owner in the service sector.

I have absolutely no problem with being an entrepreneur, I have an issue with people claiming you can get wealthy while not investing or saving money.
I'm not on Facebook.

As a consultant you're already better off. Nothing better than to gamble with OPM :D

Invest and save, but don't rely on it as your only channel. All I'm saying.

I'd like to share the following book. I've read many get rich books. They all BS. It's either selling you a product, or telling you how to invest for 40 years.

One book stood out to me and it really changed my way of thinking. I wish this book was available 15 years ago. First time I read it was in 2013. It helped me a lot to gain perspective.

Just a heads up, the book is not selling you anything, nor telling you how to invest your money. It simply opens up your way of thinking.

Read it, don't read it :)

 
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newby_investor

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Aug 8, 2018
Messages
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Im not saying don't invest, but investments shouldn't be the only channel you're relying on to accumulate wealth. It's based on hope.
Speaking as someone who has started and failed at two businesses already, what you're proposing is also based on hope.

Most businesses fail. Human beings are stupidly optimistic, otherwise we wouldn't even bother.

IMHO, you're much more likely to get the "freedom" that @RedViking talks about by saving and investing but also by simplifying.

E.g. I have a R65k car which I paid cash for, no debt, and I drive it only really on the weekends. I save roughly 45 minutes each day by cycling to work instead of sitting in gridlocked traffic, and about R1k per month in petrol and general car wear and tear. I might look poorer to an outsider but I'm healthier for the exercise, less stressed and I can spend more time at home with the wife and son. As a result of this and other ways to free myself from consumerist enslavement, I'm about 5 years into my bond and should finish it off in another 5, ten years ahead of schedule. I think I'm wealthy, though I don't have a huge salary it's more than enough for my modest expenses.

I'm done with the stress of running a business for now. Maybe one day I'll try again but I much prefer having a normal job.
 
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