How Did You Make Your First Million Dollars?

Lfreakatronic on 07/11/2016 - 06:58
Last edited 07/11/2016 - 06:59

A million dollars is no longer the number it was in the eighties. Purchasing power has dropped and cash has become cheaper. That said, it's still the first number out of people's mouths as the one they aspire to. A mil. The big M. It's become more achieveable in recent years, and there are many ways to go about it.

I'd like to ask those who have reached the milestone how they did it. I guess I'm looking for inspiration. I read The Millionaire Next Door a while back, and I'm interested in hearing from those who've reached it. I don't care if it's a million cash sitting there (which is less likely), a million in assets like property (more likely), or a million dollar business. I just won't count leveraged assets that aren't owned outright as your million, like mortgaged real estate or open currency positions … Cause well, anyone can have a million dollars that way.

(Edit for spelling)

Financial

Comments

  • BensonP on 07/11/2016 - 07:32
    +91

    Reselling Eneloops at a mark up.

    • inherentchoice on 07/11/2016 - 08:37
      +24

      Are you from Anchorage Capital?

      • banzini on 07/11/2016 - 23:30
        +1

        They phuarked with DSE :(

    • Kangal on 07/11/2016 - 10:42
      +13

      I too bought Eneloop stocks when they were at a low, I've since sold all my stocks and have invested into Xiaomi instead.

    • entropysbane on 08/11/2016 - 07:24
      +1

      The problem with eneloops is that they are last year's [lucrative] business model. I want to go where the puck will be. So I plan to start selling dongles to Apple device owners.

  • derek324 on 07/11/2016 - 07:34
    +4

    When you're a kid, you want to be a millionaire.

    • freakatronic on 07/11/2016 - 08:51
      +2

      Sure. What do you want to be today then?

      • altomic on 07/11/2016 - 08:52
        +343

        A kid

        • Kangal on 07/11/2016 - 10:43
          +28

          That gives me a brilliant idea.

          I want to open a Day Care centre …but its for adults only, and they must all behave like children.
          That next million couldn't come sooner!

        • altomic on 07/11/2016 - 10:46
          +10

          @Kangal: XYZ Adult Care

        • Kangal on 07/11/2016 - 10:49
          +1

          @altomic:
          I didn't mean a Retirement Home lol… but for trendy adults in their 25-40's.
          That's where all the disposable cash is at.

        • Scrooge McDuck on 07/11/2016 - 13:32
          +121

          @Kangal:

          I want to open a Day Care centre …but its for adults only, and they must all behave like children.

          We already have that,

          it's called parliament.

        • banana365 on 07/11/2016 - 14:20
          +3

          @Scrooge McDuck: If one of my kids behaved like that they'd be sent to their room.

        • Scrooge McDuck on 07/11/2016 - 14:35
          +8

          @banana365:

          They have that too!

          It's called Standing Order 94a.

        • aja12 on 07/11/2016 - 15:16
          +3

          @Kangal: I'm a cop, and this is essentially what we do.

        • bio on 07/11/2016 - 19:04
          +3

          @altomic: XXX Adult Care - fixed that for you.

        • Jackson on 07/11/2016 - 22:13
          +1

          @altomic: XXX adult care?

        • 00 on 07/11/2016 - 22:24
          +1

          @Kangal:
          bunch of adults shitting their pants and picking their noses?

        • Kangal on 08/11/2016 - 01:34

          @tommyc:
          Wouldn't you pick other's snot and wipe ass for a million?
          I'd probably do it for $50 : (

        • edgar28 on 08/11/2016 - 14:38

          @Scrooge McDuck:

          Scrooge will change it to different currency and swim on it

        • BargainKen on 08/11/2016 - 22:13

          @Kangal: parliament house bro

        • jenkemjunkie on 11/11/2016 - 09:22
          +1

          @altomic:

          XXX Adult Care

    • Unknown1 on 07/11/2016 - 17:17
      +18

      Once had a teacher, try to determine who was greedy in the class.

      The teacher said "if you want to be a millionaire go to the front seats, if you want to be a billionaire go to the middle seats and if you just want to make an honest living go to the back".

      Because, I was already in the back row, I did not switch seats. While, most of the other kids choose the billionaire row.

      When asked why I choose that section, I replied:

      "In truth I would of moved to the billionaire section, but I'm just too dam lazy."

      • Unknown1 on 07/11/2016 - 17:18
        +4

        To sum up most kids want to be millionaires or billionaires, expect the lazy ones.

  • scrimshaw on 07/11/2016 - 07:42

    Murder.

  • indium on 07/11/2016 - 07:51
    +45

    I've always considered a millionaire to be someone with a spare $1 mill in the bank where it gives you that financial freedom to really do what you want. If you've spent your million on property then your money is tied up, still holds its value but you may still be constrained by your weekly income or be limited to what you can do.

    • freakatronic on 07/11/2016 - 08:50
      +6

      Right, right. That would severly constrain who I can ask though. Having a "lazy million", a million dollars just sitting there doing nothing, is a luxury very few could afford. Money has a much higher value when it's doing something, especially in today's age of low interest and cheap cash. A million sitting in the bank is lucky to pull 2%, but in a managed fund 5% should be possible. Risk going in at the top of the market and you could do 15% on inner city real estate. You can't get rich beig passive and missing opportunities. That's why I think not many millionaires would have dat cash wasting away in a bank account.

      • indium on 07/11/2016 - 09:14
        +12

        I would however consider money in funds or shares to be part of the $1 million due to its high liquidity, probably same with an investment property as you could sell it in a reasonable time and you had the spare money to afford it but I wouldn't consider the family home to be part of the $1 Mill. Just my opinion, I'm not a millionaire, not even close but if I were to ever call myself one it would be when I have a spare $1 Mill.

        In terms of getting there I think living below your means and investing in the meantime is necessary.

        • freakatronic on 07/11/2016 - 09:49
          +3

          Wait…you just called property high liquidity.

        • indium on 07/11/2016 - 09:54
          +4

          @freakatronic: Money in funds and shares as highly liquid. I mean you could probably consider an investment property as part of the $1 Mill as you could sell it in a reasonable time not that it has a high liquidity.

      • Mad Max on 07/11/2016 - 12:31
        +3

        If you had invested $1m exactly 1 year ago in a all ords index tracking fund as at today you would have only made the value of the dividends because the all ords is at the same value (was 5270 is 5308). But, depending on timing, you could have done a lot worst or a lot better.
        No matter what they tell you if you invest in equity you could lose money. Or you could make money.
        It is called risk. Money in the bank may only make 2.5-3% but is a very small risk (bank going bust).

        • Larz128 on 08/11/2016 - 16:53

          Not even that, since it is guaranteed by the government.

          (Assuming you have split it into multiple chunks less than 250,000)

        • Scrooge McDuck on 08/11/2016 - 23:19

          @Larz128:

          And what if the government goes bust?

        • jenkemjunkie on 11/11/2016 - 09:25

          @Scrooge McDuck:

          invest in bullets and gats. pop pop homie

    • geoffs87 on 07/11/2016 - 13:42
      +2

      Yeah, my view is 1million in equity, not necessarily liquid assets. So if you have a $2.5m house, which $2m is loan, and 500k in shares, then you're a millionaire.

      In summary, I'm not a millionaire!!

    • sweepy on 07/11/2016 - 17:09
      +2

      I agree with this. I'm a millionaire on paper (shares in the company I co-founded are worth over a mil) - but it does not feel like I am. At the end of the day, the shares are only worth what someone pays for them. As you say, I'm still constrained by my monthly income.

  • tomleonhart on 07/11/2016 - 08:19
    +8

    save and invest.

    • freakatronic on 07/11/2016 - 08:55
      +1

      Did you do it? How did you save? Did you drip feed an investment account? Or did you save a lump of start-up capital to get a business? Have you any further details to share?

      • tomleonhart on 07/11/2016 - 10:16
        +2

        i haven't made my first million yet but i tend to think i'm close enough :P

        My 3 friends who have been riding the Sydney property market wave have been doing very well and all now have 1mils + in asset. That's net, after mortgage. And they're are just in their late 20s too. Make me wished i followed their chain of thought.

        Most of them invest, I don't even know if they save lol.

  • ihbh on 07/11/2016 - 08:21
    +8

    Why don't you make it a poll, e.g.: real estate, shares, business, marriage, lottery, inheritance, multiple means, etc.

    • freakatronic on 07/11/2016 - 08:41
      +13

      Mainly I want a story. I know there are different ways but I'm not interested in a pie chart of who did it or how.

    • bighead on 07/11/2016 - 08:51
      +19

      Marriage LOL - I want to hear THAT story.

      • Kangal on 07/11/2016 - 10:48
        +1

        I wonder if its a straight up "woman marries a millionaire old guy" story.

        Or if its more modern like "broke young guy marries a lady lucky in property market".
        Or maybe even "broke young guy marries a gay guy for his money".
        Or my favourite "girl becomes a millionaire with her wife after making a viral video with One Cup".

      • Taita on 07/11/2016 - 12:34
        +1

        Engagement will do..
        http://www.theaustralian.com.au/news/world/the-times/james-p…

  • OldBugger on 07/11/2016 - 08:23
    +2

    ♫ ♬ Who wants to be a millionaire? ♫ ♬

    • freakatronic on 07/11/2016 - 08:41
      +1

      ♫ ♬yes♫ ♬

    • Wampus on 07/11/2016 - 11:04
      +5

      According to Eddie it's miwwionaire

  • lupiter on 07/11/2016 - 08:24
    +22

    My grandfather has "about a million" in real estate. Just go back in time to the 70's and buy a beachside house for next-to-nothing, and you can be just like him. :/

    • freakatronic on 07/11/2016 - 08:42
      +3

      True huh. These days if you outright own a townhouse within 10km of Melbourne or Sydney you're most of the way to a million.

      • FindMeADeal on 07/11/2016 - 09:12
        +19

        That's what it always is… The answer to "when is the best time to buy a real estate?" has always been "20 years ago". This applies mostly everywhere in the world.

      • Durka on 07/11/2016 - 10:21
        +7

        My dad bought a 1 bedroom terrace in Newtown as his first house back in the early 80's for $57k. A month after he moved in his neighbour with an identical terrace said to him "you know, I've just been offered $60k for this place, and I'm taking it, as I can never see someone offering me such an insane amount of money for this place ever again."

        Last year that same terrace, without any significant changes, sold for just over $1m. Not a bad return for just over 30 years.

        • Skramit on 07/11/2016 - 10:31
          +15

          Baby boomers…..so lucky.

        • coolhand on 07/11/2016 - 11:05
          +9

          Amazing return, but is around 10% pa over 30 years. Compound interest is an amazing thing!

        • Marty131 on 07/11/2016 - 23:57

          @coolhand: I had to calculate that as I didn't believe it. Amazing!

  • Savas on 07/11/2016 - 08:37
    +9

    N/A

    • freakatronic on 07/11/2016 - 08:43
      +6

      Thanks. Same.

      I hope to change it from an "n/a" to a good old "a" though.

  • boo hoo on 07/11/2016 - 08:53
    +69

    I'm working on my 2nd million……………………..I gave up on the 1st.

    BH

    • scrimshaw on 07/11/2016 - 09:02
      +11

      You could just fly to Vietnam or Africa, thatd make you a million or billionaire.

      • mskeggs on 07/11/2016 - 10:12
        +4

        We gave each kid some spending money in HCM to buy presents for relatives etc. Little millionaires running around!

  • mskeggs on 07/11/2016 - 08:55
    +53

    Almost every 'millionaire' in AU will be there due to the real estate bubble.
    Which is really a way of saying the coming generations have been impoverished by this stupid run up in prices.
    Its great if you don't have kids and don't care about the future, and can cash out and live elsewhere.
    Otherwise, it is just a case of adding some zeros. Nobody is particularly better off if they can't extract the value. Your house has gone up in price when you go to sell it, but so has the next property you wish to buy.

    • freakatronic on 07/11/2016 - 09:37

      That's true too isn't it. Wealth is illusory if it's only a number that has no correlation to one's quality of life.

      • JimB on 07/11/2016 - 10:26
        +7

        Not true, while wealth won't necessarily provide you with a quality life, not having wealth will virtually guarantee you poor quality of life, stress and health issues.

        People who are wealthy have less to worry about.

        • freakatronic on 07/11/2016 - 12:07
          +2

          Wealth is illusory if the only valuable thing you own is the house in which you live. No matter how high the market may go, you still can't liquidate without entering the problem of where now to live. Sell and buy the same thing back for the same price? You may as well not have sold at all.
          That's all I mean when I say illusory wealth.

        • iseenya on 07/11/2016 - 12:57
          +5

          @freakatronic: It doesn't sound as though you've ever actually owned a property yourself. When you have, you'll maybe realise that your so-called 'illusory wealth' is actually an illusory problem.

        • JimB on 07/11/2016 - 13:05
          +9

          @freakatronic:

          Tell renters that homeowners only have 'illusory wealth' and see what their response is.

          Plus, you can always downsize. Sell house for $1m, buy $500k townhouse, live off $500k?

        • freakatronic on 07/11/2016 - 13:07

          @JB1: True, but this is getting to be a tangent I'm not interested in exploring.

        • freakatronic on 07/11/2016 - 13:07

          @iseenya: What?

        • drprox on 07/11/2016 - 16:42
          +1

          @freakatronic: spot on and something my father reminds me of whenever i get excited about my own place! You gotta live somewhere. That said, i could always move further out..

        • freakatronic on 07/11/2016 - 16:53

          @drprox: Or buy further out and rent where you actually want to live. You'll still have exposure to any gains (or losses) in real estate.

        • drprox on 07/11/2016 - 18:56
          +2

          @freakatronic: yep true enough but i like my fat mortgage and leveraged exposure :)

        • [Deactivated] on 08/11/2016 - 17:04
          +2

          @freakatronic:

          This is a bit silly. If you have a million dollar house, you can sell your house for a million dollars, and be in the same position as a renter, but have a million dollars, making you a millionaire (in your definition). I think you need to look at the scenario differently because right now you think you are onto something, and it's something no worth being onto.

        • virhlpool on 13/11/2016 - 14:49

          I would disagree with stress and health issues bit. Stress and wealth creation go hand in hand. Even before you become rich to not have any stress, you have already gone though enough to compensate. Rich or poor - you have a fair share of stress and health issues unless you were a kid of wealthy parents.

    • JimB on 07/11/2016 - 10:23
      +2

      I was thinking the same, most millionaires unless they own a business or are very high up, will be from property.

      What you haven't factored in is people who have acquired a vast property portfolio so they can cash out when required or live off the rent.

      I shouldn't complain, but if I started work 3-4 years earlier, I would have been much better off financially as I could have acquired at least another property or two. Property jumped when I purchased my first, not allowing me to purchase a second.

      Currently, trying to make money not from property going up (I won't complain if it did!) but by subdividing property, building 2 and selling 1 off. Ideally I wouldn't sell at all, but if I don't sell, no way the banks will lend you to buy a decent block in a decent suburb in Melbourne.

      • jenkemjunkie on 11/11/2016 - 09:49
        +1

        That's the problem with the Australian property market. People buying shit property, subdividing it and making it even shitter. I cringe when I see another duplex or complex being made. The construction and thought put into them is terrible. 'Just make it look nice mate - who cares if the neighbours can hear each other through the shitty gyprock walls'

        I know real well well how dodgy the slabs are that are poured for these houses, the warranty would be voided because the developer wouldn't hire an inspector to ensure the concreter doesn't 'piss up' the cement to make it spread easier coz that'll eat into profits.

        • JimB on 11/11/2016 - 09:59

          Who says anything about poor building building practices?

          The place I have built and planning to to build is definitely not cheap. Certainly a higher standard than the standard project home.

          What inspector are you referring to? An independent inspector during the slab pour or the building surveyor? Since you know the short cuts, how can I ensure I'm getting 32 MPa concrete when I pay for 32 MPa?

          I'll be living in one so definitely no short cuts here.

        • jenkemjunkie on 11/11/2016 - 10:14

          @JB1:

          If you are all about those practices I will concede and apologise in casting judgement at you, I've just seen too much terrible shit being built. Hire an independent inspector for the slab pour, I think it's called phase inspection and they even sure the cement mix in the concrete is correct. Once the slab has been done there's not much a building surveyor will really do because the cracks and movement won't show immediately.

          My brother used to work for Holcim when he wanted to learn to drive trucks and my cousin is a building surveyor. I went to sites out of interest and I remember seeing pours where a guy was just trying to hose the shit out of the concrete sayin 'piss it up mate, just piss it up' so he could spread it easier.

          That being said, my brother will do my pour - he stopped working for the aforementioned because he hated seeing this shit and it was very common when I was asking him what was that bloke doing.

        • JimB on 11/11/2016 - 10:34
          +2

          @jenkemjunkie:

          No offence taken as I wouldn't purchase a standard subdivided house or project home. I wouldn't build a shit property or take shortcuts as I'm pretty fussy when it comes to houses.

          I have heard concreters watering concrete down to make it easier to work with, but I'll definitely be there at the slab pour stage.

          I don't think they can test the concrete during the pour, only afterwards, which as you mentioned is too late.

          Other than checking the receipt from the concrete supplier and ensuring they don't water down the concrete from the supplier, it's difficult to know on the day because when wet 20 MPa concrete looks exactly like 32 MPa concrete.

          Naaah short cuts and poor materials will won't yield me more profits as I'm aiming to get >$1.5m each (average quality ones are getting $1.5m around the area) and at the price, higher quality materials will hopefully get me more money, i.e. double glazed windows throughout, terracotta roof tiles, 3 coats of paint etc.

    • Baebs on 07/11/2016 - 20:35

      Your house has gone up in price when you go to sell it, but so has the next property you wish to buy.

      Inflation's a bitch.

  • StewBalls on 07/11/2016 - 09:08
    +1

    I just won't count leveraged assets that aren't owned outright as your million, like mortgaged real estate or open currency positions … Cause well, anyone can have a million dollars that way.

    Sorry to rain on your parade, but no anybody can't. Just borrowing & buying doesn't always net you a good return, you still have to know what you're doing to use finance to your advantage.

    You need to start thinking bigger picture & ask why it might also be advantageous to have some of these properties leveraged rather than owned outright.

    • freakatronic on 07/11/2016 - 09:40
      +1

      You're right, yes. Still, I'm this time asking about who has crossed the arbitrary threshold of a million dollars outright. Leverage is smart. It's a great way to get there faster. Just in this instance, I'm not asking who has a million leveraged dollars under their belts. I only want to know who has done it and how.

  • onetwothreefour on 07/11/2016 - 09:12
    +16

    I'm married to a 90 year old billionaire woman who refuses to die, I'll let you know when I inherit that money.

    • Cyphar on 07/11/2016 - 14:16
      +13

      How about now?

  • altomic on 07/11/2016 - 09:26
    +66

    It was easy. This Nigerian Prince emailed me the instructions. It's been 4 days since I sent him the $5000 for the release of my funds, so any time in the next week or so…..

    • PJC on 07/11/2016 - 10:00
      -1

      So his sister has lied to me?

  • Maglia Nera on 07/11/2016 - 09:30
    +16

    Pfft $1million

    I sent my bank details to His Royal Highness Prince Marcus Dimka of Nigeria - got $30 million dollars coming to me….

    • Hirolol on 08/11/2016 - 16:58
      +3

      You basically just copied the comment before you lulz

  • HeartFeltAxe on 07/11/2016 - 09:48
    +6

    I wrote a book about how to make your first million dollars.

    • freakatronic on 07/11/2016 - 09:51

      How did it do? Did you make a million off it? :P

      • HeartFeltAxe on 07/11/2016 - 09:55
        +3

        Dude I was joking xD

        • freakatronic on 07/11/2016 - 09:57
          +4

          Even so, you wouldn't be the first person with no money to write about how to get money for the sole purpose of making money.

        • HeartFeltAxe on 07/11/2016 - 09:58
          +1

          I would not be surprised, some people are quite gullible.

    • JimB on 07/11/2016 - 10:27
      +7

      Welcome to OZB Robert Kiyosaki!!!!

  • [Deactivated] on 07/11/2016 - 09:49

    title should be

    "How Did You Make Your First Billion Dollars?"

Login or Join to leave a comment
Login Join