1mil net worth at 23. Reality check.

[JollyJoker]

One of my friends is suffering and always feeling like they’re not doing enough.

They made a lot of money at a young age between 20-23

Totalling 400k in investments and 600k money in the bank.

any words of advice to give them a reality check? As they’re constantly down and always wanting more and never seems enough to them.

they don’t feel like they’re doing enough in life

He happily wastes 1k on a meal and thinks it's fine. At some point, it will become harder to just earn it back. And even now he's making sacrifices to earn it back, trying to fill his life with expensive stuff to feel better then having to work harder to pay for it going forward and so the cycle repeats.

The long-term wealthy don't waste cash. They appreciate the value of what they've earned.

600k is money to build a house to sell

400k is in investment property equity, how is that bad?

This thread isn’t asking for money advice, please read…

I don’t think there is any advice that ANYONE can offer here. The pain and suffering your friend is enduring is unimaginable. How can any person adjust to the horror of that? Honestly. It hurts my heart just to HEAR it.

Ohhhhh there is no 'friend' is there 😂

Please seek the help of an advisor.

600k to build a house should be somewhere more sensible while awaiting the right piece of land.

Building a house the payments come in stages over many months.

Purchase of land and solicitor fees etc

Agent submits info to planning/building control etc

Several staged payments to builder for materials and labour.

The money should not be sat in your bank account in between it should be in sensible places with short notice periods to withdraw

Same! The poor love.

With careful use they could use their assets to set them up with a passive income for life. If they don't have the skills to do it themselves, they can pay an advisor to help them do it.

Left to their own devices, they could be back to square one in a year or two, or even less, especially if they're the type who doesn't recognise that they're wealthy and is always seeking the next thrill.

£1000 meals could burn through £600k in a year or two alone. Likewise if they spend on other things that are expensive but don't buy assets, eg cars, boats, clothes, entertainment, grooming, tattoos and surgery etc etc.

If they don't spend wisely when building a house, it might not make any money. You'd only need to overpay for a piece of land in an unattractive location, bugger up the design spec with things like swimming pools and a gaudy finish and get shafted by a cowboy builder and you could easily lose half the money.

Where should it be waiting that can be released at short notice? A instant access savings?

where else should it be?

This is why you need a proper advisor!! There are different options and the best one would depend on where your other money is invested, where you are in the build process, how much risk you want to take etc!!

This thread isn’t about money advice ….

He’s helping others by renting houses to them

😂😂😂😂😂and maybe a slow 👏

whats funny?

Even if it isn't, a good financial advisor and planner will be able to illustrate that they do indeed have 'enough' and show them how to make it grow/last for the rest of their life/allow them to invest and also give them confidence in spending without running out of money.

If they're genuinely worried that their assets might suddenly disappear, it might give them the reassurance they need that they could indeed have a secure and prosperous future.

So he's a young man with presumably no building experience and plans to use 60% of his considerable wealth on building a house? Is he insane?

Pay builders? Project manager’s?

do you really think he’s going to do it himself…

If you have to ask you are probably not the person to be helping your friend with their big life questions.

Direct him to someone with a bit of lived experience for a chat.

Please explain why it’s funny? Just interested

"This thread isn’t about money advice …."

Then why ask me....

Perhaps your benighted friend would feel better if they got some decent financial advice because nothing you’ve written makes any sense at all from the perspective of financial peace of mind.

You must be new here to have not picked up on what MN thinks about people who are 'helping others by renting houses to them'. Although strangely it's always a common suggestion when people post about what to do with the spare £50/100k+ that they have lying around.

Why? Landlord’s help communities by renting to individuals who can’t afford to buy or may not want to buy

They don’t really do it for the good of the community do they though, they do it to make a profit

Of course? Who wants to do stuff for free…

Tbh if he plans to spend £600k on building a house then he does need to keep earning. It’s a difficult one because if he takes the foot of the pedal to live a little he might not earn as much but if he’s early 20s now is the time to just keep going and making money