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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Millionaire Habits

38 replies

Ihatesw · 24/02/2019 16:45

Sorry to be nosy (hence the AIBU) but can I ask what lifestyle habits or careeer choices made you or someone you know a millionaire?

Asking because I’d like to be one Grin single mum but earn quite well, hoping to be mortgage free in next 5 years. Would love to hear some inspiring real life stories or advice.

OP posts:
Ihatesw · 24/02/2019 21:51

@Grace212 Yes I have thank you! I’m not a big spender, I don’t think I am anyway. For context I have 4 bras and am currently umming and ahhing about getting a 4th from M&S with a discount code. I stick to my budgets. Have about 3k of Debt to pay off (have paid approx 50k in 5 years) and am intent on spending on items that have longevity rather than short term gratification.

I just know I could be better but so not want to compromise on gifts and enjoying life. Really happy when I read about success stories from people who do both!

OP posts:
Ihatesw · 24/02/2019 21:51

*but do not want to

OP posts:
Lifecraft · 24/02/2019 22:14

The couple of millionaires we know are so tight you could shove a lump of coal up their arses and have a diamond in a week

I don't want to be a bore but I will be anyway. It's a myth that diamonds are made from coal. They aren't. Coal and diamonds are both forms of carbon, but are two separate things. Diamonds were never coal.

Linning · 24/02/2019 22:33

Two of my aunts (my mum's sisters) are, I very much believe, millionaires, and both for different reasons though they both adopt a similar technique to keep their cash flow coming.

Aunt 1- Married my uncle at 19, he worked for the military, she studied advertising (I believe), they both evolved in their career, she earned a good salary for an ad company, he ended up working as an engineer in submarines for the marines, she started her own business, he moved to the petrol industry (meaning he makes loads of money but isn't around to spend it!) and they started investing in properties around the country to rent out. They never really struggled for money and just put a lot into their career (my aunt has never been a stay-at-home mum so never had a break in career even though she could have afforded to) as such they have always had money and always have been quite the spenders, they definitely aren't the most generous people around though.

Aunt 2- Worked in communication on an average salary, met my uncle who worked as an employee for a landscape company (he had grew up dirt poor), they got together and he decided to create his own landscape company and my aunt quit her job to join in on the business. The business has done quite well and they started investing their money in other ventures (properties to rent out, their own car wash company, etc...) and they are now loaded, you wouldn't know if you see them though, they do own a sports car worth the price of an average house (though she seems to live in the garage) but they used an old banger FOR YEARS as a car to go around as they didn't see the need for a newer car if that one still worked, they had a baby two years ago and my aunt got a lot of things second-hand instead of new, she will stand at shop questionning and considering whether or not she can afford a £10 top when it's clear she could probably buy the store if she so wanted to, but I think them growing up in either poverty (for my uncle) or middle/working class household (for my aunt) shaped their attitude towards money. They had to fight to get where they are at and therefore I believe are conscious it could all go away (though it's very unlikely).

The similarity between both of my aunts is that they were clever enough to invest in more than one business and at the stage they are at, they own enough properties and businesses that if one fail, it will barely have an impact on their quality of life, if at all.

I am not sure being a millionaire matters though, I think reaching a level where you don't actually have to worry about money or bills and the odd treat is good enough. Aunt 2 has loads of money but she did really struggle with fertility and I am wondering whether or not she is actually happy (her relationship looks a bit crap from the outside), I think it's nice they don't have to worry about money, and I have learned a few things from their success story that I plan on implementing myself, but I don't necessarily aim to be a millionaire. I can't see how someone who is a millionaire is happier than someone who is quite comfortable (having lots of money can also bring its own issues).

Adeste · 24/02/2019 23:19

I know a group of 4 oap millionaires who made money investing in the stock market. Some had a head start with inheritance money, one was a teacher, one was a brick layer.

None drive flashy cars, and I’m not sure they’ve bought any new clothes this decade Smile. They get childishly excited about free drinks and food at shareholders meetings and arrange to attend meetings of companies where they don’t own shares as each other’s guests, to discuss the quality of the free food Hmm They read the papers in the library rather than paying for them and wouldn’t dream of getting a taxi when you can walk and catch 3 different buses to get there.

Frugal doesn’t begin to cover it. And I think the pleasure of money is in seeing the total grow rather than in ever spending it on anything. Ever!

user1474894224 · 25/02/2019 08:53

My cousin has done well in property. However she also has a policy of not dating anyone not in the income bracket she wants to be.....her current partner is definitely a millionaire. (He also works hard).

HopeIsNotAStrategy · 25/02/2019 10:31

Plant little time bombs of money for your older self - a savings account, something in the pension, buy an old property somewhere cheap, do it up and sell it or rent it out, there are all sorts of things you can do. Always keep an eye open for opportunities to make some money. Start while you are young is a very important secret - the magic of compound interest really is your friend.

Many people overlook that it’s not just a matter of how much you make but how you spend it as well. Savings you make aren’t taxed, income is. Don’t be too proud to buy some things secondhand, and always check the cheapest way to source things, especially high ticket items. Cash back sites can be very helpful, and check your bills from time to time to make sure you’re getting a good deal. Don’t fritter all your money away on inconsequential things like coffee and expensive face creams, it all adds up. Have an annual review of where you’re at, and likely threats and opportunities in the year ahead.

See it as a long game. Don’t be a skinflint, but get some satisfaction from being in charge of your financial destiny, if that’s what you want to achieve.

Nomorepies · 25/02/2019 12:41

This reply has been withdrawn

This has been withdrawn by MNHQ on the poster's request.

PettyContractor · 25/02/2019 12:59

Earn about 40K a year more than you spend, invest it in the stock-market, and you should get there in about 20 years.

PettyContractor · 25/02/2019 13:02

Alternatively, 80K a year for 10 years.

Other combinations of savings rate and time invested are available.

unexpectedgifts · 25/02/2019 13:16

The few millionaires I know are frugal, cost efficient obsessives that do not spend their money easily.

They invest wisely, are financially wise, always swap to a better deal. They make do and mend, rarely buy new anything unless it's a one off lifetime purchase like pans or furniture and always always analyse figures.

It all adds up over the decades.

thecatsthecats · 25/02/2019 13:37

I think my husband and I are slowly and steadily going to get there. He doesn't, but I think that's a symptom of his cautious, frugal nature to underestimate!

We:

  • shop groceries frugally
  • don't have expensive hobbies
  • bought a house in an area where prices spiked shortly afterwards
  • don't have lease cars, contract phones etc
  • are improving the value of our property by graft
  • earn 100k combined
  • probably stand to inherit a large chunk from my parents at least (who are insanely frugal and I wish they would spend more)
  • buy second hand, and always either on a deal, or are able to talk ourselves out of buying at all

The people who know us either think we spend a lot (see frequent deliveries and assume we've spent a lot, when actually it's mostly DIY type materials), or think we're low spenders (inexpensive clothes, I haven't had a haircut for over a year, never have a manicure etc).

BridlingtonSand · 25/02/2019 17:01

I am not sure being a millionaire matters though, I think reaching a level where you don't actually have to worry about money or bills and the odd treat is good enough.

DP recently read out to me a snippet that after £50k per year there is no correlation between more pay and happiness.

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