I had no idea that my friend is a multi millionaire!!

[shockedpuppy]

Been friends for 35+ years. Both from "normal" working class backgrounds. I found out today, that her DH's business turned over £100 Million last year. Yes, One Hundred Million, it's not a typo.

They have a nice house in the South East, worth maybe £700k. There are no obvious signs of such wealth. They are not big spenders. We were at a party with them last month, and they were (as usual) quite slow to get the drinks in when it was their turn. We definitely got in more rounds. Gifts at Christmas are especially frugal, I normally receive something that has obviously been recycled as it's so bizarre, or it's obviously a freebie with another purchase.

I had been feeling quite good recently about money, as we pay off our mortgage later this year (house worth about £340k for context), and we will have a reasonable amount in savings. Now I just feel a bit Meh, as we will never attain anything like this. Just one million would do me, lol. I know comparison is the thief of joy, but I feel absolutely positively green with envy.

They will be able to do things for their 3 daughters when the time comes, like buy them homes outright - something we can't do.

We are all in our 50's, if that's of any relevance.

I think your friend has been great for not telling you about her financial standing. Especially given what effect the discovery of their wealth is doing to you.

Ffs. You have no idea if they are multimillionaires or not. You don’t know what his salary is! The value of the company is not their personal wealth unless they were to sell it. You cannot take money from your business and spend it personally.

For all you know he pays himself £150k.

Well all I can say is I was profoundly disappointed by the revelation.

I chose this thread from the "trending box" which said "I had no idea that my friend is a ..." and was expecting "swinger" - which I'd have found far more entertaining than millionaire.

It doesn’t matter how much money they have they can spend it how they wish. I have several friends that are millionaires some multi and they are very frugal which probably helps. I’m very generous and will never be a millionaire🤣

Really? Mixing friendship and money is a faster way to ruin a friendship than going nosying online and being upset by what you find. My bank account is for me to allocate not you to eye up.

I don’t see why this would trouble you in any way. Except if they aren’t paying their way in terms of rounds reciprocated etc, but that would be an issue even if they were just normally placed financially, as that’s just about manners.
What they have and how they spend it hasn’t affected your friendship so far and is nothing to do with you. They don’t owe you expensive gifts at Christmas anymore than they would were they poor.
We have friends that are immensely wealthy. We are pleased for them and DH occasionally ruefully looks at the man’s supercars and sighs. Other than that we just have a normal friendship with them.

Friendships are worth more than money, yes, why should it matter?

The poor friends, they clearly haven’t bragged about their wealth or done anything to make you feel inferior, and yet here you are listening to gossip and “researching” them online.

This reflects really poorly on you. What a shame.

It really does bring out the worst in people. Combine that with someone trying to create a narrative that you've "changed" and you can see why it causes rifts.

What? I don’t know the company. How on earth can I explain their finances to you.

But the bit you’re not understanding is that you have no idea what there personal financial position from the company financials.

they could be in a lot of debt from setting up the business for all you know

The number of people who know multi millionaires on this thread! 🤯

Dividends are not earnings, they are available profits after tax. If you have product/stock that is seasonal, and or salaried staff, you need more working capital than a lot of companies and it’s normal. Retail based businesses often have tighter margins. If it’s just lumpy trade, again quite normal and profit distribution should not be seen as monthly income.

That article was really interesting - thank you!

Compare yourself with someone homeless on the streets of your local town instead. It might make you feel grateful for the life you have.

God just carry on as normal......they obviously like you and your family for who you are and that cannot be bought.

They sound great, level headed and sensible with their priorities in the right place.......the sort of people anyone would want as friends.

I wouldn't be so quick to get those rounds in in future though 😌

We have a significant amount of money.

I’m not getting into figures but we could buy our children 5 bedroom detached houses outright in our area tomorrow if we wanted (they’re 4 and 11) but their immediate housing needs are being met at present.

My daughter needed new pyjamas at the weekend - I went to Asda. We drive perfectly fine cars, we holiday in nice places. Do we go out all 5*? No. My friend does my hair in her kitchen. I like M&S but only for certain things, I’m more likely to be found in Lidl. My son got his first phone for his transfer test results - refurbished iPhone 14 from Amazon.

Lifestyle is not always indicative of the entire picture.

OP - you literally have no idea about this person's finances. As others have said, turnover is not profit. And in the case of a £20m profit - this would go to all shareholders. Even if you mean £20m for this friend specifically, it's probably ploughed back into the company if it's a family business. Much will likely be in the form if shares. What do you think happened here - £20m cash just appeared in their current account? You must realise half of that would have instantly disappeared in tax if they tried to take the money as profit into their personal accounts. So there would have been no incentive to take it out the company. If not reinvested in the company, they will have invested it elsewhere (maybe overseas) and will have an asset manager and an investment portfolio. But it will be tied up somewhere - not just sat in a current account for people like you to gossip about.

Top quality humble brag post.

Why is it humble bragging? This is exactly the kind of response that makes people want to keep quiet.

It's easier to "other" people with money. Talk sh1t about them buying silk Dior kids' pjs and shopping in Harrods food hall.

I'm in a similar position to the pp s
Who talked about Lidl, Asda and older iPhones. Im the same. Dye my own greys/love a matalan splurge/drive a 2nd hand fiesta. Not all of us with money are vapid, shallow spenders who live in an alternate universe. I grew up in a 3 bed semi with parents both working 2 jobs. I know how fortunate we are.

Could do without attitudes like yours, though.

Turnover isn't income. DS turned over £125k the first year in his first business 15 years ago. His profit was actually £7k. He has moved on since then thank goodness.

Exactly. And in addition there has already been a comment on the thread about how someone would be pissed off if their friend with money didn't invest in their business to help them out.

That's exactly how some people react. My own uncle who lives a long-haul flight away came to stay with us while travelling. Within 24 hours he had made a comment about the likely value of our house based on the local real estate windows and within a few hours after that he'd asked us to invest in his failing business. Our polite declining to do so (it was a vanity project and he drank away any tiny profits he made) then triggered a rant about how I need to remember where I came from and lots of comments to extended family back home that I am a stuck up posh bitch.

We never reveal financial details to anyone. Why would we? We like the people we like because we like them.

I agree.

And in fact, most people I know of who wear the loud designer labels (I'm not talking quiet luxury, but the very obvious stylings), have strings of designer handbags, flashy cars are people I don't actually consider all that wealthy from what I know of their total wealth (they tend to talk).

The really loaded ones (or at least those who have learned to manage and live with money) wear cashmere with moth-holes and ideally grow their own veg (not without a sprinkling of pride and affectation!) They do often tend to have land, and look to re-wild a few acres, and slightly weather-beaten homes (both of which have proper re-sale value). But expenditure and wealth are not the same thing.

What are you basing your valuation of £20m net worth on?

What is cash vs debtor position?
How many shareholders are there?
What liabilities do they owe?
How liquid are the companies assets?
What are the reserves like?

The number of companies with massive turnovers barely making losses a hair’s breadth from failure would surprise you.

I would say my attitude is the least bad thing about this ridiculous thread tbh!