OtherGround Forums ZNED, wealthy people question...

24 days ago
5/10/08
Posts: 46453
TeamRenzo - 
Luke Rockhard - 
boxcar-for-life -
Strangleu -

i make about 5 million a year.

I own several businesses. Most of the people in the country making a nice living are self employed.

High level executives do ok. C level does really well depending on the size of the company.

Wall street and anyone connected with wall street (i.e. Big Tech) can get very wealthy through the various options avaiable to them, including going public.

as far as your speicific questions thats hard to answer about frugality and investing. Some wealthy people are great investors and some are very frugal. Some arent.

You want to be wealthy in this country you almost have to be self employed.

 

 

 

Cool. Care to elaborate what kind of business your in?

 

something to think about.... I have a service business that I started about 5 months ago and I’m on the 5-7 year plan to get to a million per year in revenue 

but

The standard business margins if ur at 20 percent ur doing well...so if I can get revenue to 1 million bucks a year that only leaves me 200,000 dollars profit at the end.

 

kind of sux

Considering it isn’t that hard to earn $200k/year working for someone else while letting them take in all the financial risk while you take home your guaranteed paycheck, the idea of grinding your face against the waves for 5-7 years just trying to get there - while hoping along the way to avoid suffering any kind of catastrophic loss that could cost you everything - being self employed doesn’t always make the most sense. 

However, if you can get there and make it work, and maybe hit a few homeruns in there and grow your revenue to the $500MM+ range, it makes a lot of sense. I think it all comes down to opportunity. What’s in front of you and do you have a clear, defined path to get there.


If earning $200K is that hard then why is someone who earns that much in the 2nd percentile?

Chances are if you earn that much you have grinded your face against the waves for much longer than 5-7 years to get to that point.

I made that in the year I after I graduated from college...

That said... I am an OGer... so should be expected.

24 days ago
4/27/18
Posts: 1227
Jayn200 -
boxcar-for-life -
Strangleu -

i make about 5 million a year.

I own several businesses. Most of the people in the country making a nice living are self employed.

High level executives do ok. C level does really well depending on the size of the company.

Wall street and anyone connected with wall street (i.e. Big Tech) can get very wealthy through the various options avaiable to them, including going public.

as far as your speicific questions thats hard to answer about frugality and investing. Some wealthy people are great investors and some are very frugal. Some arent.

You want to be wealthy in this country you almost have to be self employed.

 

 

 

Cool. Care to elaborate what kind of business your in?

 

something to think about.... I have a service business that I started about 5 months ago and I’m on the 5-7 year plan to get to a million per year in revenue 

but

The standard business margins if ur at 20 percent ur doing well...so if I can get revenue to 1 million bucks a year that only leaves me 200,000 dollars profit at the end.

 

kind of sux

Is that with your working the business or not? If you're working it are you taking a salary on top of that? 

A lot of people would tell you it's not worth the effort but I disagree, small business is rewarding, does more for the economy than large corporations do, and can create something you can pass down generations.

no that incudes salary. I basically find higher ticket items i can sell and market.

I have sales and ops folks and a few close high level executives who run things for me.

Your mailbox is a great source of inspiration for businesses.

It isnt really all that difficult to copy someones business and make a nice living.

 

24 days ago
4/27/18
Posts: 1228

for years i did "lifestyle" businesses. Grow a business lage enough to make a nice living but not have to work very much so I could pursue other interests.

Lately ive been pushing to make a lot more money. 

 

24 days ago
12/18/07
Posts: 7840

$10 million/year checking in.

24 days ago
4/27/18
Posts: 1229
Kip Kinkle -

$10 million/year checking in.

my next goal is a mill a month. Im likely to hit it next year although i suppose it wont be every month.

what do you do

 

24 days ago
8/4/11
Posts: 2809

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24 days ago
4/7/16
Posts: 224

Here is the deal. "Wealthy" depends on lots of factors including location, lifestyle etc. $150,000 in a small midwest town is certainly wealthy. Ask the guy at the local steel mill or grain mill making $35,000-45,000 per year. $150,000 in any major metropolitan area in the US is middle class, but not wealthy. Then add in the idea of self-employment. Sounds great, but you have to pay health insurance, emplyee health insurance, etc. I guess if you can walk away with $200,000 in the bank, you are doing well just about anywhere. Even so, that is living like a king money in most of the midwest or south, not so much in NY, Chicago, Boston, LA, San Fran, etc. 

23 days ago
6/6/19
Posts: 77
lionsoul - 
Yamie Jagerbomb - 
nek -
OG2006 -

In New York is not uncommon to be an employee and make 200k. Less common but definately not rare is 500k to 2mm in law and finance. 

Same for SF and other cities in tech. 

Im middle America it’s cheaper but you won’t find many of those jobs. 

I don't think 200k qualifies as "Wealthy" though.

Someone that makes 200k probably has a spouse that makes an equal amount. Do that for 10-15 years and that couple should be able to be setup financially. 

 

In New York, I’d imagine the wealthy to have real estate holdings, stocks, bonds, etc.  the income from their real estate, dividends from stocks are probably the main source of income for the wealthy.  

 


This is accurate.

The funny thing is that many of my the folks who have made wealth from working in finance have had bigger gains in their real estate holdings than the post tax income from their jobs during those same periods...

But that is the goal.  Liquid wealth and then low tax capital gains from stock sales and dividends.


NOt exactly true..i know a bunch of IT guys in the Sf bay/Napa Valley and they're averaging around 75k..75k aint shit out here
23 days ago
8/23/11
Posts: 5380
boxcar-for-life -
Strangleu -

i make about 5 million a year.

I own several businesses. Most of the people in the country making a nice living are self employed.

High level executives do ok. C level does really well depending on the size of the company.

Wall street and anyone connected with wall street (i.e. Big Tech) can get very wealthy through the various options avaiable to them, including going public.

as far as your speicific questions thats hard to answer about frugality and investing. Some wealthy people are great investors and some are very frugal. Some arent.

You want to be wealthy in this country you almost have to be self employed.

 

 

 

Cool. Care to elaborate what kind of business your in?

 

something to think about.... I have a service business that I started about 5 months ago and I’m on the 5-7 year plan to get to a million per year in revenue 

but

The standard business margins if ur at 20 percent ur doing well...so if I can get revenue to 1 million bucks a year that only leaves me 200,000 dollars profit at the end.

 

kind of sux

$200k as a small business is better than $200k as a salary when you net everything out I would think. 

Lots of extra expenses to write off 

22 days ago
3/26/13
Posts: 1073

bump...

Edited: 3 days ago
4/1/10
Posts: 59888

Most of the wealthy people I deal with (high 9 figure net worth's and higher) made their money starting businesses and selling them, and made exceptionally high incomes. These days I actually get to deal with quite a few.

The rest made it on Wall Street. The wealthiest having made it in the 70s and 80s dealing in junk bonds and P/E. Most niches on Wall Street now don't offer the earning ability of much less regulated times.

This does not include the people who inherited it. I can think of ten offhand that make immense amounts of money, but they had the capital to make that possible from family wealth.

I don't know anyone outside of 401k millionaires who became very wealthy from being frugal and saving and making a normal income.

They all took great risk, made huge compromises, and worked like absolute machines.

 

Of all the wealthy people I have dealt with in the last two decades, only one, who was a billionaire was frugal. Keep in mind though they were frugal with their home, their clothes, their cars, and all of that... but had a private jet and owned an island in the Bahamas. Go figure.

 

Everyone else is very generous and spend a lot of  money and live very lavish lifestyles, for some it is an incredible gam eof keeping up with the Jones'. For others they just don't give a fuck, they have so much money.

 

This is just my experience.

 

I am sure it varies all over.

3 days ago
8/23/11
Posts: 5537
CaptainWoody - "Most of the people in the country making a nice living are self employed"


I know tons of people making a nice living that aren't self employed, in fact 99.9% are. The median household income is 60k in the US. Unless you're living in LA, SF, NY etc. if your income is 130k as a family, you're making a nice if not better living....I make far more than the median household income by myself not counting my wife.

Unless your definition of "nice living" is having zero worries about money and you can do whatever you want when you want....you can buy anything and travel anywhere...but that's just far more than a "nice" living if you ask me.




Oh yeah, I make millions too

Nice living is NOT WEALTHY lol

if you want to be wealthy you need 

1. Multiple streams income - real estate - multiple businesses - etc 

hit on a huge investment 

win lotto 

be a very specialized employee (athlete , rapper, ceo, specialized doctor or  lawyer... trader etc 

 

3 days ago
9/22/16
Posts: 17204
I've never looked at the "number of sources of income" discussion.

I have a salary, my wife has a salary, we combine to make just over $100k per year (although we are both growing our salaries). I have a small side business that only makes around $5k per year, but that goes right to savings. We are looking to purchase a rental property (or two) during the next real estate downturn. She has a healthy 401k, I have a healthy Roth.

It's weird to think we earn so little per year (although it's more than the median family), and we look at our retirement numbers... We're going to have actual wealth?

I think there's a good number of Americans who are under the impression that growing wealth is harder than it actually is?
3 days ago
5/5/11
Posts: 2489
AnthonyWeiner - I've never looked at the "number of sources of income" discussion.

I have a salary, my wife has a salary, we combine to make just over $100k per year (although we are both growing our salaries). I have a small side business that only makes around $5k per year, but that goes right to savings. We are looking to purchase a rental property (or two) during the next real estate downturn. She has a healthy 401k, I have a healthy Roth.

It's weird to think we earn so little per year (although it's more than the median family), and we look at our retirement numbers... We're going to have actual wealth?

I think there's a good number of Americans who are under the impression that growing wealth is harder than it actually is?

Most people lack the financial discipline to build wealth and are completely illiterate financially. Most people can barely balance a check book. Start talking real estate or investing and they'll just glaze over. 

 

I say this because the more I learn about finances and investing the more obvious it is. 

3 days ago
1/12/05
Posts: 62377

Every legit wealthy person I know is practically obsessed with their business and take wild risks that sometimes pay off or sometimes fail miserably. A few dudes started companies and sold them for a fortune, and then jumped right back in with another company and so on. A few are heavily into real estate and development or hospitality groups. None of them made their money in the stock market and buy stocks like they'd bet a football game. 

What I've learned from being around those people is: I am way too lazy and cautious to ever be wealthy. 

Edited: 2 days ago
3/26/13
Posts: 1159
Zned -

Most of the wealthy people I deal with (high 9 figure net worth's and higher) made their money starting businesses and selling them, and made exceptionally high incomes. These days I actually get to deal with quite a few.

The rest made it on Wall Street. The wealthiest having made it in the 70s and 80s dealing in junk bonds and P/E. Most niches on Wall Street now don't offer the earning ability of much less regulated times.

This does not include the people who inherited it. I can think of ten offhand that make immense amounts of money, but they had the capital to make that possible from family wealth.

I don't know anyone outside of 401k millionaires who became very wealthy from being frugal and saving and making a normal income.

They all took great risk, made huge compromises, and worked like absolute machines.

 

Of all the wealthy people I have dealt with in the last two decades, only one, who was a billionaire was frugal. Keep in mind though they were frugal with their home, their clothes, their cars, and all of that... but had a private jet and owned an island in the Bahamas. Go figure.

 

Everyone else is very generous and spend a lot of  money and live very lavish lifestyles, for some it is an incredible gam eof keeping up with the Jones'. For others they just don't give a fuck, they have so much money.

 

This is just my experience.

 

I am sure it varies all over.

Thanks for the response.  Is the "high income" from selling the business?  When you say "income" it makes me think of something continual and not just one huge sale.  Or are you talking about the revenue that the business generates prior to sale?

2 days ago
1/1/01
Posts: 25299
ttt
1 day ago
5/14/10
Posts: 6267
I have no investments and I'm like a black guy who's really bad with money when it comes to being bad with money. I only pull on 12 million per year (one for every inch of dick I have) as a self-employed fitness model.
Edited: 1 day ago
4/1/10
Posts: 59923

Is the "high income" from selling the business?  When you say "income" it makes me think of something continual and not just one huge sale.

They have a high continual income, either from paying themselves a high income from their business, or making a high income in one business while running several others.

The older guys usually make a high income "consulting" for P/E funds and Hedge funds while also making money from their business or businesses.

It is like Lupo said, they are very obsessed with their businesses and making money, and it supercedes everything else in their life (I am not saying they are bad people at all, some are very nice and great parents and community members and everything but business is god).

One I deal with regularly and for the life of me can't imagine how he has the time to be so successful at so many things all at the same time while being an exceptional golfer and beast at crossfit anmd coach his kids baseball team. I don't know how it is done, he must not sleep, and he just turned 50. You would think he would be a biut haggard or run down, but he is just running on all cylinders at all times and happy and positive at all times.

That type of person is just another breed.

 

Some of them are just making multiple 7 figures in finance, then using that income to take on risk.

1 day ago
6/19/10
Posts: 4165
nek -
Zned -

Most of the wealthy people I deal with (high 9 figure net worth's and higher) made their money starting businesses and selling them, and made exceptionally high incomes. These days I actually get to deal with quite a few.

The rest made it on Wall Street. The wealthiest having made it in the 70s and 80s dealing in junk bonds and P/E. Most niches on Wall Street now don't offer the earning ability of much less regulated times.

This does not include the people who inherited it. I can think of ten offhand that make immense amounts of money, but they had the capital to make that possible from family wealth.

I don't know anyone outside of 401k millionaires who became very wealthy from being frugal and saving and making a normal income.

They all took great risk, made huge compromises, and worked like absolute machines.

 

Of all the wealthy people I have dealt with in the last two decades, only one, who was a billionaire was frugal. Keep in mind though they were frugal with their home, their clothes, their cars, and all of that... but had a private jet and owned an island in the Bahamas. Go figure.

 

Everyone else is very generous and spend a lot of  money and live very lavish lifestyles, for some it is an incredible gam eof keeping up with the Jones'. For others they just don't give a fuck, they have so much money.

 

This is just my experience.

 

I am sure it varies all over.

Thanks for the response.  Is the "high income" from selling the business?  When you say "income" it makes me think of something continual and not just one huge sale.  Or are you talking about the revenue that the business generates prior to sale?

Their businesses were income producing. As a result, their business were attractive to investors or competitors. They sold their businesses to generate wealth. Wash, rinse, repeat. 

1 day ago
1/9/11
Posts: 1459
Yamie Jagerbomb -
nek -
OG2006 -

In New York is not uncommon to be an employee and make 200k. Less common but definately not rare is 500k to 2mm in law and finance. 

Same for SF and other cities in tech. 

Im middle America it’s cheaper but you won’t find many of those jobs. 

I don't think 200k qualifies as "Wealthy" though.

Someone that makes 200k probably has a spouse that makes an equal amount. Do that for 10-15 years and that couple should be able to be setup financially. 

 

In New York, I’d imagine the wealthy to have real estate holdings, stocks, bonds, etc.  the income from their real estate, dividends from stocks are probably the main source of income for the wealthy.  

 

This isn’t entirely accurate.  The majority of wealthy individuals I know and have observed are predominantly single earner households.  This is especially true when children are involved.  

A 400k household income is quite good, but in one of my neighborhoods, property taxes for a number of homes exceeds 45k.  I am paying 54k on one home and my current property tax bill for the property (Due 12/10) is 27k.  

400k/year in California is good money, but I wouldn’t classify it as wealthy.