Is it still possible to get really RICH

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Is it still possible to get really RICH

Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes

http://money.msn.com/how-to-invest/what-it-takes-to-get-really-rich-mirhaydari.aspx?GT1=33014

Can one still get rich? What is the new definition of rich? Best way? Is it more difficult than ever before?

What is the #1 method to become rich? Read to the end of the article above.

This is an interesting article with some very profound stats. Good read, imo. Rich

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Luis A.
Real Estate Investor · Atlanta, GA · Member since 2009 · 339 posts · 126 votes
15y

I couldn't care less about getting rich. What I want is to be financially independent and wealthy. Being able to wake up every morning and not HAVING to work.

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  • Chris G.
    Real Estate Investor · Irvine, CA · Member since 2011 · 189 posts · 33 votes
    15y

    I wouldnt feel rich without a monthly income stream derived from wherever/whatever, that covered all my expenses. If I was eating away at principal every month then I would definitely keep trying to grow my recurring income (unless I had some obscene amount in the bank, such as $10MM).

    0Reply
  • James Vermillion
    Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    15y

    Interesting article Rich. I think it is very possible to get rich in the US today, as I have seen it done. I do agree with the author though that most people do not want to and/or fear making the sacrafices needed to do so. I cannot say I blame anyone though, it is much easier in some cases to sit back and collect that paycheck every 2 weeks. Me, though, I will work hard and take my chances!

    3Reply
  • Mark Yuschak
    Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
    15y

    I agree with James.

    It all seems to come down to discipline. Make more than you need, and don't spend all of it on things that aren't important.

    Rich is a perception. All too often people like to give off the impression that they are rich when in reality they're up to their eyeballs in debt!

    0Reply
  • Luis A.
    Real Estate Investor · Atlanta, GA · Member since 2009 · 339 posts · 126 votes
    15y

    I couldn't care less about getting rich. What I want is to be financially independent and wealthy. Being able to wake up every morning and not HAVING to work.

    8Reply
  • Rich Weese
    OP
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    15y

    QK- What is your definition of each? Rich? Wealthy? I don't see a difference in that. If you're talking about high income compared to rich/wealthy, I get it. Thanks. Rich

    0Reply
  • Thomas B.
    Real Estate Investor · Portland, OR · Member since 2011 · 30 posts · 4 votes
    15y

    Ill tell you This, feeling rich in Sioux Falls is going to be very different that feeling rich in New York or Los Angeles......

    Im a Physician and a specialist and don't feel rich at all.....

    0Reply
  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    15y

    Thanks for posting that, it was interesting. I believe the TRUE definition of rich is to be happy with what you have. I use the word wealth to describe an abundance of money. Just like poor is a state of mind, not a financial situation. Broke is the absence of money.
    Enough philosophy, LOL! Yes, I think with the 4 key ingredients one can become wealthy in today's society. First, is education. I am not talkin just the college students, I am talkin learning as much as you can about your chosen business. Second, is effort. You gotta work at it. Third is determination and finally you gotta stick to it! With these key things, I believe you at least have a fighting chance! Just my .02 cents! :mrgreen:

    1Reply
  • Greg D.
    Investor · Tewksbury, MA · Member since 2010 · 59 posts · 17 votes
    15y

    I am comfortable making what I do now. I will be "rich" when my passive income equals this amount.

    0Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    15y
    Originally posted by Rich Weese:
    QK- What is your definition of each? Rich? Wealthy? I don't see a difference in that.

    This was brought up in another thread that haven't been able to locate (Steve?), but I believe there is a fundamental difference between being "wealthy" and being "rich".

    Wealthy simply describes a person's financial position. Rich is a broader description of their life's fullness.

    For example, let's say Tom has a net worth of $10 million and Harry has a net worth of $3 million. Who is wealthier? Obviously Tom.

    Now, consider this. Tom is single, having divorced 3 times. His children do not like him and only call when they need money. He spends holidays alone and the only time he socializes or goes to parties is when it involves his attorney, CPA, or somebody else on his payroll. Finally, he works 12 hours a day, including weekends, on his successful business and it's taking a toll on his health.

    Harry has a loving family, having married his high school sweetheart, and his children come to visit several times a year. His house is always full of family members on the holidays and he has large circle of friends always inviting him out to parties, golf, special events, etc. He takes good care of himself, does his best to only work 4 days a week, and is in great health.

    Who is richer?

    3Reply
  • Rich Weese
    OP
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    15y

    Thomas- I only domicile in SD because I travel continually. I retired from so cal and know level of rich is different there.

    Mitch- those were interesting definitions. I don't disagree.

    0Reply
  • Nate Santillanes
    Investor · Windsor, CO · Member since 2011 · 26 posts · 4 votes
    15y

    This reminds of me the saying "how much money is enough for the common man? Just a little bit more!" - I believe that was Rockefeller?

    I have to agree with a combination of qk and Greg here, financial independence and freedom are the end goal in my eyes. That doesn't mean not having to "work" but working on/in the things that you enjoy, make you happy, but aren't required in order to live comfortably. Maybe working to manage my own properties, I'm not required to do so as I could hire a PM, but I enjoy doing it! Maybe providing security for your family and those close to you. By definition ditching the "9-5" - I believe real estate can and will provide this freedom for my family and I. I also believe this is an evolving goal that will change and grow as I experience more.

    0Reply
  • Jason Wheeler
    Pleasant Hill, CA · Member since 2008 · 428 posts · 43 votes
    15y

    When I define rich it means I can spend plenty of time doing the things I love... I don't need to be a millionaire. I just want to live the mobile lifestyle.

    0Reply
  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    One way is to just keep doing what you are doing for a long time. The couple of guys I knew kept buying and selling right up to the end (80's) and were totally independent for many years.

    1Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    That was a good read. I also liked the comments at the end of the article from readers.

    $7+ million to "feel" rich sounds high to me. I think the form of the assets matters a lot too. Someone with $10M in assets and $7M in debt doesn't sleep nearly as well as someone with $3M liquid.

    I do think it has become harder to achieve wealth recently with the downturn. Capital is hard to locate so even the best entrepreneurs are having a hard time growing. It is still possible to get very wealthy by spending less than what you earn, investing wisely, and sticking to a sound plan. Where I always see people get in trouble is trying to get to the finish line too quickly and taking on too much risk to shortcut the whole operation.

    2Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    For me richness is about a balance in life.

    For me I try to get the most out of life financially,emotionally,spiritually,physically etc.

    I want to be balanced as much as possible in all aspects of my life.

    In a previous business I owned a restaurant.Great money but I was always putting out employee fires and they didn't care about the business like I did.In my 20's my cholesterol was 300 and my weight was 285 at 5 foot 9 inches tall.

    So I made some changes.Now I weigh 185 and cholesterol at 201.Workout and feel great,travel,work as much or as little as I want,and I don't feel like a slave to the business.If I choose I can ramp up my business more at any time but I control it now versus the other way around with previous businesses.

    I can show you a lot of tired,depressed,lonely,sad people that have a bunch of money.I would rather make 200k a year and have the terms I want in life then 350k and feel out of control and out of balance.

    Some brokers/agents tell me I will do this 24/7 and close tons of deals.I then ask them how long they have been doing it?? They say maybe 1 to 2 years.I say give it a few more years and you will hit burn out if you don't scale back.

    A few years later they have left the business all together,scaled back and pace themselves,or are still teetering on burnout and are divorced,etc. with their life in shambles.

    My Uncle invented the Goof-Off cleaner.Became wealthy and then went through a really nasty divorce and money and power got to him for about 10 years after that.As he got older he finally changed and realized money wasn't everything just the experiences and memories in life that you cherish.

    Don't be a slave to money.Use it as a vehicle to reach your dreams in life but don't worship it because the true things you value will be gone if you do.

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    6Reply
  • Mark N.A
    Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
    15y

    IMO becoming rich requires three things: Luck, Hard Work, and a certain innate Talent within your chosen field. They don't have to come in equal amounts, but they must be there in some amount.

    Warren Buffet's talent is understanding businesses, Stephen King's talent is writing, Picasso's talent was art, and even Bernie Madoff had some sort of people-mesmerizing talent. I don't think anyone can deny there was also Hard Work and Luck involved in their successes.

    However, I've met any number of people in those same fields who never really made it because they simply lacked one of the other two required prerequisites.

    1Reply
  • Mitch Stephen
    Specialist · San Antonio, TX · Member since 2011 · 81 posts · 97 votes
    15y

    There is no "ONE WAY" to prosper in the real estate market. Anyone who tells you that their way is the best way is being a bit theatrical. Everyone is different. Every town is different. Everyones tolerance for risk is different. Everyones ability to handle partners or raise private moeny is different. Figure out what YOU want to do in yur town and then get among those who have done it...who are doing it...in YUR TOWN.

    --Mitch Stephen--

    --Mitch Stephen--

    0Reply
  • Rich Weese
    OP
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    15y

    Having been around the block, I think it is going to be more difficult to gain real wealth (I'm not talking happiness, warm and fuzzy feelings, etc) for 1 simple reason.

    My 1st broker (nearly 40 years ago) told me I should have one goal-"to get 1 miilion dollars in debt". His reasoning was that I should be smart enough to use that 1 mil to make more than the money cost me. I took that to heart. 1 mil was a whole lot more money 40 years ago.

    Of course, this is known as OPM (other peoples' money). The reason it is more difficult to obtain wealth is because there is simply less of OPM to go around. I believe with the loss of "paper" money in the market and 33% loss of real estate equities, there is simply less OPM to help with the creation of wealth. I'm just talking money here, not warm and fuzzy feelings.

    When you add to this the devaluation of our dollars and the difficulty to borrow from lending institutions, there is simply less real wealth to go around. 40 years ago, 1 mil was a great goal-with $.25.9 per gallon of gas, $.18 Mcdonalds burgers and wonderful homes for 45K. (and this was in Orange County, CA!!)I'm afraid that # is considerably higher today.

    For the above reasons and changes, I stand on the side that it is still possible to get "wealthy", but it will be much more difficult and require much more in assets. Rich

    1Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    I think a lot has changed over the past few decades too. I am young so this is just based on what I see and hear....not from experience. Everyone seems to be looking for a way to make a fast buck and strike it rich instead of developing a long-term, sustainable plan. To me that is the big reason is seems harder to get rich today. Economic headwinds don't help any either.

    2Reply
  • Brad B.
    Contractor · Arcade, NY · Member since 2011 · 44 posts · 31 votes
    15y

    What a great topic!

    I think this article sums it up best with this paragraph:

    "The fact is most Americans don't want to get rich. Sure, they would like the money. But they don't want to make the sacrifices necessary to have a shot at becoming really wealthy: the enormously hard work, missed birthdays, long days and forgone vacations and weekends."

    I completely believe there is great wealth out there to be had but only by those who have the ambition, drive, creativity, and endurance to obtain it.

    Opportunity exists in many areas. Some have high barriers to entry and others not so much. Potential exists all around us, just not everyone has the creativity or vision to see it. Of those that do, most will do nothing. Of those that start, most will fail. Of those who don't fail, many will not know how to properly exit. Those few who remain will be the ones with the wealth and moving on to bigger and better things.

    I listen to the doom and gloom from people talking about the current economy and how things are so bad. I don't believe things are any worse than in many times in the past. It just forces us to view things outside our own personal comfort zone.

    To the original questions:

    Can one still get rich? Absolutely.

    What is the new definition of rich? I like the one that I learned years ago that's simple when I have enough money that it can work for me to provide me my chosen life style. As a number - mine is around $10 mill.

    Best way? Whatever gets you there without killing you on the way. Try to reach the goal while having some fun. It helps to have some good people around that you actually like. To each his own.

    Is it more difficult that ever before? Nope. It's never been easy. We have the benefit of reading about the successes, so our view is biased. If failures wrote books about it, we'd see how skewed our perceptions are.

    Millionaires were created during the major depression of the civil war as well as during the great depression not to mention all the bumps and hiccups in between. Millionaires and billionaires are created even now.

    2Reply
  • Geoffrey Murphy
    Real Estate Investor · Hartford, CT · Member since 2011 · 222 posts · 17 votes
    14y

    Brad, I could not agree more with you. Im younger than majority of the BP members, which means i have less experience in RE and other things. However, I truley BELIEVE that with the DESIRE, DETERMINATION and WILLINGNESS TO LEARN it can absolutely be done!

    As a young investor starting out, i wouldnt have ask for a better way than how the cards and chips are stacked. BIG RISK, BIG REWARD! Even though patience and timing and great numbers plays a major role i believe it can be done.

    I guess when i get older, really older...=) (nothing against you guys, lol) i will be able to say i remember back in 2010, 2011, 2012, 2013 when we went thru another depression (if not collapse) i was making so much money in real estate, its a shame!!! LOL =)

    Chow!

    0Reply
  • Rich Weese
    OP
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    14y

    Geoff- I had to laugh when "your looking" back consists of 2010 and 2011!! When I look back, I see the 70's, 80's, 90's, 00's, and now the 10's!! I'll cover those decades in my presentation at the BP seminar in Denver and I'm looking forward to it. Rich

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y

    Hard work and determination are an essential part of getting to your goals. Just plain luck is a factor, too. Making the right moves at the right time vs. the wrong move or the wrong time will make a big difference on the outcome.

    Sorry but "BIG RISK, BIG REWARD" is incomplete. Its really big risks, potential for big rewards. But there is also the potential for a big loss. Venture capitalists and investors in IPOs can have huge paydays when their investments are successful. But for every successful one, they have a bunch of losers. That's OK, because they make a lot of bets. But if you only make a few big risk bets, there's a good chance you will end up with a loss.

    0Reply
  • Nathan Emmert
    Investor · San Ramon, CA · Member since 2011 · 1k+ posts · 569 votes
    14y

    There's always an element of luck... but generally in successful people what you find is they gave themselves more chances and better odds of getting lucky. They put themselves out there.

    For me, I have 20 years or so to get wealthy. I have few doubts that I will be successful in that endeavor. Wealthy to me is when I don't worry about bills any more. I live the life I want and know someone else is paying the bills for me :)

    1Reply
  • Account Closed
    Rehabber · Member since 2011 · 66 posts · 9 votes
    14y

    Everyone wants to get rich quick and not build sustainable businesses that create jobs. It's about fast money at all costs. At least that is what a fun book I just finished claims called "The High Beta Rich". I would recommend reading it. Personally I think the easy money as been made. We had the .com boom and the real estate boom and now our country is tapped out. Time for Americans to step up, get our hands dirty and innovate again.

    0Reply
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