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Is it impossible to become a millionaire with a degree? Watch

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    If someone went to University, achieved a first class degree and got a job in a company, the average starting salary for a graduate is around £29,000.

    How long would they wait for the £29,000 to increase and by how much would it increase by the time they are 30 for example?

    Also, why is my sister's friend earning over £100,000 year at age 26 in a supermarket company like Tesco?

    So it seems very difficult to become a millionaire by yourself in an ordinary job - it not impossible.

    The only to become a millionaire is by winning the lottery or marrying a rich person?
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    (Original post by Floon)
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    Do you mean millionaire in the sense of being an asset millionaire? That is not particularly rare, there are plenty of people who own a nice house worth a million.

    But if you're talking about having £25 million or something like that, then it is fairly rare. You need to be more than just a professional like a doctor or lawyer. You need to plug yourself into deals that earn you money.

    For example, my aunt (who is now generally retired, but sits on the boards of pension funds and so on) was a very good lawyer, she was the general counsel for one of the top banks in Australia. But that in itself wouldn't have made her extremely rich, it was by plugging into the connections she made, by being invited and getting plugged into land developments and property deals that she made the big bucks.

    A salary by itself won't make you rich (unless you make it to the very top), what's required is having a sufficient amount of capital and the connections to allow your money to work for you
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    (Original post by MostUncivilised)
    Do you mean millionaire in the sense of being an asset millionaire? That is not particularly rare, there are plenty of people who own a nice house worth a million.

    But if you're talking about having £25 million or something like that, then it is fairly rare. You need to be more than just a professional like a doctor or lawyer. You need to plug yourself into deals that earn you money.

    For example, my aunt (who is now generally retired, but sits on the boards of pension funds and so on) was a very good lawyer, she was the general counsel for one of the top banks in Australia. But that in itself wouldn't have made her extremely rich, it was by plugging into the connections she made, by being invited and getting plugged into land developments and property deals that she made the big bucks.

    A salary by itself won't make you rich (unless you make it to the very top), what's required is having a sufficient amount of capital and the connections to allow your money to work for you
    What do you mean by connections? How do connections give you more money? What do you mean land development and property deals? So to become rich, you should be an estate agent?
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    (Original post by Floon)
    What do you mean by connections? How do connections give you more money?
    I should have thought that's pretty obvious. Rich people, connected people, get access to deals and investment opportunities that have returns far in excess of what the man on the street has access to.

    If you're an average person with some money to invest (leaving aside property), you might be able to get a few percentage points. The returns are often below inflation. If you have connections and can get plugged into good deals, you can often be looking at 15% returns.

    What do you mean land development and property deals?
    It's pretty self-explanatory. Say you have a condemned site in central London that has been acquired, and they are looking for investors to turn it into luxury apartments, and the returns will be at the level of 30%-50% over a few years. Do you think they just put out an ad on TV and ask Joe Blow if he wants to put a couple of thousand pounds in?

    Of course not. They go to other wealthy people who are plugged into those circles and ask them to invest. And this is reciprocal, the investor might see a good deal next time and invite the person who got them in on this deal to come in on the next one.

    So to become rich, you should be an estate agent?
    I'm sorry, are you being deliberately obtuse? I'm talking about the fact that if you have millions of pounds to invest in property, the returns are absolutely immense. And if you have the kind of connections that open up the really good deals, where you can get in on the ground floor of new developments, then you are looking at returns of 15% year on year at current growth rates.

    How many estate agents can afford to invest £10 million on a property deal? You actually need to have the money to invest in the first place, along with the connections to people who will invite you in on the really good deals, to make the big bucks.
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    My dad comes under the heading "millionaire" and all he's done is work his arse off

    Maybe you should do the same
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    My parents have no degree's ,but when they moved her in the UK they just opened a business and worked really hard ,and now we are millionaires
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    (Original post by Kutta)
    My dad comes under the heading "millionaire" and all he's done is work his arse off

    Maybe you should do the same
    There is (in most cases) quite a bit of luck needed in becoming a millionaire in addition to hard work.
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    If you want to be a millionaire, you need to show initiative. If you get the average salary, and wait until you're 30, without taking leadership of your own life and career, you'll never be a millionaire. I doubt that's what your friend (earning over a 100 grand) did. However regardless on if she went to university, she showed that she can do far more than the average graduate, and that is what you need to be in order to be a millionaire.
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    (Original post by MostUncivilised)
    I should have thought that's pretty obvious. Rich people, connected people, get access to deals and investment opportunities that have returns far in excess of what the man on the street has access to.

    If you're an average person with some money to invest (leaving aside property), you might be able to get a few percentage points. The returns are often below inflation. If you have connections and can get plugged into good deals, you can often be looking at 15% returns.



    It's pretty self-explanatory. Say you have a condemned site in central London that has been acquired, and they are looking for investors to turn it into luxury apartments, and the returns will be at the level of 30%-50% over a few years. Do you think they just put out an ad on TV and ask Joe Blow if he wants to put a couple of thousand pounds in?

    Of course not. They go to other wealthy people who are plugged into those circles and ask them to invest. And this is reciprocal, the investor might see a good deal next time and invite the person who got them in on this deal to come in on the next one.



    I'm sorry, are you being deliberately obtuse? I'm talking about the fact that if you have millions of pounds to invest in property, the returns are absolutely immense. And if you have the kind of connections that open up the really good deals, where you can get in on the ground floor of new developments, then you are looking at returns of 15% year on year at current growth rates.

    How many estate agents can afford to invest £10 million on a property deal? You actually need to have the money to invest in the first place, along with the connections to people who will invite you in on the really good deals, to make the big bucks.
    Sorry, I don't know anything about this kind of stuff, but you explain it very clearly, so I am learning.

    If I were to win a couple of million pounds on the lottery for example, should I plug this money into an investment and make 15% returns?

    It's kind of like those people who buy a cheap house, do it up, then sell it for more money than they spent decorating it? So they make £10,000-£20,000 return on each house? Then they buy more expensive houses, and do the same, but this time, their profit is maybe £40-50,000?
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    Smart investments.
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    (Original post by Floon)
    Sorry, I don't know anything about this kind of stuff, but you explain it very clearly, so I am learning.
    Ahh, no worries Sorry if I was a bit rough

    If I were to win a couple of million pounds on the lottery for example, should I plug this money into an investment and make 15% returns?
    The problem would still be the connections. You would have the capital, but not the connections to get you into the good deals.

    It's kind of like those people who buy a cheap house, do it up, then sell it for more money than they spent decorating it? So they make £10,000-£20,000 return on each house? Then they buy more expensive houses, and do the same, but this time, their profit is maybe £40-50,000?
    Sure, you can certainly make money doing up houses and so on, though it is far harder than people often understand. Because of stamp duty land taxes, because of blips in the property market, or if your builders suddenly go out of business after you have paid them but before they complete the work... there are many things that can go wrong.

    There is money to be made there, on the example you've provided above, someone would have to do 20 such properties to make a million (keep in mind that often they don't return £50,000 unless you have invested in a much more expensive house.... an £800,000 house done up, to get that kind of return, and when you have your 800,000 invested in thta property, you can't invest it in other properties... and sometimes it is hard to sell or there are complications)

    And keep in mind you will get taxed on that income, and there are plenty of other people in the market competing with you to do precisely the same thing.

    Unless you are willing to hire someone to oversee these renovations (how much will that cost? £15,000 per property for the hire?), you will have to do it yourself which means taking time out of your job (which may not be an option if you are professional... maybe your wife can do it if she doesn't work),

    Ultimately, if you are rich and connected, then you can put up £1 million and get an almost guaranteed 15% return on investment per year. Of course, nothing is guaranteed, but when you are in that situation, it is basically like pressing a button, with none of this messy work or hands on stuff.
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    (Original post by Floon)
    If someone went to University, achieved a first class degree and got a job in a company, the average starting salary for a graduate is around £29,000.

    How long would they wait for the £29,000 to increase and by how much would it increase by the time they are 30 for example?

    Also, why is my sister's friend earning over £100,000 year at age 26 in a supermarket company like Tesco?

    So it seems very difficult to become a millionaire by yourself in an ordinary job - it not impossible.

    The only to become a millionaire is by winning the lottery or marrying a rich person?
    At 26 earning £100k per annum?? What does she do?
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    (Original post by Donald Duck)
    that is what you need to be in order to be a millionaire.
    What you need, in order to be a millionaire, is to have assets that exceed £1 million. No more, no less.

    There are countless millionaires who inherited from their parents to become millionaires. And there are plenty of very hard-working, intelligent people who fail to become millionaires, despite their creditable efforts.

    A more important factor than hard-work is probably luck.
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    (Original post by MostUncivilised)
    What you need, in order to be a millionaire, is to have assets that exceed £1 million. No more, no less.

    There are countless millionaires who inherited from their parents to become millionaires. And there are plenty of very hard-working, intelligent people who fail to become millionaires, despite their creditable efforts.

    A more important factor than hard-work is probably luck.
    Fair, but most people who become millionaires due to their parental wealth, don't actually become so until their parents die, at which point they are quite old.

    You can also win the lottery, or get very wealthy by doing a couple of things right without lots of hard work. However presuming you're not rediculously intelligent, nor born into incredible wealth, the most likely way to become a millionaire before your parents die is by the way I described.
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    (Original post by Donald Duck)
    Fair, but most people who become millionaires due to their parental wealth, don't actually become so until their parents die, at which point they are quite old
    We are still supported financially by our parents in the meantime, and we have a certain level of comfort knowing that no matter what, we won't die poor. We will be financially comfortable in our retirement and elder years (and before, in fact, given the support we receive)

    However presuming you're not rediculously intelligent
    Ridiculously, surely?

    nor born into incredible wealth, the most likely way to become a millionaire before your parents die is by the way I described.
    Merely saying "You require initiative" is as good as useless. What specific route to wealth do you prescribe?
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    (Original post by MostUncivilised)
    We are still supported financially by our parents in the meantime, and we have a certain level of comfort knowing that no matter what, we won't die poor. We will be financially comfortable in our retirement and elder years (and before, in fact, given the support we receive)
    Ridiculously, surely?
    Merely saying "You require initiative" is as good as useless. What specific route to wealth do you prescribe?
    Financially comfortable =/= millionaire; not all people who are millionaires can ensure their children are fully supported.

    The point is that I'm not limiting the path to wealth as just one path.You can be a lawyer, you can be a banker, you can start your own business, you manage someone else's company, you can start your own investment fund. There is little in common between being successful at these, apart from quite a bit of hard work and not taking the perspective of "long would they wait", but to take charge of your life instead.
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    (Original post by Floon)
    If someone went to University, achieved a first class degree and got a job in a company, the average starting salary for a graduate is around £29,000.

    How long would they wait for the £29,000 to increase and by how much would it increase by the time they are 30 for example?

    Also, why is my sister's friend earning over £100,000 year at age 26 in a supermarket company like Tesco?

    So it seems very difficult to become a millionaire by yourself in an ordinary job - it not impossible.

    The only to become a millionaire is by winning the lottery or marrying a rich person?
    Its not normal but neither is it rare.

    Firstly, assume that your salary is 50k, so you can afford a mortgage payment of 1k per month.

    Secondly, assume that you live north of the Home counties so prices are reasonable.

    So firstly you buy a city center apartment for a bit over 100k on a 10 year mortgage.

    Once paid off you then buy a 200k house in the suburbs. You borrow against the apartment and rent it out to cover that while again taking out a 10 year mortgage for the other 100k.

    Once paid you do that again.

    So 30 years, 500k spent.

    Now allow for average house price growth of just 5% per year.

    Congrats, your a millionaire with 3 properties.
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    Is it possible? Of course it is. I can name examples. Mark Zuckerberg, Bill Gates, Harry Hill and the majority of the current cabinet just to name a few.

    People who expect to become a millionaire form normal jobs rarely become millionaires. Obviously if you make it to CEO level, high up managers, or politicians with book deals earning ~£250,000+ your chances increase but otherwise you need to invest in business, property, or be lucky with inheritance.
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    Just a bit of hard work, initiative and luck needed, and just be good with money... if you're a smart guy.
 
 
 
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