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How to MAKE a million bucks!

48K views 116 replies 51 participants last post by  ibli 
#1 ·
Inspired by the thread on how to invest $1 million, here it is.

I'd love to hear from any who have assets (other than their principal residence) with a value in excess of $1 million. I'd also love to hear from those who have solid plans for getting there, or even just hopes of getting there.

I know many won't want to comment on their net worth, or even come out and say they have $1 million+, and that's okay. Anyone willing to contribute details, it would be much appreciated and I think extremely interesting for both those who are already successful, and those trying to become so.

The more details the better. Rather than say "Real Estate", tell us if you built houses, flipped houses, rented houses, burned down houses and claimed insurance on them ;).


I'll kick it off as best I can.

I've been working odd jobs since I was ~12 years old (coaching camp, mowing lawns, shovelling driveways, raking leaves etc.) and have always been a saver. I was taught the power of money to grow and compound on itself from a young age, and have ever since been fascinated with how money works, how markets work and how to grow wealth.

Went to university for finance while working throughout, graduated and got a job on Bay Street. As it stands right now, I'm hoping to build my wealth the old fashioned way of working a job, earning more than I spend and saving the rest. In the longer term, I plan to expand my wealth primarily through the market. Holding stocks/bonds, selling options, collecting dividends etc. You can follow the beginnings of that journey here:
http://canadianmoneyforum.com/showthread.php/9529-My-income-statement

I'm also constantly exploring various options more entrepreneurial in nature, which may or may not be viable down the road. I'm currently way to busy to consider anything that will take more than 10-20 hours out of my week, so it is mostly limited to ideas in my mind or on paper.

I hope to stay the course of my current career path for at least 5-7 years, at which point I will likely be able to step up to the next level with a very steep increase in pay and responsibility. It is likely then that I will have to make a choice between remaining in the industry, or pursuing alternatives.

I hope to make my first million by 30, which gives me 7 years to do so. Lofty goal, but I hope to be up to the challenge.


Hope to generate some interest. Would love to hear from anyone who:

Started a business
Saved and invested
Started a blog(s)
Bought a franchise (how did you get the seed capital?)
Inherited $$ (what did you do with it afterwards?)
Invested in real estate

Would also like to hear from anyone else with goals and plans to achieve them.
 
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#2 ·
Easist way to make a million bucks? start with 2 million and spend half... :tongue-new: I know that's not want you wanted for a reply but I thought I'd start this off with a bang. I hope you do find some serious replies though as I am curious as to how people can make a $1 000 000. I assume that it takes either a lot of starting capital, a lot of luck or both. Another possibility would be to lead a ridiculous frugal lifestyle to the point that i would not see the pursuit worth it if one wanted to do it in a 7 yr time frame. Regardless, I am wishing you well on your 7 yr $1 000 000 journey. I do think $1 000 000 is an attainable goal for most just not sure of how long it takes to happen. I see this being a very popular thread.

Cheers
 
#3 ·
A Story of 2 families I know who are retired...and I hope to land somewhere in between.

1) The "Smith" family saved every dime they made. Raised 3 kids, sent them to school. Retired before 65. The Smiths' kids remember growing up asking for toys, and Mom and Dad always responding "We can't afford it". They are now empty nesters, with lots of cash and still won't spend it, becuase all they know is saving. They are incapable of enjoying their hard fought $$$.

2) The "Taylors" have been a single income famliy for most of their 40years together (mind you that single income is a partner at a law firm). They are > 70 years old. Always done well in real estate in the GTA. They have 200K each in RRSP's (soon to be RRIF's). Just this month they decided to sell their condo in GTA, downsize here and buy a nicely appointed condo in Florida. Every year they pay for each of thier kids to bring their families down for a week at time (Flights, accomodation, plus many dinners out).

I will never make what a Partner at a law firm makes, but i can take one of his principles and make sure that it stays with me: He would rather see his children enjoy his money, and share that time with his grandkids, than leave some trust acct filled with dollars.

Not sure if that is valid as to why this thread was started...
 
#4 · (Edited)
I want to be a millionaire by age 40. 1/4 of the way there now, age 27 (including my girlfriend's assets, we've been common law for 3 years). Keys in getting where we are:

- relevant work experience in university (coop programs and summer internships)
- We were both fortunate enough to have our parents pay for our university educations, allowing us to graduate debt-free
- we're both CA's. This career path involved long hours and low pay pre-designation, but the increase in pay and ability to transfer jobs post-designation made the sacrifice worth it. I don't know how our relationship made it through the first 3 years at a firm, she deserves most of the credit.

To get to $1 million, we plan on paying off the mortgage quickly (15 year amortization), maintaining good networks through attending various events in the city, continuing education (I'm debating transferring to a line of work that would allow me to get the CFA) and living below our means.

Potential roadblocks include wedding and kids (rumour has it these things are expensive), the desire for a larger house (I bought a small house with a basement rental that is walking distance from work, moving to the suburbs would be a drain on resources) and major market corrections.
 
#22 ·
Potential roadblocks include wedding and kids (rumour has it these things are expensive), the desire for a larger house (I bought a small house with a basement rental that is walking distance from work, moving to the suburbs would be a drain on resources) and major market corrections.
Avoid the 'mid-life re-financing' often known as divorce . . . a serious part of wealth erosion
 
#5 ·
If you want to be a millionaire/independently wealthy, you need to be in business, and a business that can grow to function without you. In my experience, the people I know who are able to do this have family capital, either relatives or through family businesses. Unfortunately, its nearly impossible for someone to obtain $1M in capital at an age where they can apply it aggressively (under 50) while not working a full time job.
 
#6 ·
Unfortunately, its nearly impossible for someone to obtain $1M in capital at an age where they can apply it aggressively (under 50) while not working a full time job.
$1 million isn't that much anymore. Read 'The Millionaire Next Door.' If a family with average earnings is diligent at paying themselves first and achieving average returns, $1 million is easily within reach. The key is to start early and get your money compounding.
 
#7 ·
@ londoncalling: The follow up question would then be... How to make $2 million bucks? :)

I think the 7-year time-frame is aggressive but obtainable if and only if I stay on my current career path. Starting from an all-in comp that I expect to be ~$100K, the increases are apparently fairly steep and frequent. Very common to be making 1/4 of a million within the first decade on the job and not unheard of to be making $500K - $750K/year within the first 10 years.

I anticipate my hurdles to be:

1) potential loss of employment
2) sluggish market which impacts variable compensation and career advancement
3) the most dreaded: Children :upset:

From my personal experience, I've come across several millionaires.

By far the most common group of millionaires seems to be highly educated individuals with great professional jobs and good savings habits (doctors, lawyers, accountants etc.)

I know a few guys who own several bars. Interestingly enough, its two separate groups, each consisting of two very tight partners who have cooperated from the beginning. Both pairs have expanded from one bar to several and combined I'd say each partnership owns bars worth north of $10 million. One of the pairs owns all the real estate their bars are in, and I'm not sure about the other.

I've also come across a few people who own construction businesses, home building companies, gyms, real estate and insurance companies, and have all done well for themself. As was said upthread, I think a business that can carry itself is the way to go.

I've also noticed that those who have a business partner from the get-go seem to do extremely well as long as they stick together. Short of those who inherited their parents' business, all the big successes that I have come across have not gone at it alone.

Any volunteers?????? ;)
 
#8 ·
I imagine the thread will be full of examples of the old adage "It takes money to make money" and survivorship bias.

How to make a million dollars: The recipe.

1. Get good paying job.
2. Save money.
3. Invest that saved money in something (Stock market, Real Estate, whatever).
4. Wait until you have a million dollars.

I screwed up the first step. With a family income of 60k a year and two small kids, it'll be a long time until I end up with a million in cash. But I'll get there (when a million is only worth 500k today)
 
#40 ·
I am Also on the way!

I imagine the thread will be full of examples of the old adage "It takes money to make money" and survivorship bias.

How to make a million dollars: The recipe.

1. Get good paying job.
2. Save money.
3. Invest that saved money in something (Stock market, Real Estate, whatever).
4. Wait until you have a million dollars.

I screwed up the first step.
With a family income of 60k a year and two small kids, it'll be a long time until I end up with a million in cash. But I'll get there (when a million is only worth 500k today)
You are 100% right that is all we need to do in our life.I am also going to finish my first step:) then will consider else remaining what do u say about rapid progress?
 
#9 · (Edited)
What Ethan said, any family with above average household income (average here is $85K) and proper savings habits should easily achieve that.

Until a time machine comes along there are few shortcuts to quick and easy millions. Ownership is the riskiest but probably most rewarding. IMO determining factors are the right business environment, strong work ethic, connections to people with similar objectives, and a little luck.

Maybe this is worth a read, kinda rags to riches story of an inherited RE business turned to empire > http://www.theglobeandmail.com/repo...onto/article728526/singlepage/#articlecontent
 
#10 ·
I'm on my way.My path is completly different than dmoney or ethan as in i don't have any formal education(i semi graduated with a work intermship)You can prob tell by my writing skills and format(working on that)Lol
I have a construction business that i started 6 yrs right from the ground(basically a hammer and a rusty half-ton & a pray)after working for a family member who was in construction,after about 2 yrs and being able to turn a profit my dad actualy came on board with me and now i run a tight small construction firm(4-6 guys)Finally after about five yrs im semi "stable" and do roughly 1/2 a million in sales(i don't have a mba but i know business 101 and my margins are awesome*north of 30% of gross revenue*I'm trying to expand.I have always been a saver...I built and sold a house in-between and made a nice profit and have a hybird approach of-business assets/personal assets/portfolio assets.I have about 100k capital in the company(no debt)Ongoing stream from corp*hard to calaculate because i draw one bonus a yr and one dividend cheque.personally i have about 75k(no debt) and between all ports rrsp/non/tfsa 200k dumping aggressive from business profits(I'm learning asset managing from the seat of my pants-like i did with my business)I should be able to secure about a half-million @ the end of 2012-Age 32...single...renter(costs me about 30k to live)Come hell or high water im going to be a millionarie before 38(I just want to do it to do it)the money is not even my motivation...guess it's just the challenge and how hard it is/seems-and i KNOW i will NO DOUBT in my mind*with some luck*
 
#11 ·
My wife and I reached the million in net worth when we were 36. Interesting story behind that, I can assure you. My best advice in becoming a "millionaire" is to, under NO circumstances, live like one. We save 70% of our income currently. I agree that a million isn't that much these days. 2 million is the new million. Hope to be there in a few years.
 
#13 ·
I agree that a million isn't that much these days. 2 million is the new million.
I think with the current RE valuations,a $1 000 000 net worth is very easy to achieve if you are mortgage free and bought at a reasonable price.

To the OP the easiest way to make $2 000 000 is to first make $1 000 000 and then do it again. :tongue-new:

On a serious note, it has been summarized above. Have a job with a high salary and live on a low salary budget. I was a business owner and had limited success. I earned a decent income(more work and more $ than I did as a wage earner) but by no way was I able to make a million from it due to the size of the market and my initial investment capital. I didn't close my business because it was not a huge financial success but needed to relocate geographically and did not want to re establish a customer base in a new and bigger center. There are many advantages to running your own business and I recommend that anyone interested in doing so take the plunge after doing their research and creating a viable business plan with the right amount of starting capital.

I would still agree that most millionaires start with a paid education and lots of start up capital. I myself (not me but people I know) have found that one can achieve great wealth through business and entrepreneurial spirit. It is easier to do it with a partner(from a shared capital and risk perspective) but my understanding is that more business partnerships fail than succeed for a variety of reasons. Those reasons include, but are not limited to, different vision, different effort, different expectations.

To those that feel weddings and kids are a huge cash drain I can speak from my own experience. It can be done very inexpensively if you so choose. Although like most things, there is no limit on what you can spend on either but the costs do not to be that high if you do it right. If you want to get married or have children do not let the cost of it prevent you from doing so. Marriage(not weddings) and children can offer a variety of benefits. The single or childless lifestyle can offer many opportunities as well. Neither is better than the other and comes down to personal choice.
 
#12 · (Edited)
Interesting thread.

I am 31 and on my way as well with assets of roughly 500K (I do not own any real estate though). I come from an immigrant family and had to start from scratch. I have lived with my parents till age 25 and they paid for my education and everything else. At 25, I got my fist real job. I scrambled what I have saved so far from all the odd jobs since high school and with my parents help put a downpayment on a condo. During 5 years, I hold jobs paying 30-50K from which I saved over 50% of the after tax income. Very frugal and the only one at my cie with no car. I had a small investment portfolio that I started at age 16 to which I was adding small amounts regularly, but I was no stock market genius so I decided to focus all my efforts on paying down the mortage. To motivate myself to save, I took a variable rate line of credit which included my mortage and became also my cheqing account (an all-in-one banking product). For someone who never had debt, it was downright terryfing to open up my bank account and see a negative six figures as a balance. I saved like crazy as a result. Paid off my parents first. Paid off most of the mortage. Sold the condo for a net 40% profit. In the meantime, finished more advanced schooling for a better paying job. At that time, my net worth was 200K.

Then I got a high paying contract up north in the field of my studies which is the key to my financial situation now together with the frugal habits acquired earlier. I am renting and I do not have any major expenses. I honestly do not have time to spend since I am almost always at work - except for expensive vacations in the sun from time to time :) So far, the savings are adding up very fast and I am on my way to 1M in 3 years. The huge opportunity cost of this decision is that I am still single and I did not start a family yet.

What can slow me down:
- the obvious: getting married and having kids
- the number one above usually comes with buying a house
- changing jobs
- gifts and financial support to my family (parents, sister)

Dave
 
#14 ·
I could hit that number by 40 if I really wanted to and started at 23 when I got my first real job. But it'd require me to be an extreme saver. I know people like that, it's not for me. What's the point of living like a rat to hit some arbitrary number?

I also know the other extreme. Kids who finished university with me and bought BMWs before even their first paycheques came in. I can't do that either, live for today not knowing what'll happen tomorrow.

The key is to find the middle ground. Save 20-30% of whatever you earn, invest it wisely and be happy. You'll get there when you get there.
 
#15 ·
It was mentioned above, but this is basically the subject of "The Millionaire Next Door". Wikipedia has a good summary: http://en.wikipedia.org/wiki/The_Millionaire_Next_Door

For those to lazy to read the book, or even click the link and read the wiki article, here are the most important aspects in becoming a millionaire:
-Spend less than you earn
-Avoid buying status objects or leading a status lifestyle
-Take financial risk if it is worth the reward
-Avoid Economic outpatient care (paying your grown children's bills)
 
#18 ·
We did a 50 people wedding for about 4,000$. The night was completely AWESOME, the food was excellent (duck with risotto), the booze was plenty and all that included a limo, our wedding attire and rings. Expensive != Good

As per the topic, I don't really need to save a million $ ( I figure I need about 600,000$ + paid house). As others have said, get an OK paying job, save, invest and let time do its magic.
 
#20 ·
You're quite fortunate that you were able to pare your guestlist down to 50. Sometimes its next to impossible depending on family demands. For my wife and I, our families alone took up more than 50 people, plus parents wish to invite their friends too. In the Chinese culture a lot of times the wedding is as much for your parents as it is for you.

Although that $4000 is a steal even on a per person basis! Well done.

iherald even though nobody remembers the flowers, food, etc...you still gotta have it there. If you serve crap people will certainly remember that. If you lack booze, it will be remembered. So you still have to have it there. Its very hard to find a wedding hall that will give you a package for less than $100 pp all in after tax and tip. So say an average 150-200 person wedding will run close to $20k for food/booze alone, plus then add in gown, tuxes, travel, miscellaneous costs here and there and you can see that things can and will add up.
 
#24 ·
Well, one way to make a million dollars fairly easily is through real estate, work is required. You have to find a good property which will produce cash flow (I look for ones which cash flow at 100% financing with a higher interest rate).

Today that means buying ones below market value as market value seems pretty inflated. That being said, it is possible, I've bought a few recently, and am looking at several more. If you can find one undervalued, there are probably problems with it that need to be fixed, so you fix the problems. This increases the value of the property to the current market values, giving you an "on paper" capital gain.

You use this "on paper" capital gain by refinancing the rental (remember you bought the property not for capital gain, but for cash flow) and you use that money to help buy your next property and finance it at 100%. The gains you invest aren't lost (unless the market drops, but you are already buying below market value so the risk is mitigated), they are repurposed and put to work.

So, for example I'll use a place I'm looking at right now, you find a two bedroom apartment condo for $60,000 (list price, it's a foreclosure). Negotiate hard, you may save another $10k. The market value of similar properties to this one is about $100k. The current rents in this area happen to be about $1000-1200/month heat and water included.

What you are looking at:

$60,000k mortgage, amortized 25 years at 6% (you should be able to get it well below this, but be conservative on your numbers), means payments of $486.58/month.
Taxes, say $75/month
Insurance $50/month
Condo fees which includes heat and water $300
Total costs: $911.58

So, you should make at least $100/month cash flow for maintenance, vacancy etc. Total investment $0.

This entire building is in foreclosure because it was sold to people who didn't understand investing. Once all the units sell at a price correction, the building value should increase back up to market rates. So on paper, you're net worth will increase $40k. Meanwhile your tenants are paying down the principle as well, probably about $100/month, so each year your net worth increases there as well.

If you refinance after the value goes up, take the 40k and buy two more similar properties, you'll have $80k more in a year or two, plus the cash flow. Rinse and repeat. If property values increase by 10% your net worth (on paper) makes another 10K/property. In two years you could be looking at increasing your net worth, on paper, close to $150k, from no money.

If you want to know more on how to find/buy these kind of places and what you can expect afterwards, I'd suggest you buy "The Simple Solution to Canadian Real Estate Investing" and read the associated blog www.easysafemoney.com, the site/book is basically preaching this philosophy as well, but goes into much more detail, including where to find the initial money and all sorts of things you may or may not encounter.

Now, I'd also suggest you diversify and buy stocks, as well as owning your own business. Notice I didn't say diversify in the way that brokers do. They mean buy different stocks which, at the end of the day is still stocks, I mean stocks, real estate and businesses.

Finally, you'll notice I only refer to "on paper" net worth. Until you sell, that's all you'll have, and I wouldn't recommend selling these cash producing properties. The nice thing is, until you sell, your net worth is growing tax free as well.
 
#25 ·
Best advice would be: get a good education, get a high paying job, save a good proportion, don't get divorced, make good investments (ie buy low sell high), generally don't waste money. Simple, eh? Personally, I broke many,(most?) of these rules and things worked out great regardless.
 
#26 · (Edited)
My wife and I passed the $1M mark a couple years ago, including our house. We're in our early 40's now. This is our "get rich slowly" method:

1. Track your income and expenses: The first step to controlling your spending is to know where your money is going. Once you know exactly what you're spending your money on, you can adjust your behaviour to minimize spending on things that don't give you enjoyment or build your net worth.

2. Live Below Your Means: Just because you make a lot of money, doesn't mean you should spend it all. Would you rather look rich or BE rich? For example, do you really need two cars in your family? My wife and I have one (12 year old, but reliable) car that we share, and we're fine. My neighbour and his wife each have high end luxury vehicles, and they seem to get new ones every couple years, meanwhile I take the bus to and from work. They probably think we're not doing so well, and can't afford a second car. I suspect that I will be retired long before them.

3. Marry the right person: If your spouse doesn't share your financial goals, you are doomed. Speaking from personal experience, I believe this is the biggest financial decision that anyone can make. Of course, once you're married, you also need to STAY married.

4. Be smart about the house you buy: Think about resale value when buying your house, and make sure it's a place you want to live for a LONG time. Moving too frequently will kill you in real estate fees and property transfer tax. If possible, get a house with a basement suite that you can rent out for extra income. Also, don't bury yourself with a huge mortgage, and pay it off as quickly as humanly possible.

5. Get a good paying job: It's so much easier to spend less than you earn if you earn a decent salary. Do whatever you need to when you're young to land a great job, and then work hard to get promoted. If you're lucky enough to work somewhere with a defined benefit pension, stick with the job, even if you don't enjoy it. It's amazing what your pension will be worth to you later when you retire.

6. Don't have kids: I realize that most couples (including my wife and I) will want to have kids. If you do, then at least go into it consciously knowing that it will cost you big time. If your only goal is to build wealth, skip the kids.

7. Maximize your RRSP / TFSA / RESP: Pay yourself first and minimize your taxes by always maxing out your RRSP and TFSA every year. The only exception would be if you're not yet making a lot of money, then the value in maxing your RRSP now vs. later is limited. If you have kids, set up an RESP on the way home from the maternity ward, and max that too, so your kids can get a good start on earning their millions.

8. Invest wisely: Learn as much as you can about investing by reading investing books from the library, reading all the great personal finance blogs out there, and talking money with friends, family and co-workers. Invest in solid companies that you understand, and that pay a decent dividend, and don't try to time the market. The more you learn, the smarter choces you will make.

9. Minimize your taxes: Learn about how RRSPs, TFSAs, dividends, capital gains and regular income impact your taxes, and do everything you can to minimize your tax hit. Look into ways to income split between you and your spouse if your salaries are not equal.

10. Reward yourself: Many of the above items sound like all work and no play. It doesn't have to be. If there is something you really enjoy, and it costs money, then discuss it with your spouse, budget for it, and have some fun along the way.
 
#27 ·
2. Live Below Your Means: Just because you make a lot of money, doesn't mean you should spend it all. Would you rather look rich or BE rich? For example, do you really need two cars in your family? My wife and I have one (12 year old, but reliable) car that we share, and we're fine. My neighbour and his wife each have high end luxury vehicles, and they seem to get new ones every couple years, meanwhile I take the bus to and from work. They probably think we're not doing so well, and can't afford a second car. I suspect that I will be retired long before them.

3. Marry the right person: If your spouse doesn't share your financial goals, you are doomed. Speaking from personal experience, I believe this is the biggest financial decision that anyone can make. Of course, once you're married, you also need to STAY married.
Personally, I don't agree with #2, I think you should increase your means if required...something like http://www.easysafemoney.com/fundamental-flaw/

But #3 is a must.
 
#28 ·
Just a Guy: At your earlier post -

I have a friend who is taking a similar approach to your real estate strategy, but with single family homes in the $100K to $150K range.

He's finding the numbers don't add up quite as well as what you have in your post, but his ROE is still substantial. He's getting rent of ~$1,000, financing roughly 80%, at rates much lower than your conservative 6%.

He's not baking in much capital appreciation above inflation, but his approach is that the tenants pay the mortgage, and the value increases modestly over a long period.

My only problem with this strategy is that in Toronto, there aren't any huge deals like this to be had. Much more competitive environment in the GTA. I don't have the time to deal with any problems that arise in another city, so it has to be something that can be done easily in Toronto.
 
#30 ·
Just a Guy: At your earlier post -

I have a friend who is taking a similar approach to your real estate strategy, but with single family homes in the $100K to $150K range. He should look into financing that last 20%, even if he writes off part of his residential house mortgage in the process.

He's finding the numbers don't add up quite as well as what you have in your post, but his ROE is still substantial. He's getting rent of ~$1,000, financing roughly 80%, at rates much lower than your conservative 6%.

He's not baking in much capital appreciation above inflation, but his approach is that the tenants pay the mortgage, and the value increases modestly over a long period.

My only problem with this strategy is that in Toronto, there aren't any huge deals like this to be had. Much more competitive environment in the GTA. I don't have the time to deal with any problems that arise in another city, so it has to be something that can be done easily in Toronto.
100k seems to be a magic number on a per door cost. Much higher and the numbers get hard to cash flow, but it depends on the place. $150 is still workable.

I used 6% because anyone buying today will hit that interest rate before their mortgage is up (remember we're talking about 25 years into the future). If you bank the profits today when you can get 3%, you can handle 20 years from now when they are back to the historical 8%. If you calculate at today's rates, then your risking it being cash flowing in the future.

Capital appreciation is bonus, even if it depreciates he makes money because someone else has paid it off.

I think you can find stuff even in GTA. They may not be very common, but they do come up. The other alternative is to go for multiple doors using the magic number. A 4-plex for $400k may work. I'd get a realtor to put you on a list of when properties in a certain price range come up. It's all automated, and doesn't cost them anything to do.

Even still, there's no hurry I've waited years at a time for a deal to come up. That's why you diversify. I work on stocks when real estate is bad. I also have my business to run...and new ones to explore.

Don't try and force a deal.
 
#33 ·
holy crow- where are these $60,000- $100,000 properties?? I need to get the hell out of Vancouver... 1 bedroom apt in a crappy eastside building will start at least $200-250k. Studios apts start at 150-175k.
 
#35 ·
A quick search on MLS showed me Three places in Surrey between 78k-106k, 10 places in Richmond...you just have to look a little outside.

For GTA people I found apartments starting at $44.5k, 3 bedrooms for $69k.

Not saying any of these are in good areas, or are a good investment just that they exist.
 
#34 ·
Here's my waterfall plan. Escalating investment based on the cost of capital of each investment. The reasoning is time and leverage. Obviously if I just stay with step 1, it'll take about 40 years to get there.

Step 1 leverage ratio 0%: To begin, have nothing but time, Networth $0: Find job. Work until networth is 50k.
Step 2 leverage ratio 20%: Next, some savings from job: Start investing/trading from 50k to 200k
Step 3: leverage ratio 500%: Now, enough money for condo or rental units: RE investment from 200k to 500k
Step 4: leverage ratio 0%: Can finally buy businesses: Buy businesses from 500k to $1million
 
#39 ·
Quick reply for now but on the Real estate ideas, look for student rental units, near a College or University, look for responsible second year students who are serious about their studies, take care of your condo and your students and all is good. Real estate in Toronto, as far as I can see, does nothing but go up. For a good read, "Building Wealth One House at a Time" by John W. Schaub is an excellent read. Being a millionaire is very achievable but it takes patience and contrary to what others have posted, I'm a "richer" man with two grown boys who are as frugile as their parents. Having kids is a good thing. Good luck to you. Money isn't everything.
 
#90 ·
Being a millionaire is very achievable...
Actually it is not.

Currently only ~1% of the Canadian population has a net worth of $1,000,000 (ex principle residence).

At the very peak of Boomer retirement, if the trend continues, there will be ~2% net worth millionaires.
Once the Boomer retirement wave is over, the millionaire population will drop back to its mean of ~1% or below.

This is reality.

The OP also wants his million bucks by the age of 30.
This will be an incredible fight against the odds for him as ~1% of millionaires are in that demographic.
Thus, the OPs odds of having a net worth of one million dollars by the age of 30 is 0.01%.

It will take much more than having a job in the financial sector.
As others have stated -- start your own business.

Good luck.
 
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