This millionaire business is interesting.
The ordinary Brazilian when he thinks of a millionaire can imagine the citizen walking convertible by car with a blonde on the side, on a road in the mountains or on the beach, entering a luxury hotel, drinking champagne in the bathtub while watching the moon through the sunroof from the room.
Do an imaginative exercise, when you imagine yourself a millionaire in the future, do you imagine ACCUMULATING MONEY or SPENDING MONEY?
If your case is second, that of a millionaire eating lobster with wine at an expensive restaurant while checking out their social networks on the 18S Plus large iPhone, I have bad news for you …
First learn one thing, to add one million reais, first you will have to earn money, pay taxes, invest and add R $ 10,000. Then you will have to add R $ 20,000, then you will have to add another R $ 50,000, then you will have to add another R $ 30,000, then you will have reached the first R $ 100,000.
Depending on your ability and your workload and income, it may take 5-10-15 years, I do not know, see, to have a million ONE DAY, you’re going to have to JOIN ONE MILLION, and DO NOT SPEND ONE MILLION.
Millionaire is who ACCUMULATE the million.
Millionaire IS NOT WHO SPEND MILLION.
This is very simple, I honestly think people do not know this, or pretend they do not know it, or just do not give a shit.
When I speak millionaire is at least one person who has $ 1 million free and invested, yielding interest, dividends, proceeds and income, excluding his house and his debts.
Okay, let’s get this over with. The idea here is to retire a millionaire, in the shortest time possible and live from the incomes of the million, or 2-3-4-5-6 million, the higher the fortune, the higher the incomes.
Understand one thing, do you know that saying “dies and takes nothing”? “Are not you going to put 4 million in the coffin?” Etc … something of the so-called “folk wisdom”? The social memetic cancer that runs in the mouth of the common people? It’s wrong. And scoundrel. The idea is to die a millionaire (what’s the harm?), But the biggest idea is not to JOIN MONEY AND DIE.
The idea is to ACCUMULATE MONEY AND LIVE ON THEIR YIELD. SIMPLE! A lot of people think that the idea is to join a million and then TURN the million, with cars, ballads, program girls, trips to London and Greece and so on. People who find this DO NOT HAVE THE MINIMUM CONCEPT of the difficulty of living a life of renunciation, hard work, sacrifices and studies, and dedication to finances.
You will not have any income if you do not have money applied or leased real estate, or whatever it is that is able to generate income. You have to put these things together, AND DO NOT SELL THEM! Of course, if you have 10 apartments rented for R $ 2000 reais there in your city and earn R $ 20 thousand a month, you have no need to sell any, right? So you’ll die with the money from the apartments buried in them.
Money is good. It is a measure of your ability to work, to produce, to provide a good service, or to sell a good product, or the most common, to exchange your youth, your time, and your dedication to a counter-check at work. Your money represents your dedication in your life to win it, nothing more.
I met a guy who worked as a waiter, a valet, a mason and a lookout, that’s right, FOUR JOBS, every day, Monday to Monday, morning, afternoon and night, (and before he had these 4 jobs he worked on a plantation, Practically of slave), needless to say, that he knew to make money and that much improved of life, VERY, set up a restaurant and today is fully rich, this is just an example, he could have worked the only valet in the morning the whole life And “tanned” every weekend, but that’s not what he did.
Now let’s go to basic math (that’s all you need) just for an exercise in imagination. You need ATTACH, ACCUMULATE, ADDING of 25-30x their annual expenditures to retire in your SAME CURRENT STANDARD LIFE (which DOES NOT MEAN FERRARIS and blondes).
Just as a guide, take inspiration from the table below.
It can be just the same fixed income, or a mix of RF and stocks, or stocks / RF / Fiis. Risk and return are you doing according to your allocation.
This table is so true that it beats exactly with my personal calculations. I’ll get where I want to come with 7 years of work and investment for my capital accumulation rate (TAC) is between 70 and 75% and rises as time passes.
The more action, the higher the volatility of the portfolio and GREATER PROTECTION AGAINST INFLATION, great, it’s good to be aware of it.
Consider this table a gain of 8% per year and a 4% TSR (as discussed in an earlier post on the Withdrawal Rate).
For this table, you can see in the first line the OLD CONCEPT BEATEN to invest 10% of income to retire. Not bad. You will only have to wait 38 years for this and may not even be alive (but this is the MINIMUM that every person should do, not to depend on government wishes in the future).
As you know, my proposal is more radical, and it is more feasible the more you make money on your job, just think that a guy who earns $ 10,000 net can live very well with $ 3,000 liquid and invest $ 7 A thousand liquid every month quietly, this is a matter of priority, discipline and dedication.
The problem is that the people the more wins, more spend, just wants to get the “standard of living” whatever the hell that means the sickening head of the Brazilian middle class, change cars every 3 years (by which “will start to give problem “putz … the favorite phrase of the car salesman, this phrase is a jOKE, dining out every week, buy designer clothes, partial travel, buy TV, iPhone, refrigerator, all tip and ultra hi-tech.
Of course, earning R $ 2,180.00 which is the Brazilian monthly average is very hard to get 50% every month, but I would say (WITH CAUSE OF PROPERTY) that about 20% is still to join.
Understand one thing, you will “slowly enrich”, there is no way, but your time will come, that is inexorable. It is the right destination for those who save and invest.
I made a simulation investing in SP500 why not found a site as I have with Brazil, except the right treasure, remember that you ALREADY CAN BUY SP500 right here in your brokerage firm in Brazil, buying the asset IVVB11, Page iShares IVVB11 , Let’s see how it got
The simulation began with $ 10,000 in the account and monthly investing $ 3,000 corrected each month for inflation. Beginning in September / 1996 and ending in September / 2016, 20 years providing religiously, 240 months uninterrupted.
The annualized return was only 7%, the final value has its entire half of only interest and reinvested earnings, the final value gave 1.253 million dollars. The 4% annual TSR will give us $ 50,000, enough to live quietly in the US or Brazil in a year, forever.
There are millions of stories of people who have improved a lot of life, who have worked hard, who have invested, who have been rich, who have happy families, full lives, full of everything that is pleasant and without boring surprises about money.
Unfortunately, 99.99999999% of these people do not write on blogs and do not pass on their stories and ideas. But much of what they did was one thing in common, already extensively researched and publicized in the book “The Secrets of the Millionaire Mind.”
Work, live with little, invest the difference, wait for the time to pass, compound interest, you’ll get rich.
This is the simplest formula I can write.
The more luxurious and glamorous your lifestyle, the harder it will be to get there. The battle is immense, this is something for the very minority, because many people do not want to be rich, do not want to retire early, do not want to give up certain comforts, do not have the slightest desire to invest or prepare for retirement , And for them that’s no problem at all, but it’s not our case here, right?
PS: The table removed from the blog http://www.caniretireyet.com/