How do people get so rich (ie. Buying a 3-family home)?

if you make 60k a year, and 30k of that is wasted every year on living expenses.. how do you get rich? What kind of income do you need to afford a $800,000 home?? What job and how much experience?

Stock market or start your own company.

Also, cut your expenses, 30k is more then more people need, you are wasting too much money.

If you want a job that will make you rich you should get a MBA, otherwise you are not worth paying.

It used to be a gradual thing. First you bought a small house, fixed it up and sold it, used the profit to buy a bigger one. As salaries improved, and home equity grew people would move up a few more times and end up in a big place. Recently lenders made money selling mortgages, so they'd give just about anybody a $800,000 loan, which has led to our present housing/credit problems.

You invest the money. Stocks, bonds, mutual funds, IRAs etc. If you have $30,000 extra a year to invest you can build a very nice retirement over the years.The sad part is it takes money to make money.

Try wasting 20k a year on living expenses, and see if that doesn't help.

It's not the cost of the home that you pay on, it's the size of the mortgage. The more money you put down, the less you have to finance. That's why people usually sell their homes and move to a larger one, whenever possible.
I bet most people buying an $800k home, are selling a $600k home, which they bought when then sold their $400k home, and so on. This way, the mortgage they have to carry remains at around $200k, but the home they live in gets bigger.
It's a long process, but it works.

You need to be earning about 250-300 a year..

Actually, in today's economic climate, you are doing rather well it you are making 60K, and if only half is going to expenses. That is an extremely high ratio of disposable income.

Immediate action: obtain copies of your three major credit reports (free once a year) - print all of them at mycreditreport.com - and give them a thorough review. Make a set of photocopies to use as worksheets. You have a set period of time to make any corrections from the date you pulled the reports. Make those corrections.

There are materials available for consumer education online, from your bank or credit union, and elsewhere. Learn what actions will improve your credit score and follow them. Pay always a little early and a little more than necessary, keep balances far below credit limits, leave at least one credit account showing regular payments but pay off other accounts. Build your credit strategy from there.

Study some basic business courses - accounting, economics, business law, or review textbooks or cram books to understand the basic ideas.

The better your credit rating, the better the credit terms you will receive - and this is one of the key concepts. Borrow money only when it will make money for you....and beware of adjustable rates. This one has been the downfall for many in recent months. Credit card rates are adjustable, many had mortgages with adjustable rates, the dollar was long overdue for readjustment, and still many people didn't do their homework and got caught.

You might also consider studying law or studying for a real estate license. Wealth is often invested in land, which is then mortgaged and rented out to cover the mortgage, while the capital is invested in another property. This can get you into trouble without good legal advice and property management.

When capital isn't aviailable and land prices are falling, invest in precious metals and gems. This has been classic investment theory - but always diversity, don't have all of your money in one place.

Building wealth isn't casual, it requires applied, continuous effort. But do get your financial education before you obligate yourself to debt.

If you are making 60,000 a year.
You put 15% in your 401K. <}:-})

You SAVE, you save, and you save. You don't spend everything you make, you contribute to 401k which reduces your taxable income, you avoid bling, you don't get into debt, you pay off your credit card bills in full every month.

You buy one home and fix it up and later sell it for a profit and buy a larger/more expensive home. You DON'T overextend yourself, buying more home than you can afford. In this housing market, you stay put and wait to sell until market improves, although it can be a better time to buy.

Generally you need two incomes, or some good investment income to build up to that home.

First of all, you have to clear your head, my man.
30K is not wasted on living expenses. You gotta live.
Ah, but you say, I shell out 30K every year for living expense and that's dragging me down. I'm not getting rich.
Do you have a budget? Do you have a piece of paper you can look at or show to someone - a piece of paper that has numbers written on it that explain how you live your life?
It should lay out how much you spend for rent. How much you spend for health insurance. How much you pay for your car: payments for the car itself, gas expenses, maintenance expenses each month, car insurance. How the heck should I know how much maintenance is going to cost me, you say - well, there should be money put aside in a category for that every month, whether you use it or not. Then when you have to use it, it's there, untouched but ready to be spent. On maintenance of your car.
The same for your rent, mortgage, condo fees, etc. Everything should have a category and you should have money in that category (even if it all looks like one big number in your savings account, you know what the categories are...)
You should never be 'surprised' by an expense. You should always have some money in a category, in a savings account, readily accessible, earning interest, and ready to cover that 'surprise'.
Same for food, same for entertaining - yourself or other people. Same for clothing. Same for house (furnishings, electronics, etc.)
All the categories are set up differently by different financial planners. But ultimately you have to have a plan and you have to stick with it. The benefit is that you will be able to have credit cards that you pay off in full every single month and never carry any credit card debt. And your credit rating will be great.
Next you find the best paying job that you can stand to do and determine what education is necessary to be able to do that job. Work for a company that pays part or all of your tuition if you go to school at night. Respect the fact that a college graduate with a useful degree will earn pretty much what they want to earn.
There is plenty of information about careers and job prospects in your area - and qualifications to do those jobs - at your local employment office. That is what they do there - help people learn about and apply for jobs.
But the master of wealth building was Benjamin Franklin who said that the way to prosper is to live below your means. That means earn more money than you spend. That's right - get that money and don't spend it. You can always borrow money at a good rate and for a good reason when you have money set aside and live conservatively and frugally to begin with. No one knows better than the bank that the house can fall in value (just look around you to see that) and the car is definitely worth a lot less than what you paid for it. Always buy a slightly used car - if you don't know by now that any new car loses a couple thousand in value as soon as you put the key in the ignition, then you're not experienced in buying cars.
Read 'The Only Investment Guide You'll Ever Need' by Andrew Tobias to start. Stay away from the 'Make a million' schemes. They only make a million for the people who send in the money for something they saw on television or read in the back of a magazine.
You can afford to have an expensive home if you invest your money, save your money, cover all your bases by being ready for the unexpected, don't spend money on anything you don't absolutely need, and live below your means. It also is indispensable to have a wife who thinks exactly as you do.

ou have to save alot of mony so you can be a rick thing rae a book h2
3
how to be rich

Consider that most of this stuff is bought on credit and other types of loans, so the money being spent isn't anything anyone actually has.

Maybe they are related to Richie Rich! I'm just kidding. Ha ha!

High Intelligence and hard work. Something the liberals will never have.

They blame all their misfortunes on other things but NOT themselves. They are all failures.

i need that information as well.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy