Is it possible to get rich solely through frugality, saving & investing?

[Anonymous]

Anonymous wrote:As I already posted, we bought Apple when we were young and now we have >10 million. It's a combination of luck, time and some industry knowledge. I can't tell you whether there is one miracle stock right now, OP, but it never hurts to invest in high-tech and internet-based businesses. Stay away from biotech, though, that's extremely risky (I work in biotech).

Love to hear how you played this.

How much did you invest? It was 2000? What was your income and your parents wealth?

I was dabbling investing in 2000 but my income was $50k with $40k in student debt and dirt poor parents I was also sending money to.

I invested some but stuck to index funds because that was the responsible things and paid off loans (because that’s a “guaranteed” rate of return) but would have loved to plow life changing money into Apple. I was involved in tech somewhat, and saw the value in things like their embracing USB before anyone else, etc.

[Anonymous]

Real estate is the way to go. Save enough money for the first house. Rent out the rooms. Take out the equity and buy a second house. Rent out the second house. Rinse and repeat.

[Anonymous]

I got wealthy through credit cards. Got my credit limits raised at every opportunity, took advantage of cash access, balance transfers, 0% APR for 18 months.

[Anonymous]

PP here. You can use CC’s on education, rent, and multiple purposes.

[Anonymous]

What counts as rich, to you? I can tell you what we have done on that income but I have no idea whether you consider it rich or not.

[Anonymous]

Depends on what you classify as rich. Multi million? If you make under 100k, prob not. Studies show rich comes from real estate, stocks or your own biz.

[Anonymous]

https://www.fool.com/investing/2021/04/21/you-wont-get-rich-just-by-saving-money-youll-need/#:~:text=Saving%20money%20alone%20may%20not,the%20wealth%20you're%20after.&text=It's%20no%20secret%20that%20to,smart%20ways%20to%20do%20that.

[Anonymous]

Read up on that guy in Vermont who worked at a gas station and died a millionaire

[Anonymous]

Anonymous wrote:Read up on that guy in Vermont who worked at a gas station and died a millionaire

Ronald Read

[Anonymous]

Yes, if you start early enough and exploit the magic of compound interest while not taking outsize financial risks which can send you back to the starting line. Of course there are mathematical limits to your end state which depend on your compound annual rate of return over time and how much money you invest, but you can certainly end up with more than people who spend most of what they take in, who invest speculatively, and who live above their means generally.

[Anonymous]

Anonymous wrote:If you’re not interested in entrepreneurship, real estate or a high-powered career? Am willing to live in a crappy rural area or state, am willing to live in a 1BR condo or ugly tiny house for a long time if necessary. Would also endure long public transit commute if necessary.

It's possible. But unless you are very lucky, you'll be too old by the time you get rich.

[Anonymous]

Absolutely. My grandparents had 5 kids on a welder and a sahm salary. They squeezed pennies. Died at 93 with 4m in the bank still. They did play the stock market and invested their money constantly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As I already posted, we bought Apple when we were young and now we have >10 million. It's a combination of luck, time and some industry knowledge. I can't tell you whether there is one miracle stock right now, OP, but it never hurts to invest in high-tech and internet-based businesses. Stay away from biotech, though, that's extremely risky (I work in biotech).

Love to hear how you played this.

How much did you invest? It was 2000? What was your income and your parents wealth?

I was dabbling investing in 2000 but my income was $50k with $40k in student debt and dirt poor parents I was also sending money to.

I invested some but stuck to index funds because that was the responsible things and paid off loans (because that’s a “guaranteed” rate of return) but would have loved to plow life changing money into Apple. I was involved in tech somewhat, and saw the value in things like their embracing USB before anyone else, etc.

We were as poor as church mice, OP, but at the time Apple was very cheap and very vulnerable. A little bit before 2000, before Steve Jobs was invited back to lead the company. We're in our 40s and 50s now, so it took the major part of our adult life to get to this point!

Don't get hung up on what-ifs, focus on what else is out there for you right now. My BILs are all what-if-fing right now, because my husband urged them to buy and keep Apple stock, and they decided it was too hot and they sold early on.

I've also had good luck with Amazon - bought when it was cheap years ago as well. Netflix and Google have worked well too.

[Anonymous]

20:09.

You know how I choose my stocks?
I buy what I love to use. What I find to be an intelligent and useful concept.

I was an Amazon customer early on, loved the service and concept, and bought stock. Same for Netflix. My husband does research using supercomputers and appreciated Apple's focus on quality, built for private individuals and every day use, instead of researchers, so he knew Macs had potential.

[Anonymous]

Ofcourse. I did it on $25-$35k income. I can do it again now that I have the know-how and extra $10kx5 to piss away out of a million.
I went with high risk, but I would be at the same spot after 16-20 year medium risk investing. It is clear as day what stock you were supposed to buy 15-20 years ago to be doing fine now, and it's just as clear which ones to buy now. The reason so few people do it, is that they are too busy crying for the lost $5000-$10,000. The ones who are not afraid, can take $10k and grow it to million. While million is not rich, it's enough to survive without working much.