How to be rich?

Wow, thanks for sharing and congratulations. It's great that you have found your dream job and a great mentor, and to be earning half a mio pa in just 4-5yrs. I'm your age and I too tried ways to get into finance. I'm finally there now, but after 2 years, I'm making peanuts compared to you. But I'm not complaining, cos staying where I was would have been worse. I'm happy with what I'm getting.

I fully agree with you that one should actively seek opportunities so luck can do its magic.

In your opinion, assuming all things equal and only luck is the deciding factor, what are the odds of a clone of yourself in a parallel universe, in the same circumstances as you were (making cold calls and sending resumes), to be as lucky as you are now? 1 in 100? 1 in 1000?

Originally Posted by Unregistered

I am 36 years today and accumulated my 1st million (only liquid assets excluding property) when I was 34 years. I had no inheritance and made little money from my investments. I agree that having luck and a mentor plays a great deal, but you also need to create your own opportunity for luck to happen.

I was an auditor with a prestigious Big 4 for a couple of years when I started out my career. I started out with a measly $1.6K/month and even after 3-4 years experience, my pay only hit $4/month. I could have to stuck to a safe job, but I got sick of the job because I did not enjoy it and it did not pay well as my wife a banker was already making $7K/month after 3-4 years experience.

I knew then that to make decent bucks, I knew I had to join a career that gave me the opportunity to make the big bucks. I knew that banking/fund management was the lucrative career. I basically created my own opportunity by cold calling, sending out unsolicited CVs and religiously applied for all possible jobs I saw on the newspapers. I finally received a few job offers and finally took the job that I thought offered the most potential.

It turned out to be the right pick as after 4-5 years, I made $500-600K per annum. I was lucky to have a boss (mentor) who was fair to me and compensated me fairly.

So actually I think its always a combination of factors that leads to success or wealth. Luck and having a mentor always plays a big part, but creating the opportunity is important. Working hard alone gets no where, you need to work hard in the right career to get there.

I also know of a friend who became a millionaire because he had the foresight to invest all his savings into one prime property. He was not rich, but he had saved hard and had the guts to take the risk and create that opportunity. With that one property alone, he made a cool million.

So I think the key is that you have to create the opportunity and then let luck play its role.

I think being in a big4 for a few years plays no harm, training and exposure is good while you figure out what you want to do in life. A strong accounting background always helps in doing financial analysis and modelling, key skills for junior front-line banking staff. However, I don't advise hanging in an audit firm for more than 2-3 years if audit/accounting is not your calling in life. It is very difficult to switch careers after that.

To not so lucky:

Yes, I am lucky, I don't try to understate that. I was in the market at the time when new hirings in the financial industry was booming and therefore I got recruited. I don't think it would have been possible today. I would not have gotten in if I did not study accounting which gave me a solid background which led to the hiring, so I was lucky I choose to study accounting. I was also lucky that the people who interviewed me, selected me out of a whole bunch of other people. I guess its a combination of luck and creating the opportunity.

As long as you are in the financial industry, you have a chance. Just work hard and create more opportunities for yourself like doing more training, networking and luck will definitely come. Even if you don't make it really big, you can count yourself thankful compared to many others who make significantly less than you.

Cheers

Thanks for the frank sharing and advice. We seldom get such insights like what you've posted here. (Usually the successful people will attribute their success to hard work and how clever they are, yada yada.)

Following your advice, I'll continue to network around and create opportunities for myself. Then I'll just let lady luck handle the rest.

People say the 1st million is the hardest. Since you've got it already, I guess the next few millions will come naturally.

Originally Posted by Unregistered

I think being in a big4 for a few years plays no harm, training and exposure is good while you figure out what you want to do in life. A strong accounting background always helps in doing financial analysis and modelling, key skills for junior front-line banking staff. However, I don't advise hanging in an audit firm for more than 2-3 years if audit/accounting is not your calling in life. It is very difficult to switch careers after that.

To not so lucky:

Yes, I am lucky, I don't try to understate that. I was in the market at the time when new hirings in the financial industry was booming and therefore I got recruited. I don't think it would have been possible today. I would not have gotten in if I did not study accounting which gave me a solid background which led to the hiring, so I was lucky I choose to study accounting. I was also lucky that the people who interviewed me, selected me out of a whole bunch of other people. I guess its a combination of luck and creating the opportunity.

As long as you are in the financial industry, you have a chance. Just work hard and create more opportunities for yourself like doing more training, networking and luck will definitely come. Even if you don't make it really big, you can count yourself thankful compared to many others who make significantly less than you.

Cheers

HI Unregistered, care to share which area of banking are you in? And care to elaborate why is it very difficult to switch careers if one is in an audit firm for more than 3 years?

Originally Posted by Unregistered

I think being in a big4 for a few years plays no harm, training and exposure is good while you figure out what you want to do in life. A strong accounting background always helps in doing financial analysis and modelling, key skills for junior front-line banking staff. However, I don't advise hanging in an audit firm for more than 2-3 years if audit/accounting is not your calling in life. It is very difficult to switch careers after that.

To not so lucky:

Yes, I am lucky, I don't try to understate that. I was in the market at the time when new hirings in the financial industry was booming and therefore I got recruited. I don't think it would have been possible today. I would not have gotten in if I did not study accounting which gave me a solid background which led to the hiring, so I was lucky I choose to study accounting. I was also lucky that the people who interviewed me, selected me out of a whole bunch of other people. I guess its a combination of luck and creating the opportunity.

As long as you are in the financial industry, you have a chance. Just work hard and create more opportunities for yourself like doing more training, networking and luck will definitely come. Even if you don't make it really big, you can count yourself thankful compared to many others who make significantly less than you.

Cheers

Apologies for the late reply. It is difficult for someone to switch to frontline banking after a few years in audit, because your pay in an audit firm who would reached a certain level but your skill sets are not directly relevant to front line banking. If you were to switch from an audit firm to supporting roles in banking say risk management etc, that's ok but the chances of moving to say asset management, investment banking, trading etc would be very slim.

It really depends what your calling in life is, life in front line banking is generally more stressful but rewards better. Life in the supporting areas of banking is generally more stable and less pressurising. Banks still pay good money for areas like risk management and internal audit, but the bonuses will be significantly less than front line. Front line staff generally get between 6-36 months bonus or even more, while support staff will be lucky to see 12 months.

人无横才不富.My mentor says she got her working captital from winning 4D. Buy big big, strike big big

- How did you make your first million?

Made my first million i think around 30 or 31 years old. Graduated from uni in 1999, started own business in 2000 and have been running it for 9 years now. Am 34 this year. My family saves a lot. We save about 80% of total annual income.

- How long did you take?

About 6 years to make the 1st. 2 years for 2 second and 1 year for third. Make about 1M per year now. Probably can increase it to 2M per year over the next 5 years. It is very true that the 1st is hardest to make and the subsequent easier.

- If you were to do it again in today's context, how much time do you need? Would you do it differently and how?

Well, i make my money mostly from company profits and pay. My 1st company took 5 years to hit 1 M turnover, my 2nd company took 1 year. Experience, a good team and knowhow really helps. I will still spend time, money and effort in business with stock trading as a fun sideline.

Investments I enjoy trading stocks but i never trade with more than 200-300K cash.No margin also. Money is hard to earn. This downturn made about 120K buying at low from last Sep to this year Mar. Over the past 9 years probably made about $250K in stocks. My idea is to use stock gains to pay for lux items. Stuff like gifts for wife/kids and travel.


- If I want to be rich, what's your advice for me?

Make sure you have the right drive and temprament for it. And you need to be in the right area. Traders, Lawyers, Med Specialists, Sales, Consultants, Investment Bankers are the right group that can make $1M by 35 to 40. If you want by 30 I think have to be businessman or sales/middleman work

- What is the most important lesson you picked up in the process of getting rich?

I do not see myself as rich yet. It is very interesting that as you accumulate wealth you get exposed to even wealthier people and know more. Eg. I used to think I can retire with 3M net worth. Now with that, I feel might as well aim higher and go for 10M and I can picture a lifestyle requiring that. I suspect when I hit 10M, it will become 20M. So there is this slippery slope of greed which I persoanlly want to be aware of. Money is for spendign and making people around me happy, it is a means to an end and I need to keep reminding myself of it.

- What do you think is the most important habit that helped you?

Persistance & a drive to make things work no matter what. It helps in business a lot.

- Any missed opportunities? Can I make use of these opportunities?

Erm.... there are always opportunities. If viewed that way, then i have "missed" many many.

I want to add one more question: Do you think luck plays a part?

Yes, we can try all we want but we need a little right place right time. But u need to work hard and be prepared to take some risk and take the challenge when it presents itself.

Hope this helps our readers. I write because I benchmark myself a lot personally and it makes me very competitive as a person. So for those of u who like to benchmark, this story is for you!

Originally Posted by Unregistered

- How did you make your first million?

Made my first million i think around 30 or 31 years old. Graduated from uni in 1999, started own business in 2000 and have been running it for 9 years now. Am 34 this year. My family saves a lot. We save about 80% of total annual income.

- How long did you take?

About 6 years to make the 1st. 2 years for 2 second and 1 year for third. Make about 1M per year now. Probably can increase it to 2M per year over the next 5 years. It is very true that the 1st is hardest to make and the subsequent easier.

- If you were to do it again in today's context, how much time do you need? Would you do it differently and how?

Well, i make my money mostly from company profits and pay. My 1st company took 5 years to hit 1 M turnover, my 2nd company took 1 year. Experience, a good team and knowhow really helps. I will still spend time, money and effort in business with stock trading as a fun sideline.

Investments I enjoy trading stocks but i never trade with more than 200-300K cash.No margin also. Money is hard to earn. This downturn made about 120K buying at low from last Sep to this year Mar. Over the past 9 years probably made about $250K in stocks. My idea is to use stock gains to pay for lux items. Stuff like gifts for wife/kids and travel.


- If I want to be rich, what's your advice for me?

Make sure you have the right drive and temprament for it. And you need to be in the right area. Traders, Lawyers, Med Specialists, Sales, Consultants, Investment Bankers are the right group that can make $1M by 35 to 40. If you want by 30 I think have to be businessman or sales/middleman work

- What is the most important lesson you picked up in the process of getting rich?

I do not see myself as rich yet. It is very interesting that as you accumulate wealth you get exposed to even wealthier people and know more. Eg. I used to think I can retire with 3M net worth. Now with that, I feel might as well aim higher and go for 10M and I can picture a lifestyle requiring that. I suspect when I hit 10M, it will become 20M. So there is this slippery slope of greed which I persoanlly want to be aware of. Money is for spendign and making people around me happy, it is a means to an end and I need to keep reminding myself of it.

- What do you think is the most important habit that helped you?

Persistance & a drive to make things work no matter what. It helps in business a lot.

- Any missed opportunities? Can I make use of these opportunities?

Erm.... there are always opportunities. If viewed that way, then i have "missed" many many.

I want to add one more question: Do you think luck plays a part?

Yes, we can try all we want but we need a little right place right time. But u need to work hard and be prepared to take some risk and take the challenge when it presents itself.

Hope this helps our readers. I write because I benchmark myself a lot personally and it makes me very competitive as a person. So for those of u who like to benchmark, this story is for you!

Thanks very much for sharing. Really appreciate you taking time to inspire all aspiring millionaires!

Originally Posted by Unregistered

- How did you make your first million?

Made my first million i think around 30 or 31 years old. Graduated from uni in 1999, started own business in 2000 and have been running it for 9 years now. Am 34 this year. My family saves a lot. We save about 80% of total annual income.

- How long did you take?

About 6 years to make the 1st. 2 years for 2 second and 1 year for third. Make about 1M per year now. Probably can increase it to 2M per year over the next 5 years. It is very true that the 1st is hardest to make and the subsequent easier.

- If you were to do it again in today's context, how much time do you need? Would you do it differently and how?

Well, i make my money mostly from company profits and pay. My 1st company took 5 years to hit 1 M turnover, my 2nd company took 1 year. Experience, a good team and knowhow really helps. I will still spend time, money and effort in business with stock trading as a fun sideline.

Investments I enjoy trading stocks but i never trade with more than 200-300K cash.No margin also. Money is hard to earn. This downturn made about 120K buying at low from last Sep to this year Mar. Over the past 9 years probably made about $250K in stocks. My idea is to use stock gains to pay for lux items. Stuff like gifts for wife/kids and travel.


- If I want to be rich, what's your advice for me?

Make sure you have the right drive and temprament for it. And you need to be in the right area. Traders, Lawyers, Med Specialists, Sales, Consultants, Investment Bankers are the right group that can make $1M by 35 to 40. If you want by 30 I think have to be businessman or sales/middleman work

- What is the most important lesson you picked up in the process of getting rich?

I do not see myself as rich yet. It is very interesting that as you accumulate wealth you get exposed to even wealthier people and know more. Eg. I used to think I can retire with 3M net worth. Now with that, I feel might as well aim higher and go for 10M and I can picture a lifestyle requiring that. I suspect when I hit 10M, it will become 20M. So there is this slippery slope of greed which I persoanlly want to be aware of. Money is for spendign and making people around me happy, it is a means to an end and I need to keep reminding myself of it.

- What do you think is the most important habit that helped you?

Persistance & a drive to make things work no matter what. It helps in business a lot.

- Any missed opportunities? Can I make use of these opportunities?

Erm.... there are always opportunities. If viewed that way, then i have "missed" many many.

I want to add one more question: Do you think luck plays a part?

Yes, we can try all we want but we need a little right place right time. But u need to work hard and be prepared to take some risk and take the challenge when it presents itself.

Hope this helps our readers. I write because I benchmark myself a lot personally and it makes me very competitive as a person. So for those of u who like to benchmark, this story is for you!

bump this up.

[glenndanker]

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