Financial Advice

Discussion in 'General Chat' started by Yuzika, Mar 11, 2019.

  1. Bank

    Bank Well-Known Member

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    He didn’t added the « safe job» option when asked for it. :cookie::blobhero:
     
  2. Grandia

    Grandia Well-Known Member

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    Now, I'll preface this by saying that it's a long answer, so tl;dr at the end. I've been thinking about this a lot after taking a personal finance course in university. Of course, these musings are my own opinion and mainly for the U.S., since that's what I'm familiar with.

    I think that the answer is: it depends. Now, I know this sounds like a cop-out, but hear me out.

    If you're asking what professions will give you a million dollars in income per year, it's not a particular major that will give you that kind of money. You need to be a high-level director or some kind of C-level executive for a mid-size or large business. This could be in tech, business, law, etc. The field doesn't particularly matter, but it requires lots of knowledge and specialized skills and ambition. Your average guy or gal isn't going to be doing that, let's be real.

    I know a lot of the people before me are saying that starting a business will give you that kind of money, but it's not true unless you can come up with a particularly inventive product that will get a larger business to buy you out. Small businesses require capital to start, don't take in much money in their first several years, and the time and effort their owners put into them is far more than you would with a normal job. That's assuming you beat the statistics for small business success (though these numbers may change for your particular country). Of course, if you're inheriting a well-established business or lots of money, this may be different. But not many people are that lucky.

    If you're looking at becoming a millionaire in terms of net worth, I think that's more achievable. There are multiple ways to do this, with the two major ones being investing in stocks or real estate (I've linked a couple of resources that we looked at in my class) with your expendable income instead of going out and buying things you don't particularly need. This (especially real estate, if you're smart) will increase your net worth in a hurry.

    Or if you're risk-averse, even just saving smart for retirement through fully taking advantage of employee-matching and contributing the maximum amount to your 401(k)s or Roth IRAs (if you start early enough that is) will net you a million dollars eventually given even conservative returns on the market. A little bit of math says ~27 years given 5% returns, but you can play around with the numbers. There are plenty of calculators online where you can put in your particular circumstances and they will spit back relevant numbers for you.

    Of course, these particular options are contingent on having the expendable income to be able to do that. This is where your major comes in. If you want the most return on investment (and less student debt :sweating_profusely:), a degree in engineering or computer science (or something related) is the way to go. You can start working right after undergrad with a salary that could hit six-figures (depending on your grades and internships) within your first 3 years if you're smart. A lot of companies will also pay for your masters degree :blobowoevil_horns:, which you can leverage into a higher paying position/job without the debt that comes with it. This gives you more income at an earlier age that you can invest to start growing your net worth early on - the power of compound interest will help you the most here.

    tl:dr I think it depends on your definition of millionaire and what time scale you're looking at. $1,000,000 of income/year is almost impossible unless you're highly specialized or come up with an incredible idea that larger companies want to buy out. $1,000,000 in net worth is easier to obtain, either relatively quickly (through investing in real estate and stocks) or long-term (through smart investing for retirement starting early).

    I hope this helps someone. I spent way too long writing this out... :facepalm: Feel free to send me a DM if you're interested in talking about this. I find it a fascinating subject.
     
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  3. All mighty Asian

    All mighty Asian Well-Known Member

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    I think con conman theranos