How a family can save/make with 600k WITHOUT taking out a loan?

Question

Just tips and "tricks" on saving and making $600,000

Answer 1

How long do you have to save/make the money? What is your household income? The answers to these questions make TONS of difference. If you have 30 years, you can invest $100 a month in an AVERAGE mutual fund. If you have a $200,000 a year income, you can live on $100,000 and save $600,000 in 5 or 6 years. I am sure you are somewhere in between on both counts.

Answer 2

It all really depends on risk. If you are looking for moderate risk then I say that you could do this at around 30 years while investing in a companies 401k program.

A riskier approach is to invest your capital in buying or starting a company.

But, of all things understand this basic principal: Interest from Debt and Spending decrement your net worth. Savings increases your net worth. So, if you want a net worth of $600K then you need your net worth climbing at a much faster rate than it is declining. That means you need to reduce as much debt as possible (interest from debt is net worth decreasing) and save as much as possible (savings is net worth increasing). Then you invest what you save and have interest working in your favor by compounding and making your net worth grow.

Thus, don't borrow money. This includes reducing your credit card debt to zero. Don't borrow money for cars as they are a double hit. This is because you are paying interest on a debt and the value of the car is decreasing. This hits your net worth twice! There are only two forms of good personal debt. The first is student loans. You will always have far greater returns from an education than you will pay in interest on the student loans. This is of course if you finish! The second is a home. Home values typically increase at a faster rate than what we pay in interest. This is of course, that you don't have a high variable rate!

Feel free to write me if you have any further questions. My email is in my profile.

Good Luck

Answer 3

Look into a self directed Roth or self directed IRA. there are so many ways you can make money like what you are talking about. feel free to e-mail me at [e-mail]