Ways to Build Wealth ?

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Stocker Steve
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Re: Ways to Build Wealth ?

Post by Stocker Steve » Fri Jan 18, 2019 4:42 pm

Bright Raven wrote:
Dave wrote:The best way to build wealth if that is your plan/issue is to keep money in your pocket. I have a good friend who is a self made millionaire. He never has bills smaller than $100 in his wallet. You will think twice before breaking a $100. Smaller bills are spent without thinking. He says that you will really think about before spending $10,000 yet most people will spend $5,000-$10,000 a year on nickle and dime stuff. Buying a soda from a convenience store when filling a bottle of water from the tap at home is free. The best way to build wealth is to watch carefully how you spend the wealth you have.


I bet he has already made his funeral arrangements.


Common in some areas to make your own casket, but they have regualations to discourage back yard burials.


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Re: Ways to Build Wealth ?

Post by bball » Fri Jan 18, 2019 4:54 pm

To add some positive input to this thread:
- frost seed clover
- cleared some marginal sand ground for pasture and fenced
-added 4 water wells
-using the best Angus bull i can afford on hereford cows
- cultivating strong, long term relationships with private buyers to avoid the salebarn
-following the advice of (jogeephus i believe) and quit fighting against my place and finding ways to utilize what it does well
- rotational grazing(goal being to intensify even more)
-using low$ inputs readily available locally to save hay costs
We do not see things as they are; we see things as we are. -Anais Nin
No act of kindness, no matter how small, is ever wasted. -Aesop

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Re: Ways to Build Wealth ?

Post by pricefarm » Fri Jan 18, 2019 5:47 pm

Dave wrote:
Bright Raven wrote:
Dave wrote:The best way to build wealth if that is your plan/issue is to keep money in your pocket. I have a good friend who is a self made millionaire. He never has bills smaller than $100 in his wallet. You will think twice before breaking a $100. Smaller bills are spent without thinking. He says that you will really think about before spending $10,000 yet most people will spend $5,000-$10,000 a year on nickle and dime stuff. Buying a soda from a convenience store when filling a bottle of water from the tap at home is free. The best way to build wealth is to watch carefully how you spend the wealth you have.


I bet he has already made his funeral arrangements.


I don't know about funeral arrangements but I do know that he has a life insurance policy to cover the inheritance tax his kids will have to pay. He is one of the smartest, hardest working men I have ever known. Fifteen years ago he shared with me that his net worth was about 15 million. I am sure it went up a lot since then. He didn't get there with the money he saved on soda. But those habits helped him build the capital to go to work for him. And he is not afraid to spend money. I have seen him write checks that were double or triple my net worth without blinking. Those checks were written after careful study and he knew that the money was coming back plus significant profit.


What did this man do to make so much money ? Farm?

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Re: Ways to Build Wealth ?

Post by Lucky » Fri Jan 18, 2019 6:37 pm

I think some people value money in the bank and some people value the things money can do for them or what they can do with the money. I know a few millionaires just like most folks do. One of them buys anything he wants and always says money is good for one thing and one thing only....To trade for something you want. I think he’s right, I also think a man with money that won’t spend it is no better off than a man with no money. I really enjoy making money and being successful at what I set out to do but don’t really value money allot. Now a new tractor or buying some land that attaches to me and making it work for me....That keeps me going. I know that won’t make sense to most.

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Re: Ways to Build Wealth ?

Post by Caustic Burno » Fri Jan 18, 2019 6:43 pm

Lucky wrote:I think some people value money in the bank and some people value the things money can do for them or what they can do with the money. I know a few millionaires just like most folks do. One of them buys anything he wants and always says money is good for one thing and one thing only....To trade for something you want. I think he’s right, I also think a man with money that won’t spend it is no better off than a man with no money. I really enjoy making money and being successful at what I set out to do but don’t really value money allot. Now a new tractor or buying some land that attaches to me and making it work for me....That keeps me going. I know that won’t make sense to most.


Now this an I think that a lot of it’s generational on how we look at money management. My parents were born in 1914 they saw people loose everything forming their views.
Money doesn’t buy happiness, but the lack does buy misery.

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Re: Ways to Build Wealth ?

Post by Dave » Fri Jan 18, 2019 7:16 pm

pricefarm wrote:
Dave wrote:
Bright Raven wrote:
I bet he has already made his funeral arrangements.


I don't know about funeral arrangements but I do know that he has a life insurance policy to cover the inheritance tax his kids will have to pay. He is one of the smartest, hardest working men I have ever known. Fifteen years ago he shared with me that his net worth was about 15 million. I am sure it went up a lot since then. He didn't get there with the money he saved on soda. But those habits helped him build the capital to go to work for him. And he is not afraid to spend money. I have seen him write checks that were double or triple my net worth without blinking. Those checks were written after careful study and he knew that the money was coming back plus significant profit.


What did this man do to make so much money ? Farm?


A lot of different things. Had a small 15 man sawmill. Bought land for the timber, logged it, milled the logs, and did a lot of different things with the land. Sold people land and carried the contract. Had a small heavy equipment company that built roads, driveways, and installed septics. Mined and sold designer rock for people to use in fireplaces and such. Developed a couple private lakes that now have great fly fishing. People pay pretty good money to fish and stay in the cabins there. Has a fishing guide business in Alaska. He owns some farm land which he leases out on shares. And I am certain other things that I am not thinking about. He not only works hard he plays hard. And he is not afraid to spend money playing. I know that over Christmas all his kids and him were playing golf in Palm Springs.

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Re: Ways to Build Wealth ?

Post by Lucky » Fri Jan 18, 2019 7:33 pm

Caustic Burno wrote:
Lucky wrote:I think some people value money in the bank and some people value the things money can do for them or what they can do with the money. I know a few millionaires just like most folks do. One of them buys anything he wants and always says money is good for one thing and one thing only....To trade for something you want. I think he’s right, I also think a man with money that won’t spend it is no better off than a man with no money. I really enjoy making money and being successful at what I set out to do but don’t really value money allot. Now a new tractor or buying some land that attaches to me and making it work for me....That keeps me going. I know that won’t make sense to most.


Now this an I think that a lot of it’s generational on how we look at money management. My parents were born in 1914 they saw people loose everything forming their views.


I can agree with you on that. However, Life is to short to ride a crappy horse.

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Re: Ways to Build Wealth ?

Post by Brookhill Angus » Fri Jan 18, 2019 10:21 pm

Dave wrote:
Bright Raven wrote:
Dave wrote:The best way to build wealth if that is your plan/issue is to keep money in your pocket. I have a good friend who is a self made millionaire. He never has bills smaller than $100 in his wallet. You will think twice before breaking a $100. Smaller bills are spent without thinking. He says that you will really think about before spending $10,000 yet most people will spend $5,000-$10,000 a year on nickle and dime stuff. Buying a soda from a convenience store when filling a bottle of water from the tap at home is free. The best way to build wealth is to watch carefully how you spend the wealth you have.


I bet he has already made his funeral arrangements.


I don't know about funeral arrangements but I do know that he has a life insurance policy to cover the inheritance tax his kids will have to pay. He is one of the smartest, hardest working men I have ever known. Fifteen years ago he shared with me that his net worth was about 15 million. I am sure it went up a lot since then. He didn't get there with the money he saved on soda. But those habits helped him build the capital to go to work for him. And he is not afraid to spend money. I have seen him write checks that were double or triple my net worth without blinking. Those checks were written after careful study and he knew that the money was coming back plus significant profit.


I agree with what you said above. It's about "guns or butter" in the cattle business.
"When someone tells you it can't be done, it's more a reflection of their limitations, not yours"

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Re: Ways to Build Wealth ?

Post by Stocker Steve » Sat Jan 19, 2019 4:42 am

bball wrote:To add some positive input to this thread:
- frost seed clover
- cleared some marginal sand ground for pasture and fenced
-added 4 water wells
-using the best Angus bull i can afford on hereford cows
- cultivating strong, long term relationships with private buyers to avoid the salebarn
-following the advice of (jogeephus i believe) and quit fighting against my place and finding ways to utilize what it does well
- rotational grazing(goal being to intensify even more)
-using low$ inputs readily available locally to save hay costs


Good ideas. We like to talk a lot about improving cattle on these boards - - but except for the best seed stock producers - - there is more upside in regenerating soil and improving forage stands. This is one of the best ways to offset high land prices and reduce drought risk.
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Re: Ways to Build Wealth ?

Post by ddd75 » Sat Jan 19, 2019 6:51 am

Stocker Steve wrote:
bball wrote:To add some positive input to this thread:
- frost seed clover
- cleared some marginal sand ground for pasture and fenced
-added 4 water wells
-using the best Angus bull i can afford on hereford cows
- cultivating strong, long term relationships with private buyers to avoid the salebarn
-following the advice of (jogeephus i believe) and quit fighting against my place and finding ways to utilize what it does well
- rotational grazing(goal being to intensify even more)
-using low$ inputs readily available locally to save hay costs


Good ideas. We like to talk a lot about improving cattle on these boards - - but except for the best seed stock producers - - there is more upside in regenerating soil and improving forage stands. This is one of the best ways to offset high land prices and reduce drought risk.


well said steve!

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Re: Ways to Build Wealth ?

Post by hurleyjd » Sat Jan 19, 2019 7:08 am

I have a net loss every year with the cows. Several years ago I had farm expenses of $24000. Come tax time had to pay about $15000. I posed this question to our accountant? How much more taxes would I pay without the farm loss. He went into his calculator and came back with the answer about $1800. Still losing every year and taxes on the land is going up every year. Land values in the area are in the $4000 range. So with CD's paying out about 2% now the land would have to generate over $80 and this would be an added expense. Does not make any difference if your real estate is worth 5 million you still have to sell to realize it.

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Re: Ways to Build Wealth ?

Post by Bright Raven » Sat Jan 19, 2019 7:19 am

hurleyjd wrote:I have a net loss every year with the cows. Several years ago I had farm expenses of $24000. Come tax time had to pay about $15000. I posed this question to our accountant? How much more taxes would I pay without the farm loss. He went into his calculator and came back with the answer about $1800. Still losing every year and taxes on the land is going up every year. Land values in the area are in the $4000 range. So with CD's paying out about 2% now the land would have to generate over $80 and this would be an added expense. Does not make any difference if your real estate is worth 5 million you still have to sell to realize it.


Does not surprise me at all. YOU DO HAVE TO SELL TO REALIZE YOUR CAPITAL GAINS.
"Looking for an honest man".
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Re: Ways to Build Wealth ?

Post by jltrent » Sat Jan 19, 2019 8:37 am

Some people think they can take it with them and if left to the next generation usually does not last long. Try to budget and stay within your means, enjoy things money can buy, but don't over extend. Dealing with a tightwad pizzes me bout more than anything as I want deal with them.

Some apparently think they can take it with them......

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Re: Ways to Build Wealth ?

Post by Stocker Steve » Sat Jan 19, 2019 6:27 pm

hurleyjd wrote:I have a net loss every year with the cows. Several years ago I had farm expenses of $24000. Come tax time had to pay about $15000. I posed this question to our accountant? How much more taxes would I pay without the farm loss. He went into his calculator and came back with the answer about $1800. Still losing every year and taxes on the land is going up every year. Land values in the area are in the $4000 range. So with CD's paying out about 2% now the land would have to generate over $80 and this would be an added expense. Does not make any difference if your real estate is worth 5 million you still h.ave to sell to realize it.


OK
We are building wealth.
So what was the percent increase in net worth per year?
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Re: Ways to Build Wealth ?

Post by Lucky » Sun Jan 20, 2019 12:55 pm

At the end of the year if you are able to meet all your commitments you are building wealth. If you have $1 left over you were profitable.

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