getting rich http://www.wisebread.com/taxonomy/term/18286/all en-US How to Retire Rich http://www.wisebread.com/how-to-retire-rich <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-retire-rich" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/rich_man_money_000026485996.jpg" alt="Man learning how to retire rich" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Here at Wise Bread, we've told you a lot about how to <a href="http://www.wisebread.com/one-smart-thing-you-can-do-for-your-retirement-today" target="_blank">grow a retirement fund</a> that will allow you to live comfortably after you stop working. Usually, this means saving enough to be able to maintain your current lifestyle and prepare for your long-term care.</p> <p>But what if you want to really live it up in retirement? How can you accumulate enough wealth to be considered among the truly rich? There's no magic bean to help you get super-wealthy. But smart and disciplined investors <em>can </em>amass retirement accounts in the tens of millions of dollars, simply by earning a bit more, investing more aggressively, and for a longer period of time.</p> <p>Let's take a look at these strategies for building serious wealth in retirement.</p> <h2>Earn More</h2> <p>While it's certainly possible to build a very nice retirement fund even if you earn a modest salary, the path to top-tier wealth usually comes from having a high income. So get to work!</p> <p>Those with very large retirement accounts often have the ability to max out their 401K plans each year ($18,000 annually) and likely a Roth IRA, as well ($5,500 per year). Earning more money also helps you avoid debt, and it expands your ability to move into other great investments, such as real estate. Even an extra few thousand dollars a year will give you the ability to invest more aggressively in order to accumulate more over the long haul.</p> <p>&quot;I think people would be surprised to learn how hard the 1% work,&quot; said David Schneider of Schneider Wealth Strategies in New York. &quot;You've got to work long and you've got to work hard.&quot;</p> <h2>Start Investing Early and Stay in the Game</h2> <p>One of the most important tools for building wealth is time. We've written a lot about the power of compound interest, and time is arguably more important than the rate of investment return and contributions.</p> <p>Let's say you start with $50,000 and contribute another $5,500 each year. Assuming a 7% annual return, you'll have $280,000 in 20 years. In 30 years, you'll have $631,000. In 40 years, you'll have $1.3 million. In 50 years, it's $2.6 million. So you can imagine how important it is to begin saving for retirement right when you begin earning money.</p> <h2>Own Your Own Company</h2> <p>It's nice to own shares of companies and see their value grow over time. But if you want to get super rich, you will want to own the whole business. If you work for a company and take a salary, there's a ceiling to how much you can earn and invest.</p> <p>Most of the wealthiest people on Earth are people who started their own companies and watched them grow into huge enterprises.</p> <p>&quot;By building something, that's where you see the biggest successes,&quot; said Andrew Rafal of Bayntree Wealth Advisors in Scottsdale, AZ.</p> <h2>Don't Do Stupid Stuff</h2> <p>While all investing comes with risk, there are certain things that every person should avoid if they plan to retire rich. Financial advisers say it's imperative that investors avoid major mistakes that wipe out large portions of their savings. This means staying away from more complicated and risky things like options, or trading on margin (which Rafal called &quot;a recipe for disaster&quot;).</p> <p>Don't place all of your money with one investment, and stay away from get-rich-quick schemes or products that claim to be able to time the market.</p> <p>&quot;You have to sort of put a garbage detector on,&quot; Schneider said.</p> <h2>Invest in Small Cap and Value Stocks</h2> <p>Conventional investment wisdom suggests that people invest in a mix of equities from varying industries, often weighted toward stable, large-cap stocks. This is good advice, but those who are willing to take on a little more risk may be able to supercharge their returns.</p> <p>Investing more heavily in smaller companies and looking for undervalued stocks will help lead to longer returns over time, financial advisers said.</p> <p>Schneider noted that between 1972 and 2015, small cap value stocks generated an average return of 12.9%, compared to 10% for large cap. That 3% gap may not seem like much, but if you started with $10,000, it was the difference between $600,000 and nearly $2 million.</p> <p>&quot;Over time, smaller companies do better than large stocks, and if you combine that with value stocks, you get more bang for your buck,&quot; Schneider said.</p> <p>He acknowledged that there is more volatility with small cap stocks, but said the higher returns were &quot;compensation for taking the bigger risk.&quot;</p> <h2>Live Within Your Means</h2> <p>In order to retire rich, you will need to live modestly in your younger years. Maxing out retirement accounts requires the discipline to put money aside rather than spend it. It means avoiding debt, especially high-interest debt from credit cards.</p> <p>Financial advisers said that some of their best and most successful clients were those that lived humble, non-flashy lives, but ended up with massive retirement funds because of their disciplined spending habits.</p> <h2>Be Born Into It</h2> <p>There are plenty of stories of wealthy people who started with nothing and grew their fortune on their own. But the truth is that many of the world's ultra-rich started off with a certain level of financial comfort, thanks to the success of the generations who came before them. Presidential candidate Donald Trump likes to boast of his wealth, but his father was a successful businessman and loaned him money early on in his career. While he's become a successful businessman in his own right, it didn't hurt to have early loans from wealthy family. Billionaires like the Koch brothers, members of the Walton family, and Lilliane Betancourt all inherited much of their wealth.</p> <p>A 2013 report researchers at the University of California and London School of economics concluded that entrepreneurs are more likely to be born into privilege. And Global Entrepreneurship Monitor reports that 80% of funding for new businesses comes from savings or from friends and family.</p> <h2>Use Debt Intelligently</h2> <p>Most financial advisers will say that staying out of debt is a key part of building wealth. After all, you can't put money into the stock market if you're too busy paying off high-interest credit cards or auto loans. But there are several instances in which borrowing money may help you build wealth over the long term.</p> <p>Rafal said using leverage to acquire real estate can be a sound wealth-building strategy, especially with interest rates at historic lows. He also said that if interest rates are lower than stock market returns, most people will be better off in the long run investing their money than paying off debt early.</p> <p><em>How do you plan to retire rich?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/how-to-retire-rich">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-one-woman-retired-at-60-and-traveled-the-world">How One Woman Retired at 60 and Traveled the World</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/this-is-why-you-cant-postpone-planning-for-your-retirement-and-how-to-start">This Is Why You Can&#039;t Postpone Planning for Your Retirement (And How to Start)</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/money-resolutions-6-ways-to-take-control-in-2013">Money Resolutions: 6 Ways to Take Control in 2013</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-money-moves-to-make-the-moment-you-decide-to-retire">12 Money Moves to Make the Moment You Decide to Retire</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-inspiring-people-who-each-paid-off-over-100000-in-debt">5 Inspiring People Who Each Paid Off Over $100,000 in Debt</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement getting rich investing millionaires one percent savings wealth Wed, 25 May 2016 10:00:06 +0000 Tim Lemke 1715215 at http://www.wisebread.com People Who Make a Lot of Money Do These 11 Things — Do You? http://www.wisebread.com/people-who-make-a-lot-of-money-do-these-11-things-do-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/people-who-make-a-lot-of-money-do-these-11-things-do-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/wealthy-businessman-160946095-small.jpg" alt="wealthy businessman" title="wealthy businessman" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There's not necessarily a trick to earning a lot.</p> <p>Despite what a number of scam artists and sketchy emails would lead you to believe, accumulating wealth is inherently time-consuming and difficult, taking most people years and decades to do. But that's not to say that there aren't qualities or traits that can be identified in those who are successful making a lot of money. If we can imitate them, we'll be better off when it comes to our own pursuit of wealth. (See also: <a href="http://www.wisebread.com/the-10-kinds-of-people-who-get-rich-and-how-they-do-it?ref=seealso">The 10 Kinds of People Who Get Rich &mdash; And How They Do It</a>)</p> <p>They say (or at least someone did) that if you want to be good at something, find somebody who already is good at that thing and imitate them. Since imitation is the highest form of flattery, it's as good a place to start as any. Let's dissect the rich.</p> <h2>1. They Learn How to Be Content While Staying Busy</h2> <p>How do you approach your work day or the hours that you put into making money? Do you count down the hours until it's time to go home?</p> <p>If you view your work day as a block of time where you engage and then get to punch out to go do whatever you want, you're not doing one of the most basic things that high earners do. Being content and excited about what you do means you're perfectly <a href="http://blogs.wsj.com/wealth/2012/04/27/do-the-wealthy-work-harder-than-the-rest/">fine to spend a lot of time on it</a>. It might even mean that you work long past 5 p.m. or whenever you &quot;punch out&quot; without even realizing it.</p> <h2>2. They Do What They Love</h2> <p>The late <a href="http://online.wsj.com/news/articles/SB10001424052970203388804576613572842080228">Steve Jobs said</a>, &quot;The only way to do great work is to love what you do.&quot;</p> <p>It's perhaps one of the most easily identifiable attributes of those who earn a lot. Whatever they do, it's almost always easy to see that they love and are passionate about what they're doing. That's not to say that you can't or shouldn't do other work that helps lead to or sustain something you're passionate about. But if you don't ultimately pursue work in something that you love, the climb to wealth is always going to be uphill.</p> <h2>3. They Arrive Early and Stay Late</h2> <p>Regardless of your schedule, following the template of those who make a lot of money requires you to go in early and stay late. Especially if your work is measured in output instead of hours.</p> <h2>4. They Make Money Based on Work Output</h2> <p>While we're on the subject&hellip; Most jobs pay you based on the amount of hours you spend working, whatever type of work that might be. Not only can that be demotivating, but it actually gives people <a href="http://www.nber.org/papers/w5672">the incentive to work less</a> since their pay per hour doesn't change. If you can be in a situation where your pay is more closely correlated with what you accomplish, instead of the amount of time you spend working it it, you'll be far more motivated and focused on that work &mdash; and you'll earn more as a result.</p> <h2>5. They Have a Path</h2> <p>Moving beyond your current constrictions requires that you take a step that isn't just theoretical. People who accumulate wealth are able to do this because they construct a practical and attainable list of goals that helps them get from where they are to where they want to go. Small <a href="http://www.wisebread.com/6-steps-to-achieving-all-your-goals">goals and practical steps will</a>, in a sense, create a road map that leads to your ultimate goal of a more well-funded bank account.</p> <h2>6. They Manage Their Personal Finances Well</h2> <p>Building wealth is as much related to what you save as it is to what you spend.</p> <p>Those who don't know how to manage the money they already have are going to have a difficult time using it to earn more. Take the time to educate yourself on personal finance or even go the extra mile and <a href="http://www.wisebread.com/10-places-to-get-free-personal-finance-classes">take a class</a> so that you can learn how to handle the money you have coming in. In the long run, it's going to be more valuable to you than a bigger paycheck. (See also: <a href="http://www.wisebread.com/saving-money-is-easy-if-you-set-the-right-goals?ref=seealso">Saving Money Is Easy If You Set the Right Goals</a>)</p> <h2>7. They Focus on a Particular Skill or Niche</h2> <p>Those who are able to focus on getting good or experienced in something specific, that goes beyond broad categories like sales, education, or IT, are often going to be <a href="http://careers.theguardian.com/career-job-seeking-standing-out">more successful and sought out</a>. They've set themselves apart from the crowded realm of their profession and become a specialist with credentials that go beyond ambiguous titles.</p> <h2>8. They Learn to Be Self-Motivated</h2> <p>Self-motivation is one of the most important traits of wealth-building individuals. In fact, every job opening that exists is there because someone took the initiative to motivate themselves, <a href="http://www.kauffman.org/what-we-do/research/firm-formation-and-growth-series/the-importance-of-startups-in-job-creation-and-job-destruction">start a company</a>, and continue to work and push that company forward until they became big enough to hire someone. Be the self-motivator instead of the person sending in their resume hoping for a response.</p> <h2>9. They Push Through Disappointment and Boredom</h2> <p>In your pursuit of wealth, you're going to fall short and face setbacks. You're also going to face an incredible amount of boredom and mental exhaustion with what you're doing. Because if you're focused and committed to growing a business or pursuing a certain career path, chances are good that you're going to be doing a lot of the same thing every single day. That's going to get boring and tiring.</p> <p>People who can <a href="http://www.forbes.com/sites/work-in-progress/2012/12/10/how-to-handle-and-relieve-boredom-at-work/">push through the boredom</a> and avoid letting it impact the quality of their work or heaven forbid, cause them to switch career paths in the hope of finding something more exciting, have a better chance at making a lot of money.</p> <p>So while Steve Jobs above advised us to do what we love, he also advised us to stick with it: &quot;I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.&quot;</p> <h2>10. They Know When It Pays to Spend</h2> <p>You should always be aware that there are <a href="http://money.usnews.com/money/personal-finance/investing/articles/2014/04/10/the-best-ways-to-invest-5-000">situations where it's good to spend or invest</a> in what you're doing. Thus, it's not always wise to save your money and refuse to spend. If a business can spend several hundred dollars on computers that improve their productivity on a daily basis for the foreseeable future, that's a situation where they would lose money by not spending it. Avoid being penny wise and pound foolish to give your business, career, or idea a better chance at succeeding.</p> <h2>11. They Network</h2> <p>One of the best things you can do for yourself as both a person and a professional is to <a href="https://www.linkedin.com/pulse/article/20130401172726-15454-the-importance-of-networking-the-hidden-job-market-and-recruiter-relevancy">network with people in your field</a>. It doesn't have to benefit you monetarily, because even a friendly acquaintance, email, Twitter follow, or business transaction can give you a lane into an area of opportunity that you would never have had otherwise. Take the time to network and get to know those working in the same field as you or even competing with you. It's almost always a good thing and a worthwhile use of your time.</p> <p><em>What are some traits you've identified in people who make a lot of money? Let me know in the comments section below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/people-who-make-a-lot-of-money-do-these-11-things-do-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-youre-not-a-millionaire">6 Reasons You&#039;re Not a Millionaire</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-retire-rich">How to Retire Rich</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-good-manners-make-you-wealthier">5 Ways Good Manners Make You Wealthier</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-rich-by-being-evil">How to get rich by being evil</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-youngest-entrepreneurs-to-make-it-big">The 6 Youngest Entrepreneurs to Make It Big</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance getting paid getting rich high earners wealth Tue, 30 Sep 2014 13:00:07 +0000 Mikey Rox 1222064 at http://www.wisebread.com The 6 Youngest Entrepreneurs to Make It Big http://www.wisebread.com/the-6-youngest-entrepreneurs-to-make-it-big <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-6-youngest-entrepreneurs-to-make-it-big" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/child-businesswoman-478599061-small.jpg" alt="child businesswoman" title="child businesswoman" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Kids these days.</p> <p>&hellip;are super rich. Just when you think getting a job couldn't get any more competitive, a 17-year old invents a mobile application that <a href="http://www.usatoday.com/story/money/business/2013/03/26/yahoo-buys-startup-run-by-17-year-old/2020133/">Yahoo buys for an undisclosed amount</a>. And he is not alone. Children and teenagers around the country are getting up earlier than ever to get that worm.</p> <p>Here are six of the youngest entrepreneurs to make it big.</p> <h2>1. Ashley Qualls</h2> <p>Girls can code, just ask Michigan native Ashley Qualls. Back in 2008, at age 14 she started the website whateverlife.com to provide Myspace layouts and HTML tutorials for other teens. It all took off from there. Through advertising income alone, Ashley is able to make about <a href="http://www.fastcompany.com/60278/girl-power">$70,000 in monthly revenue</a> from her 7 million monthly visitors. She has received several offers to buy her company, including one for <a href="http://www.forbes.com/2008/02/09/teen-millionaires-startups-ent-success-cx-ml_0211qualls.html">$1.5 million</a>, but she has turned all of them down.</p> <h2>2. Dave and Catherine Cook</h2> <p>Back in 1997, siblings Dave and Catherine (a high school junior and sophomore respectively) launched the social media site, MyYearbook.com. By being able to go head to head with titans such as MySpace and Facebook, the teen whizzes have received extensive media coverage over the years, including <a href="https://www.youtube.com/watch?feature=player_embedded&amp;v=VhG1_x83o9k">CNBC</a>, <a href="http://mashable.com/2007/07/12/myyearbook/">Mashable</a>, ABC, CNN, MSNBC, and Fox. By 2006, the site had raised $4.1 million in venture capital funding and had 3 million members worldwide.</p> <p>The original site has gone through several <a href="http://www.meetme.com/apps/meetmecomingsoon">rebranding exercises and mergers</a>, but Catherine continues to attract the media attention with her <a href="http://www.inc.com/magazine/201205/liz-welch/catherine-cook-and-geoff-cook-myyearbook.html">lessons on entrepreneurship</a> and <a href="http://techcrunch.com/2012/07/01/how-to-rebrand-a-social-network-and-live-to-tell-about-it/">marketing</a>.</p> <h2>3. Caine Monroy</h2> <p>Not all young entrepreneurs come from the tech world. Meet L.A. resident Caine Monroy, who at just nine years old became a successful business owner. Back in 2011, Caine spent most of his summer inside his dad's auto parts store building an elaborate arcade made entirely out of cardboard and tape. Almost the entire summer went by and he had yet to have a customer. Fortunately, his only customer came in the form of filmmaker Nirvan, who bought a door handle for his car and a $2 FunPass to Cain's Arcade. Nirvan was so inspired by Cain's entrepreneurship that Nirvan made a short film on <a href="https://www.youtube.com/watch?v=faIFNkdq96U#t=463">Caine's Arcade.</a> Through this film, Caine has inspired other kids to become owners of their own arcades, raised over $220,000 for his <a href="http://cainesarcade.com/imagination/">college studies</a>, and become a <a href="https://www.youtube.com/watch?v=kRCrAT1YcTo">TED speaker</a>.</p> <h2>4. Maddie and Margot Bradshaw</h2> <p>Here is another pair of power siblings. At age 10, Maddie Bradshaw used $300 of her own money and started making and selling decorated bottle cap jewelry. Her entrepreneurship has turned her business into a national brand called M3 Girl Designs, selling <a href="http://www.m3girldesigns.com/company/about/">50,000 necklaces</a> in less than two year's time.</p> <p>Maddie's younger sister, Margot started designing bottle cap necklaces at age 6. Margot and Maddie's designs can be worn as charms on various accessories, such as necklaces and hairpins. Both sisters had a reported $1.5 million in sales and 25 people on staff in 2008. Maddie also authored a <a href="http://www.amazon.com/gp/product/0615387586/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0615387586&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=TDULS4LNPMIIQXIO">how-to guide for young entrepreneurs</a>.</p> <h2>5. Hart Main</h2> <p>What started as a healthy sibling rivalry, turned into a full-on online business. In 2010, 13-year old Hart Main from Marysville, Ohio decided that there was a market for manly scented candles. He put $100 of his own money and his parents pitched an extra $200 to develop his candles, which include scents such as <a href="http://man-cans.com/index.php?route=product/category&amp;path=60/">NY Style Pizza, Bacon, and Grandpa's Pipe</a>.</p> <p>As of 2012, <a href="http://www.brassmagazine.com/article/whats-manlier-dirt-man-scented-candles-hart-main">over 25,000 ManCans have been sold</a> in over 60 stores around the country. The name ManCans comes from the fact that the candles are developed on empty soup cans that have been first donated to a soup kitchen and then cleaned up for production. Due to the success of his manly scents, in 2013 Main expanded his brand of candles with <a href="http://man-cans.com/index.php?route=product/category&amp;path=59/">SheCans</a>.</p> <h2>6. Sean Belnick</h2> <p>What were you doing when you were age 16? If you were to ask Sean Belnick, he would answer that he made his first $1 million. Back in 2001, Sean and and his father jumped on the dotcom bandwagon with <a href="http://www.bizchair.com/">Bizchair.com</a>, an online retailer of office furniture. Sean noticed that several middlemen would buy from his father's business and then sell those goods with a markup. So, Sean decided to cut all middlemen and sell all office furniture directly online.</p> <p>Unlike other dot coms, the Georgia-based Bizchair.com weathered the storm and achieved $15 million in sales in 2005 and over $40 million in 2007. Bizchair.com's clientele includes the <a href="http://www.inc.com/30under30/2007/the-chair-man-of-the-board.html">Pentagon, Fox's American Idol, Google, and Microsoft</a>. He advises aspiring entrepreneurs to <a href="http://finance.yahoo.com/news/pf_article_111047.html">start as early as possible</a>, &quot;I started when I was 14.There was a lot of great information on the Internet. Just do the research and find a way to do what you want to do.&quot;</p> <p>Now if you excuse me, I gotta go Google how to sell manly scented tanning lotion.</p> <p><em>Have you heard of other very young entrepreneurs? Please share in comments.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/the-6-youngest-entrepreneurs-to-make-it-big">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-retire-rich">How to Retire Rich</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/people-who-make-a-lot-of-money-do-these-11-things-do-you">People Who Make a Lot of Money Do These 11 Things — Do You?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-youre-not-a-millionaire">6 Reasons You&#039;re Not a Millionaire</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-rich-by-being-evil">How to get rich by being evil</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-kinds-of-people-who-get-rich-and-how-they-do-it">The 10 Kinds of People Who Get Rich (and How They Do It)</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career and Income entrepreneurship getting rich wealth young millionaires Fri, 05 Sep 2014 09:00:05 +0000 Damian Davila 1203753 at http://www.wisebread.com 6 Reasons You're Not a Millionaire http://www.wisebread.com/6-reasons-youre-not-a-millionaire <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-reasons-youre-not-a-millionaire" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy-bank-1987480-small.jpg" alt="man checking piggy bank" title="man checking piggy bank" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>In 2012, Australian mining tycoon Gina Rinehart was officially declared the richest woman in the world, boasting assets of more than $26 billion. Not long after, Rinehart took heat for an article she wrote for the Australian Resources and Investment Magazine, where she suggested that those who wanted what she had should &quot;spend less time drinking or smoking and socializing and more time working.&quot;</p> <p><a href="http://www.google.com/hostednews/afp/article/ALeqM5gHAYO6YzqDthLAj0YM2CK_8dFccw">&quot;If you're jealous of those with more money, don't just sit there and complain. Do something to make more money yourself...&quot; </a></p> <p>Obviously, she didn't run that article through a PR consultant before she submitted it.</p> <p>But as off-putting as that statement might be, I can't help but reluctantly concede that there's some truth to it. Now, don't get me wrong &mdash; I'm not for a moment suggesting that the reason we're not rich is that we don't work hard enough. Quite the contrary, I think most people work very hard and we tend to do whatever it takes to put food on the table and provide for our families. We're resourceful, we're dedicated, and we don't give up.</p> <p>I also believe that social programs are a good thing and that we have a responsibility to help those that need help. Always. Without Question. Period. (See also: <a href="http://www.wisebread.com/surprisingly-easy-ways-you-can-support-charity">Easy Ways to Support Charity</a>)</p> <p>But I also think that we've lost some of that vision and moxie that brought us here. I think that if you could measure potential, we'd be off the charts, but we've learned to ignore it, suppress it, and bury it down deep because it's easier, or at least safer, than taking the risk to see what we're really made of.</p> <p>So all that said, if you still want to know the real reason you're not a millionaire, read on, and just know that I say all of this with nothing but love.</p> <h2>1. You Work for Someone Else</h2> <p>When you work for someone else, you're essentially trading time for money, and there are two problems with this strategy:</p> <ol> <li>You only have so much time to trade</li> <li>Someone else is in charge of setting how much your time is worth</li> </ol> <p>So, while it's not impossible to reach millionaire status while working for someone else, it doesn't happen often.</p> <p>Does that mean you should run out and quit your job? No, but it does mean you should start looking at your time as a valuable commodity and rethink how you're spending it. Then, find a way to start moving toward a more profitable way of spending your days, a way that pays you for your talent and ability rather than the number of hours you've worked or the amount your pay-grade says you've earned.</p> <p>Maybe you start out by moonlighting or maybe you save up until you can take the big leap. Either way, the path is the same. (See also: <a href="http://www.wisebread.com/9-ways-to-earn-extra-cash-when-money-is-tight">9 Ways to Earn Extra Cash</a>)</p> <p>And if you're not hip to venturing out on your own, then you need to find another way to increase your income. Maybe you become very good at moving up the corporate ladder, or maybe you become remarkably savvy at investing, or better yet, maybe you do both. The point is, if your goal is to be a millionaire in a reasonable amount of time, you're the one that will have to make that happen.</p> <h2>2. You're Not Trying</h2> <p>While most millionaires are looking for ways to increase their wealth, the rest of us are simply looking for ways to pay our bills. This mindset has a direct effect on how much money you make.</p> <p>When I first launched my freelance career, I had a clear number in mind. I knew that I had to make X amount of dollars to pay my bills and keep my household running smoothly. Interestingly, that's exactly the amount of money I made, month after month, year after year. Whatever <em>amount I needed</em>, that was the amount I made, and for the longest time, I felt pretty proud of my ability to meet my obligations.</p> <p>But then I realized that I was still just working to pay my bills, trading time for money, even if I wasn't driving downtown to do it. I had changed the method by which I earned my paycheck, but it was still just a paycheck all the same.</p> <p>And oddly enough, once I made this realization, once I set aside that mental &quot;must-have&quot; number, my income started to increase. I may not have made my first million yet, but I'm finally starting to see the path that will get me there.</p> <p>If you want a million dollars, then set out to make a million dollars. There's nothing wrong with &quot;doing what you have to do&quot; to get by, but don't let that become your goal.</p> <h2>3. You Don't Believe</h2> <p>Ask anyone &mdash; and I mean anyone &mdash; if they'd like to be rich, and most won't even hesitate before saying yes. But ask those same people if they're certain they'll become rich, and you'll find that the answers aren't nearly as confident.</p> <p>That's because the average Joe or Jane doesn't really <em>believe they'll ever be millionaires</em>.</p> <p>They'd certainly like to believe it, but their doubt resonates much louder than their desire. As long as that's true, the wealth they desire will elude them.</p> <p>Now, this commitment to becoming rich might sound like something out of a new age book, but the fact remains that it is a common trait among the real-life wealthy. And if becoming a millionaire is really what you want to do, then you have to believe that it will happen, come hell or high water. (See also: <a href="http://www.wisebread.com/5-money-lessons-from-millionaires">5 Lessons From Millionaires</a>)</p> <p>This is why Donald Trump can go from having millions in the bank to millions in debt to millions in the bank again. He believes he is supposed to have money. Think what you will about Trump, but the fact remains that he keeps coming back, no matter what financial obstacles life might throw his way.</p> <p>When faced with bankruptcy and over $900 million in personal debt in 1991, do you suppose Trump ever, even for one second thought, &quot;Well, this is it... I guess I'll just throw in the towel?&quot; And incidentally, he didn't just make this comeback once. Trump has filed for corporate bankruptcy <em>three more times</em> since then, and according to analysts, he's now worth more than he was before the bankruptcy.</p> <p>How's that for a testimonial to the power of positive thinking?</p> <p>In the words of Warren Buffet, &quot;I always knew I was going to be rich. I don't think I ever doubted it for a minute.&quot;</p> <h2>4. You Don't Trust Your Instincts</h2> <p>Catherine L. Hughes didn't start out as an obvious success story. At 16, she was a teen mom. She attended college, but never finished. Yet, despite her slow start, she used her job at a local radio station to propel her career, and eventually secured a position as the General Manager of Howard University's radio station. Not long after, she and her husband bought their first radio station, and Radio One was born.</p> <p>Then came the divorce. Hughes was able to buy out her husband's shares in the station but was forced to sleep on the studio floor with her son because they couldn't afford to live anywhere else. Her mother pleaded with her to let the station go and find a more suitable life for her and her son.</p> <p>But Hughes stuck to her guns and today, Radio One is a multi-million dollar media company. &quot;Sometimes,&quot; says Hughes, &quot;the ones who love you the most give you the worst [business] advice. If I had listened to my mother.... there would be no Radio One.&quot;</p> <p>Who have you been listening to? Maybe it's time to get a second opinion. Or maybe it's time to start listening to your gut and seeing just how far you can fly.</p> <h2>5. You're Waiting</h2> <p>In his book, <a href="http://www.amazon.com/gp/product/0975500341/ref=as_li_ss_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0975500341&amp;linkCode=as2&amp;tag=wisbre03-20">How Rich People Think</a>, author Steve Siebold writes, &quot;...while the masses are waiting to pick the right [lotto] numbers and praying for prosperity, the great ones are solving problems.&quot;</p> <p>Yes, this is one of those harsh realities I mentioned earlier, but that doesn't make it any less true. What's more, we have a tendency to apply this mentality to all aspects of our lives, and that leaves us in a perpetual state of limbo. We're waiting for our boss to give us a raise or a promotion. We're waiting for our partner or spouse to make us happy and fulfilled. We're waiting on the government to fix the problems in our world, solve unemployment, create better programs, and lower our taxes. We're waiting for the right time, for more money, or for a better opportunity.</p> <p>In fact, if you think about it, we're always waiting for something. All that waiting is keeping us from achieving what we really want and, more importantly, what we could really become. As long as you're waiting, someone else is in control of your future. And if someone else is in control, you'll never get to where you want to go.</p> <h2>6. You Need to Revamp Your Relationship With Money</h2> <p>In a <a href="http://www.entrepreneur.com/article/222718">2012 post for Entrepreneur.com</a>, Grant Cardone writes,</p> <blockquote><p>Who says, 'Money won't make you happy'? People without money. Who says, 'All rich people are greedy'? People who aren't rich. Wealthy people don't talk like that. You need to know what people are doing to create wealth and follow their example: What do they read? How do they invest? What drives them? How do they stay motivated and excited?</p></blockquote> <p>And he should know.</p> <p>Cardone is an entrepreneur, international speaker, best-selling author, and sales and training expert for Fortune 500 companies. He makes a living off teaching others how to make a living and all of his success comes down to mindset.</p> <p>Cardone isn't the only one pointing to our dysfunctional love affair with money. Finance diva Suze Orman has written at length on the importance of a healthy relationship with money and treating it with respect: &quot;Your money is governed by how you treat it: it's that simple. It thrives when you are being responsible, respectful, and doing honorable things with it.&quot; And to do that, you have to get past this idea that wanting it &mdash; and being committed to getting it &mdash; somehow makes you a bad or selfish person. (See also: <a href="http://www.wisebread.com/for-a-better-relationship-with-money-make-plans">Make Plans for a Better Relationship With Money</a>)</p> <p>I'm going to quote Siebold one more time as well: &quot;[The middle class] sees money as a never-ending necessary evil that must be endured as part of life,&quot; he writes. &quot;The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.&quot;</p> <p>Now, think about how you see your money. Is it a means to an end? Or a strategic tool in your life plan arsenal?</p> <p>Does it bring you joy, or does it cause you stress and worry? Figure that out, because when you revamp your relationship with money, it's surprising how many doors will start to open up.</p> <p><em>What's keeping you from your first million?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kate-luther">Kate Luther</a> of <a href="http://www.wisebread.com/6-reasons-youre-not-a-millionaire">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/people-who-make-a-lot-of-money-do-these-11-things-do-you">People Who Make a Lot of Money Do These 11 Things — Do You?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-retire-rich">How to Retire Rich</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-good-manners-make-you-wealthier">5 Ways Good Manners Make You Wealthier</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-rich-by-being-evil">How to get rich by being evil</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-youngest-entrepreneurs-to-make-it-big">The 6 Youngest Entrepreneurs to Make It Big</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance first million getting rich wealth Thu, 03 Oct 2013 10:36:02 +0000 Kate Luther 994525 at http://www.wisebread.com