rich http://www.wisebread.com/taxonomy/term/388/all en-US 4 Ways HSBC's Shady Schemes Helped the Rich Avoid Taxes http://www.wisebread.com/4-ways-hsbcs-shady-schemes-helped-the-rich-avoid-taxes <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-ways-hsbcs-shady-schemes-helped-the-rich-avoid-taxes" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/5OY1uW04FL463JyT2VYzp_g5JRiAqPNw95kJKvrXERM/mtime:1424455685/files/fruganomics/imagecache/250w/blog-images/hsbc%203.jpg" alt="hsbc 3" title="hsbc 3" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Fugitive diamond dealers, convicted drug lords, terror suspects, royal families, famous athletes, and allies of Vladimir Putin are among the controversial figures HSBC helped to hide money from the taxman by setting up and managing <a href="http://www.bloomberg.com/news/articles/2015-02-08/leaked-hsbc-list-shows-who-was-banking-on-swiss-secrecy">1,000s of secret Swiss bank accounts</a>. The bank now faces criminal prosecution for its role in not only allowing, but advocating that select wealthy clients hide their identities (and in some cases huge amounts of illicit cash) in order to skirt taxation. It's the latest in a string of shady Swiss banking busts, and one that could result in a hard crackdown on offshore tax havens.</p> <p>Read on for our step-by-step guide to how the world's second-largest bank got away with helping people avoid paying their taxes &mdash; and why you can't do the same.</p> <h2>1. Aggressive Marketing</h2> <p>To drum up business, HSBC promoted its <a href="http://www.theguardian.com/business/2015/feb/10/hsbc-files-swiss-bank-aggressive-marketing-clients-avoid-new-tax">tax dodging strategization</a> services. For example, the bank alerted select wealthy clients about a scheme it masterminded for the purpose of helping depositors avoid a new tax levied in 2005 on the Swiss savings accounts of EU citizens. Since the tax applied only to personal savings accounts, HSBC offered to transfer clients' monies into a puppet corporate account it created so that those monies wouldn't be subject to the tax. The likelihood of your bank setting up an ingenuine account to help you avoid paying your taxes is slim to none.</p> <h2>2. A 1934 Swiss Law</h2> <p>Most western nations outlawed anonymous banking long ago. But the practice is alive and well in Switzerland, where banking secrecy is supported by a 1934 law that makes it punishable by three years in jail for a banker, current or former, to make public the identity of a depositor. Instead of legal names, HSBC's secret accounts were tied only to numbers and <a href="http://www.theguardian.com/business/2015/feb/08/hsbc-files-1934-swiss-law-secrecy?CMP=share_btn_tw">code names like Captain Kirk</a>. Just a select few within the banking giant's Swiss branch knew the true identity of its depositors.</p> <h2>3. Untraceable Banknotes</h2> <p>When you use untraceable banknotes, there's no paper trail to set off the IRS or other authorities. With this knowledge, HSBC reportedly made untraceable cash available to its depositors, and then allowed those depositors to make large cash withdrawals &mdash; <a href="http://www.theguardian.com/business/2015/feb/09/hsbc-files-swiss-bank-cash-machine-rich-clients?CMP=share_btn_tw">a major red flag</a> in legal banking operations that would normally result in a denial of the request to make a withdrawal. Some of these withdrawals were in amounts as large as $100,000.</p> <p>If you tried to make a cash withdrawal in the amount of $100,000 &mdash; or even $10,000 &mdash; your bank would almost certainly block the transaction. But HSBC never did. In fact, the bank encouraged such transactions. In one example, the Guardian reports that wealthy HSBC clients in Paris would use the bank to exchange the illicit proceeds from big drug deals in the city for untraceable cash.</p> <h2>4. Tip-Offs</h2> <p>Chances are that your bank would advise you on how to comply with the law &mdash; not on how to skirt it. But HSBC clearly wasn't playing the role of typical bank. In fact, it tipped off its clients when they were on the verge of making a transaction that might catch the attention of the tax man. In many cases, it would then suggest an alternative way to make that same transaction while staying under the radar. A surgeon from the U.S., for example, said HSBC's Swiss bank gave him &quot;bricks&quot; of $100,000 in notes so he could secretly send them home in a series of envelopes. Wiring the money, the bank advised him, would &quot;create a trail for US authorities,&quot; the Guardian reports.</p> <p>The super-rich get all sorts of benefits you and I don't. HSBC's tax-dodging strategies are just the latest example.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/brittany-lyte">Brittany Lyte</a> of <a href="http://www.wisebread.com/4-ways-hsbcs-shady-schemes-helped-the-rich-avoid-taxes">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/5-dangers-of-mobile-banking-and-how-to-avoid-them">5 Dangers of Mobile Banking — And How to Avoid Them</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/best-ways-to-count-and-cash-in-your-change">Best Ways to Count (and Cash in) Your Change</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/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</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/credit-unions-vs-banks-whats-the-difference">Credit Unions vs. Banks: What&#039;s the Difference?</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-best-prepaid-debit-cards">5 Best Prepaid Debit Cards</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking hsbc one-percenters rich tax evasion Fri, 20 Feb 2015 18:00:08 +0000 Brittany Lyte 1302367 at http://www.wisebread.com Best Money Tips: Ways to Get Rich Quicker http://www.wisebread.com/best-money-tips-ways-to-get-rich-quicker <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-ways-to-get-rich-quicker" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/mH87GPSZ1hzv07h_EgjI4rgIAxQhy1MpubJhLi5RsW4/mtime:1367230149/files/fruganomics/imagecache/250w/blog-images/cash-5061531-small.jpg" alt="cash" title="cash" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found some awesome articles on ways to get rich quicker, how to start saving for your summer vacation, and cutting wedding cake costs.</p> <h2>Top 5 Articles</h2> <p><a href="http://www.kiplinger.com/slideshow/business/T064-S002-how-to-get-rich-quicker/index.html">9 Ways to Get Rich Quicker</a> &mdash; If you want to get rich quickly, try to self-publish a book or start your own company. [Kiplinger]</p> <p><a href="http://www.bargaineering.com/articles/start-saving-summer-vacation.html">How to Start Saving for Your Summer Vacation</a> &mdash; Consider having your children participate in saving for summer vacations by having them contribute part of their allowance. [Bargaineering]</p> <p><a href="http://www.savvysugar.com/How-Save-Money-Wedding-Cake-24081610">Cut Wedding Cake Costs With These Tips</a> &mdash; To keep your wedding cake costs down, opt for unstacked cakes or buttercream frosting. [PopSugar Smart Living]</p> <p><a href="http://www.moneytalksnews.com/2013/04/26/6-little-known-ways-to-save/">6 Ways to Make Saving Easy</a> &mdash; Turning your hobby into a job can help you easily increase your savings. [Money Talks News]</p> <p><a href="http://money.msn.com/saving-money-tips/post.aspx?post=9bd235ea-6fe7-4486-89bf-30e6ce887e7d&amp;ref=bfv">A free lunch at Costco?</a> &mdash; When trying to score a free sample lunch, eat strategically and don't linger at sample tables. [MSN Money]</p> <h2>Other Essential Reading</h2> <p><a href="http://www.moneycrashers.com/best-side-business-ideas-college-students/">5 Best Side Business Ideas for College Students - Things to Consider</a> &mdash; If you are a college student in need of some extra dough, look into becoming a freelance writer. [Money Crashers]</p> <p><a href="http://wealthpilgrim.com/3-ways-to-maximize-your-homeowner-insurance-claim/">Before You Make a Homeowner Insurance Claim, Read This</a> &mdash; Take the time to make a documentary of your loss by videoing and taking pictures before you make a homeowner insurance claim. [Wealth Pilgrim]</p> <p><a href="http://www.moolanomy.com/6114/when-to-hire-a-property-management-company/">When to Hire a Property Management Company</a> &mdash; It may be a good idea to hire a property management company when you have multiple properties or don't live locally. [Moolanomy]</p> <p><a href="http://www.freemoneyfinance.com/2013/04/how-much-do-you-spend-on-lunch.html">How Much Do You Spend on Lunch?</a> &mdash; Did you know if you spend $10 a day on lunch you end up spending $2,500 a year? [Free Money Finance]</p> <p><a href="http://parentingsquad.com/staying-positive-in-the-aftermath-of-terrorism">Staying Positive For Our Children in the Aftermath of Terrorism</a> &mdash; Carefully monitor what your child is watching on TV and viewing online in the aftermath of terrorism. [Parenting Squad]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-jacobs">Ashley Jacobs</a> of <a href="http://www.wisebread.com/best-money-tips-ways-to-get-rich-quicker">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/is-six-figures-really-that-much">Is Six Figures Really That Much?</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/10-dumb-habits-that-are-keeping-you-from-earning-more-money">10 Dumb Habits That Are Keeping You From Earning More Money</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/how-to-get-rich-by-being-evil">How to get rich by being evil</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/turn-your-passion-into-a-living">Turn Your Passion Into A Living</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career and Income best money tips income quickly rich Mon, 29 Apr 2013 10:00:33 +0000 Ashley Jacobs 973752 at http://www.wisebread.com What Does Being Rich Mean to You Anyway? http://www.wisebread.com/what-does-being-rich-mean-to-you-anyway <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-does-being-rich-mean-to-you-anyway" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/K8RnQKaQrUB0ZiR9M9RrpjG7-J7zDTADOWKHEGWsYBk/mtime:1295078823/files/fruganomics/imagecache/250w/blog-images/113911116_8f5ecfddae.jpg" alt="$20 bill" title="$20 bill" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>Money Magazine had an interesting article in the September 2010 issue titled &quot;Do You Have What It Takes To Be Wealthy?&quot; The article comprised of 15 questions aimed to tell you if, indeed, you have a good chance to be rich. I aced it (if you consider having a solid chance of being rich a good thing, that is), but what is the definition of being wealthy anyway? Is it just a number we call net worth? Or is it something else all together?</p> <p>I was given a tour the other day of a $6 million dollar home. Apparently, the owner bought the piece of land for $4 million and spent $10 million building the custom house on the site. The property was gorgeous (duh!), but the owner couldn't have lived in it for more than three years and he lost $10 million in the process after considering not getting his asking price, agent fees, etc. when it's all said and done.</p> <p>When you have that kind of money to lose, are you considered rich? (By the way, for those concerned, the owner moved to an even more expensive neighborhood, so this is not one of those overextended home borrower stories.) Miranda started an interesting discussion asking whether you are rich. She claims that your location and personal situation matters a great deal when it comes to the financial portion of the definition of being rich, but I believe it's more than that. I'd argue that being wealthy is much more than having, or earning a specific dollar amount.</p> <h3>Not Worrying About Money</h3> <p>This is much more than having a ton of money. Not worrying about money is more about the ratio of your spending and expectations versus your assets. Some people don't have enough with $12 million, but others can retire comfortably with much, much less. However much money you have, you cannot be wealthy when the worry of money is always on the forefront of your mind.</p> <h3>Having Loving Family and Friends</h3> <p>You might have money, but you aren't rich if you don't have anyone to spend it with. Being rich is also having someone to share your joy and sorrows, and it's having someone to have spend time with too. When you need a shoulder to cry on, can you actually buy one?</p> <h3>Having a Sense of Direction</h3> <p>You can have all the money in the world, but it's very difficult to enjoy life if you don't have a sense of purpose. We talk about finding a passion all the time, but to be quite honest with you, most people never listen. Some are simply too afraid to change their depressing jobs, they are too lazy to repair broken relationships, and they are too proud to admit their mistakes so they can start over. First of all, I don't think these people will be able to maximize their earnings power this way. Even if they could, how does having a bunch of money with a miserable life make them wealthy?</p> <p>Being rich requires money. There is no doubt about it. But it's much more than that &mdash; so much more.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/david-ning">David Ning</a> of <a href="http://www.wisebread.com/what-does-being-rich-mean-to-you-anyway">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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</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/ow-do-you-deal-with-family-members-who-are-bad-at-managing-money">How Do You Deal With Family Members Who Are Bad At Managing Money?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family Lifestyle money real estate rich wealth Thu, 02 Sep 2010 14:00:07 +0000 David Ning 223625 at http://www.wisebread.com Tactics of the rich http://www.wisebread.com/tactics-of-the-rich <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/tactics-of-the-rich" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/6jEDZhD8vemKzEoVE9Q37wy2kD3ROwC9aVjraDrCI-U/mtime:1301029918/files/fruganomics/imagecache/250w/blog-images/sunsinger.jpg" alt="Sunsinger statue in Allerton Park" title="Sunsinger" class="imagecache imagecache-250w" width="250" height="334" /></a> </div> </div> </div> <p>There are things the rich do that working class and middle class folks don't. Some of them--living off the return on capital rather than wages or salary--are only available to the rich. Others--seeking a first-rate education for your kids, working for yourself rather than others--are things that ordinary folks do to the extent that they can, but their ability is limited. Even so, it's worth learning the tactics of the rich and applying them where possible.</p> <p>Some of the tactics of the wealthy are unsavory. One key tactic is to share as little as possible of the profits of the enterprise. This is why working for yourself is such an important tactic--the owners and managers are in a position to grab the lion's share. Put your suppliers in the position of competing with one another for the lowest price, put your workers in the position of competing with the unemployed for the lowest wage, and pocket the savings (via dividends if you're an owner, via bonuses if you're a manager).</p> <p>Others, though--tactics like frugality, living within your means, avoiding debt (except to invest in a money-earning enterprise), and working hard--are positive virtues, or at least neutral. (And they're generally the ones that lead to wealth creation. The others are largely about wealth preservation.)</p> <p>These tactics are not kept secret, exactly, but various factors keep them largely out of view from ordinary folks. The biggest is simply that consumption is interesting while frugality is dull. So, buying a yacht makes the news, whereas driving a 10-year-old car one more year doesn't get noticed. The result is that popular culture shows the excesses of super-wealthy but not the ordinary lifestyles of the ordinary wealthy. But there are way more of the latter than there are of the former.</p> <h2>Not a level playing field</h2> <p>There are a lot of ways in which the deck is stacked in favor of the rich. The advantage I mentioned at the beginning--owners and managers being able to skim off an outsized share of the profits--is a huge one, but there are others:</p> <ul> <li>The legal system heavily favors the rich.</li> <li>The financial system offers high quality services to the wealthy (often for free), while the poor make do with expensive check-cashing services and payday lenders.</li> <li>The rich are in a much better position to wait for a good deal--which gets them lower interest rates on loans, lower rents, lower insurance rates, and better prices on just about everything.</li> <li>And then there are simple social realities--affluent neighborhoods are safer, stores that cater to the affluent have more and better choices (and often cheaper ones as well), schools in affluent neighborhoods are better and safer.</li> </ul> <h2>Knowledge can help level it</h2> <p>If you know enough, though, most of these advantages of the wealthy are available to the poor as well:</p> <ul> <li>Anybody can start a small business. The internet has vastly increased the range of options that require almost no capital (and has made a wide range of formerly expensive services available cheap or free). This mean that anybody can work for themselves rather than others.</li> <li>Anybody can be frugal and live within their means, as long as they don't assume that they're entitled to some particular standard of living.</li> <li>Anybody can avoid debt. More important, anybody can understand the difference between <a href="http://www.wisebread.com/good-debt-bad-debt">productive debt</a> (invested to earn the money to pay itself off) and unproductive debt (spent on consumption).</li> <li>Anybody can do the research to find the good public schools. The affluent have a lot more choices, but you only need to find one affordable place to live in a safe neighborhood with good schools.</li> <li>Anyone (even <a href="http://www.wisebread.com/making-direct-deposit-safe-for-the-garnished">people with garnishments</a>) can open a bank account and quit using the check-chasing places.</li> <li>Anyone can be patient and refuse to take a bad deal--which will, over time, get you the same good prices that the rich get.</li> </ul> <p>It takes time and effort to learn the tricks and pitfalls, and this is where the children of the affluent get their biggest leg up: They learn these things from their parents and their friends' parents, from their classmates and teachers and neighbors. They also generally reach adulthood with at least <a href="http://www.wisebread.com/join-the-rentier-class">a little capital</a> (instead of student loan debts). But you can learn these things too. It's one reason for reading Wise Bread.</p> <p> &nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/tactics-of-the-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-4"> <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/if-youre-so-smart-why-arent-you-rich">If you&#039;re so smart, why aren&#039;t you 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/if-you-won-the-lottery-you-would">If You Won The Lottery, You Would...</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/a-decent-standard-of-living">A decent standard of living</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/chinese-money-habits-how-my-culture-influences-my-attitudes-toward-money">Chinese Money Habits - How My Culture Influences My Attitudes Toward Money</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/eight-natural-ways-to-make-water-more-flavorful">Eight Natural Ways to Make Water More Flavorful</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Frugal Living class investments rentier class rich tactics wealthy Sun, 12 Apr 2009 21:18:49 +0000 Philip Brewer 3037 at http://www.wisebread.com If You Won The Lottery, You Would... http://www.wisebread.com/if-you-won-the-lottery-you-would <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/if-you-won-the-lottery-you-would" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/M1rjIXM9hHORL5EfmMV4JFoKqqFt3nxU_VYbtzq6zr4/mtime:1295014433/files/fruganomics/imagecache/250w/blog-images/lotto.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="154" /></a> </div> </div> </div> <p>We've all had the dream where the bouncing white balls in the glass orb line up perfectly or the numbers we picked magically materialize in the exact order we predicted to set us up for life. Millions of dollars are coming our way, and we don't have to worry about anything anymore.</p> <p>We've won the lotto. Ahhh...the life that would await us...</p> <p>But the odds of winning the MegaMillions are 1 in 135,145,920, so don't hold your breath and get back to work.</p> <h3>Not Likely</h3> <p>While the lottery is a nice fantasy, it's much more likely you'll wind up in a position (CEO, anyone?) that pays you tons of money for working hard instead of getting lucky. And that's something I've been thinking about a lot lately. What would I do if I won or was making millions of dollars a year? I've talked to friends about this and usually the answer is the same:</p> <blockquote><p>I'd work for a few years and then retire to an island somewhere!</p> </blockquote> <p>I understand the sentiment&mdash;who wouldn't want to quit the rat race and go relax on a beach without a care in the world?&nbsp;But I always play devil's advocate and try to get them thinking about this at a deeper level. My argument is that they probably wouldn't just walk away like that.</p> <p>Here's why: whatever motivation drives you to work hard enough to make it to CEO&nbsp;(or any other top-paying position) isn't just going to disappear after you've &quot;made it.&quot; If anything, that drive would get even stronger. Sure, this sometimes happens with certain athletes after they get their big contract (which always draws the ire of fans&mdash;you're getting paid to play a game!), but most athletes follow the same pattern. They play because they're driven to compete and win.</p> <p>You can't just turn off the machine that got you to the top like that&mdash;it's not that simple.</p> <h3>So What Would You Do?</h3> <p>I love imagining these kinds of scenarios and trying to picture what I would do. Last year, I imagined what I&nbsp;would do if I&nbsp;had all the money in the world and how my life would change. Here's the weird thing about that little exercise, though: <a href="http://www.thewriterscoin.com/2007/11/12/all-the-money-in-the-world-part-1/">I&nbsp;figured out</a> that most of the things I would do or change were things that had nothing to do with money.&nbsp;</p> <p>They were things I&nbsp;could do in my life right now.</p> <p>I didn't want to buy a new car or move into a mansion. The things I wanted to do were more about personal fulfillment (although I did want to buy an apartment on the Seine and travel more). But most of it was about the job I had and some other things I&nbsp;could actually control.</p> <p>And I asked myself, &quot;Why don't you do them then?&quot;</p> <p>It was quite the moment for me&mdash;I&nbsp;was surprised that money had nothing to do with the things I&nbsp;would do if I&nbsp;had tons of money. Does that make sense?</p> <p>Granted, once you have a couple million bucks in the bank, things change...but I think it's still a worthwhile exercise to picture yourself in that position to see what you would do. Go ahead and list out the things you would do right away if money wasn't an object: would you quit your job or get a different one?&nbsp;If you quit, what would you do with all that spare time? Would you move to a different apartment or house?&nbsp;</p> <p>Think about it for a second and then look the list up and down. Can you do any of that stuff right now?</p> <p>Let me know what you find out!</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carlos-portocarrero">Carlos Portocarrero</a> of <a href="http://www.wisebread.com/if-you-won-the-lottery-you-would">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-5"> <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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</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/is-six-figures-really-that-much">Is Six Figures Really That Much?</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/why-is-rich-often-equated-with-evil">Why Is &quot;Rich&quot; Often Equated With &quot;Evil&quot;?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income Lifestyle lottery millions rich wealthy Fri, 03 Apr 2009 12:21:35 +0000 Carlos Portocarrero 3003 at http://www.wisebread.com Beat the Nirvana fallacy: why doing something is better than nothing http://www.wisebread.com/beat-the-nirvana-fallacy-why-doing-something-is-better-than-nothing <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/beat-the-nirvana-fallacy-why-doing-something-is-better-than-nothing" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/bBsBJv7OSJaL2byUkUVUiRzlEN7SGQ0cmoegK4qm6AQ/mtime:1301029897/files/fruganomics/imagecache/250w/blog-images/legotton.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>Ever found yourself in a position where you were going to contribute to a good cause: for instance, volunteering at a women's shelter to directly help victims of domestic abuse, only to find yourself rebuked a friend who went, &quot;Why bother? More women will just get beat up everyday.&quot;</p> <p>It probably stung. Do you remember how <em>you</em> reacted? Did you decide not to help, or did you press on ahead?</p> <h2>The Nirvana fallacy is for people who waste their lives.</h2> <p><a href="http://en.wikipedia.org/wiki/Nirvana_fallacy">It</a> basically states that if you can't do something perfectly (like solve all spousal abuse problems or world hunger in the twinkle of an eye), then you shouldn't bother at all. The problem with that is simple: <strong>there's NEVER a perfect solution</strong>, only shades of choices that are better than others, and mistakes you make and can hopefully learn from. Most mistakes aren't grievous and are fantastic &quot;Lego blocks&quot; to build progress upon.</p> <p>Ramit Sethi, author of the new hit book <em>I Will Teach You To Be Rich</em>, makes this point. He was recently <a href="http://www.wisebread.com/bestselling-author-ramit-sethi-giving-free-trip-anywhere-in-the-us-to-one-lucky-wise-bread-reader">blogged by Will Chen on Wise Bread</a>, and this quote from the book is the moment I knew Ramit was onto quality (as opposed to being just another yappy guru):</p> <blockquote><p>It sounds sexy, but when individual investors talk about complicated concepts like this [referring to buzzwords like &quot;hedge funds&quot;], it's like two elementary school tennis players arguing about the string tension of their racquets. Sure, it might matter a little, but they'd be much better tennis players if they just went outside and hit some balls for a few hours each day.</p> </blockquote> <p>Ramit doesn't specifically cite &quot;Nirvana fallacy&quot;, but that's what he's talking about. <strong>Everyday progress in increments, even when you don't feel like it, is far better than delaying and waiting for a &quot;perfect day to start getting rich&quot;.</strong> That day will NEVER come. Ramit also compares personal finance to weight loss &mdash; the latter being plagued by buzzwords and too many arguments over which diet works best. I connected fad diets to <a href="http://www.wisebread.com/7-ways-to-spot-a-social-media-snake-oil-salesperson">social media snake oil salespeople</a> earlier, so you can clearly see all these fields have a strong commonality:</p> <p><strong>Too many words, not enough action. </strong></p> <h2>Words are overrated.</h2> <p>Yes, they have many uses but they're often used as an excuse for action. <strong>Words are often a stall tactic to debate points that disintegrate once you begin moving.</strong> Just like Tiger Woods must follow through on his golf swing after observing the scene and knowing what he has to accomplish, you must follow through on your plans &mdash; which are just theory. Words set the scene for what's to come, but will NEVER be a substitute for making progress, even if it's small victories.</p> <h2>9 steps to combat the Nirvana fallacy:</h2> <ol> <li><strong>The vast majority of criticism is useless</strong>, <a href="http://www.changethis.com/53.05.CriticalPublicity">as I've written before</a>, so throw away those doubts like you treat email spam. Critics don't like to hear this (and look where they are).</li> <li><strong>Ditch unsupportive friends and family</strong>, or at least distance yourself. Harsh, but they need to be contributing positively to your life (and you to theirs).</li> <li>If you find yourself in the middle of an argument, whether it's offline or on the Internet, quickly <strong>consider (trust your gut) if it's worth continuing</strong>. The answer is most likely NO: feel free to stop in the middle of a sentence and leave. Humans are drawn to many self-destructive behaviors and you need to be keenly aware that artificial conflict is bypassed by acting; blabbing on is stupid slop.</li> <li><strong>Even if you can only devote 15 minutes a day to a goal, that's substantially better than 0.</strong> True, many things require intense focus, so ask yourself: &quot;What can I chop out of my day? What would I not recall fondly on my deathbed?&quot;</li> <li><strong>Accept that the biggest gap lays in between not doing something and getting started:</strong> your mind may be set against exercise, but once you're mid-routine, it feels easier to climb higher. Think, but don't overthink: always be observant of how your words can flow into actions, and over time, you'll be more confident. The impact of growth becomes most relevant in hindsight, so <em>dive in!</em></li> <li><strong>Be biased towards iterating swiftly</strong>, which means making many changes in a short period of time so you can spot mistakes and adapt quickly. Do cheap, lightweight experiments to test the waters so even if you fail, it won't destroy your dream. For instance, if you have your sights set on being a master painter, buy an affordable kit and dabble. Not just casually, but make the most out of your tools &mdash; really MacGyver 'em! Then, you can tell in weeks, even days, if you're ready to move up.</li> <li><strong>It pays to be prolific.</strong> You simply can't gain experience in work or play without putting yourself through a variety of life situations. Some of these can be accelerated (making productivity more enjoyable), others can't (pregnancy). The effectiveness of nearly all experiences can be improved by your attitude towards them.</li> <li><strong>Live with your fears.</strong> Things don't turn out the way you expect, but they might turn out better if you allow yourself to be more playful than worried. When I composed music, I was under the pressure to deliver a masterpiece. Then my counterpoint went: &quot;If I have a great idea that doesn't make it into this song, I'll include it in the next one.&quot; The ongoing result of pairing courage + prolific-ness was that I had plenty of ideas and plenty of songs, instead of freezing at the starting line.</li> <li>Realize that combating the Nirvana fallacy, in turn, leads to a heightened state of consciousness &mdash; not just a spiritual one, but you can apply that if it suits you. And you'll be more aware of others' failings in the world around you due to lack of action, which means you <strong>should give back and encourage more achievements</strong>. However, be graceful about how you help others (don't lambast them with words, that's hypocritical).</li> </ol> <p>The above isn't an end-all (like I said, words are overrated), but will help get you started.</p> <p>The Nirvana fallacy may not be well-known yet (shy of 3,000 Google hits as of this writing), but its effects &mdash; too much talk, too little action are a common inhibitor to human potential. In fact, it almost stopped me from writing this article. That's when I ran through the list above, which I've had floating around in my head for some time now, and didn't just decide to do something about it &mdash; I <em>did</em> it.</p> <p><strong><em>Do you see the Nirvana fallacy taking a foothold in your life? Then it's time (now, not tomorrow) to make your move. Let me know your experiences!</em></strong></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/torley-wong">Torley Wong</a> of <a href="http://www.wisebread.com/beat-the-nirvana-fallacy-why-doing-something-is-better-than-nothing">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-6"> <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/10-reasons-why-youre-not-reaching-your-goals-and-how-to-change-that">10 Reasons Why You&#039;re Not Reaching Your Goals (and How to Change That)</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/kill-boredom-with-these-34-fun-and-productive-projects">Kill Boredom With These 34 Fun and Productive Projects</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/7-easy-ways-to-have-energy-after-work">7 Easy Ways to Have Energy After Work</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/13-things-successful-people-do-every-morning">13 Things Successful People Do Every Morning</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/11-time-saving-hacks-from-the-worlds-busiest-people">11 Time Saving Hacks From the World&#039;s Busiest People</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Productivity achievement action diet fallacy goal iterate lazy nirvana perfect procastination productivity progress rich task words Sat, 28 Mar 2009 14:10:18 +0000 Torley Wong 2985 at http://www.wisebread.com How a Teenager Started A Multi-Million Dollar Online Business with a Parrot. UPDATED http://www.wisebread.com/how-a-teenager-started-a-multi-million-dollar-online-business-with-a-parrot <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-a-teenager-started-a-multi-million-dollar-online-business-with-a-parrot" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/ztl32xLtolNtDLFMNvN18cNfiQkmPTIA_pBr1U-_b-s/mtime:1301029922/files/fruganomics/imagecache/250w/blog-images/2226907404_613b34e320.jpg" alt="parrot cash" title="parrot cash" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>Sit down and grab a cup of your favorite beverage. I&rsquo;m about to tell you the remarkable story of a young man who has built a successful online business; one that makes in excess of $400,000 per year. And most amazing of all is not that this young entrepreneur&rsquo;s site is all about parrots. It&rsquo;s that he doesn&rsquo;t even own a parrot. <span style="">&nbsp;</span><o:p><br /> </o:p></p> <p><strong><em>PLEASE&nbsp;NOTE: Several commenters have revealed a deeper truth to this story. Much to my annoyance, I trusted two sites that have always steered me in the right direction. I should have done further research, but I was so willing to believe the story that I was also duped. However, I think the inspiration of the story is just as relevant and worthy, despite the deceptive nature of the site. Please check out <a href="http://www.nancyrichards.org/">http://www.nancyrichards.org/</a> for more information on this series of scams. I am writing to the other two blogs now, hopefully they will do the same to inform their readers. </em></strong></p> <p class="MsoNormal">There are so many people out there right now touting the benefits of online businesses, and success stories can be found wherever you look. They are the modern-day get-rich-quick schemes, but to most they are a dead end. They&rsquo;re not willing to put in the time, money or dedication to make it work. Out of every 100 online start-ups, one will become a moderate success.<o:p><br /> </o:p></p> <p class="MsoNormal">And then there are sites like <a href="http://www.parrotsecrets.com/">parrotsecrets.com</a>. At the time of writing this article, the modest little site has made over $2 million for its founder, and it&rsquo;s still going strong. This, ladies and gentlemen, is no small feat for any business. But when you consider the start-up costs were about $5000, the founder was 18 years old, still lives in India, and that the site takes minimal maintenance, it&rsquo;s even more astonishing.<o:p><br /> </o:p></p> <p class="MsoNormal">If you go to <a href="http://www.parrotsecrets.com/">parrotsecrets </a>you won&rsquo;t see anything fancy. It&rsquo;s not a big, bold flash site. It employs the simplest direct response methodology, using one long, scrolling page to hammer home the selling points, again and again, about the incredible eBook all about parrots.<o:p><br /> </o:p></p> <p class="MsoNormal">The site&rsquo;s founder (listed as Nathalie Roberts but in fact a young man...the Betty Crocker of India) did some digging around when he was 18 years old and realized that there was no reliable online information source for parrots. And as <a href="http://www.cringely.com/2009/03/parrot-secrets/">Cringley.com </a>reports, he got straight to work:<o:p><br /> </o:p></p> <p style="line-height: normal;" class="MsoNormal"><em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">The owner set out to find a niche in the information economy that could be filled with eBooks as sold here.&nbsp; The first step in the development of Parrotsecrets, then, was to identify the frustration of Parrot owners.</span></em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;"><o:p></o:p></span></p> <p style="line-height: normal;" class="MsoNormal"><em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">In time it became clear to the entrepreneur that parrots were an untapped market.&nbsp;</span></em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;"><o:p></o:p></span></p> <p style="line-height: normal;" class="MsoNormal"><em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">Having identified a topic, the founder of Parrotsecrets needed an eBook.&nbsp; The easiest way to do this was to post the requirement on one or more of the many freelancing web sites.&nbsp; Writers bid on the job and the original eBook (note there are now four eBooks in the offer) went for around $2500, deliverable in 30 days.</span></em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;"><o:p></o:p></span></p> <p style="line-height: normal;" class="MsoNormal"><em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">The Parrotsecrets founder ordered from Amazon.com every book on parrots (deliverable to the winning freelancer) then waited a month for the eBook to appear.</span></em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;"><o:p></o:p></span></p> <p style="line-height: normal;" class="MsoNormal"><em><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">That month was used to buy the domain, design the web site, prepare a Google AdWords campaign, and be ready to be up and running as soon as the eBook was finished.</span></em></p> <p style="line-height: normal;" class="MsoNormal"><span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;"><o:p></o:p></span>Simple, right? He saw a gap in the market, did his homework, got together some cash to have an EXPERT (which he clearly wasn&rsquo;t) write a great book and then set about promoting it.</p> <p class="MsoNormal"><o:p></o:p>At $79.95, the eBook isn&rsquo;t cheap. But as Cringley points out, it&rsquo;s a small price to pay for parrot owners, who will easily fork over hundreds of dollars for vets bills or speech classes.<o:p><br /> </o:p></p> <p class="MsoNormal">And for those of you interested in doing the math, here&rsquo;s what parrotsecrets is pulling in annually:<o:p><br /> </o:p></p> <p class="MsoNormal"><em>The site sells 15-20 eBook sets per day seven days per week.&nbsp; Using the low end of that range is 5,475 copies per year for gross sales of $437,726.25 from a web site that costs less than $10 per month.</em><o:p><br /> </o:p></p> <p class="MsoNormal">Could you live off $400,000 per year? I know I could. And remember, this is a guy who lives in India, where the cost of living is substantially lower than here in Uncle Sam. He&rsquo;s a relative millionaire and he&rsquo;s still in his early twenties. Makes you feel somewhat inadequate when you consider all the advantages we have in this country and yet most of us still can&rsquo;t do what the parrotsecrets owner has done.<o:p><br /> </o:p></p> <p class="MsoNormal">There are several lessons to be learned from this amazing story.</p> <p class="MsoNormal">First, it&rsquo;s that you don&rsquo;t need to be an expert on something to build an online business around it. Contrary to what we&rsquo;ve all been told, you have sufficient resources these days to have content built by someone else, usually for a fraction of the price that you can get in return (to date, that $2500 eBook has generated millions of dollars).<o:p><br /> </o:p></p> <p class="MsoNormal">Second, if you find a niche in the market, you can exploit it and become very successful. If you&rsquo;re sat there right now thinking &ldquo;man, I wish there were some decent online information about owning pot-bellied pigs&rdquo; or something like that, then you may already have your idea.<o:p><br /> </o:p></p> <p class="MsoNormal">Third, and most important, is that it&rsquo;s up to you t make it happen. A great idea is no good if it lives in your head. Get off your butt and do the work. Put in the hours, do your homework, read up on the topic, build a solid foundation. No, you don&rsquo;t need to be an expert, but you do need to know enough to make the site a success.<o:p><br /> </o:p></p> <p class="MsoNormal">Finally, look at the parrotsecrets business model and learn from it. It&rsquo;s a simple web page and the product is an eBook. There are no manufacturing costs, no products to store and no shipping costs. The whole process is automated and when someone orders an eBook, it is sent in an email (or available as a download) after payment has been received. Quick, clean and simple.<o:p><br /> </o:p></p> <p class="MsoNormal">Folks, in this uncertain economic time, there is one thing you can depend on; there are always people out there willing to spend money if there&rsquo;s a need for the product. Identify the need, build a business around it and keep your start-up costs and maintenance fees low. If you do it correctly, in a few years you could be as successful as a certain young man in India who is right now living in the lap of luxury. And it&rsquo;s all down to a bird he&rsquo;s never owned. <span style="">&nbsp;</span></p> <p class="MsoNormal"><em><span style="">Thanks to </span></em><span style=""><a href="http://thedenveregotist.com/article/3878/parrot-this"><em>The Denver Egotist</em></a></span><em><span style=""> for bringing this to my attention! (Ahem, I'll be having words with you guys now),<br /> </span></em></p> <p>&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/how-a-teenager-started-a-multi-million-dollar-online-business-with-a-parrot">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-7"> <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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/theyre-turning-paris-hiltons-trash-into-cash">They&#039;re turning Paris Hilton&#039;s trash into cash.</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/when-greed-backfires-an-iphone-story-1">When greed backfires - an iPhone story.</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/how-to-launder-money">How to Launder Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Life Hacks business cash invest money online rich secret work-at-home Sun, 22 Mar 2009 04:52:54 +0000 Paul Michael 2949 at http://www.wisebread.com Book Review: Rich Like Them by Ryan D'Agostino http://www.wisebread.com/book-review-rich-like-them-by-ryan-dagostino <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/book-review-rich-like-them-by-ryan-dagostino" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/rwZpUdnuoHSt2NUT20LFSXu1Rc4AwnB1bwYJR2VG2oA/mtime:1295416984/files/fruganomics/imagecache/250w/blog-images/richlikethem.jpg" alt="" title="" class="imagecache imagecache-250w" width="240" height="240" /></a> </div> </div> </div> <p><a href="http://www.amazon.com/gp/product/0316021466?ie=UTF8&amp;tag=stuffies-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0316021466">Rich Like Them: My Door-to-Door Search for the Secrets of Wealth in America's Richest Neighborhoods by Ryan D'Agostino</a><img height="1" border="0" width="1" style="border: medium none ! important; margin: 0px ! important;" alt="" src="http://www.assoc-amazon.com/e/ir?t=stuffies-20&amp;l=as2&amp;o=1&amp;a=0316021466" /> - Hardcover: 256 pages Publisher: Little, Brown and Company (January 5, 2009)</p> <p>One summer my mother showed me a series of articles in Money magazine by a reporter named Ryan D'Agostino who knocked on the doors of expensive homes to find out how the occupants became rich.&nbsp; These articles were quite memorable for me because I thought it was hilarious how the author literally invaded the private property of rich people.&nbsp; Now a couple years later, D'Agostino has collected the entire experiment along with his personal stories into a book called Rich Like Them.</p> <p>I read this entire book in one&nbsp; four hour sitting since it was funny yet serious.&nbsp; Each chapter is divided into small sections headlined by words of wisdom that are often a bit cliche.&nbsp; For example, the author details the importance of networking in &quot;Connect the people you meet&quot;, and the power of patience in &quot;Perseverance doesn't take forever&quot;.&nbsp; If you have read any kind of self help book you would probably have heard these mantras before.&nbsp; What really made the book fun to read were the personal stories of the strange and wealthy people D'Agostino met after he knocked on hundreds of doors.&nbsp; My favorite two characters from the book were Harvey Jason, a first edition book seller in Beverly Hills, and Arthur Tauck, the chairman of Tauck World Discovery.&nbsp; Harvey Jason was&nbsp; an actor before he became a bookstore owner and he utilized his Hollywood connections to create a very success niche business.&nbsp; Tauck is a septigenarian who thought of interesting tours for the tour company his father founded.&nbsp; One of his most crazy and popular tours is <a href="http://money.cnn.com/2006/08/21/pf/whatittakes_secrets3.moneymag/index.htm">helihiking for seniors</a>.&nbsp; These people's innovative and sometimes wacky ideas and visions for their businesses were absolutely fascinating.&nbsp; </p> <p>This book is also somewhat familiar to me because I live just a few blocks away from Atherton, California which happens to be the richest neighborhood in the United States according to the book. I have driven through the town several times and most of the homes there are hidden behind trees or gates. Once you cross the border into my neighborhood of Redwood City you would have no idea that such an exclusive pod of extreme wealth is so close by because the entire scenery changes.&nbsp; The closest I have gotten to &quot;socializing&quot; with Atherton residents is when they drive their expensive cars through the Taco Bell across from the Ferrari-Maserati dealership on El Camino Real. I have spotted a Ferrari, Porsche, and a Bentley with a driver at that particular Taco Bell late at night.&nbsp; I always found that pretty funny because these folks can definitely afford something fancier, but instead they favor greasy semi-Mexican fast food . With that said,&nbsp; D'Agostino's book appropriately ends with a chapter on humility.&nbsp; He found that quite a few of the people that chose to speak with him were humble even though they have &quot;made it&quot; so to speak.&nbsp; He profiled one Athertonian named Heidi Roizen who was a powerful venture capitalist in the Silicon Valley who would gladly grab a cup of coffee with a college graduate just to see if there is a good idea. She also owned her own company at one time and worried about her employees when there was a bad quarter.&nbsp; Her humility brought her positive relationships and opportunity and thus the author calls humility &quot;the secret ingredient&quot; in becoming rich.&nbsp; After reading this, I felt a bit ashamed of myself because the wealthy people I see at Taco Bell probably would not laugh at me for grabbing a few Gorditas in my Honda, but I am the one mocking their humble hunger.</p> <p>In conclusion, this is probably a good book if you want to be entertained and enlightened by the personal stories of a group of wealthy people who are also surprisingly down to earth.&nbsp; However, I would not use this book as a guide to becoming rich because it&nbsp; is nearly impossible to replicate any one person's strategy to attaining wealth. This book repeats a lot of the basic principles to becoming successful such as working hard and being patient, but those are not exactly secrets.&nbsp; I recommend this book for people who like to read memoirs and personal blogs, but I do not think anyone would become &quot;rich like them&quot; just by reading this book.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/xin-lu">Xin Lu</a> of <a href="http://www.wisebread.com/book-review-rich-like-them-by-ryan-dagostino">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-8"> <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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/chinese-money-habits-how-my-culture-influences-my-attitudes-toward-money">Chinese Money Habits - How My Culture Influences My Attitudes Toward Money</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/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance General Tips Lifestyle book review books money rich wealth Wed, 07 Jan 2009 08:27:24 +0000 Xin Lu 2717 at http://www.wisebread.com Why Is "Rich" Often Equated With "Evil"? http://www.wisebread.com/why-is-rich-often-equated-with-evil <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/why-is-rich-often-equated-with-evil" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/yIfXQsFP2iNQMVUfR64t-g4TdUm2Te1XbX-BeMMGXkA/mtime:1301029922/files/fruganomics/imagecache/250w/blog-images/rootofevil.jpg" alt="Root of all Evil" title="Root of All Evil" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>I was born in China and it was a place where wealthy people were the public enemy for many decades. The sentiment was spread by the propaganda of the Communist government and resulted in the execution and imprisonment of many families who were considered to be rich. I still remember the songs about overthrowing landlords and the greatness of the working class, but are the wealthy really evil?</p> <p>Even though I live in America now, I feel that the idea that rich people are evil is also very prevalent here. A popular phrase that is often thrown around is &quot;money is root of all evil&quot;. This is a misquoted version of 1 Timothy 6:10 in which the Apostle Paul states, &quot;For the love of money is a root of all kinds of evil.&quot; It can be inferred that those who love money would strive to become rich, but it does not mean that those who are poor do not love money. Basically, I do not believe that those who are rich are inherently more or less evil than those who have less money.</p> <p>For the most part, the wealthy people in America are entrepreneurs and business owners. My mother worked for a small business in California for ten years and her boss was extremely generous to all of his employees. Once she said to me, &quot;Now I realize that American capitalists are not evil slave drivers as the Communists say they are. They take on tremendous risk and work very hard to provide jobs for others.&quot; Of course, I am sure <a href="/how-to-get-rich-by-being-evil" target="_blank">evil slave driving corporations exist</a> , but there are countless American business owners who treat their employees extremely well and give their all to their businesses. So why are rich business owners typically portrayed as evil by the media and politicians?</p> <p>As to China, it has changed quite a bit in the last couple decades. Capitalism is now everywhere and entrepreneurship is being embraced. One of my childhood neighbors became an architect and opened his own firm in Shanghai. My dad visited him last year and he said to my dad, &quot;You have no idea what it is like to be a business owner until you become one. When you are the owner you are really working for your employees.&quot; This mirrors what my mother said about American business owners. He is respected as an architect and an entrepreneur. This is rather funny to me because the official party line in China is still that they are a Communist country, but having money is no longer looked down upon as the ultimate sin.</p> <p>Ultimately, I think the idea that rich people are evil still comes down to the jealousy people harbor towards those who have more. Several people in China expressed to me that life was easier when everyone was poor and under a tight Communist rule. There was no &quot;keeping up with the Joneses&quot; because everyone had the bare necessities. They also did not have to fight for job opportunities because nearly everyone was assigned a job. That kind of tight state control made nearly everyone financially equal, but obviously there was no freedom. Life was easier because people did not have to make choices on their own volition. With free enterprise, the gap in wealth between the rich and poor is now widening in both China and America, and that inevitably increases the resentment towards the rich, but I think it is a good thing that people at least have the opportunity to become rich.</p> <p> So in conclusion, I do not think we can assess a person&#39;s morality just by his or her networth, and I think there is no shame in being wealthy or poor. It is always dangerous to single out any one group of people as the culprits for all of our problems, because the last thing we want is a society where everyone is forced at gunpoint to be equal on every level. In that case we would lose our individuality, and with it we would lose a part of our humanity. <br /><em><br />Were you ever taught that being rich is evil? Do you think rich people are evil? Feel free to comment!<br /></em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/xin-lu">Xin Lu</a> of <a href="http://www.wisebread.com/why-is-rich-often-equated-with-evil">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-9"> <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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/if-you-won-the-lottery-you-would">If You Won The Lottery, You Would...</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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-millionaire-next-door-riches-de-mystified">The Millionaire Next Door: Riches De-mystified</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle equality evil rich Mon, 04 Aug 2008 22:48:52 +0000 Xin Lu 2292 at http://www.wisebread.com How to get rich by being evil http://www.wisebread.com/how-to-get-rich-by-being-evil <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-get-rich-by-being-evil" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/chdPgW1QMAXQaX2pUey1V3y_6ebov3iUGAFbHwKNc_k/mtime:1301029896/files/fruganomics/imagecache/250w/blog-images/evil-cat.jpg" alt="Evil cat" title="Evil Cat" class="imagecache imagecache-250w" width="250" height="326" /></a> </div> </div> </div> <p>There are a lot of ways to become rich.&nbsp; Some people work hard and save their money.&nbsp; Some people win the lottery.&nbsp; Some people invent something wonderfully useful.&nbsp; An awful lot of people who get rich, though, do it by being evil.&nbsp; Here's a quick look at some evil tactics, and some thoughts on whether they can work for you.</p> <p>Most of the people who get rich by being evil run a business.&nbsp; Running a business isn't evil, of course, and running a business is a lot of hard work, whether you're evil or not.&nbsp; It suits some people, but most people wouldn't be interested in working that hard, except for the chance to get rich.&nbsp; Just like there are lots of ways to get rich, there are lots of ways to get rich running a business.&nbsp; This post, though, is about three of the evil ones.</p> <h2>Privatize profits, socialize costs</h2> <p>The most crucial step in getting rich by being evil is to arrange things so that, as much as possible, you share your costs without having to share your profits.</p> <p>As a society, we already share lots of costs:&nbsp; police and courts, roads and bridges, public schools and state universities.&nbsp; The key to getting rich by being evil is to build on that strategy. &nbsp;</p> <p>Don't spend money to avoid leaking toxic chemicals into the ground water--the municipal water system is there to pay the costs to provide clean water.&nbsp; Don't negotiate on unequal terms with foreign suppliers of raw materials--the US military is a powerful tool to ensure access.&nbsp; If your business is in danger of failing, do your best to make it look like a failure could endanger the whole financial system--a central bank rescue won't make you rich, but it could keep you from being wiped out.</p> <p>These are extreme examples, because it's actually pretty tough to socialize your <strong>regular</strong> costs, except where there's a strong tradition of governments providing those particular functions.&nbsp; As that last case shows, though, it's not so hard to socialize some of the <strong>risks</strong>.&nbsp; Simply arranging your business as a corporation does that to a certain extent--it turns your business venture into a &quot;heads I win, tails you lose&quot; proposition.&nbsp; If your risks pay off, you own a hugely successful business.&nbsp; If they don't, the corporation goes bust, not your personal finances.&nbsp; It's a scheme designed to encourage people to take risks they couldn't otherwise afford.&nbsp; That's great for people who are inclined that way anyway--at the expense of the rest of us.</p> <h2>Encourage people to take advantage of themselves</h2> <p>Some of your employees just want to do a day's work for a day's pay.&nbsp; Others want to make a career of working at your firm.&nbsp; Others want to participate in your successes and failures.&nbsp; In all these cases--and especially in the latter two--you can encourage them to take advantage of themselves for your benefit.</p> <p>The key to making this work for you is to promise as little as possible, while hinting that your employees will share in the benefits of success. &nbsp;</p> <p>For example, your start-up can safely share stock with employees, because before you go public you can issue so much new stock that the value of their shares gets diluted away to almost nothing.&nbsp; Make sure the calculation of bonuses includes at least one subjective measurement that you can use to control bonus payouts.&nbsp; Assure people that next year's raises and promotions will be better than this year's.</p> <p>People won't settle for hints forever, of course, but almost any employee can be replaced with someone who's willing to give you the benefit of the doubt for a few months or a few years.</p> <p>The strategy is pretty clear for getting your employees to take advantage of themselves for your benefit, but you can often get other people to do the same thing--investors, suppliers, customers, etc.&nbsp; Anytime you can get people to give more or take less, you come out ahead.&nbsp; Lots of businesses will provide a little slack for an important customer or supplier.&nbsp; Take that slack and turn it into profit that you keep.</p> <h2>Focus on business success to the exclusion of all other things</h2> <p>Finally, if you really want to get rich, make it the most important thing in your life.</p> <p>I know plenty of people who have become quite well off simply by earning a good salary, living frugally, and investing the money they save.&nbsp; It works, but it typically takes decades--and even then you don't really get rich that way.</p> <p>The only people I know who have become really rich did so through a combination of hard work and luck.&nbsp; By &quot;hard work&quot; I mean insanely hard work of the &quot;80-hour week, no vacations, no hobbies, see your family twice a month&quot; variety.&nbsp; That's not enough--it takes a certain amount of luck as well.&nbsp; But the work seems to be essential.&nbsp; (The only people I know who became really rich without working insanely hard either inherited wealth or married wealth.&nbsp; People win the lottery too, although I don't personally know anyone who did.)</p> <h2>Evil?</h2> <p>There's a common thread to all of these things--pushing the costs off on other people:&nbsp; society at large, your employees, your friends and families.&nbsp; That's what (to my mind) makes these things evil.</p> <p>It's easy to make the libertarian case that these practices aren't really evil.&nbsp; Rich people and the businesses they own pay taxes and are entitled to government services just like everyone else.&nbsp; Employees aren't slaves or prisoners and can choose to work for you or not.&nbsp; If work is what you enjoy most, it makes perfect sense for it to be your hobby as well as your job, and there's surely no matter more purely personal than the decisions you make with your family about how to divide your attention between them and work.</p> <p>Further, It's important to note that lots of other people benefit when you get rich.&nbsp; At a minimum, the people you hire get jobs--maybe good jobs.&nbsp; You customers get products to buy--maybe better and cheaper products.&nbsp; Your suppliers get a market.&nbsp; Your community gets an expanded tax base.&nbsp; Your local charities get another rich person they can hit up for donations in support of the environment, local services, and the arts.</p> <p>Still, when the costs fall on others, I think they should share in the profits.&nbsp; People who think like me, though, rarely become rich.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/how-to-get-rich-by-being-evil">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-10"> <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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/if-youre-so-smart-why-arent-you-rich">If you&#039;re so smart, why aren&#039;t you rich?</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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income business rich wealth Fri, 20 Jun 2008 01:54:46 +0000 Philip Brewer 2188 at http://www.wisebread.com The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2) http://www.wisebread.com/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2 <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/77nn-TiXfbhnbzlc6RdmGIxFPsXETPCyi4qZXuNvrr0/mtime:1301029924/files/fruganomics/imagecache/250w/blog-images/862197_73586101.jpg" alt="Predictability - Image Courtesy of Stock Xchng" title="Predictability - Image Courtesy of Stock Xchng" class="imagecache imagecache-250w" width="250" height="303" /></a> </div> </div> </div> <p>A while back I posted the first of what I promised would be &quot;Ten Tenets to Arranging Your Rich&quot;. And wouldn&#39;t you know it, right after posting Tenet #1, things got a little crazy and life interfered with my blogging plans. Go figure :)</p> <p>In any event, I think we&#39;re back on track now and as promised, we&#39;ve got nine more tenets to go. So, without further adieu, here&#39;s tenet #2: </p> <p><strong><em>The same actions will produce the same results.</em></strong></p> <p>I love this little quote for a couple of reasons: 1) its just so very true and its been proven over and over again in history, politics, love and yes, money.</p> <p>The second reason I like this saying is that it tells you everything you need to know to fix the problem. Its not just inspirational... you don&#39;t have to decipher the meaning of the flying eagle and the sun setting behind the mountains... no, this one&#39;s pretty darn clear:</p> <p>The same actions will produce the same results.</p> <p>What does that mean for you?</p> <p>Well, that depends upon how you want to apply it to your life. If your car runs out of gas every time you think you can make it a little further, then perhaps you should start getting gas sooner.</p> <p>If your spouse stops talking to you everytime you go on a rant, perhaps you should consider some anger management or communication courses.</p> <p>And if you&#39;re still living payday to payday even though you&#39;ve done everything you&#39;re &quot;supposed&quot; to be doing, then perhaps you should do something different.</p> <p>As awestruck as I am with mankind&#39;s potential, we tend to be serious creatures of habit. As we venture out into the world of endless opportunity, we quickly find ourselves a safety zone and then concrete ourselves in it.</p> <p>We may complain about it, we may whine about it but the truth is, we have no real intentions of ever leaving it.</p> <p>Why would we? Its predictable. And if there&#39;s one thing we don&#39;t like, its the unknown.</p> <p>So, instead of seeing what&#39;s really out there, we&#39;ll stay where we know what to expect, all the while wondering why we just can&#39;t seem to get ahead.</p> <p>But its hard to get ahead when you&#39;ve stopped moving forward.</p> <p>I spent many years working for one company or another, doing everything I knew I was &quot;supposed&quot; to do. I thought that by climbing the corporate ladder, I would one day have the money I needed to do all the things I wanted to do. So, I made sure I always met expectations, even exceeded them on a regular basis and by all accounts, did &quot;well&quot;.</p> <p>But remember Tenet #1? &quot;<a href="/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Rich&quot; is very relative</a> . So, despite my steps up the corporate ladder, I was anything but rich.</p> <p>I left early in the morning and I got home late at night. I missed many of my son&#39;s &quot;firsts&quot; because I was always working. And all those personal enrichment plans I had? There was just no time and in all honesty, the idea of pulling out the paints or tilling up a garden was the last thing on my mind. All I wanted to do was collapse on the couch.</p> <p>I was no longer working for a living. I was living to work.</p> <p>By the time I walked away from the corporate world, I was making $60,000 a year plus expenses but I had no freedom. I enjoyed a cushy office downtown but I had no room to run. I had business cards and an expense account, but the real me was nowhere to be found.</p> <p>So I walked. I did something different. And you know what? I got amazingly different results.</p> <p>Was it scary?</p> <p>Absolutely! Change always is. And even now, there are times when a client doesn&#39;t pay when they should or my flow of new projects just seems too slow. But every time I think I might considered going back to the corporate world for that steady paycheck, I immediately remember what I&#39;d be giving up.</p> <p>I find time to garden just about every day. I&#39;m home when my kids arrive from school and if I feel like sleeping in, well... who&#39;s to say I can&#39;t?</p> <p>No, I&#39;m not saying everyone should quit their jobs... unless of course, that&#39;s what you really want to do. What I am saying is that if you continue to approach life in the same manner you always have, you&#39;re going to get more of the same results you&#39;ve gotten so far and if you&#39;re reading this, I&#39;m assuming you&#39;d like those results to be different. </p> <p>But your boss isn&#39;t going to decide that you should have a shorter work day or Fridays off or a siesta break every afternoon. Your paychecks are never going to surprise you by being substantially more than they&#39;re supposed to be and while I&#39;ll never say &quot;never&quot;, waiting to win the lottery is probably not a good strategy for success.</p> <p>If you want to arrange your rich, you&#39;re going to have to make some changes. You have to make them - they won&#39;t do it on their own. They might be small, they might be big. Maybe you need to save more, spend less, change jobs or invent that little doohicky that no one can do without. Whatever it is, do it. Make the change. And start enjoying the rippling effect they create in your life. :)</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">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-11"> <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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</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/do-not-buy-something-just-because-you-can-afford-it">Do not buy something just because you can afford it</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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income Life Hacks Budgeting General Tips Lifestyle change life lessons money rich wealth Thu, 17 Apr 2008 02:00:57 +0000 Kate Luther 2015 at http://www.wisebread.com If you're so smart, why aren't you rich? http://www.wisebread.com/if-youre-so-smart-why-arent-you-rich <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/if-youre-so-smart-why-arent-you-rich" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/-H5JApJ4jun7WE3h21ixN4eSotLCHK2ccDclbWCIslI/mtime:1301029931/files/fruganomics/imagecache/250w/blog-images/smart-but-not-rich.jpg" alt="Smart but not rich" title="Smart but Not Rich" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>You don&#39;t hear it much any more, but for a long time, &quot;If you&#39;re so smart, why aren&#39;t you rich&quot; was a pretty effective line for the average Joe when dealing with somebody who was smarter than him.  The expression has kind of fallen out of fashion lately.  Nowadays, there are too many rich smart people.</p> <p>The line worked because, for most of history, being smart wasn&#39;t really a big advantage in becoming rich.  Aside from things like inheriting/marrying wealth, or winning the lottery, there are basically two paths to wealth:</p> <p>Option #1 is the &quot;millionaire next door&quot; way to wealth:  live below your means, save and invest, and let compound interest and the natural growth in the markets work its magic.  If you do this--and  you live long enough--you&#39;ll eventually be wealthy.</p> <p>Option #2 is to be an entrepreneur:  find some need, and then create a product or service that can satisfy it at a profit.  Unlike living frugally and saving, this is not a sure way to wealth.  Many new businesses go broke.  Many of the rest muddle along making less money than the owner could have made working a regular job.  But lots of entrepreneurs make good profits and a few become wealthy.</p> <p>The downside to option #1 has always been that it took too long.  Unless you lived very frugally indeed, it could take 30 or 40 years to turn an ordinary salary into real wealth.  (Even then, success depends on living long enough--and if bad luck or bad choices pushed your income down, your expenses up, or weighed on your investment returns, &quot;long enough&quot; could turn out to be longer than you&#39;ve got.)</p> <p>So, for most of history, option #2 has always been the way to go if you wanted to be wealthy.  But being an entrepreneur took a certain set of personality traits--a set that notably doesn&#39;t include being smart, but includes things like a tolerance for risk, a burning desire for wealth, a thick skin, and a willingness to put running the business ahead of other interests (like hobbies, friends, and family).</p> <p>Over the past generation, the &quot;knowledge economy&quot; has made intelligence a bigger advantage than it used to be.  Besides the dotcom boom (which made it possible for people with only a modest entrepreneurial bent to get rich following option #2), it&#39;s been possible over the past couple of decades to accelerate option #1 as well:  an ordinary smart person, working at an ordinary good-paying job, has been able to support a family at an ordinary middle-class standard of living, and have enough of a surplus for saving and investing to become modestly wealthy in a decade or two.  (Of course, lots of smart people failed to do so, but that&#39;s just because smart people are as prone as dumb people to suffer from the natural human inclination to let the cost of living rise to whatever one&#39;s income will support.)</p> <p>Smart people of the world:  This is your shining hour.  There&#39;s no telling how long just being smart will translate into the kind of income advantage smart people have enjoyed these past couple of decades.  This is very much a &quot;get while the getting is good&quot; kind of situation.  Don&#39;t miss it.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/if-youre-so-smart-why-arent-you-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-12"> <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-get-rich-by-being-evil">How to get rich by being evil</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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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/tactics-of-the-rich">Tactics of the rich</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Frugal Living entrepreneur millionaire rich risk smart wealth Fri, 21 Mar 2008 19:01:50 +0000 Philip Brewer 1939 at http://www.wisebread.com Ten Tenets for "Arranging Your Rich" - Part 1: Rich is Relative http://www.wisebread.com/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/ywf4TKzlWbWzkmH_r179yXgnvF-dOhjEWiQiJfG5cN0/mtime:1301029901/files/fruganomics/imagecache/250w/blog-images/869848_28588638.jpg" alt="Choose Your Direction - Image Courtesy of Stock.Xchng" title="Choose Your Direction - Image Courtesy of Stock.Xchng" class="imagecache imagecache-250w" width="250" height="172" /></a> </div> </div> </div> <p>Paul Michael wrote a great article about the idea that <a href="/if-youve-got-an-area-of-excellence-rich-can-be-arranged">&quot;rich can be arranged&quot;</a> .</p> <p>I liked that idea so much that I started looking at exactly how one starts the arranging process. And so, I asked myself, &quot;how can I arrange my wealth today?&quot; Not just ideas that would generate some money but more the approach itself. Does my outlook matter? Do I have a plan? Would it matter if I did?</p> <p>After much thought and a Snickers bar, I realized that there are in fact some guiding principles to arranging your own wealth. Ten, in fact. Ten important &quot;tenets&quot; to keep you grounded and on track as you begin the &quot;arranging&quot; process.</p> <p>However, being the wordy person I am, these tenets turned out to be much longer than I had anticipated, making for a rather lengthy read. So, to break things up and to give you something to look forward to, I'm going to post one a day. Think of it as a 10-day course to arranging your &quot;richness&quot; :)</p> <p>Ready to get started? Here's Tenet #1:</p> <p><strong>Rich is relative.</strong></p> <p>A few weeks ago, someone got the bright idea to ask the political candidates to define &quot;middle class&quot;. You can imagine the range of answers and if you accept them all, then middle class is anywhere from $25,000 to $200,000 a year (no specifics on number of family members or other variables).</p> <p>And the truth is, they're all probably right. Most of the population sees themselves as being &quot;middle class&quot;, even if their neighbors don't agree.</p> <p>Why?</p> <p>Because except for the really wealthy, most of us struggle financially in one sense or another. Maybe we can afford expensive cars and homes but we don't have much in the way of retirement and college funds. Maybe we enjoy many of the luxuries life has to offer but we're also ridiculously deep in debt. Maybe we just live in pricier neighborhoods or spend more in gas on our commute. Whatever it is, most of society is painfully familiar with the worry that comes with making ends meet.</p> <p>Want to test that theory? Read Catherine Shaffer's post, <a href="/is-six-figures-really-that-much"><em>Is Six Figures Really That Much</em></a> <a href="/is-six-figures-really-that-much"><em>?</em></a> and you'll see what I mean. Where one family struggles with a six-figure income, another family scoffs because they're making it on less than $50K a year.</p> <p>Which means your &quot;rich&quot; isn't necessarily my &quot;rich&quot; and vice versa. But what it also means is that our definition of rich goes well beyond cold, hard cash.</p> <p>Because after all, its not really the money that we want. Its what the money can buy. No one really drools about having a million dollars in the bank without thinking about the things they could do with that green.</p> <p>Which means that &quot;rich&quot;, is more than just having money, its also equally about being able to enjoy that money.</p> <p>But the problem with money is that there just never seems to be enough to enjoy. Regardless of how much we make, we still seem to struggle.</p> <p>Why?</p> <p>With the exception of winning the lottery or inheriting millions from a long lost relative, most of us experience a short, slow growth. A raise here, a bonus there and over time, our income will grow from $20,000 to $30,000 to $40,000 in small, barely noticeable increments.</p> <p>But so does our spending. And that's why your perceived &quot;rich&quot; will never quite be enough.</p> <p>I'm going to date myself here but when I was all of 19, I got a job as an underwriter trainee making just over $13,000 a year. We didn't have a ton of bills, no mortgage, no kids, just a car payment and a stereo system we financed at one of those rent to own places (that's another blog in itself).</p> <p>But while we weren't broke, we weren't rich either so I did some calculating. &quot;If I could just make $20,000 a year,&quot; I told my man, &quot;we'd be rich&quot;.</p> <p>Well, guess what? $20,000 came and went but it was no big milestone in my financial life. Because by the time my big &quot;rich&quot; marker rolled around, I had increased my spending to match those annual raises. I wasn't rich... I was just living within my means and working longer hours to do it.</p> <p>And there was the real sticker - not only was I not rolling in dough, but I was working harder and longer to achieve the same basic results.</p> <p>And this is why rich is so relative. Not only do you need to define how much your rich is, but you also need to define the &quot;richness&quot; you'll expect to gain from your added wealth.</p> <p>Want me to say that again?</p> <p>Let's say you think that $100,000 a year would be your &quot;rich&quot;. Ok, fine. But what do you have to do to make that $100K? Is it going to take more time out of your day? I mean, you could work three jobs and probably give your income a nice boost, but is it worth what you're giving up?</p> <p>If you think that having more money means that you'll have more freedom to travel or take a cooking class or whatever it is you want to do, think again. In the corporate world, more income typically also means more responsibilities and you'll be expected to stay until the job is done. So, before you start following the almighty dollar, be sure that your strategy for arranging your rich doesn't require you to give up what little free time you have now.</p> <p>Secondly, if you're going to shoot for $100,000, then you need to decide what that extra money will do for you. Remember, you're not likely to get it all in one lump so you need to be able to earmark those added funds so that they don't get lost in your day-to-day expenses. If you don't, you'll come to rely on the extra cash and you'll adjust your spending to match it. And that means that at the end of the day - like me - you'll be working longer and harder to achieve the same basic results.</p> <p>The bottom line? If you want to arrange your rich, forget living within your means. Learn to live below them and learn to balance your net worth with your life's worth.</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">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-13"> <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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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/tips-for-finding-legitimate-work-at-home-opportunities">Tips for Finding Legitimate Work at Home Opportunities</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/when-should-you-say-no-to-those-who-want-to-borrow-money-from-you">When Should You Say No to Those Who Want to Borrow Money from You?</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/is-six-figures-really-that-much">Is Six Figures Really That Much?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income Life Hacks Budgeting General Tips Lifestyle life lessons Making Extra Cash money rich wealth Wed, 20 Feb 2008 00:39:07 +0000 Kate Luther 1820 at http://www.wisebread.com The Truth about Wealth http://www.wisebread.com/the-truth-about-wealth <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-truth-about-wealth" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/JfXGSGP2uWxepLdxJdSvy5zntcss9FxdGkwNHoUWeV4/mtime:1301250145/files/fruganomics/imagecache/250w/blog-images/truth%20about%20wealth.jpg" alt="wealthy hobo?" title="wealthy hobo?" class="imagecache imagecache-250w" width="250" height="193" /></a> </div> </div> </div> <p class="MsoPlainText">Is wealth about money, or having goals, or achieving milestones, or something completely different?</p> <p class="MsoPlainText">Wealth means many different things to different people. You can&rsquo;t want money for the sake of having money. It is only a means to an end, and serves no purpose in and of itself. A big pile of cash in the middle of your living room isn&rsquo;t going to do you a fat lot of good if you don&rsquo;t know what to do with it in order to make your life what you want it to be.</p> <p class="MsoPlainText">You have to know exactly what you want that money will enable you to have or do. Do you want a lifestyle of vacationing twice a year, or a better house closer to work? Do you want a brand new car, or to provide completely for your children&rsquo;s education? No goal is right or wrong. What is important is that you have a goal to begin with &ndash; then <a href="http://www.productivity501.com/definition-of-wealth/474/">you will be rich</a>&hellip;whatever that means.</p> <p class="MsoPlainText">I believe the above mantra quite strongly. However as with so many things, goal setting can be taken to extremes. A wise friend suggested to me that the true definition of wealth has much less to do with money or goals than what we may suspect. It seems that in our society, what we have is never enough. When we move out to live on our own for the first time, we must get set up with all the accoutrements necessary for a comfortable life: furniture, kitchen supplies, linens, etc. Then we need some luxuries like audio/video equipment, toys, hobby equipment, and other paraphernalia. As we become established in our careers, we must get nicer furniture and a nicer home, maybe a newer car. And even as we continue through our careers, we must get the higher-paid, more respected jobs as we move up the ladder.</p> <p class="MsoPlainText">Then as we marry and have children, we need a whole new set of things to aim for: a bigger house again (this time near schools), a bigger car, and maybe a new wardrobe to go with our new job which we got to pay for all these new things we need.</p> <p class="MsoPlainText">This pattern of constantly &ldquo;needing&rdquo; things continues throughout our lives; the needs just change as we age. It seems that we must always be climbing the next mountain, keeping up with the Jonses, or reaching the newest fastest prettiest goal in order to be happy.</p> <p class="MsoPlainText">What my wise friend suggested was that we reach a true state of wealth when we no longer need to look beyond what we have in order to be happy. Let the next mountain be climbed by somebody else who is searching for what they think wealth will give them. When you can be content with the life you have and not need for anything else, you are wealthy.</p> <p class="MsoPlainText">Personally I wonder what life would be like without goals. I am a goal and achievement-oriented person. A life without aiming for something might impede my sense of self and contribute towards general apathy (which is bad news). But what I can draw and use from my wise friend&rsquo;s words is that I do not need to live a life shooting for material possessions. Setting career and financial goals to attain a life that requires constant consumption is not vital for happiness.</p> <p class="MsoPlainText">Where I am currently living, I am off the grid and quite remote, and I have to work for everything I used to take for granted. <span>All of a sudden doing the laundry, cooking, and even going to the bathroom are very different and often difficult tasks. But it is all still very possible (and sometimes even enjoyable) without the luxuries I was so used to in recent times.</span></p> <p class="MsoPlainText">And in living this life (which is albeit a temporary arrangement), I too, am coming to understand some of what my wise friend says. How to harmonize a simple life like what I have with a more goal-oriented life in the rat race is the next step, and quite possibly a battle that many people fight every day.</p> <p class="MsoPlainText">Maybe, just maybe, if we re-define our role in the rat race we can get out of the traps that cause us to constantly seek out the next mountain to climb in order to reach that pinnacle of wealth that forever seems to be a mountain away.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/the-truth-about-wealth">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-14"> <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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/book-review-rich-like-them-by-ryan-dagostino">Book Review: Rich Like Them by Ryan D&#039;Agostino</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/ten-tenets-for-arranging-your-rich-part-1-rich-is-relative">Ten Tenets for &quot;Arranging Your Rich&quot; - Part 1: Rich is Relative</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/why-is-rich-often-equated-with-evil">Why Is &quot;Rich&quot; Often Equated With &quot;Evil&quot;?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle defining wealth rich wealth Mon, 19 Nov 2007 23:00:36 +0000 Nora Dunn 1410 at http://www.wisebread.com The Millionaire Next Door: Riches De-mystified http://www.wisebread.com/the-millionaire-next-door-riches-de-mystified <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-millionaire-next-door-riches-de-mystified" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/cdn/farfuture/RZkV6NRVEdoQ06aW4QbQq19534VtqhgVm9kHOFJWpQ4/mtime:1301030674/files/fruganomics/imagecache/250w/blog-images/suburbia.JPG" alt="Next Door" title="Next Door" class="imagecache imagecache-250w" width="250" height="168" /></a> </div> </div> </div> <p class="MsoPlainText"><span>You&#39;ve seen them driving by you but you didn&#39;t even notice. They were in the checkout line at the grocery store but you didn&#39;t give them a second glance. They&#39;re everywhere, infiltrating our lives in ways we can&#39;t even detect...millionaires. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>A while ago I read <a href="&lt;a mce_thref=&quot;http://www.amazon.com/gp/redirect.html?ie=UTF8&amp;location=http%3A%2F%2Fwww.amazon.com%2FMillionaire-Next-Door-Surprising-Americas%2Fdp%2F1567315682%3Fie%3DUTF8%26s%3Dbooks%26qid%3D1191116146%26sr%3D1-1&amp;tag=wisbre09-20&amp;linkCode=ur2&amp;camp=1789&amp;creative=9325&quot;&gt;The Millionaire Next Door&lt;/a&gt;&lt;img mce_tsrc=&quot;http://www.assoc-amazon.com/e/ir?t=wisbre09-20&amp;amp;l=ur2&amp;amp;o=1&quot; width=&quot;1&quot; height=&quot;1&quot; border=&quot;0&quot; alt=&quot;&quot; style=&quot;border:none !important; margin:0px !important;&quot; /&gt;" target="_blank">The Millionaire Next Door</a> , mostly for business purposes. I found the book initially extremely dry and scholastic, but after persevering found that I was quoting all sorts of words of wisdom from the book on a regular basis. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>At the very least it gave me a new perspective on millionaires and de-mystified the grandeur of their lives for me. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>What goes on behind closed doors is amazing. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>Did you know, for example, that the large majority of people living in &quot;rich&quot; neighbourhoods, driving fancy cars, and wearing the latest fashions actually aren&#39;t &quot;rich&quot; at all? According to the book these people more often than not live paycheque to paycheque, often working in high-income professions such as medicine or law. They generally have more debts than assets, and their monthly expenses are over the top. They are busy trying to keep up with the Joneses at a pace they often can&#39;t maintain. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>Or these people were born into or inherited money, and are propagating the statistic that most people who come into money lose it within one generation. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>The real millionaires are the people living in the modest houses in modest neighbourhoods, driving older cars, and even clipping coupons. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>They understand the value of a dollar, and aren&#39;t too proud to go out and save one. (I&#39;ll bet we even have some millionaires reading frugal living tips on Wise Bread this very minute)! They believe in investing, delegating matters like financial planning and accounting to the experts, and thoroughly researching their options when they make any major decisions.</span></p> <p><span> </span></p> <p class="MsoPlainText"><span>Most millionaires are self-made, through hard work, patience, and honesty. </span></p> <p><span> </span></p> <p class="MsoPlainText"><span>The life of a millionaire (the sort of millionaire referred to in the book, rather) isn&#39;t out of reach for those of us who are patient and disciplined enough to get there if that&#39;s what we want. But beware: being &quot;rich&quot; isn&#39;t a status, and doesn&#39;t become a new lifestyle when your bank account magically hits a certain number. Being &quot;rich&quot; is a way of life and an attitude, regardless of whether or not you have money. So start being rich now and become the next Millionaire Next Door!</span></p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/the-millionaire-next-door-riches-de-mystified">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-15"> <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/is-six-figures-really-that-much">Is Six Figures Really That Much?</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/why-is-rich-often-equated-with-evil">Why Is &quot;Rich&quot; Often Equated With &quot;Evil&quot;?</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/what-does-being-rich-mean-to-you-anyway">What Does Being Rich Mean to You Anyway?</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/the-same-actions-will-produce-the-same-results-ten-tenets-for-arranging-your-rich-part-2">The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)</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/financial-tricks-to-master-for-a-happier-life">Financial Tricks to Master for a Happier Life</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle get rich lifestyle millionaires rich Tue, 28 Aug 2007 01:19:20 +0000 Nora Dunn 1055 at http://www.wisebread.com