rich http://www.wisebread.com/taxonomy/term/388/all en-US Cash Might Make You Happier, But Investments Will Make You Richer http://www.wisebread.com/cash-might-make-you-happier-but-investments-will-make-you-richer <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/cash-might-make-you-happier-but-investments-will-make-you-richer" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_glasses_piggybank_125143864.jpg" alt="Woman getting richer with investments" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Having a stash of cash feels great. Liquid wealth makes you feel more secure, because you can predict how you will handle whatever life throws your way. The feeling of satisfaction is real, but ultimately, the rewards of keeping your wealth in your checking or savings account are much less satisfying. If it's long-term wealth you're after, you need to start investing.</p> <h2>You're losing money</h2> <p>In the battle between interest and inflation, inflation wins when you keep your cash in a typical savings or checking account. You'll get very little in interest from a bank account intended for day-to-day use: typically, 0.01 percent to 0.03 percent for a checking account, and up to 1 percent for a savings account. Meanwhile, the average annual inflation rate is 3 percent. So your stash is losing value every year, as inflation climbs faster than interest grows your money.</p> <p>The numbers work out pretty grimly in that scenario. Imagine you put $100,000 in a savings account with a 1 percent interest rate, and add $500 every month. Every year, you'll gain that 1 percent interest but lose 3 percent of the value, due to inflation &mdash; meaning you come out 2 percent <em>behind </em>annually. In 10 years, you'll have $173,522 but it will only be worth $129,117.17.</p> <p>On the other hand, the return on stock and real estate investments is staying stable at 7 percent. That's the real rate of return, meaning it's adjusted for inflation. After 10 years, your $100,000 investment, with the monthly $500 addition, will have an actual value of $267,357.54.</p> <p>Why wouldn't you immediately put your money into a higher-yield investment? For most people, the hesitation comes from fear of taking a big risk with money.</p> <h2>What's the big risk?</h2> <p>Humans tend to be risk averse. This risk aversion has done a lot for us, in an evolutionary sense.</p> <p>Risk aversion is also helpful in finances in many instances. When it comes to getting high-interest return on your savings, however, risk aversion can hinder you. To maximize your savings, you need a high return that will outrun inflation and exponentially add financial value to your nest egg.</p> <p>High-return investments, unfortunately, are also higher risk investments. If you're unfamiliar with the stock market, investment portfolios, and the like, these types of high-return investments can feel terrifying. But you can overcome that fear.</p> <p>First, start a relationship with a financial investment professional. Ask for recommendations from people you know and trust, who are not struggling financially. Second, don't invest all your money in one high-yield investment. Diversify; if one investment doesn't grow as predicted, it won't topple your entire savings plan. Third, you don't have to invest all your money in what feels riskiest. You can <a href="http://www.wisebread.com/the-basics-of-cd-laddering" target="_blank">set up a CD</a>, <a href="http://www.wisebread.com/stabilize-your-portfolio-with-these-5-bond-funds" target="_blank">invest in bonds</a>, or <a href="http://www.wisebread.com/the-only-5-rules-you-need-to-know-about-investing-in-real-estate" target="_blank">invest in real estate</a>. All require some investigation to understand the risk and potential return.</p> <p>Get professional insight on the options that appeal to you and make a well-informed decision. It's never about eliminating risk; that's not quite possible. It is about minimizing risk and maximizing return. You do both by investigating, seeking <a href="http://www.wisebread.com/who-to-hire-a-financial-planner-or-a-financial-adviser" target="_blank">expert insight</a>, and diversifying the way you save your money.</p> <h2>Save yourself from hasty decisions</h2> <p>Keeping your wealth in a less-liquid state helps you financially by delaying your financial decisions. If your main funds are tied up, for example, you can't immediately invest in Cousin Jimmy's startup. Even if you really, really want to.</p> <p>Maybe Cousin Jimmy is a genius, and you do want to invest; still, it's good to have to think and compare numbers. Can an investment in a family business give the same high-interest return on investment? What's the risk, compared with the risk you're already taking? How long before you'll see a return?</p> <p>Having time to think will help you avoid hasty decisions you might regret. Whether it's investing in a family member's venture or purchasing that dilapidated house in an up-and-coming area, time is on your side.</p> <h2>But I still want to feel happy</h2> <p>A recent National Center for Biotechnology Information study shows that higher levels of happiness are linked to <a href="https://www.ncbi.nlm.nih.gov/pubmed/27064287" target="_blank">keeping cash on hand</a>. Happiness is great! We all want more of it. But you can get the happiness that cash brings while also setting yourself up for long-term financial rewards.</p> <p>Having money at the ready contributes to feeling secure. You can get that financial security by <a href="http://www.wisebread.com/6-secrets-to-mastering-the-debt-snowball" target="_blank">reducing high-interest debt</a>&nbsp;and&nbsp;setting up <a href="http://www.wisebread.com/7-easy-ways-to-automate-your-savings" target="_blank">automated savings </a>so that you can&nbsp;keep a reasonable amount of cash at the ready. Experts recommend having three to six months' worth of living expenses; but you can be smart about how you save that cash reserve, as well, by keeping it in an interest-bearing savings account or a short-term CD. When your reserve grows over your emergency-fund amount, invest it rather than hoard it.</p> <p>Remember, you'll want to feel financially secure later in life, too. Smart financial moves now contribute to your happiness in the present and the future.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fcash-might-make-you-happier-but-investments-will-make-you-richer&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FCash%2520Might%2520Make%2520You%2520Happier%252C%2520But%2520Investments%2520Will%2520Make%2520You%2520Richer.jpg&amp;description=Cash%20Might%20Make%20You%20Happier%2C%20But%20Investments%20Will%20Make%20You%20Richer"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Cash%20Might%20Make%20You%20Happier%2C%20But%20Investments%20Will%20Make%20You%20Richer.jpg" alt="Cash Might Make You Happier, But Investments Will Make You Richer" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/annie-mueller">Annie Mueller</a> of <a href="http://www.wisebread.com/cash-might-make-you-happier-but-investments-will-make-you-richer">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/8-investments-that-may-soar-during-trumps-term">8 Investments That May Soar During Trump&#039;s Term</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/7-cool-things-bonds-tell-you-about-the-economy">7 Cool Things Bonds Tell You About the Economy</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/while-waiting-for-rates-i-bonds">While Waiting for Rates: I-Bonds</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/4-foolproof-ways-to-protect-your-money-from-inflation">4 Foolproof Ways to Protect Your Money From Inflation</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/7-reasons-millennials-should-stop-being-afraid-of-the-stock-market">7 Reasons Millennials Should Stop Being Afraid of the Stock Market</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment cash inflation interest rates liquid savings money goals returns rich risk aversion wealth building Tue, 18 Jul 2017 08:30:17 +0000 Annie Mueller 1986108 at http://www.wisebread.com 5 Reasons Being a Millionaire Is Overrated http://www.wisebread.com/5-reasons-being-a-millionaire-is-overrated <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-reasons-being-a-millionaire-is-overrated" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-515230158.jpg" alt="Woman learning why being a millionaire is overrated" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>All told, 10.4 million households in the U.S. have $1 million or more in investable assets, according to a 2017 study by investor research firm Spectrem Group. Sounds pretty nice, doesn't it?</p> <p>You may want to reconsider those feelings of envy. Does the money really make life any more enjoyable? As Bill Gates once said, &quot;A hamburger is still a hamburger, millions in your pocket or not.&quot; Read on for our roundup of reasons why you should feel perfectly content to live on Main Street.</p> <h2>1. Happiness can be bought &mdash; but most rich people aren't doing it right</h2> <p>Do you have enough money to eat, pay for health care, and make the rent? If so, you're off to a good start. Research shows that as long as <a href="https://scholar.harvard.edu/files/danielgilbert/files/if-money-doesnt-make-you-happy.nov-12-20101.pdf" target="_blank">your basic needs are met</a>, you've got as much of a shot at living a joyful life as anybody else.</p> <p>In fact, the relationship between money and happiness is surprisingly weak. A positive experience, such as working hard to attain a goal or falling in love, will make you happier than a new Porsche. Over time, the Porsche will rust, dent, and age. The car simply won't be as thrilling to drive as it was when you first bought it. But the memory of a first love or receiving a reward for your hard work won't as quickly deteriorate.</p> <p>Indeed, money can be used to have more of the positive experiences that make us happy. But research shows that people who are well-to-do don't often spend their money this way.</p> <h2>2. Small delights bring more joy than big, expensive ones</h2> <p>A series of small, frequent treats &mdash; a pedicure, a day at the beach, a box of chocolate-covered strawberries &mdash; is more fulfilling than a big, blowout, annual gift to yourself. In this way, even millionaires are limited by their funds. If a millionaire wants their fortune to last, they can't spend it all at once. And if the goal is happiness, money should be spent in a way that brings constant delight, even if those delights come in smaller packages.</p> <p>Remember: Eating an entire, 12-slice cake in one sitting is not 12 times more pleasurable than eating one slice at a time. Similarly, most <a href="http://faculty.chicagobooth.edu/richard.thaler/research/pdf/Gambling%20with%20the%20House%20Money%20and%20Trying%20to%20Break%20Even%20The%20Effects%20of%20Prior%20Outcomes%20in%20Risky%20Choice.pdf" target="_blank">people who play the lottery</a> would prefer to win a $50 ticket and then another $75 ticket at a later date, rather than win a one-time lump sum of $125. So, even if you can afford to treat yourself to one big present, you'd be wiser &mdash; and happier &mdash; to gift yourself a series of small ones instead.</p> <h2>3. Anticipation promotes happiness</h2> <p>If you're rich enough to buy yourself every new gadget the moment it hits the market, you're robbing yourself of anticipation &mdash; that feeling of yearning and desire which delivers a more intense feeling of happiness when we finally attain the thing from which we've been deprived.</p> <p>The pleasure that arises from immediate consumption simply doesn't match the staying power of the happiness we feel when we get something we've been yearning for. Here's an example from researchers who study happiness: People often derive the most joy from talking about and <a href="https://www.nytimes.com/2014/05/11/travel/what-a-great-trip-and-im-not-even-there-yet.html?_r=0" target="_blank">looking forward to a vacation</a> than the actual experience of the vacation itself.</p> <h2>4. A fancy vacation might sound like bliss, but it can often bring problems</h2> <p>The Notorious B.I.G. said it best: Mo' money, mo' problems. Here's another way to think about it: People buy big ticket items expecting one thing, but often they get something else. Let's take a yacht, for example. Warm sun, deep ocean swims, navigating through foreign seas &mdash; what could be bad about owning a 200-foot yacht?</p> <p>Well, what about the huge, hidden price tags &mdash; such as the cost of storage and maintenance? What about mosquito bites, and stormy seas, and engine glitches, and that fear of sharks you never knew you had until you bought the darn thing?</p> <p>Consider how it might feel to have a yacht on which to sail around the world, but you can't find a willing companion to join you for the tour. Because, you know, some people have to work. But not you! You're rich and you've got a yacht &mdash; and now you have a whole new set of troubles to worry about. Happiness is in the details, but it's easy to get caught up in the illusion.</p> <h2>5. Rich people tend to spend more time working</h2> <p>Our happiness is largely determined by how we spend our time. As a person's income rises, they typically begin to devote more time to working, running errands, and shopping. These activities are known to drive stress and anxiety &mdash; not happiness.</p> <p>More than anything else, it's leisure time that breeds happiness. But, of course, it's a balance. If we're not working enough, we often find ourselves right back in the throes of stress and anxiety. &quot;Am I spending my time in a way that's worthwhile? What's the meaning of all this stuff?&quot; Striking a balance between work and play is important whether you're a millionaire or not.</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/5-reasons-being-a-millionaire-is-overrated">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/8-secrets-to-a-debt-free-holiday-season">8 Secrets to a Debt-Free Holiday Season</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/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their Money</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/this-is-how-americans-spent-their-money-in-the-1950s">This Is How Americans Spent Their Money in the 1950s</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-when-youre-rich-dream-buys-that-arent-that-great">5 &quot;When You&#039;re Rich&quot; Dream Buys That Aren&#039;t That Great</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Lifestyle enjoyment experiences happiness material things millionaires overrated rich shopping Spending Money stress wealthy Fri, 12 May 2017 09:00:10 +0000 Brittany Lyte 1943632 at http://www.wisebread.com 5 Mental Habits That Make the Rich Richer http://www.wisebread.com/5-mental-habits-that-make-the-rich-richer <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-mental-habits-that-make-the-rich-richer" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/kid_money_maker_532666075.jpg" alt="Kid learning mental habits that make the rich richer" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The mind is a powerful thing that should not be underestimated.</p> <p>Many successful people believe that if you can change your thought patterns, you can also change your bank account size. Here are five mental tricks that rich people use to make even more money. Try adopting these thought patterns to see if they work at boosting your income.</p> <h2>1. They Think of Money as a Game</h2> <p>Rich people tend to think of money as a game, calculating where to spend and where to invest. Successful people love to win, which is why they are continually trying to do better, do more, learn more, and grow. The average earner gets in trouble when they become stagnant in their career and finances. If you drag yourself to work each day for just a paycheck to survive, then don't expect much more than that. (See also: <a href="http://www.wisebread.com/how-to-retire-rich?ref=seealso" target="_blank">How to Retire Rich</a>)</p> <h2>2. They Set Big Goals</h2> <p>Rich people are not afraid of setting big, somewhat unrealistic goals because they know they can conquer them. Why are we afraid of setting big goals for ourselves? Is it because we don't believe they can happen? Is it because we know we will hit our financial expectation if we set it low enough?</p> <p>Set big, scary goals for all areas of your life and look at them as a challenge. What if you don't meet those goals? There is always going to be a possibility of setting a huge goal that you never meet, but what if you try and get halfway there? When you set the bar high, you force yourself to grow as a person.</p> <p>For example, you can set two different financial goals this next year. One goal is to save $1,000, and the other to save $20,000. There's a big difference in the two goals, and for some, the latter seems impossible. However, if you set the $20,000 savings goal and then tried your best to achieve it, you are going to surprise yourself. You might not hit the $20,000 mark, but you might hit the $10,000 or even $15,000 mark, which are all so much greater than the low-expectations goal of saving $1,000. Don't be afraid to set big goals for yourself. Shoot for the stars, not the dirt.</p> <h2>3. Fear Is Not an Option</h2> <p>One of the biggest emotions that keeps people from achieving great things is fear. Rich people block out fear and take smart risks. Do they fail? Yes! Every rich and successful person has a list of failures to their name, along with even more accomplishments and achievements. When you are trying to battle your fear, ask yourself, &quot;What is the worst that can happen?&quot; Many times, the worst isn't that bad at all.</p> <h2>4. They Deserve to Be Rich</h2> <p>The rich think that they deserve to be rich. They view themselves as worthy of having money. On the flip side, those stuck in middle class don't feel worthy to be rich. They don't view themselves as anyone important or of value.(See also: <a href="http://www.wisebread.com/5-when-youre-rich-dream-buys-that-arent-that-great?ref=seealso" target="_blank">5 &quot;When You're Rich&quot; Dream Buys That Aren't That Great</a>)</p> <p>This isn't just some lofty thought to have. Think of your current job position. Can you be replaced easily in your company? If you answered yes, then figure out how you can become a valuable asset to your boss. If your company doesn't want to lose you, they will pay more to keep you. This can apply to almost any position, so don't think you need to go back to school to get a better degree to make this true for you.</p> <h2>5. Money Is Their Friend</h2> <p>Wealthy individuals realize the power that money has, knowing that it can solve problems and make their lives better. Those who earn less view money as the enemy. They work so that they can pay bills, they pay bills so that they can live, and so on. The cycle never ends, and they are miserable.</p> <p>Obviously, money is not the answer to happiness, but those who are smart with their money can leverage their paychecks to make their lives better.</p> <p>These mental tricks aren't magic. Instead, they help rewire your brain to value yourself and your work &mdash; which in turn means you will earn more and spend your money better.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-eneriz">Ashley Eneriz</a> of <a href="http://www.wisebread.com/5-mental-habits-that-make-the-rich-richer">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/7-easy-ways-to-build-an-emergency-fund-from-0">7 Easy Ways to Build an Emergency Fund From $0</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/8-money-moments-that-should-be-on-everyones-bucket-list">8 Money Moments That Should Be On Everyone&#039;s Bucket List</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/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-find-the-savings-strategy-that-works-for-you">How to Find the Savings Strategy That Works For 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/4-ways-pessimism-can-actually-improve-your-finances">4 Ways Pessimism Can Actually Improve Your Finances</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance goals mental tricks outlook paycheck to paycheck psychology rich saving money wealth building wealthy Thu, 29 Dec 2016 10:30:37 +0000 Ashley Eneriz 1864425 at http://www.wisebread.com 5 "When You're Rich" Dream Buys That Aren't That Great http://www.wisebread.com/5-when-youre-rich-dream-buys-that-arent-that-great <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-when-youre-rich-dream-buys-that-arent-that-great" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/93297821.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>We all do it. We dream of the days when our money worries are over, and there's more cash in our bank account than gold in Fort Knox. And most of us know just what we're buying when those glory days happen.</p> <p>But while some of those purchases seem incredible in the movies and glossy magazines, there's a lot more to them than meets the eye. Scratch the surface, and you'll see that there are better ways to spend your dough than these luxurious buys.</p> <h2>1. The Latest High-End Sports Car</h2> <p>Many of us dream of pulling up to our high school reunion in a car that would make a Rolls-Royce look like a hunk of junk. For instance, the most expensive sports car in the world is the <a href="http://www.digitaltrends.com/cars/the-top-ten-most-expensive-cars-in-the-world/">Koenigsegg CCXR Trevita</a>. It has an exterior that is finished with diamond dust, a 4.8-liter dual-supercharged V8 engine, and over 1,000 horsepower. It has a top speed of 245 mph, and goes from 0-60 in under three seconds. But, it's $4.8 million! And how often are you ever going to get this beast even close to top speed? (Chances are, you'll never get it out of first gear.)</p> <p>Then let's factor in insurance, gas mileage, and the fact that you would be terrified to park it anywhere for fear of denting the exterior, or getting it stolen by professional car thieves who target these high-end cars. When people hit the jackpot and get a car like this, it usually ends up parked in a garage collecting dust, and driven around the block a few times a year. Save your money. (See also: <a href="http://www.wisebread.com/rich-people-spend-350k-to-park-their-cars-heres-how-wed-spend-it-instead?ref=seealso">Some Rich People Spend $350K to Park Their Cars</a>)</p> <h2>2. A Yacht</h2> <p>A yacht is perhaps the ultimate status symbol of the rich. &quot;I have a yacht&hellip; come take a ride with me.&quot; Well if you love the sea, and like entertaining while you're on top of the ocean waves, there are a few things to consider.</p> <p>Owning a yacht is expensive. Like, really expensive. Most experts agree that you should expect to pay 10% of the yacht's purchase price <em>every year</em> to keep it running. So, if it's $10 million,&nbsp;<a href="http://www.investopedia.com/articles/investing/082015/can-i-afford-super-yacht.asp">expect to spend $1 million</a> a year to keep it afloat. Your yacht needs fuel, insurance, dockage fees, maintenance and repairs, and of course, a crew. If you want to go and park your yacht at a prime event, like the Monaco Grand Prix, you can pay $100,000 for mooring costs during your five-day stay.</p> <p>Most people who hit it rich and buy a yacht soon find the crippling operating costs too much to take, and end up selling the yacht at a loss a year or two later. If you want to do the whole, &quot;I'm on a boat&quot; thing, charter one when you're in the mood. It's way less expensive, and just as much fun.</p> <h2>3. Handfuls of Bling</h2> <p>Nothing says, &quot;I'm rich&quot; quite like showering yourself with all kinds of gold and jewelry. Necklaces, earrings, rings, and watches, all encrusted with more gems and precious metals than Jack Sparrow's treasure chest. Right now, the richest of the rich spend millions on watches and jewelry every year, with a Patek Philippe Ref 5016P coming in at $762,000! But as Ariel Adams writes on Forbes.com, these high-end watches come with lashings of irony. The biggest being they're not as accurate as your average cheap electronic quartz watch you can buy in any department store.</p> <p>As for diamond jewelry, and in particular, diamond rings, it depreciates in value if you purchase it new (and when you're rich&hellip; you do). <a href="http://www.moneywise.co.uk/investing/alternative-investing/the-dos-and-donts-jewellery-investing">It's not a good investment</a>. Some of this bling is so expensive, it's wiser to keep it in a safe at home than to ever take it out in public. It will also need to be insured. Solid gold can always be melted down and sold at market value, but all in all, you're better off buying bling with simulated diamonds, and keeping the watch purchase to under $1,000.</p> <h2>4. Your Own Private Jet</h2> <p>Flying for most of us is a real hassle. The long security lines, being crunched into a tiny seat, the delays and cancellations, lost luggage, and all those other annoyances add up to a real pain. Even when everything goes smoothly, it's still not a pleasant experience. So, a private jet would solve all that right? No security. No lost luggage. It's great!</p> <p>Well, apart from the massive expense. Unless you are putting in some serious hours in the sky, it's a money sink. And even then, flying first class is cheaper. The cost of jet fuel alone makes a trip from LA to New York around $20,000, and that's not taking into account insurance, maintenance, hangar costs, and of course, the pilot's salary. Plus, you can be grounded often (it's known as AOG, or Aircraft On Ground) and will then have to take a charter or commercial flight while still paying the costs of private jet ownership.</p> <p>You will have to abide by your pilot's schedule as well. A machine may be ready to go at any hour of the day or night, but people need time off. There's also the issue of maintenance. The less you use the jet, the bigger the chance that something will fail. And let's not forget the millions of dollars you pay up front to actually buy the jet. All in all, it's a quick way to throw a lot of your money down the toilet. Get yourself a TSA PreCheck, fly first class, and you'll save a ton of cash.</p> <h2>5. A Mansion</h2> <p>Imagine it. You pull up to the iron gates of your 15-bedroom home, are greeted by servants, and after walking around the beautiful grounds, you sit down to a meal prepared by your personal chef. It's great, but it's expensive.</p> <p>Aside from shelling out the millions of dollars needed to buy the property, you will need a staff of trained professionals to take care of it. Back in 2006, <a href="http://www.nbcnews.com/id/15416482/ns/business-forbes_com/t/price-privilege/#.V_vIVJMrJFE">Forbes interviewed a professional in the business</a>, and she estimated that salaries alone would be $800,000 a year. That's easily over $1 million now. Then you have the other expenses, including huge utility bills, six-figure property taxes, and supplies for gardening, cleaning, and maintenance. And for what? A home so big you'll barely see most of the rooms in it anyway. These mega-mansions have bankrupted many rich people in the past, and unless you are setup to make a lot of money, they will quickly eat away at your pot of gold.</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/5-when-youre-rich-dream-buys-that-arent-that-great">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-living-on-a-tight-budget-makes-you-happier">How Living on a Tight Budget Makes You Happier</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/these-5-money-saving-hacks-are-a-huge-waste-of-time">These 5 Money-Saving Hacks Are a Huge Waste of Time</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/10-frugal-fall-getaways-you-can-start-packing-for-now">10 Frugal Fall Getaways You Can Start Packing For Now</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/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money">4 Parenting Mistakes to Avoid When Teaching Kids About 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/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Budgeting budgeting luxury luxury purchases rich rich buys saving money Spending Money wealthy Wed, 19 Oct 2016 10:00:09 +0000 Paul Michael 1815778 at http://www.wisebread.com 3 Smart Ways Young Millionaires Manage Their Money http://www.wisebread.com/3-smart-ways-young-millionaires-manage-their-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/3-smart-ways-young-millionaires-manage-their-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_happy_phone_73769569.jpg" alt="Young millionaires finding ways to manage his money" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're lucky enough to wake up tomorrow as a young millionaire, it's time to learn a few tips to keep your wealth working for you. Here are three ways that financially-savvy millionaires under 40 manage their money wisely:</p> <h2>They Use Buckets</h2> <p>Good financial planners will tell you that it's not so much about the amount of money you have, but about <a href="http://www.wisebread.com/the-basics-of-asset-allocation">how you spread that money out</a>. It's a concept called diversification, and it doesn't just apply to your 401K mutual funds.</p> <p>Millionaires under 40 understand can't rely on just one approach to save and grow their money. Instead, many young millionaires build an investment portfolio with the traditional securities, such as stocks and bonds, but also add in less-traditional investments like real estate, and other alternative investments.</p> <p>Real estate is an excellent example of how young millionaires use buckets. They might hold a REIT (Real Estate Investment Trust) in their investment portfolio, and also have <a href="http://www.wisebread.com/when-location-isnt-king-how-to-choose-income-rental-property">rental income streams</a> that aren't tied to their job. Rental income provides an extra source of income that can be used for many smart purchases to grow even more wealth, like investing in a business or starting a small business to diversify further.</p> <p>The best part of utilizing buckets is you're spreading your risk to avoid an all-out <a href="http://www.wisebread.com/are-you-being-had-learn-from-5-crazy-ponzi-schemes">Bernie Madoff</a> situation with your money. What young millionaires know is that if one bucket isn't performing, they can either reduce the exposure in that bucket or look to another bucket for growth or cash flow.</p> <h2>They Have a Cause</h2> <p>Millennials love a good cause. They're passionate and want to know that their money and time are going toward helping the greater good. Whether it's building an orphanage in Africa, rebuilding a community after a natural disaster, or marching in Washington to champion a cause, young millionaires believe in benefiting society.</p> <p>There are many different options for <a href="http://www.wisebread.com/a-simple-guide-to-socially-responsible-investing">socially responsible investing</a> that young millionaires are incorporating into their financial plan. Most investment platforms now offer a selection of funds that either exclude certain companies, like oil and gas, or are inclusive of companies that focus on environmental or socially responsible products. Whatever your cause of choice is, there is a socially responsible investment to meet your needs.</p> <h2>They Are Curious</h2> <p>Most millionaires under 40 understand the importance of a financial adviser. When you get to the millionaire status, you probably also have a good lawyer and CPA on your &quot;team.&quot; However, millionaires under 40 stay curious. They don't just rely on the advice of one person. They search for answers to money questions and read articles to find any other gems that might help them grow their net worth. They talk to friends and family about wealth as well.</p> <p>It's a constant cycle that proves to be very successful with millionaires under 40. They understand that you need to spread your money around in different buckets to limit risk and maximize your growth potential. They become passionate about causes and want their money to make a difference in the world. At the end of the day, they stay restless and curious about finding more answers, asking more questions, and being ready to jump at opportunities.</p> <p><em>Do you adhere to any of these &mdash; or other &mdash; precepts for managing your money?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/shannah-game">Shannah Game</a> of <a href="http://www.wisebread.com/3-smart-ways-young-millionaires-manage-their-money">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-mental-habits-that-make-the-rich-richer">5 Mental Habits That Make the Rich Richer</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-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-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-being-a-millionaire-is-overrated">5 Reasons Being a Millionaire Is Overrated</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/if-you-won-the-lottery-you-would">If You Won The Lottery, You Would...</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/millennial-millionaires-how-the-brokest-generation-can-also-become-the-richest">Millennial Millionaires: How the Brokest Generation Can Also Become the Richest</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance buckets income millennials millionaires real estate investing rich risk socially responsible wealth management wealthy Fri, 09 Sep 2016 10:30:15 +0000 Shannah Game 1788929 at http://www.wisebread.com 10 of the World's Most Expensive Restaurants http://www.wisebread.com/10-of-the-worlds-most-expensive-restaurants <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-of-the-worlds-most-expensive-restaurants" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/CN_newithaarestaurant_5.jpg" alt="Couple eating at the world&#039;s most expensive restaurants" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When it comes to restaurants, most of us make a decision based on several factors: quality and style of the food, the location, and of course, the menu prices. But what if one of those factors was never an issue? What if money was no object, and you could eat absolutely anywhere, regardless of cost?</p> <p>Here are 10 of the most expensive restaurants in the world. When you consider the price for a meal can be more than a mortgage payment (or two), that's a whole lot of dough for a few hours of bread and wine. (See also: <a href="http://www.wisebread.com/cheap-ways-to-get-these-8-expensive-indulgences">Cheap Ways to Get These 8 Expensive Indulgences</a>)</p> <h2>1. SubliMotion, Spain &mdash; $2,173 Per Person</h2> <p>Topping the list is <a href="http://nypost.com/2015/08/10/inside-the-worlds-most-expensive-restaurant/">SubliMotion</a>, a restaurant located inside the Hard Rock Hotel in Ibiza. At over two grand per person, for just a few hours of dining, you know this is an experience only the very wealthy can afford. If you somehow want to blow your savings on the experience, you can expect a 15&ndash;20 course meal, based in the art of molecular gastronomy. Not only that, but this sensory experience marries the meal with music, visual stimulation, art, and hi-tech headsets. The reviews are stunning, but of course, for that kind of money, they should be.</p> <h2>2. Aragawa, Japan &mdash; From $370 Per Person</h2> <p>If you like the finest steak, <a href="http://www.aragawa.jp/english.html">Aragawa</a> could be one to put on your bucket list &mdash; if, of course, you happen to be in the Shinbashi district of Tokyo. You would think the price alone would make it relatively easy to get a table, but think again. It can take months, or longer, to get a reservation. The reason is the Wagyu beef (more commonly known in the U.S. as Kobe), which comes from just one local farm. The process to raise the Tajima cattle is long and painstaking, resulting in the high prices. But one thing is for certain &mdash; no one who has ever tried it has said it wasn't worth the price.</p> <h2>3. Maison Pic, France &mdash; $442 Per Person</h2> <p>Following in the footsteps of her famous chef father and grandfather, <a href="https://www.relaischateaux.com/us/france/pic-drome-valence">Anne-Sophie Pic</a> is continuing the tradition of high-quality, multi-course dining in the heart of Drôme, France. As you can expect from a three-star Michelin restaurant, the menu is mouth-watering. From squab and candied turnips, to Banon goat cheese Berlingots, and melt-in-your-mouth chocolate desserts, it's an experience you'll never forget. And neither will your bank balance.</p> <h2>4. Restaurant Gordon Ramsay, London &mdash; $178 Per Person</h2> <p>Compared to the first restaurant on the list, a meal at Restaurant Gordon Ramsay seems like a bargain. But of course, when you factor in wine, tip, and other additions, you're still looking at around $500 for a meal for two. One of the many restaurants of the infamous chef Gordon Ramsay, <a href="https://www.gordonramsayrestaurants.com/restaurant-gordon-ramsay/">this is his signature location</a>. Your three course meal will consist of modern French cuisine, including pan-fried sea scallops, sautéed foie gras with roasted veal, and Cotswold lamb. Oh, and don't worry about Ramsay's temper. With so many restaurants around the world, and all of his TV shows, it's doubtful you'd ever see him make an appearance.</p> <h2>5. Masa, New York City &mdash; $600 Per Person</h2> <p>Masa is not just expensive; it's <a href="http://nypost.com/2015/03/23/why-a-listers-are-flocking-to-the-most-overpriced-restaurant-in-nyc/">often considered overpriced</a>, and simply a chic hangout for Hollywood A-Listers and fat cat businessmen. It's a Japanese sushi restaurant opened by renowned chef Masa Takayama in 2004. Expect to pay $45 for a single scoop of ice cream, $240 for maki rolls, and $60 for grilled scampi. What's the draw? The food is good, but really, it's the company. People come here to rub shoulders with the elite, and to prove a point. This is the restaurant for the 1% of the 1%, and while it may be a luxury you and I can afford once, this is a regular hangout for the rich and famous.</p> <h2>6. Ithaa Undersea Restaurant, Maldives &mdash; $320 Per Person</h2> <p>For a dining experience that is a feast for the eyes, as well as the palette, you could try <a href="http://conradhotels3.hilton.com/en/hotels/maldives/conrad-maldives-rangali-island-MLEHICI/amenities/restaurants-ithaa.html">Ithaa</a> in the Maldives. Sitting 10 feet below the surface of the Indian Ocean, surrounded by sea life and coral, this small venue accommodates just 14 guests for lunch, dinner, or cocktails. Expect mascarpone and truffle dumplings, lobster Carpaccio, and agnolotti of duck. Considered one of the most beautiful restaurants in the world, you won't have an easy time getting a reservation. But when you finally do, it is considered an experience unlike any other.</p> <h2>7. Alain Ducasse at the Dorchester, London &mdash; $343 Per Person</h2> <p>Back to London again, and more modern French cuisine. But this is double the price of a meal at Ramsay's eatery. Located in London's famous Dorchester hotel, <a href="http://www.alainducasse-dorchester.com/">Alain Ducasse</a> is a three Michelin star restaurant serving exquisite food to diners with deep pockets. The Black Truffle Menu is a seven-course meal costing $343 a head, but if you want to &quot;slum it&quot; you could try the A La Carte menu. For $136 each, you get a starter, main course, and dessert (service charge not included).</p> <h2>8. Restaurant Crissier, Switzerland &mdash; $375 Per Person</h2> <p>The fine dining establishment of the late chef Benôit Violier and his wife Brigitte, <a href="http://www.restaurantcrissier.com/uk/restaurant-hotel-ville-crissier-official-site.php">Crissier</a> is highly rated by all who eat there. Located in a gorgeous setting, and staffed by a team that makes everyone feel like royalty, Crissier offers a wide array of dishes to suit many palates. Roast saddle of suckling lamb, purple sea urchin, duck foie gras, and wild turbot are all in the $375 menu. If you're in a hurry, you can get a quick lunch for just under $200 per person.</p> <h2>9. Misoguigawa, Kyoto &mdash; $168 Per Person</h2> <p>The least expensive restaurant on the list, but still incredibly expensive by the average American's standards, Misoguigawa blends two styles of cuisine &mdash; French and Japanese Kaiseki. The result is a truly original and exhilarating experience for lovers of either cuisine, and the rave reviews across multiple food blogging sites back that up. If you're feeling extravagant, you can try the more expensive $270 per person menu; but you must call and reserve this at least five days in advance. On the menu, beef filet with potato soufflés, buttered French beans, and roasted pumpkin.</p> <h2>10. Plaza Athénéé, Paris &mdash; $550 Per Person</h2> <p>Another restaurant of esteemed chef Alain Ducasse, Plaza Athénéé is located in the city of romance; but you are not going to love the price. Seated below chandeliers comprised of 10,000 glimmering crystals, the dining room itself is a work of art. The menu consists of rare ingredients, and a plate of steamed langoustines with caviar costs over $260 alone. One of the most expensive restaurants on the list, but as it's set in one of the most beautiful cities in the world, it's also one of the most desirable.</p> <p><em>What's the most you've ever paid for nice dinner out?</em></p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-of-the-worlds-most-expensive-restaurants&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520of%2520the%2520World%2527s%2520Most%2520Expensive%2520Restaurants.jpg&amp;description=10%20of%20the%20World's%20Most%20Expensive%20Restaurants"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20of%20the%20World%27s%20Most%20Expensive%20Restaurants.jpg" alt="10 of the World's Most Expensive Restaurants" width="250" height="374" /></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/10-of-the-worlds-most-expensive-restaurants">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/7-easy-ways-to-give-back-this-thanksgiving">7 Easy Ways to Give Back This Thanksgiving</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/6-vegetarian-thanksgiving-dishes-that-hold-their-own-with-turkey">6 Vegetarian Thanksgiving Dishes That Hold Their Own With Turkey</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/cooking-for-beginners-10-recipes-for-kitchen-newbies">Cooking for Beginners: 10 Recipes for Kitchen Newbies</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/10-refillable-things-that-will-save-you-cash">10 Refillable Things That Will Save You Cash</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/25-healthy-changes-you-can-make-today">25 Healthy Changes You Can Make Today</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Food and Drink Lifestyle expensive restaurants Fine Dining menu prices rich Mon, 08 Feb 2016 16:00:05 +0000 Paul Michael 1649874 at http://www.wisebread.com The 5 Cities the Most Billionaires Call Home http://www.wisebread.com/the-5-cities-the-most-billionaires-call-home <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-5-cities-the-most-billionaires-call-home" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/rich_couple_boat_000063821551.jpg" alt="Finding cities that the most billionaires call home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Lured by favorable tax laws and fantastic views, the richest of the rich choose their backyards with precision. Read on for our roundup of some of the most popular locales for the luxe &mdash; and why so many of the globe's elite choose to call them home.&nbsp;(See also: <a href="http://www.wisebread.com/8-jaw-dropping-tax-havens-of-the-filthy-rich" target="_blank">8 Jaw-Dropping Tax Havens of the Filthy Rich</a>)</p> <h2>1. Moscow</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/moscow_000019576792.jpg" width="605" height="340" alt="" /></p> <p>More than 80% of Russia's 68 billionaires reside in the sprawling country's capital, making Moscow a mecca of wealth. The city center is dominated by gold-domed architecture, pricey eateries, and luxe hotels. Home of the Kremlin and some of the world's most exquisite ballet, Moscow offers impressive city parks, unique urban promenades, and a nightlife scene that rivals that of New York. Moscow is also full of culinary treats. Consider your visit incomplete until you've sampled the perogies and borscht.</p> <h2>2. Zurich</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/zurich_000028993338.jpg" width="605" height="340" alt="" /></p> <p>The average price of a pair of blue jeans in this Swiss banking hub is a staggering $156. Need we say more? Millionaires account for an astounding 27% of the population, pushing the price of everyday items like jeans nearly out of reach for everyone else. The city itself is concentrated on a fairly small footprint surrounded by mountains, rolling hills, and other feats of nature. It's entirely possible to spend the morning exploring city streets and art galleries, and then enjoy an afternoon hike alongside a serene lake or river.</p> <h2>3. Monaco</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/monaco_beach_000032484536.jpg" width="605" height="340" alt="" /></p> <p>This city-state on the sea is the most likely place you'll bump into a millionaire. And with its posh casinos, glamorous hotels, and yacht-lined harbors, it's really no surprise. Monaco is a major center of banking as well as tourism, but it is most widely associated with being the ultimate playground for the rich and famous. With nearly 38,000 residents stuffed into soaring high rises and regal estates along a small area of the French Riviera, it is the world's second smallest and most densely populated country &mdash; and one of its most legendary tax havens. Monaco does not charge its elite residents income taxes.</p> <h2>4. New York</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/new_york_city_000045975658.jpg" width="605" height="340" alt="" /></p> <p>One in every 22 New Yorkers is a millionaire. And with 78 billionaires, the Big Apple has more uber-rich residents than any other city in the world. Home of the Statue of Liberty, Wall Street, and the best pizza on the planet, New York is chock full of iconic people and places just waiting to be explored. New York is also the global center of industries ranging from fashion to finance. Luckily, there are lots of frugal ways to enjoy the City That Never Sleeps.</p> <h2>5. Stamford</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/stamford_connecticut_000060481318.jpg" width="605" height="340" alt="" /></p> <p>This waterfront enclave in yankee Connecticut is called &quot;the city that works.&quot; Clearly, you've got to work pretty hard to afford living here. Stamford has one of the highest concentrations of millionaire households in the nation, with housing costs at more than double the national average. But with its easy access to NYC, views of Long Island Sound, and a bustling downtown, Stamford is one of Connecticut's jewels. This city of 126,000 people boasts a lively bar scene, small theaters, and several live recording studios where episodes of legendary television shows are filmed. Brimming with hedge fund types, Stamford is also home of the largest trading floor in the world.</p> <p><em>Have you visited any of these hangouts of the mega-wealthy?</em></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/the-5-cities-the-most-billionaires-call-home">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/10-beloved-books-of-successful-millionaires">10 Beloved Books of Successful Millionaires</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/5-reasons-being-a-millionaire-is-overrated">5 Reasons Being a Millionaire Is Overrated</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/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their Money</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-i-learned-from-renting-out-my-home-on-airbnb">13 Things I Learned From Renting Out My Home on Airbnb</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-5-best-mid-sized-cities-for-millennials">The 5 Best Mid-Sized Cities for Millennials</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing Travel billionaires millionaires rich tax laws wealthy world cities Thu, 24 Dec 2015 12:00:03 +0000 Brittany Lyte 1625936 at http://www.wisebread.com 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/files/fruganomics/imagecache/250w/blog-images/iStock_000026265114_Large.jpg" alt="close-up $100 bill" title="" 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 hide money from the taxman by setting up and managing 1,000s of&nbsp;<a href="http://www.bloomberg.com/news/articles/2015-02-08/leaked-hsbc-list-shows-who-was-banking-on-swiss-secrecy">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</a>&nbsp;like Captain Kirk. 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 <a href="http://www.theguardian.com/business/2015/feb/09/hsbc-files-swiss-bank-cash-machine-rich-clients?CMP=share_btn_tw">large cash withdrawals</a> &mdash; a major red flag 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 taxman. 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 U.S. 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/citimortage-told-me-to-default-on-my-loan-if-i-want-their-help">CitiMortgage Told Me to Default on My Loan</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/5-best-prepaid-debit-cards">The Best Prepaid Debit Cards</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/10-of-the-worlds-most-expensive-restaurants">10 of the World&#039;s Most Expensive Restaurants</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/9-common-mistakes-youre-making-with-your-checking-account">9 Common Mistakes You&#039;re Making With Your Checking Account</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/avoid-bank-fees">Avoid Bank Fees</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/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://thegradstudentway.com/blog/?p=86">7 Easy Ways for Graduate or College Students to Earn Alternative Income or Make Money Online</a> &mdash; If you are a college student in need of some extra dough, look into becoming a freelance writer. [The Grad Student Way]</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-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-your-new-job-might-affect-your-mortgage-application">How Your New Job Might Affect Your Mortgage Application</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/6-reasons-its-never-too-late-for-a-career-change">6 Reasons It&#039;s Never Too Late for a Career 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/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/you-got-a-raise-now-what">You Got a Raise! Now What?</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/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their Money</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/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-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/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/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/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/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-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/12-personal-finance-skills-everyone-should-master">12 Personal Finance Skills Everyone Should Master</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/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their 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/5-mental-habits-that-make-the-rich-richer">5 Mental Habits That Make the Rich Richer</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/5-when-youre-rich-dream-buys-that-arent-that-great">5 &quot;When You&#039;re Rich&quot; Dream Buys That Aren&#039;t That Great</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/a-decent-standard-of-living">A decent standard of living</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/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-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/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/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/tactics-of-the-rich">Tactics of the 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/how-to-get-rich-by-being-evil">How to get rich by being evil</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their Money</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/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-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/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/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-3 views-row-odd"> <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> <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/dont-have-a-sven-sandy-might-be-the-next-best-thing">Don&#039;t Have A Sven? Sandy Might Be the Next Best Thing</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-7-best-free-tools-to-improve-your-work-performance">The 7 Best Free Tools to Improve Your Work Performance</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/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-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/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-greed-backfires-an-iphone-story-1">When greed backfires - an iPhone story.</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/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-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/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-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/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/sensible-ways-to-raise-cash-for-a-wedding">Sensible Ways to Raise Cash for a Wedding</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