wealthy http://www.wisebread.com/taxonomy/term/9171/all en-US 8 Wise Tips Famous CEOs Would Give Their Younger Selves http://www.wisebread.com/8-wise-tips-famous-ceos-would-give-their-younger-selves <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-wise-tips-famous-ceos-would-give-their-younger-selves" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/business_boy_puts_ideas_in_machine_and_makes_money.jpg" alt="Business Boy Puts Ideas in Machine and Makes Money" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Every successful CEO has hit plenty of bumps on the road to the top. Despite the struggles, these top leaders have still managed to conquer challenges, shed their shortcomings, and grow both their skills and their net worth. They have made mistakes and learned from them.</p> <p>We wondered what some of the wealthiest CEOs would tell their younger selves, and found eight gems worth passing on. (See also: <a href="http://www.wisebread.com/11-finance-tips-you-wish-you-could-tell-your-younger-self?ref=seealso" target="_blank">11 Finance Tips You Wish You Could Tell Your Younger Self</a>)</p> <h2>1. Stay true to yourself</h2> <p>Kevin Johnson, CEO of Starbucks, is working hard to grow the chain from 26,000 locations today to 37,000 by 2021, all while maintaining the brand's unique appeal. He has some big shoes to fill, after taking over from Starbucks' iconic leader Howard Schultz in April 2017. His guiding principle, as he told Business Insider: Be authentic. By acknowledging all aspects of your authentic self &mdash; shortcomings and counterproductive tendencies included &mdash; you allow yourself and the people around you to do their best work.</p> <p>&quot;It's important to be comfortable being authentic,&quot; Johnson said, adding, &quot;Being authentic means you have to be vulnerable.&quot;</p> <h2>2. Find a job you love</h2> <p>Berkshire Hathaway Chairman and CEO Warren Buffett &mdash; one of the world's most successful investors with a net worth of $73 billion &mdash; puts it in layman's terms: Take on a career that makes you excited to wake up in the morning.</p> <p>&quot;You follow your passions. You find something you love,&quot; said Buffett at Fortune's Most Powerful Women Summit in 2014. &quot;The truth is, so few people really jump on their jobs, you really will stand out more than you think. You will get noticed if you really go for it.&quot; (See also: <a href="http://www.wisebread.com/the-5-best-pieces-of-financial-wisdom-from-warren-buffett?ref=seealso" target="_blank">The 5 Best Pieces of Financial Wisdom From Warren Buffett</a>)</p> <h2>3. Exceed expectations</h2> <p>DreamWorks co-founder Jeffrey Katzenberg's path to success was made by following this tip: Always give your best performance. And, if you can, outperform other people's expectations of your work.</p> <p>&quot;I don't think it matters how small or how big the task is,&quot; the Hollywood influencer, whose net worth is estimated at $750 million, famously said. &quot;If you can do it just a little bit better than what is expected, you will be noticed and rewarded.&quot;</p> <h2>4. Embrace tough assignments</h2> <p>Don't settle for easy work &mdash; that's the advice of PepsiCo CEO Indra Nooyi, who earned $29.8 million in 2016.</p> <p>&quot;Nobody notices when you do an easy job well,&quot; she told Business Insider in 2014. &quot;It's far better to challenge yourself by raising your hand for the toughest assignments and work to solve problems that no one else has been able to solve. That's how you truly become a trusted leader inside an organization.&quot;</p> <h2>5. Pursue extracurricular interests</h2> <p>&quot;My advice is to focus on becoming a complete person,&quot; said Goldman Sachs CEO Lloyd Blankfein, who grew up in a Brooklyn housing project and now has a net worth estimated at $1.1 billion. &quot;Everyone should focus on the content of his or her job, of course. But work is not the end; it's a means to an end. You owe it to yourself to open up to broader interests.&quot;</p> <p>So, pursue a hobby, travel, learn a new skill, read voraciously. Become that interesting person that makes great dinner conversation.</p> <h2>6. Focus on developing your own unique talents</h2> <p>Former Birchbox co-CEO Hayley Barna knows a thing or two about developing personal strengths and talents. She helped launch the subscription beauty box company in 2010 before stepping down five years later to become First Round Capital's first female partner.</p> <p>Her best advice is to identify and strengthen your distinct set of skills, rather than trying to be good at things you struggle with. For example, if you're a horrible writer but you're mathematically gifted, focus on your talent with numbers rather than trying to develop a literary voice.</p> <p>&quot;Never compare your weaknesses to someone else's strengths,&quot; Barna has said. &quot;While comparisons are tempting, especially for competitive, ambitious people, it's always important to focus on your own special talents. That's how you can make a real impact. And it's the coordination of everyone's unique skills that can make magic happen.&quot;</p> <h2>7. Own up to your mistakes</h2> <p>Dave Finocchio, CEO of Bleacher Report, would tell his younger self to admit his faults, act swiftly to correct them, and learn from them.</p> <p>&quot;I make mistakes all the time, and talk about them openly with people up and down our hierarchy,&quot; the digital sports franchise leader told Forbes in 2016. &quot;It fosters a culture where people should feel comfortable critiquing themselves honestly.&quot;</p> <h2>8. Push yourself</h2> <p>Marissa Mayer, former CEO of Yahoo, says she would counsel her younger self to get comfortable being uncomfortable. You'll never get ahead without pushing yourself to do things you've never done, and that means embracing tasks that you think you might not be fully prepared for.</p> <p>&quot;I always did something I was a little not ready to do,&quot; Mayer, whose net worth is $189 million, said in a 2015 speech. &quot;I think that's how you grow. When there's that moment of, 'Wow, I'm not really sure I can do this,' and you push through those moments, that's when you have a breakthrough.&quot;</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/8-wise-tips-famous-ceos-would-give-their-younger-selves">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-bedtime-routines-of-famous-financial-gurus">5 Bedtime Routines of Famous Financial Gurus</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/4-low-cost-alternatives-to-a-4-year-degree">4 Low-Cost Alternatives to a 4-Year Degree</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/its-the-21st-century-why-is-your-money-stuck-in-the-20th">It&#039;s the 21st Century — Why Is Your Money Stuck in the 20th?</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/timeless-money-lessons-from-teens">Timeless Money Lessons From Teens</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/8-quotes-to-inspire-your-dream-career">8 Quotes to Inspire Your Dream Career</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career Building Lifestyle advice business CEOs entrepreneurs hard work investors quotes success stories wealthy Thu, 25 May 2017 09:00:11 +0000 Brittany Lyte 1953938 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 10 Beloved Books of Successful Millionaires http://www.wisebread.com/10-beloved-books-of-successful-millionaires <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-beloved-books-of-successful-millionaires" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-629579800.jpg" alt="the favorite books of successful millionaires" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>If you are what you read, then the books that the super-rich have on their bookshelves should be of interest to all of us. From entrepreneurs and media tycoons, to international superstars and the President himself, here are 10 books that should be required reading for anyone looking to improve their lives.</p> <h2>1. Mark Cuban &mdash; <em>The Fountainhead</em> by Ayn Rand</h2> <p>A billionaire entrepreneur and a star of the hit series <em>Shark Tank</em>, Mark Cuban loves this book so much, he named his yacht after it. The author, Ayn Rand, is a polarizing figure in politics, and her books and life views are often adopted by both right-wing and libertarian politicians. Her basic philosophy revolves around the power of the individual, with the pursuit of happiness being the moral purpose of life.</p> <p><a href="http://amzn.to/2opib5I" target="_blank">The Fountainhead</a>, first published in 1943, offered the world Rand's philosophy of Objectivism. The story, which centers on a young architect who battles against conventional standards, has become a classic of modern literature. Speaking of the book to C-Span, Cuban said, &quot;You know it's funny because I'll pick it up when I need motivation, but then if I read too far, I get too much motivation and I get too jittery so I have to put it down.&quot;</p> <p>If a book can continue to give a multibillionaire goose bumps, it has to be worth a read.</p> <h2>2. Jeff Bezos &mdash; <em>The Remains of the Day</em> by Kazuo Ishiguro</h2> <p>Amazon founder and CEO Jeff Bezos has a net worth of over $73 billion. So, it's perhaps a little surprising that his favorite book, Kazuo Ishiguro's <a href="http://amzn.to/2owrbGH" target="_blank">The Remains of the Day</a>, revolves around the life of a servant. In this case, that servant is an English butler called Stevens, who narrates the novel.</p> <p>Set in postwar England, the elderly butler must come to terms with some pivotal issues from his past, whilst maintaining his stoic and &quot;correct&quot; behavior. In 1993, the book was turned into a beautiful film featuring Sir Anthony Hopkins and Emma Thompson.</p> <p>Speaking about the book, Bezos said, &quot;You can't help but come away and think, I just spent 10 hours living an alternate life and I learned something about life and about regret.&quot; Awarded the Man Booker Prize for Fiction in 1989, <em>The Remains of the Day</em> was included in The Guardian's &quot;Books You Can't Live Without&quot; list.</p> <h2>3. Mark Zuckerberg &mdash; <em>The Aeneid</em> by Virgil</h2> <p>Written between 28 and 19 BC, <a href="http://amzn.to/2p2EJKL" target="_blank">The Aeneid</a> recounts the legendary story of Aeneas, a Trojan who traveled to Italy and became an ancestor of the Romans. From his journey from Troy, to the Trojan War, the funeral games, and a vision of the underworld, <em>The Aeneid</em> is widely regarded as a classic of Italian literature. What's more, the entire book is actually a poem, consisting of 9,896 lines in dactylic hexameter.</p> <p>So how did Mark Zuckerberg, a young tech-savvy entrepreneur who created the social media climate we now live in, come to read the book? He was introduced to it while studying Latin in high school, and says the book &quot;knows no boundaries in time and greatness.&quot; He is also known to quote lines from <em>The Aeneid</em> in Facebook meetings.</p> <h2>4. Oprah Winfrey &mdash; <em>To Kill a Mockingbird</em> by Harper Lee</h2> <p>If you ever needed an excuse to read this masterpiece of American literature, knowing it's Oprah Winfrey's favorite book is a doozy. Set in Alabama during the Depression, &quot;<a href="http://amzn.to/2opm2Q2" target="_blank">To Kill a Mockingbird</a>&quot; covers three years in the life of Scout Finch, an eight-year-old girl, her brother Jem, and their father Atticus, a defense lawyer. Atticus is called upon to defend Tom Robinson, a young black man accused of raping a white woman.</p> <p>Told through Scout's eyes, it's a compassionate and moving story of kindness, cruelty, and the roots of human behavior. &quot;I remember reading this book and then going to class and not being able to shut up about it,&quot; Oprah told The Baltimore Sun. &quot;I read it in eighth or ninth grade, and I was trying to push the book off on other kids. So it makes sense to me that now I have a book club, because I have been doing that since probably this book.&quot;</p> <h2>5. Elon Musk &mdash; <em>The Foundation Trilogy</em> by Isaac Asimov</h2> <p>The founder and CEO of Space Exploration Technologies Corp is bringing the ideas of the future into the present day, with award-winning electric cars and whole-home solar power. To discover that his favorite book series comes from noted science fiction author Isaac Asimov hardly raises an eyebrow.</p> <p>The <a href="http://amzn.to/2oVr2gR" target="_blank">The Foundation Trilogy</a> series revolves around mathematician Hari Seldon, who has spent his whole life developing a branch of mathematics known as psychohistory. Using the laws of mass action, the science is able to predict the future on a grand scale. Unfortunately, it predicts the fall of the Galactic Empire, and a dark age lasting 30,000 years before the second great empire arises.</p> <p>Musk says, &quot;The lessons of history would suggest that civilizations move in cycles &hellip; there could be some series of events that cause technology levels to decline.&quot; The book series has had a profound effect on the way Musk thinks about the world.</p> <h2>6. Bill Gates &mdash; <em>The Catcher in the Rye</em> by J.D. Salinger</h2> <p>Set in the 1950s, <a href="http://amzn.to/2nBPJPf" target="_blank">The Catcher in the Rye</a> is narrated by a 16-year-old boy named Holden Caulfield, who is undergoing treatment in a mental institution. He recounts the tale of two days in his life when all this &quot;madman stuff&quot; happened to him. But there is a deeper meaning here, as we see him battle with issues around growing up, and avoiding the pressures of adulthood.</p> <p>&quot;It's my favorite book,&quot; said Gates. &quot;It acknowledges that young people are a little confused, but can be smart, and see things that adults don't.&quot;</p> <h2>7. Michael Bloomberg &mdash; <em>The Honourable Schoolboy</em> by John Le Carré</h2> <p>John Le Carré is a highly-regarded author of espionage novels, and has written such classics as <em>The Spy Who Came in From the Cold</em>, <em>Tinker Tailor Soldier Spy</em>, and <em>The Constant Gardener</em>. However, it his one of his lesser known works that captured the imagination of Bloomberg.</p> <p><a href="http://amzn.to/2ownm4c" target="_blank">The Honourable Schoolboy</a> tells the story of George Smiley, who must reconstruct an intelligence service and run a successful offensive espionage operation. It is the second novel in an omnibus featuring Smiley, and in 1983 it was adapted for a BBC Radio production featuring Martin Jarvis.</p> <p>&quot;It's 600 pages, it's mostly description, there is almost nothing that happens. But it's fascinating,&quot; said Bloomberg. Reading 600 pages of fascinating nothingness? Sounds like fun.</p> <h2>8. Richard Branson &mdash; <em>Stalingrad: The Fateful Siege 1942&ndash;1943</em> by Antony Beevor<strong> </strong></h2> <p>Founder of the highly successful Virgin brand, Richard Branson includes <em>Peter Pan</em>, <em>Wild Swans</em>, and <em>Swallows and Amazons</em> in his list of favorite books. As such, a book about World War II's most harrowing battle seems a little out of place in that company.</p> <p>The year is August 1942, and Hitler's huge Sixth Army reached the city that bore Stalin's name. Over the five months that followed, the battle for the ruins of the city cost more than a million lives. More than just a pure account of the battle, <a href="http://amzn.to/2owN60f" target="_blank">Stalingrad: The Fateful Siege 1942&ndash;1943</a> recounts the personal experiences of soldiers on both sides, and includes tales of interrogation, desertion, and execution.</p> <h2>9. Beyoncé &mdash; <em>What Will It Take to Make a Woman President?</em> by Marianne Schnall</h2> <p>There aren't many people in America, or the world, who don't know of Beyoncé. The multi-Grammy winning singer and actress has amassed millions from her albums, concerts, perfume lines, clothing, and films.</p> <p>Schnall penned <a href="http://amzn.to/2on4DWG" target="_blank">What Will It Take to Make a Woman President?</a> after a question was brought up by her 8-year-old daughter: &quot;Why haven't we ever had a woman president?&quot; It was a question she did not know how to answer, and so she set about asking the likes of Sheryl Sandberg, Maya Angelou, Gloria Steinem, Nancy Pelosi, Nicholas Kristof, and Melissa Etheridge.</p> <p>&quot;It's a collection of interviews and essays by great women,&quot; says Beyoncé. &quot;They will inspire you to become a better leader.&quot;</p> <h2>10. President Trump &mdash; <em>The Power of Positive Thinking</em> by Norman Vincent Peale</h2> <p>Love him or hate him, he's the 45th President of the Unites States, and a very wealthy man. Some say that he's not much of a reader these days, but he has stated that this book had a profound effect on him and his business empire.</p> <p>The international best seller by Norman Vincent Peale speaks of faith, spirituality, and the power of the mind to drive you forward. Via simple, prayerful exercises that you do daily, you can eliminate all the negative thoughts that prevent you from achieving the happiness and success you deserve.</p> <p>President Trump read <a href="http://amzn.to/2oniNY2" target="_blank">The Power of Positive Thinking</a> when he was billions of dollars in debt, and it turned his life around. &quot;My father was friends with Dr. Norman Vincent Peale, and I had read his famous book, <em>The Power of Positive Thinking</em>,&quot; said Trump. &quot;I refused to be sucked into negative thinking on any level, even when the indications weren't great. That was a good lesson because I emerged on a very victorious level.&quot; Victorious indeed, considering he is now the most powerful man in the world.</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-beloved-books-of-successful-millionaires">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-easiest-ways-to-score-free-ebooks">5 Easiest Ways to Score Free eBooks</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-money-lessons-we-could-all-learn-from-dwayne-the-rock-johnson">6 Money Lessons We Could All Learn From Dwayne &quot;The Rock&quot; Johnson</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-inspiring-quotes-about-money-from-successful-women">6 Inspiring Quotes About Money From Successful Women</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/another-one-for-the-readers-0">Another one for the readers</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/for-all-you-readers-out-there">For all you Readers out there</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Entertainment billionaires books celebrities inspiration millionaires reading wealthy Fri, 21 Apr 2017 09:00:11 +0000 Paul Michael 1930340 at http://www.wisebread.com 5 Surprising Budget Habits of Wealthy Financial Gurus http://www.wisebread.com/5-surprising-budget-habits-of-wealthy-financial-gurus <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-surprising-budget-habits-of-wealthy-financial-gurus" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-482951141.jpg" alt="Learning budget habits of wealthy financial gurus" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>&quot;He who will not economize will have to agonize,&quot; warned Chinese philosopher Confucius as early as the 5th Century B.C. His advice has survived the test of time and has become the mantra of many individuals in their quest for financial success.</p> <p>However, you would think that once somebody &quot;makes it,&quot; it's time to sit back and &quot;<a href="http://www.wisebread.com/the-high-cost-of-the-treat-yourself-mindset?ref=internal" target="_blank">treat yourself</a>.&quot; Not so fast! Let's review five wealthy financial gurus who continue to save money in the most surprising ways.</p> <h2>1. Warren Buffett eats McDonald's every day for breakfast</h2> <p>With an estimated net worth of over $78 billion, Warren Buffett can definitely afford to sip mimosas for breakfast without sweating the bill. Still, the Oracle of Omaha revealed in a recent 2017 documentary that he sticks to a daily breakfast budget of <a href="http://time.com/money/4656662/heres-what-warren-buffett-eats-for-breakfast-every-day/" target="_blank">no more than $3.17</a> at Mickey D's.</p> <p>Buffett usually picks up his breakfast from the drive-thru of a nearby McDonald's on his way to the office. &quot;When I'm not feeling quite so prosperous, I might go with the $2.61, which is two sausage patties, and then I put them together and pour myself a Coke,&quot; Buffett deadpans. Coke for breakfast, you ask? Buffett's investment company holds <a href="http://www.cnbc.com/berkshire-hathaway-portfolio/" target="_blank">over 9 percent</a> of shares from the drink company.</p> <h2>2. T. Boone Pickens owns a pair of shoes from 1957</h2> <p>Through his success in the oil and gas sector, T. Boone Pickens amassed a fortune over the years and ventured into the financing and investment sectors. In 2012, <a href="https://www.forbes.com/profile/t-boone-pickens/" target="_blank">Pickens ranked #913</a> on Forbes' list of billionaires. Nowadays, he doesn't rank in that list at all because he has given more than $1 billion away through his philanthropic efforts.</p> <p>Despite his financial success, the author of <a href="http://amzn.to/2mYvcn7" target="_blank">The First Billion Is the Hardest</a> uses what he buys until it falls apart, which can be several decades later. &quot;If I want something, I look at it, decide what it is, but it will usually be the best product. I've got a pair of loafers that I still wear that I got in 1957,&quot; he disclosed <a href="http://www.politico.com/story/2011/06/q-a-with-t-boone-pickens-057296" target="_blank">during an interview</a> in 2011.</p> <p>And it's not just shoes, Pickens limits the size of the pieces on his closet in general. &quot;People are always surprised that I don't have a closet full of suits,&quot; Pickens told Kiplinger. &quot;I buy three suits every five or so years and only own 10 total. That's all I need.&quot;</p> <h2>3. Mitt Romney hunts for cheap flights</h2> <p>While you may know Mitt Romney mostly for being a former presidential candidate, he is also the co-founder of the private equity firm Bain Capital. Through his work as a management consultant and <a href="http://www.wisebread.com/5-investments-that-arent-stocks-or-bonds?ref=internal" target="_blank">private equity</a> investor, he has a high net worth &mdash; estimated at <a href="http://www.forbes.com/sites/edwindurgy/2012/05/16/what-mitt-romney-is-really-worth/#783284812927" target="_blank">$230 million</a> by Forbes when he ran for office back in 2012.</p> <p>Not a stranger to the finer things in life, you would expect Romney to stick only with premium buys. While he has purchased six-figure Warmblood horses, he also loves finding bargains. According to The New York Times, he is obsessed with scoring cheap flights on JetBlue. A longtime adviser to Romney supported that claim by stating that, when asked to change a flight, Romney hesitated and responded, &quot;Well, it's a cheap flight. It's a middle seat, but I got a great JetBlue rate.&quot;</p> <h2>4. Jack Bogle eats PB&amp;J sandwiches for lunch</h2> <p>One of the few <a href="http://www.wisebread.com/5-investors-with-better-returns-than-warren-buffett" target="_blank">investors with better returns than Warren Buffett</a> is John &quot;Jack&quot; Bogle, founder and retired CEO of the Vanguard Group. If the Vanguard name sounds familiar, it's most likely because you own one of its low-cost <a href="http://www.wisebread.com/3-steps-to-getting-started-in-the-stock-market-with-index-funds?ref=internal" target="_blank">index funds</a> in your retirement or investment account. And you wouldn't be alone: Just the Vanguard 500 Index Investor Shares fund [Nasdaq: <a href="https://finance.yahoo.com/quote/VFINX?p=VFINX" target="_blank">VFINX</a>] has $292.36 billion in assets as of February 2017!</p> <p>As the pioneer of low-cost passively managed index funds, Bogle believes that the key to making it big in investments is to aggressively minimize fees. And he sticks by this belief in life as well. Many publications have recounted that his go-to lunch food is peanut butter and jelly sandwiches. He began bringing a PB&amp;J sandwich and an apple when he first started Vanguard because he refused to pay the prices charged in his own cafeteria. And when he does have to order there, he sticks with a simple grilled cheese sandwich.</p> <h2>5. David Cheriton cuts his own hair</h2> <p>A common daydream of individual investors is to uncover the next Microsoft, Facebook, or Apple, become the first one to invest in that moneymaker, and be set for life. Stanford professor David Cheriton happens to be one of those investors that hit the jackpot when in 1998, he wrote a check for $100,000 to Google founders Larry Page and Sergey Brin. Today, that investment makes up the bulk of his estimated $4.2 billion net worth.</p> <p>As of 2012, the &quot;Billionaire Professor&quot; had invested over $50 million across 17 startups and companies, and continues to invest. To this day, he continues to plunk down checks in several other companies, such as AISense and ThreatSTOP.</p> <p>With such an investing pedigree, you would think that he wouldn't mind splurging a bit on a nice haircut once a month. For over three decades, Cheriton prefers to cut his hair himself. &quot;It's not that I can't fathom a haircut,&quot; said Cheriton. &quot;It's just easy to do myself, and it takes less time,&quot; he confessed to Forbes. Since the professor is adept at making good calls, probably nobody would argue with him on this one.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/5-surprising-budget-habits-of-wealthy-financial-gurus">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-reasons-you-shouldnt-invest-like-warren-buffett">7 Reasons You Shouldn&#039;t Invest Like Warren Buffett</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">How to Think Like a Billionaire When You’re Broke</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/knowing-when-to-walk-away-financial-planning-for-an-unknown-ending">Knowing When to Walk Away: Financial Planning for an Unknown Ending</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-disappearance-of-real-america-my-guest-post-at-zen-habits">The disappearance of real America - my guest post at Zen Habits</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-money-moves-to-make-before-taking-a-mini-retirement">5 Money Moves to Make Before Taking a Mini Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Lifestyle budget buys cheap finance gurus inspiration live within your means saving money vanguard Warren Buffett wealthy Fri, 24 Mar 2017 10:00:10 +0000 Damian Davila 1911600 at http://www.wisebread.com How "Carried Interest" May Affect Our Taxes http://www.wisebread.com/how-carried-interest-may-affect-our-taxes <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-carried-interest-may-affect-our-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-508011393.jpg" alt="what is carried interest" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>A lot has happened since now-president Donald Trump and candidate Hillary Clinton debated on October 9 at Washington University in St. Louis. If you're like most taxpayers, you probably don't remember the candidates bantering about something called &quot;carried interest.&quot;</p> <p>During the debate, Trump was asked what steps he'd take to make sure that the wealthiest of U.S. taxpayers pay a fair share of taxes. Trump responded by saying that he'd eliminate carried interest. What Trump actually meant, though, was that he would change the way carried interest is taxed. Clinton, too, supported making this change. And so did former president Barack Obama.</p> <p>You can be forgiven if you have no idea what carried interest is. That's because it's something that only benefits the general partners who manage private equity and hedge funds. And most of us can't invest in these private funds because it is so expensive to do so. Investors must usually pony up at least $250,000 to make an investment in one of these funds.</p> <p>Carried interest is one way that the managers of these expensive hedge funds and private equity funds make a profit. But just because carried interest only benefits a select few, doesn't mean that it's not important to the U.S. economy. According to the Tax Foundation, if Congress taxed carried interest as ordinary income, it could <a href="https://files.taxfoundation.org/legacy/docs/TF_Options_for_Reforming_Americas_Tax_Code.pdf" target="_blank">cost the country 2,200 jobs</a>. On the positive side, the Tax Foundation said that changing how carried interest is taxed would also generate about $15 billion during the next 10 years in the form of more taxes sent to the federal government.</p> <h2>What Is Carried Interest?</h2> <p>The best way to understand carried interest is to look at your own investing habits. Say you invest some money in a stock. You hold onto that stock for five years, and its value rises. You then sell the stock and earn a solid profit.</p> <p>That profit is known as a capital gain, and you have to pay taxes on it. But the tax rate for a capital gain is lower than the tax rate for standard wages and income. In general, wages and salary income is taxed at a top rate of 39.6%. Capital gains, though, are taxed at a top rate of 23.8%.</p> <p>You can then see that income made from capital gains is even more valuable than the income you make from your salary.</p> <p>The same basic concept holds true for the managers of hedge and private equity funds. These managers are paid from fees generated by the fund. But they are also paid in carried interest, which is a share of the profits made by the fund. If the fund increases in value, the managers of the fund receive a financial boost in the form of carried interest.</p> <p>Today, carried interest is taxed as capital gain income, not as salary or wage income. Obviously, this is a nice perk to fund managers, who have to pay less in taxes on carried interest.</p> <h2>How Should It Be Taxed?</h2> <p>During the campaign, Trump said that carried interest should be taxed the same way the country taxes ordinary income. Why? Because carried interest is really part of the salary of a fund manager. So why shouldn't it be taxed that way?</p> <p>Others, though, make a different argument. The Tax Policy Center cites the common argument that fund managers should not be viewed as typical workers, but <a href="http://www.taxpolicycenter.org/briefing-book/what-carried-interest-and-how-should-it-be-taxed" target="_blank">rather as entrepreneurs</a>. Entrepreneurs are allowed to treat part of their financial returns as capital, and fund managers should be given the same tax break, according to this argument.</p> <p>Will Congress ever change the way carried interest is taxed? That's probably not a priority right now. And you can bet that most U.S. taxpayers will remain unaware of what carried interest even is.</p> <p>But the topic of carried interest might come up again whenever politicians, financial experts, and policymakers debate how the country can make its tax code fair to everyone.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/how-carried-interest-may-affect-our-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/101-tax-deductions-for-bloggers-and-freelancers">101 Tax deductions for bloggers and freelancers</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/dont-get-audited-how-your-side-gig-needs-to-handle-taxes">Don&#039;t Get Audited! How Your Side Gig Needs to Handle Taxes</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-reasons-to-invest-in-stocks-past-age-50">7 Reasons to Invest in Stocks Past Age 50</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-reasons-an-hsa-is-actually-worth-having">10 Reasons an HSA Is Actually Worth Having</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/did-your-parents-give-you-a-whole-life-insurance-policy-heres-what-to-do-with-it">Did Your Parents Give You a Whole Life Insurance Policy? Here&#039;s What to Do With It.</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Taxes capital gains carried interest donald trump fund managers income tax advantages wealthy Mon, 13 Mar 2017 10:30:10 +0000 Dan Rafter 1904507 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 8 Clever Ways to Sample the Good Life http://www.wisebread.com/8-clever-ways-to-sample-the-good-life <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-clever-ways-to-sample-the-good-life" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_beautiful_wealthy_80921263.jpg" alt="Woman learning ways to sample the good life" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Want to live like a prince on a pauper's budget? Enjoy some of the finer things in life without spending a fortune with these hoity-toity hacks.</p> <h2>1. Make Friends With People in High Places</h2> <p>Oftentimes, getting ahead in life is all in whom you know. You've heard it before. Perhaps you've even experienced it &mdash; and if you have, good on you, because the outcome of such a situation is, by definition, a positive one.</p> <p>As such, getting to &quot;know&quot; people is a solid practice to pick up. For instance, whenever I've moved to a new area I make it a point to introduce myself to the bartenders in my neighborhood when I visit a bar or restaurant. I go so far, in fact, to write down their names plus a few defining characteristics so I can remember them next time. After a while (and this never fails) we're on a first-name, &quot;How's your day?&quot; basis, which almost always turns into free drinks or other discounts regularly. I've saved hundreds, if not thousands, of dollars over the years by doing this, and I always repay that courtesy in my tips, as should you.</p> <h2>2. Crash Convention Receptions for Free Drinks</h2> <p>I hated attending conventions and making useless small talk with strangers when I worked in corporate America, but I rather enjoyed the open bar. Turns out I was doing it all wrong anyway &mdash; I didn't need that stinkin' job &mdash; according to Dr. Murray Grossan, a doctor who attends his fair share of conventions. He suggests crashing the party by grabbing a name tag at the entrance to look official so you can throw a few free ones back before anybody's the wiser.</p> <h2>3. Attend More Gallery Openings for Culture &mdash; And Booze</h2> <p>I enjoy art, and I'm an avid supporter of local artists as I've bought numerous pieces over the years to decorate my homes. Enjoying art also comes with perks, like attending gallery openings in your area while enjoying free snacks and wine. Get on the list by visiting a few of your home favorites and provide your email address in their guest book or another place where they cultivate visitors' information. You'll be in like Flynn for the next exhibition.</p> <h2>4. Rent a Luxury Vehicle</h2> <p>I would probably never rent a luxury vehicle myself &mdash; I'd be way too afraid that I'd inadvertently destroy it, and I don't feel the need to impress anybody with a flashy car. But if you're a luxury automobile super fan who balks at the idea of a luxury automobile payment every month, renting isn't a bad idea.</p> <p>&quot;Cars &mdash; brand-new &mdash; cost an average of $25,000 to $30,000, not including maintenance, fuel, and insurance, and then sit in your driveway 22 to 23 hours a day, typically,&quot; says Bradford Hines, personal finance expert and author of AutoProfitz, a book on how to make money buying and selling cars. &quot;This amount of money easily is tripled for a high-end auto like an Audi, Mercedes, Porsche, etc. I use rental car service Turo, a peer-to-peer rental car company, to indulge in the occasional driving of a nice car to get it out of my system, cost effectively letting me not care about driving a 15-year-old Jetta the rest of the time. I recently rented a two-year-old Mercedes E-class for $125.&quot;</p> <h2>5. Order Apps for Dinner at the Fancy Restaurant</h2> <p>I enjoy dining out, and for me fancier is better for special occasions and the like. Sometimes though, I can't or won't let myself afford the high menu prices at some establishments. To settle on a compromise between my belly and back pocket, I often pop into higher-end eateries, grab a seat al fresco or at the bar, and dine on lesser-priced apps and salads to curb my hunger. By doing this, I'm able to enjoy the ambience and delicious cuisine without having to forage for my food the rest of the month. You also may even find a night at a multi-star joint that offers discounted specials, which is happening more and more as the restaurant wars continue to heat up.</p> <h2>6. Travel During a Location's Offseason</h2> <p>Frequent leisure travelers know that jet-setting during the offseason is where it's at. That's how I've gotten some of my most memorable vacations to places like Iceland and Costa Rica, and pet-insurance CEO Nick Braun is wise to that tactic, too.</p> <p>&quot;My wife and I like to take little two- and three-day trips together to have some fun and set the reset button,&quot; he admits. &quot;Our favorite thing to do is book rooms at a fancy hotel, like Ritz Carlton or Four Seasons in the off season during the week. Rates are super low and you can pick any table at any restaurant while you're visiting because nobody else is there.&quot;</p> <p>In addition, I highly recommend checking daily-deal sites like Groupon and LivingSocial for excellent vacation packages &mdash; that Costa Rica trip was a steal &mdash; as well as visiting the websites of the airlines you like to travel or the one based at your destination. They may have discounts that aren't publicized anywhere else.</p> <h2>7. Daily Deal Your Way to Finer Dining</h2> <p>If you want a heartier meal than appetizers at finer-dining establishments, daily deals also are good for shaving a significant amount off the bill.</p> <p>&quot;I like to cook food, and I avoid fast food and midlevel restaurants as well for health reasons and their typically uninspiring food,&quot; Hines says. &quot;Pricier restaurants with incredible cuisine are something I like to do at least a few times a year to get to 'live.' What I do then is go to Groupon and LivingSocial monthly, look for steep discounts (my most recent was half off) at expensive restaurants, and I let the discount dictate which high-end restaurant I go to, which is fine with me since they all are a fun treat.&quot;</p> <p>Restaurant.com is another great restaurant-savings resource, but by my own estimation it's slim pickins to find buzzed-about eateries on there that people are clamoring to get into. Still worth a look though.</p> <h2>8. Shop for Designer Clothes in Thrift Stores in Wealthier Areas</h2> <p>You may think all thrift shops are created equal, but they're not. Visit a secondhand store in an affluent area and you'll notice the difference. I've been to thrift stores that routinely stock designer brands like Ralph Lauren and Kate Spade, among others &mdash; you just have to know where to look.</p> <p>Frugal-living expert Nedalee Thomas says, &quot;I love expensive designer clothing and shoes but I don't like the price tags that go with it. For that reason I have made a habit of shopping in thrift stores located in wealthier areas. I've made many amazing finds, and the only thing better than knowing how good I look is knowing how little I paid.&quot;</p> <p>Try it out for yourself and see what designers you can bring home at bargain-bin prices.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/8-clever-ways-to-sample-the-good-life">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-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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-save-money-on-kids-activities">How to Save Money on Kids&#039; Activities</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-cool-companies-that-pay-you-for-referring-friends">10 Cool Companies That Pay You for Referring Friends</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/spice-up-the-conversation-by-skipping-what-do-you-do">Spice Up the Conversation by Skipping &quot;What Do You Do?&quot;</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-times-its-ok-to-be-selfish-with-your-money">5 Times It&#039;s OK to Be &quot;Selfish&quot; With Your Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Life Hacks Budgeting Entertainment designer clothes Fine Dining free stuff having fun high life luxury renting shopping traveling wealthy Thu, 22 Sep 2016 10:30:09 +0000 Mikey Rox 1796985 at http://www.wisebread.com 7 Reasons You Shouldn't Invest Like Warren Buffett http://www.wisebread.com/7-reasons-you-shouldnt-invest-like-warren-buffett <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-reasons-you-shouldnt-invest-like-warren-buffett" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_scared_chart_99635575.jpg" alt="Learning reasons you shouldn&#039;t invest like warren buffett" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Warren Buffett is, by most accounts, one of the most successful investors in history. The CEO of Berkshire Hathaway has amassed billions of dollars (more than $65 billion, at last count) through his savvy understanding of corporations' performance and the stock market.</p> <p>But investing like Warren Buffett isn't easy, and an examination of Berkshire's holdings indicates that average investors might not necessarily benefit by following his every move.</p> <p>Here's a look at some reasons to avoid investing like Warren Buffett.</p> <h2>1. Because You Can't</h2> <p>We can all try to invest like Warren Buffett, but at a certain point it will be clear that he can do things that us mere mortals can't. Buffett has access to information that most people wish they had. He's super wealthy, so he can buy shares in much larger quantities and take risks that we simply can't. He has mountains of cash, and the reputation to cut deals that we can't make. He has access to different types of investments (preferred stock, venture capital) that are often unavailable to non-wealthy people. It's possible to follow his general approach to investing, but at a certain point it's nearly impossible to do what he does.</p> <h2>2. His Goals Aren't the Same as Yours</h2> <p>The average person should be investing with long-term growth in mind, focused primarily on building a large retirement fund. An older investor might invest for income through dividend stocks and bonds. Berkshire Hathaway's investment motives, however, are far more complex. While it is focused on building wealth over the long-term, it also makes decisions to please its shareholders in the short-term. It makes acquisitions that don't make sense immediately, but have a broader strategic value.</p> <h2>3. He's Not Very Diversified</h2> <p>Berkshire Hathaway is a large and sprawling company with investments in a wide range of industries. But most of the company's holdings are still comprised of a handful of companies. More than half of the company's value is tied up in its stakes of Kraft, Coca-Cola, Wells Fargo, and IBM. Nearly 40% of Berkshire's portfolio stems from the consumer staples sector, while another 30% is tied up in financials. Meanwhile, the company has relatively small investments in major sectors including health care, energy, or telecommunications.</p> <h2>4. He Sometimes Invests With His Heart, Not His Head</h2> <p>Yes, even Warren Buffett is known to invest with his heart rather than his head. Not all of his investments are unemotional and purely driven by cold facts. Consider his affection for Coca-Cola. (He's known to drink several Cokes a day.) While it's true that Coca-Cola is one of the stock market's great success stories, it's actually underperformed the broader stock market over the last five years. Despite this, Buffett's Berkshire Hathaway has about 400 million shares of Coca-Cola, or 9% of the company.</p> <h2>5. He's Missed Out on Technology</h2> <p>When tech took off in the 1990s, Warren Buffett was not on board. No big investments in Microsoft, Apple, or Cisco. And he's also declined to invest in recent tech success stories including Alphabet (neé Google), Amazon, Netflix, or Facebook. He is a big investor in IBM, but bought shares late in the game and the company has had several years in a row of declining revenues.</p> <p>Buffett has said he hasn't invested in tech because he doesn't understand it. While it's wise to avoid investing in something you don't understand, it also means he's missed out on some big gains over the years.</p> <h2>6. You're Better Off With Mutual Funds and ETFs</h2> <p>Warren Buffett is a great stock picker. His Berkshire Hathaway is a sprawling firm with investments in a wide range of companies in various industries. But for most people, it's foolish to try to invest in individual companies and expect to beat the broader stock market. It takes a lot of work to assemble a well-balanced portfolio if you're buying individual stocks. Mutual funds and exchange-traded funds offer the ability to invest in the broader stock market without worrying about share prices of individual companies.</p> <h2>7. He's Too U.S.-Centric</h2> <p>There's nothing wrong with betting on America and its companies. But a well-diversified portfolio should also have a good amount of international exposure, and Warren Buffett has tended to invest heavily in U.S.-based companies while ignoring the potential growth from overseas firms.</p> <p>The suggested amount of exposure to international and emerging market stocks varies depending on the investor's age and goals. But Morningstar's Lifetime Allocation Indexes are one possible guide. These indexes, which offer a mix of investments appropriately balanced for a person's retirement age, have between 10% and 40% invested in non-U. S. stocks. Morningstar suggests holding more international stocks the further you are from retirement.</p> <p>Warren Buffett hasn't eschewed international investing entirely, as Berkshire Hathaway does have holdings in European insurance companies and recently bought a German motorcycle accessory manufacturer. And some Berkshire holdings, including Coca-Cola and IBM, do have a significant overseas presence. But many of Berkshire's top holdings, including U.S. Bancorp, Wells Fargo, and Charter Communications, offer very little international exposure.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-reasons-you-shouldnt-invest-like-warren-buffett">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-to-buy-berkshire-hathaway-and-other-blue-chip-stock-for-17-off">How to Buy Berkshire Hathaway and Other Blue Chip Stock for 17% Off</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-signs-an-etf-isnt-right-for-you">8 Signs an ETF Isn&#039;t Right for You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-3-rules-every-mediocre-investor-must-know">The 3 Rules Every Mediocre Investor Must Know</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-investment-moves-that-prove-youre-finally-a-grown-up">5 Investment Moves That Prove You&#039;re Finally a Grown-Up</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-4-best-investments-for-lazy-investors">The 4 Best Investments for Lazy Investors</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Berkshire Hathaway ETFs funds Oracle of Omaha retirement stocks strategy venture capital Warren Buffett wealthy Thu, 22 Sep 2016 09:00:05 +0000 Tim Lemke 1796994 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 6 Ways More Money Does Truly Lead to More Problems http://www.wisebread.com/6-ways-more-money-does-truly-lead-to-more-problems <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-ways-more-money-does-truly-lead-to-more-problems" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_with_cash_000073068135.jpg" alt="Man learning how money leads to more problems" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're struggling to pay the bills each month, you probably don't have much sympathy for your wealthier neighbor or for the millionaire who complains about paying too much in taxes. But here's the truth: Even those blessed with a lot of dollars can have money problems.</p> <p>The rich just have different kinds of money problems. They might not worry about having enough money to make their car payment, but they do worry about sending too much to Uncle Sam every tax day.</p> <p>Planning to get rich yourself someday? Here's a list of some of the problems that you might face when you have more money to worry about.</p> <h2>1. Higher Taxes</h2> <p>Income tax rates jump steeply the more money you earn, which means that unless you and your accountant get creative, you'll be sending more of the money you earn each year to the federal government.</p> <p>Say you earned $514,000 in 2015. When you pay your taxes on April 18 of this year, you'll be taxed 10% for the first $9,225 of your earnings, and 15% on every dollar from $9,226 to $37,450. This rate goes up until you hit the maximum. You'll be taxed at this maximum rate of 39.6% for every dollar you earn from $413,201 and up.</p> <p>The upshot? The more money you make, the more taxes you pay. At least that's the theory. It is possible through deductions for the wealthy to dramatically lower the actual dollars that they send to the government each year. Trying to lower your tax bills is definitely one problem that grows the more money you earn.</p> <h2>2. Lifestyle Creep</h2> <p>When you get a big raise, do you boost the amount of money you save each year in your <a href="http://www.wisebread.com/5-important-things-to-know-about-your-401k-and-ira-in-2016">401K plan</a> or IRA? Or do you buy a nicer car?</p> <p>It's all too tempting to improve your lifestyle when your annual income rises. This is known as lifestyle creep. And it's a problem that the wealthy have to work hard to avoid.</p> <p>The rich might feel pressure, for instance, to invest in a larger home once their income swells. The better financial move might be for them to stay in their current home and instead invest their extra income. The allure of all those extra bedrooms and baths, though, can overwhelm the good sense of even the most fiscally conservative of consumers.</p> <h2>3. The Arrival of &quot;Long-Lost&quot; Relatives</h2> <p>There's a reason why lottery winners often joke about changing their phone numbers. They're worried that their relatives &mdash; especially long-lost ones with whom they've had little contact &mdash; will start hitting them up for money.</p> <p>The same thing can happen when you've built up your wealth over the decades. Your relatives who are struggling with their finances will expect your monetary help. If you don't cough up some bucks? You can bet those relatives will resent you. That can lead to strained familial relationships.</p> <h2>4. What Does Your Spouse Really Love?</h2> <p>Getting married after you've become fabulously wealthy can be tricky. How will you know if your future spouse loves you or your money?</p> <p>The stereotype of the gold-digging spouse might actually be a myth, at least according to this recent story in the <em>Guardian</em>, which argues that couples are more likely to get married when they <a href="http://www.theguardian.com/commentisfree/2014/jun/24/myth-trophy-wife-inaccurate-demeaning">have something in common</a> than because they're seeking partners with great wealth. But it's not surprising that some wealthy people wonder if that future spouse wants to marry them because of their overflowing bank account and not their wit or charm.</p> <h2>5. You Might Need an Army of Advisers</h2> <p>Once you've become wealthy, you'll undoubtedly need help to manage all those dollars. After all, you can't just stash those big bucks in a savings account. You want your riches to continue to grow. To master that feat, you'll need the help of financial advisers and accountants. And if you've invested in a larger home or a luxury boat? You'll need staffers to clean and maintain these investments. That isn't free, and finding the right help can prove challenging.</p> <h2>6. You're Even More of a Target</h2> <p>Think of how many scams fill your email box every morning &mdash; and you're not wealthy at all. Now imagine the target you'll become for fraudsters and scammers once you become rich.</p> <p>Wealthy people have to be especially careful to avoid scams, both online and traditional ones such as fake charities seeking donations. Nothing entices scammers like rich people who aren't especially careful with their wealth.</p> <p><em>Are you burdened with too much money? Share some in comments!</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%2F6-ways-more-money-does-truly-lead-to-more-problems&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Ways%2520More%2520Money%2520Does%2520Truly%2520Lead%2520to%2520More%2520Problems.jpg&amp;description=6%20Ways%20More%20Money%20Does%20Truly%20Lead%20to%20More%20Problems"></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/u5180/6%20Ways%20More%20Money%20Does%20Truly%20Lead%20to%20More%20Problems.jpg" alt="6 Ways More Money Does Truly Lead to More Problems" 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/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/6-ways-more-money-does-truly-lead-to-more-problems">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-5-most-money-savvy-rap-stars">The 5 Most Money-Savvy Rap Stars</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/8-wise-tips-famous-ceos-would-give-their-younger-selves">8 Wise Tips Famous CEOs Would Give Their Younger Selves</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-surprising-budget-habits-of-wealthy-financial-gurus">5 Surprising Budget Habits of Wealthy Financial Gurus</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/if-you-won-the-lottery-you-would">If You Won The Lottery, You Would...</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Lifestyle gold diggers income taxes money problems rich people wealthy Thu, 17 Mar 2016 11:00:05 +0000 Dan Rafter 1668455 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 8 Jaw-Dropping Tax Havens of the Filthy Rich http://www.wisebread.com/8-jaw-dropping-tax-havens-of-the-filthy-rich <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-jaw-dropping-tax-havens-of-the-filthy-rich" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000035064692.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There are roughly 80 countries that are considered tax havens. These are secrecy jurisdictions with incredibly low to no taxes. (See also: <a href="http://www.wisebread.com/7-states-with-the-lowest-taxes-for-retirees?ref=seealso">7 States With the Lowest Taxes for Retirees</a>).</p> <p>Billionaires and millionaires flock to these places to take advantage of tax loopholes that allow them to establish offshore bank accounts and shell corporations, and pay virtually nothing. By doing so, they avoid the otherwise high tax rates they would pay in their home countries, without renouncing their citizenship.</p> <p>Recently, the IRS announced plans to go after U.S. citizens holding offshore accounts. Still, that hasn't been a deterrent for a lot of wealthy individuals seeking to escape steep tax implications. Done correctly, offshore banking is completely legal. And you don't have to have tons of cash in order to seek out the reprieve tax havens offer. Because, in addition to the lenient tax laws, many of these nations are exotic travel destinations that offer outside investors simplified pathways to citizenship. Take a closer look.</p> <h2>1. Belize</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/belize_ocean_scene_000063940785.jpg" width="605" height="340" alt="" /></p> <p>Best known for the scuba diving and its astonishing Barrier Reef, Belize is a tropical paradise in the Caribbean Sea and just the place for anyone seeking discretion. English is the country's native language, though many habitants also speak Spanish. There are two pathways to citizenship: Permanent Residence and the Qualified Retired Person (QRP) program.</p> <p>Permanent Residence status is applicable if you intend to earn income as an employee. Otherwise, you would be considered a QRP and all you have to do is spend four weeks of the year in Belize, while meeting a minimum yearly retirement income threshold. As a QRP, foreign income is tax-exempt and there's no tax on capital gains or inheritances.</p> <p><strong>Language: </strong>English, Spanish, and Creole</p> <p><strong>Population: </strong>332,000</p> <h2>2. British Virgin Islands</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/british_virgin_islands_000044344594.jpg" width="605" height="340" alt="" /></p> <p>Another Caribbean oasis, The British Virgin Islands (BVI) has long been known for its banking secrecy. BVI's income tax rate is 0% &mdash; there's no corporation, capital gains, gift, sales, profit, or inheritance tax. And property owners or real estate investors can become part-time residents, which permits you to stay in the country six months out of the year. There is a nominal property tax of 1.5% of the assessed value per annum.</p> <p><strong>Language: </strong>English</p> <p><strong>Population: </strong>32,680</p> <h2>3. Cayman Islands</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/cayman_islands_beach_000035064692.jpg" width="605" height="340" alt="" /></p> <p>The Cayman Islands has been on the radar for multinational U.S.-based Fortune 500 companies with offshore subsidiaries for decades. Apple, IBM, and others are just a few on the list. The country has no corporate tax &mdash; and no taxes on income, capital gains, profits, or estates, either.</p> <p><strong>Language: </strong>English &nbsp;</p> <p><strong>Population: </strong>58,435</p> <h2>4. Costa Rica</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/costa_rica_waterfall_000021667287.jpg" width="605" height="340" alt="" /></p> <p>The gorgeous country of Costa Rica attracted 2.52 million tourists last year. This Central American nation is known for its rainforests, pristine beaches, and waterfalls. Corporations pay no income tax on gains from outside the jurisdiction, and no interest, capital gains, or dividend tax. &nbsp;</p> <p><strong>Language: </strong>Spanish</p> <p><strong>Population: </strong>4.872 million</p> <h2>5. Monaco</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/monoco_castle_000015588648.jpg" width="605" height="340" alt="" /></p> <p>Home of the famed Monte Carlo Casino and the Monaco Grand Prix, Monaco is a playground for wealthy jetsetters from around the world. Monaco has no income tax, capital gains, or inheritance taxes.</p> <p><strong>Language:</strong> French</p> <p><strong>Population: </strong>37,831</p> <h2>6. Seychelles</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/seychelles_beach_000058004304.jpg" width="605" height="340" alt="" /></p> <p>The Seychelles is comprised of 115 paradise islands off the west coast of Africa. The area is plush with coral reefs, pristine white beaches, luxury resorts, and local culture. There is no income tax, capital gains tax, gift tax, or property tax. To become a permanent resident, the country only requires that you reside in the Seychelles at least five days per year, and that you make a transfer of at least $10,000 per year into your bank account there.</p> <p><strong>Langu</strong><strong>age:</strong> Seychellois Creole, English, and French</p> <p><strong>Population: </strong>89,173</p> <h2>7. Panama</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/panama_city_000009775119.jpg" width="605" height="340" alt="" /></p> <p>Panama has one of the fastest growing economies in Central America. It doesn't share tax treaties with other countries, and is under no obligation to share financial information with any authority. Banking discretion in Panama is among the most secretive. The country has no income, dividend, or capital gains tax.</p> <p><strong>Language:</strong> Spanish</p> <p><strong>Population: </strong>3.864 million</p> <h2>8. Puerto Rico</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/san_juan_000046617994.jpg" width="605" height="340" alt="" /></p> <p>Puerto Rico is a United States territory, but it is a Commonwealth government that has its own tax laws. In 2012, the country enacted a law that deems it a tax haven for U.S. citizens living on the island a total of 183 days per year; <a href="http://www.businessinsider.com/puerto-rico-tax-law-act-22-2013-3">Act 20 &amp; 22</a>, and <a href="https://www.law.cornell.edu/uscode/text/26/933">section 933</a> of the uniform tax code allows U.S. citizens to avoid paying taxes on interest, dividends, and capital gains without renouncing citizenship.</p> <p><strong>Native Language:</strong> Spanish and English</p> <p><strong>Population: </strong>3.548 million</p> <p><em>Have you ever visited any of these tax havens?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/qiana-chavaia">Qiana Chavaia</a> of <a href="http://www.wisebread.com/8-jaw-dropping-tax-havens-of-the-filthy-rich">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-surprising-ways-the-rich-get-richer">5 Surprising Ways the Rich Get 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/how-carried-interest-may-affect-our-taxes">How &quot;Carried Interest&quot; May Affect Our Taxes</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/is-social-security-just-a-grand-ponzi-scheme">Is Social Security Just A Grand Ponzi Scheme?</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/6-moves-you-should-make-now-for-your-2018-taxes">6 Moves You Should Make Now for Your 2018 Taxes</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/i-lost-my-tax-documents-now-what">I Lost My Tax Documents… Now What?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Taxes offshore banking tax havens tax loopholes the rich wealthy Fri, 18 Dec 2015 14:00:08 +0000 Qiana Chavaia 1622728 at http://www.wisebread.com 5 Surprising Ways the Rich Get Richer http://www.wisebread.com/5-surprising-ways-the-rich-get-richer <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-surprising-ways-the-rich-get-richer" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_throwing_cash_000022559207.jpg" alt="Rich man using surprising ways to get richer" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You've noticed an interesting phenomenon: The richest people in the country have a knack for getting richer. Don't get jealous. Emulate them, instead.</p> <p>How do the rich get richer? They don't fall for get-rich-quick schemes, they don't fall in love with their stocks, and they certainly don't panic whenever the economy takes a dip. And if you do the same, you, too, can steadily grow your wealth.</p> <p>Here is look at some of the surprising &mdash; and not so surprising &mdash; ways that the rich keep getting richer:</p> <h2>1. They're Patient and Diversified</h2> <p>Laurie Samay, a certified financial planner and portfolio manager with Scarsdale, New York-based Palisades Hudson Financial Group, says that the wealthy never chase get-rich-quick schemes. Instead, they are more focused on preserving their wealth, usually by taking a &quot;slow-and-steady&quot; approach to investing.</p> <p>The investment portfolios of the wealthy are almost always filled with a <a href="http://www.wisebread.com/stabilize-your-portfolio-with-these-11-dividend-stocks">diverse array of stocks and bonds</a>. Diversity protects the wealthy against economic swings. If one asset class is struggling because of outside economic factors, another might be doing well. Say oil companies are struggling because of low oil prices. Car makers might be doing better because gas prices are lower, encouraging more consumers to buy their vehicles. By investing in both oil producers and car makers, the wealthy investor's portfolio doesn't take as big a hit.</p> <p>&quot;Academic studies have concluded that the mix of stocks and bonds in a portfolio has the greatest influence on performance, even more so than transaction costs and security selection,&quot; Samay said. &quot;Like the rich, your portfolio should be diversified.&quot;</p> <p>Samay says that all investors should invest in different types of bonds, large-cap equities, small-cap equities, and international equities. She also recommends that consumers invest in specialty asset classes like real estate and natural resources to create the most diversified portfolio possible.</p> <h2>2. They Recognize Panic as Opportunity</h2> <p>Remember when the housing market crashed in 2008 and 2009? David Hardin, president of Hardin Financial Group in Troy, Michigan, does. He also remembers that the rich &mdash; at least the savviest of them &mdash; took this time to invest in real estate at lower prices as others dumped their properties. Today, the value of these investments has soared.</p> <p>&quot;Buy when others are panicking,&quot; Hardin said. &quot;That is a strategy that the wealthy always use to grow their income.&quot;</p> <p>Those who stay wealthy avoid the herd mentality that often results in big sell-offs in asset classes or stocks, Hardin said. Instead, they buy stocks and other investments when their value is at their lowest.</p> <p>&quot;People who really understand the markets and study them see opportunities when people are panicking,&quot; Hardin said. &quot;That is when they often make lots and lots of money.&quot;</p> <h2>3. They Invest in Socially Responsible Companies</h2> <p>Andre Cherry, chief executive officer of Los Angeles-based investment firm Aspiration, says that the wealthy tend to invest in companies that are both sustainable and socially responsible. They don't do this just because they want to do good. They do it because these companies tend to be more successful.</p> <p>&quot;50 years ago, a company's value was largely in how many factories or how much heavy machinery it had,&quot; Cherry said. &quot;Today, the real value of a company comes in their reputation. You can see this in the kind of financial hit BP took after Deepwater Horizon. Its stock took a hit that it still hasn't really recovered from.&quot;</p> <p>Companies that are doing good &mdash; installing environmentally friendly practices, investing in employee wellness programs &mdash; tend to perform better, too, Cherry said. He pointed to Johnson &amp; Johnson's employee wellness initiative. For each dollar that the company spends on the program, it receives $2.71 back in the form of a more productive and healthier workforce.</p> <p>&quot;When a company cuts waste or becomes more environmentally friendly, it usually saves money,&quot; Cherry explained. &quot;When it installs workplace practices that encourage a more diverse workforce, they get an employee base that is more innovative and productive. Companies that have executives and boards of directors who are given financial incentives to think about the long-term instead of the short-term perform better, too.&quot;</p> <h2>4. They Never Fall in Love With Their Investments</h2> <p>Even the bluest of blue-chip stocks can steadily lose value as the country and consumer tastes change. The wealthy recognize this, and never fall in love with their stocks, Hardin pointed out.</p> <p>&quot;I've met some people who are absolutely in love with blue-chip stocks that they have inherited,&quot; Hardin said. &quot;They won't get rid of them, and some of those companies are no longer doing well. They haven't done well for decades. They're living on past glory.&quot;</p> <p>Hardin uses the classic example: &quot;If the company you invest in sells buggy whips and buggy whips aren't in demand any more, you might need to get rid of that stock.&quot;</p> <p>This leads to another important point about the wealthy: They spend a lot of time researching the companies in which they have invested. This helps them identify what might be cloudy futures for companies that have performed well in the past.</p> <p>&quot;You can't be efficient in the stock market or with your investments without research,&quot; Hardin said. &quot;Would you buy a business without knowing what that business does and without understanding the market in which it operated? Of course you wouldn't. And you shouldn't invest your money without doing the same kind of research.&quot;</p> <h2>5. They Pay as Little in Taxes as Possible</h2> <p>The wealthy face the highest tax brackets. Because of this, they work hard to reduce their tax bill &mdash; legally, of course.</p> <p>Samay said that wealthy investors distribute their investments across a mix of taxable, tax-deferred, and tax-free accounts, with the goal of placing their income-producing securities in tax-deferred or tax-free accounts. They reserve their taxable accounts for those growth investments that produce little to no dividend income.</p> <p>This kind of mix reduces the amount of taxes the wealthy pay each year, which leads to one final point from Cherry: The wealthy spend as much time making sure that they don't lose money as they do working to make more dollars.</p> <p>&quot;It's easier to lose money than make it,&quot; Cherry said. &quot;Protecting that wealth is one way to stay wealthy.&quot;</p> <p><em>What personal finance lessons have you learned by watching the wealthy?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-surprising-ways-the-rich-get-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/7-biggest-ways-procrastination-hurts-your-finances">7 Biggest Ways Procrastination Hurts Your Finances</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/9-tax-friendly-ways-to-save-beyond-your-retirement-fund">9 Tax-Friendly Ways to Save Beyond Your Retirement Fund</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/optimize-your-ira-and-401k">Optimize Your IRA and 401(k)</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-financial-moves-you-will-always-regret">9 Financial Moves You Will Always Regret</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-choose-a-financial-planner-yes-you">How To Choose A Financial Planner - Yes You!</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance diversification investing taxes the rich wealthy Mon, 23 Nov 2015 14:00:22 +0000 Dan Rafter 1615574 at http://www.wisebread.com The 5 Most Money-Savvy Rap Stars http://www.wisebread.com/the-5-most-money-savvy-rap-stars <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-5-most-money-savvy-rap-stars" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/jay_z_performance_000016852682.jpg" alt="Jay-Z is one of 5 money savvy rap stars" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Easy comes, easy goes.</p> <p>Nobody knows that better that rapper MC Hammer. At the top of his game back in 1991, Hammer had a net worth estimated at <a href="http://www.oprah.com/oprahshow/Whatever-Happened-to-MC-Hammer">more than $33 million</a>. However, only five years later he had debt that had ballooned to about $13 million.</p> <p>Many rappers take this cautionary tale very seriously and want to make sure that their wealth keeps growing, even after their records fall from the top of the charts. Take notes from the five most <a href="http://www.wisebread.com/10-things-financially-savvy-people-dont-do">money-savvy</a> rap stars.</p> <h2>1. Diddy</h2> <p>Sean Combs, known as Puff Daddy in the 90s and nowadays as Diddy, may be the closest one in the rap game to becoming the first billionaire. In 2015 Forbes estimates Diddy's fortune at $735 million, up $35 million from 2014.</p> <p>The main lesson that you can learn from Diddy is the importance of creating multiple sources of income. Besides his music career (latest release, MMM, was scheduled to drop on June 29, 2015), Diddy makes money through his:</p> <ul> <li><a href="http://www.amazon.com/s/ref=as_li_ss_tl?_encoding=UTF8&amp;camp=1789&amp;creative=390957&amp;fst=as%3Aoff&amp;keywords=Sean%20John&amp;linkCode=ur2&amp;qid=1433951346&amp;rh=i%3Aaps%2Ck%3ASean%20John%2Cp_89%3ASean%20John&amp;rnid=2528832011&amp;tag=wisbre03-20&amp;linkId=DD6YOXX5GAHEOHL6">Sean John</a> men's clothing and apparel line;<br /> &nbsp;</li> <li>Investment in alkaline water brand, <a href="http://www.amazon.com/gp/product/B001SB4JU2/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B001SB4JU2&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=TZ4EJWWARUQUSGCT">Aquahydrate</a> (over <a href="https://www.crunchbase.com/organization/aquahydrate">$20 million in funding</a>), and tequila DeLeon (prices ranging from $60 to $850 per bottle);<br /> &nbsp;</li> <li>Major equity ownership in music TV network, Revolt; and<br /> &nbsp;</li> <li>Portfolio of business partnerships, such as the one with Diageo's Ciroc Vodka.</li> </ul> <h2>2. Dr. Dre</h2> <p>Born Andre Romelie Young, Dr. Dre has proven his talent as a producer again and again by overseeing the careers of many rappers, including Snoop Dogg, Eminem, The Game, and Kendrick Lamar.</p> <p>However, Dre's biggest stroke of genius came in the form of his brand of headphones, speakers, and software, <a href="http://www.amazon.com/s/ref=as_li_ss_tl?_encoding=UTF8&amp;camp=1789&amp;creative=390957&amp;field-keywords=beats%20by%20dre&amp;linkCode=ur2&amp;sprefix=beats%2Celectronics%2C160&amp;tag=wisbre03-20&amp;url=search-alias%3Delectronics&amp;linkId=QTAANSGFNGG27TPO">Beats by Dr. Dre</a>. First released in July 2008, Beats by Dr. Dre became such a retail hit that Dre secured business partnerships with several musicians, including Diddy, and manufacturers, such as HP. The success of Dre's enterprise was cemented with an acquisition from Apple for a <a href="https://www.apple.com/pr/library/2014/05/28Apple-to-Acquire-Beats-Music-Beats-Electronics.html">total of $3 billion</a>.</p> <p>Despite his gigantic payday, Dre isn't a billionaire... yet. According to numbers from Forbes, Dre's payout after calculating his actual stake and taking away taxes was $500 million. The main lesson here is that one day you're going to receive a major windfall, so you need to know in advance the right moves to maximize that lucky break. By making the right money moves, Dr. Dre could beat Diddy in the race to the $1 billion net worth. (See also: <a href="http://www.wisebread.com/6-smart-things-to-do-with-your-bonus?ref=seealso">6 Smart Things to Do With Your Bonus</a>)</p> <h2>3. Jay Z</h2> <p>&quot;I'm not a businessman, I'm a business, man!&quot; raps Jay Z in &quot;Diamonds From Sierra Leone.&quot;</p> <p>And for good reason. Shawn Carter (Jay Z's real name) founded a record label (1995), started a clothing line (1999), sold that clothing line for $204 million in cash (2007), tied in sneakers and cell phones to the release of Black Album (2003), invested in a basketball team (2005), and, more recently, launched a streaming service with some of the biggest names in the music industry, including Madonna, Jack White, and Rihanna (2015).</p> <p>To the untrained eye, it may seem that Jay Z's efforts aren't coordinated. Actually, it's quite the opposite. Take a lesson from Jay Z's playbook about pursuing business interests: &quot;My brands are an extension of me. They're close to me. It's not like running GM, where there's no emotional attachment.&quot;</p> <p>Money doesn't determine job satisfaction. &quot;Interest in work&quot; and &quot;people at work&quot; were chosen by <a href="http://www.forbes.com/sites/susanadams/2014/06/20/most-americans-are-unhappy-at-work/">59% and 60.6% of U.S. workers</a>, respectively, as the top criteria that make people happiest at at job.</p> <h2>4. Drake</h2> <p>It's very easy to dismiss Drake due to his nice guy nature, but Drake's numbers tell a completely different story about his business savvy.</p> <ul> <li>Drake's earnings for 2013 were <a href="http://www.forbes.com/pictures/eeel45emedh/4-drake-33-million/">$10.5 million</a>.<br /> &nbsp;</li> <li>Tying a record set by The Beatles, Drake has 14 hits in the Hot 100 Billboard chart.<br /> &nbsp;</li> <li>His fourth album, <em>If You're Reading This It's Too Late</em>, moved 535,000 copies in its first week. He achieved this without any traditional promotion and despite dropping the album as a surprise.<br /> &nbsp;</li> <li>Jay Z was counting on Drake to join his streaming service, but Apple secured Drake as one of the main spokespersons for the launch of <a href="http://www.billboard.com/articles/business/6590679/drake-previously-in-talks-with-tidal-endorses-apple-music-at-wwdc">Apple Connect</a>.</li> </ul> <p>The &quot;Started From the Bottom&quot; rapper owes his rise to stardom to building savvy business relationships. From having Lil Wayne as a mentor to counting on manager Oliver El-Khatib for expert advice, Drake understands that you need to surround yourself with people much more successful and smarter than you to make it to the top. That's also why he has collaborated with heavy hitters such as Rihanna, Eminem, Mary J. Blige, Jay Z, and Nicki Minaj. (See also: <a href="http://www.wisebread.com/mick-jagger-rarely-buys-new-and-4-other-smart-money-lessons-from-thrifty-musicians?ref=seealso">Mick Jagger Rarely Buys New and 4 Other Smart Money Lessons From Thrifty Musicians</a>)</p> <h2>5. 50 Cent</h2> <p>Last but not least, Curtis Jackson (a.k.a. 50 Cent) stands out from other rappers because of his net worth ($150 million as of 2015) and his skill at identifying trends.</p> <p>He has proven his business knowledge by building up the <a href="http://www.amazon.com/gp/product/B00KCJR0KW/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B00KCJR0KW&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=6CG2ET6XHUDI4SK5">Vitaminwater</a> brand and then selling it to Coca Cola for a $100 million payday in 2007. He explains how he noticed the potential of the water business in the early 2000s in his own words: &quot;I walked into a grocery store and I saw a bottle of water for 59 [cents] and another right next to it priced at $2.59.&quot; Currently, 50 Cent hopes to repeat his fortunetelling act with Frigo Revolutionwear, a luxury underwear brand with prices ranging from $30 to $100 per boxer. Other current investments for 50 Cent are SMS headphones and Effen vodka.</p> <p>From the way 50 Cent decides his investments, you can see that he follows two key investment mantras from famous investor Peter Lynch: &quot;Know what you own, and know why you own it&quot; and &quot;Never invest in any idea you can't illustrate with a crayon.&quot; You should apply these same rules of thumb when evaluating potential investments. (See also: <a href="http://www.wisebread.com/5-investors-with-better-returns-than-warren-buffett?ref=seealso">5 Investors With Better Returns Than Warren Buffett</a>)</p> <p><em>Any money-savvy rap stars I've missed? Please share in comments!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/the-5-most-money-savvy-rap-stars">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. 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