On the Road to Wealth

The Secrets to Wealth

People whose net worth ranged from "comfortable" to approaching a billion dollars all achieved significant financial wealth, and all of them have done it on their own. There was no inherited money they accumulate money. TIPS for uu.

1. Save 10% of everything you make, no matter what. The amount they recommended varied slightly, but they were unanimous: Live within your means and save money every month.

2. Invest for the long haul. They pointed to Warren Buffet and noted that he buys and holds a stock for 20 years or longer. Invest in things you understand, and hold on!

3. Avoid debt. They talked about raising capital for their businesses (sometimes borrowing from investors), but insisted that personal debt be eliminated. One woman said, "consumer debt is devastating. If you want to achieve financial wealth, kill your credit cards." Another added, "no car or boat or anything else is worth the cost (financial and emotional) of borrowing money."

4. Crunch the numbers. They talked about doing their financial statements "every month, no matter what." Another added, "Only the numbers tell you how you're really doing; you've got to watch them like a hawk and use the information every day."

5. Have a plan. They expect their investments to grow steadily over the years (not over-night), and they plan accordingly. They emphasized setting 20, 30, even 50-year financial goals.

6. Know that money is one way of keeping score, but it's not the game itself. Money comes from investing or creating or doing something other people value and will pay for. They emphasized that "it's fun to have nice things" but noted that the money was secondary to doing "interesting things."

All of them had stories of starting out with school loans, small children, a "stuffy little apartment," working for minimum wage or eating "lots of macaroni and cheese," and yet knowing that they could "achieve some measure of success." Now, they've done it, and so can you. We can learn from the experts!