Tue 6 Mar 2007
A few days ago I blogged about the 400 richest Americans. Perhaps while reading that entry, you said to yourself, “I wouldn’t mind being rich!” Perhaps you envisioned, if only for a moment, how your life would change if your life was free from financial worries. Maybe you imagined the consequent big houses, or the luxury cars, or the fabulous vacations you might take. It’s not unlikely that in this daydream you saw yourself throwing outrageous parties where you mingled with crowds of the beautiful, the famous, the influential, and the decision makers of the world. And then, if my reader demographics are correct, you realized not only that you’re poor, but that it was time for fifth period physics class. Hello High School Students of Seattle Washington!
For some people (the Walton widow and the four Walton children), wealth came as a result of Daddy passing it along. For the rest of us, careful planning and work is required. It goes almost without saying that it is easier to make a million dollars once you already have a million, still, for us non-millionaires, there is hope. The big secret to financial success: you must make money while you sleep (Rich Dad/Poor Dad); that is, your money must work to make you more money. But how do you do that? How do you put your money to work? Here following are your options. Not all are created equal.
- 1. Savings account
- 2. CDs
- 3. Bonds
- 4. Stocks
- 5. Mutual funds
- 6. Start a business
- 7. Buy/sell real estate
- 8. License creative works (write a book (like “the Entrepreneur Story“), compose/play music, code software)
- 9. Rental properties
You should know that rich people have more opportunities: (because they are Accredited Investors)
- 1. Everything poor people can do PLUS:
- 2. Invest in companies and high return (and risk) ventures
Secrets to staying poor:
- 1. Join an MLM
- 2. Carry a balance on a credit card
- 3. Borrow money to buy something
- 4. Day trade
- 5. Gamble
- 6. Buy things on impulse
- 7. Have a negative savings rate
- 8. Buy new cars
- 9. Bad investments: baseball cards, diamonds, stamps, coins, other collectibles
- 10. Convince yourself that because “money can’t buy happiness”, that you’re better off without it.
- 11. Ask for donations on your website.
- The very rich in America: “The kind of money you cannot comprehend”
- The World’s Billionaires
- Almanac of American Wealth
How are you making money tonight while you sleep?