THE KEYS TO GREAT WEALTH

A while back, I led a round-table discussion with people
whose net worth ranged from "comfortable" to almost a
billion dollars. All of them have achieved significant
financial wealth, and all of them have done it on their own.
There was no inherited money in this group. I asked them
what they did to accumulate money, and for advice to pass
along in TIPS. Here are the results:
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 for the
long haul!
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!