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February 22, 2010

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1and 10. are major drivers. Enough is a foreign concept. Worry is the wrong word here, but the desire to win is a major driving factor.

5. Not being nice, and being ruthless are a little different. Rarely does being ruthless pay off in the long run, and being what many call ‘nice’ has equally bad returns.

7. B students and below have less options. Many of them are ‘forced’ to run their own company which leads to number 3. Owning your own firm. People rarely get rich working for someone else. (My definition of rich is higher than $1mm net worth.)

6. taxes- I’m not sure on this. Yes they have accountants that help them minimize the tax bills and make intelligent tax decisions, but their not spending a ton of time on taxes. Time is better spent trying to make more money than saving a few grand on taxes.

i want to be a multimillionaire and i feel that i am playing the part ie not wasting cash or resources and being entrepreneurial. how knows maybe i will be the billionaire next door :)

I think some of these are things that are little known about millionaires and others are things that are untrue about millionaires which makes it a bit confusing.

I think there is a lot of truth to the fact that it doesn't take an A student to become a millionaire. There are a lot more factors to becoming a millionaire including drive, perseverance, persistence, etc. Just cause you know, doesn't mean you will follow-up and do! It also doesn't mean to will see the long term goal.

I take #5 as not being a pushover or being stepped on. If you let people walk over you than you probably are not wealthy.

Rich folks value time more than anything else.. So I can see that they use conciege as much as they can to focus on the things they want to do or value to them, and outsource everything else to someone else..
BTW, conciege services are not that expensive.. My company offers it as a benefit to all employees.. $5, I had conciege to get my car registred, cleaned and gas filled....

I read this article over the weekend and had similar thoughts as you outlined.

The concierge thing is way off. I only know two guys that are millionaires and use a concierge. They make high 7 figures or low 8's a year. That is way beyond being a millionaire.

The rental thing about Ferraris and Gucci seemed way off. The people that use these services are pretending to be rich. The guy that makes $150K wants to get a thrill ride for a weekend and why not. But the average millionaire has no want of renting a Ferarri and in most places couldn't even get one.

On Rich and Being Nice. You can get rich by being nice but you better have an amazing talent. This happens all the time in the tech arena. But those are the small minority. Most old line businesses are full of people that are very good at squeezing profit out at others expense. For many, business is like war and the same people will be the nicest people in the world when they aren't working. I'd agree that being ruthless usually catches up with you, but I know a few that made their money that way. I think the bigger differentiatior is that those that rich pay attention to the little things and make sure they favor them in every deal.

What? I have a higher SAT score than the typical millionaire? Not that it matters when it comes to net worth, apparently.

I too disagree with #4, but I would like to offer an alternate wording: "It's not what you know, but who you know." Although it typically implies knowledgeable individuals, I believe it can also refer to resources and knowledge bases. For example, I don't REALLY have to know everything there is to know about charities and career building strategies. Rather, I can turn to FMF for more advice to certain things.

If SAT scores really do say anything, it means you don't have to know "everything". You just need to know how to find the answer when you don't know something.

Being a millionaire is no big deal any more in parts of the USA that have undergone an explosion in real estate values over the last 30 - 50 years.
You could be just another very ordinary retiree that bought a nice home in a nice neighborhood, had a good job throughout his career, and with the home now paid off and worth well over $1M in many parts of California. If you then add in the value of a highly appreciated IRA or 401K as well as non-IRA savings and you have a net worth well over $1M. You need to have a lot more than that if you want others to judge you as wealthy, rather than just the neighbor next door.

Read "The Millionare Next Door".

That says it all.

These are the ten things which I believe that millionaire won't tell you:

1. They have failed for the nth times before making their financial flights take-off but they have one habit that made them a millionaire but won't tell you - persistency;
2. They have multiple streams of income;
3. They diversfy their investments;
4. They are risk takers;
5. They purchase their needs but never entertain on their wants;
6. They earn more but spend less;
7. They pay heir own selves first;
8. They are savekaholic;
9. Their exact pleasures in earning more money instead of spending i and;
10.They support worthy causes that will address and alleviate th flights of the poor.

These are the ten things which I believe that millionaire won't tell you:

1. They have failed for the nth times before making their financial flights take-off but they have one habit that made them a millionaire but won't tell you - they are persistent;
2. They have multiple streams of income;
3. They diversify their investments;
4. They are risk takers;
5. They purchase their needs but never entertain on their wants;
6. They earn more but spend less;
7. They pay their own selves first;
8. They are savekaholic;
9. They exact pleasures in earning more money instead of spending it and;
10.They support worthy causes that will address and alleviate the flights of the poor.

Posted by: Art | Mar 9, 2010 11:43:11 PM

Certainly an interesting article. The one I think that is most accurate is that they care about how much they are making in relation to their peers. It is obvious that our society is more concerned about the people next door or in our office than about our own status. If there was no one around would it matter how much money you had? Probably not.

may be late to add to this but i have convinced myself that i am rich. the way i prove it to myself is to go to walmart and look at all the stuff i could buy but don't. i know i am rich, there is nothing in walmart that i can't afford :-)

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