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Want to be Rich? Read This.
 

sreedich's picture
 
Points)
 on 7/14/12 at 12:30am
yacht

So you want to be rich? I’m talking about yachts, cars, mansions, etc. You want billionaire status but a multimillionaire title will do. Well, if acceptance into the .001% club is your goal than here are some things you need to know.

1) Salary is not going to get you there. This may not apply for the top dogs of Wall Street but the average analyst or broker will not accumulate massive wealth based on salary. For more info read this.

2) Wealth should not be your only goal. Look at John Paulson, one of the greatest hedge fund managers in history. Yeah, his job is all about the money but to Paulson it’s more about the game.

Some people like playing chess, some like backgammon. This is like a game, and playing games is fun

3) Take risk. No one made it to the big leagues by playing it safe. Take calculated risks with your career and personal investments and hopefully you will reap the benefits. Two things to consider, starting your own business and long term capital gains.

4) Surround yourself with great people. You can’t choose your family but you can choose your friends (this proverb is usually the other way around). Try and associate with people who are moving forward in life; it’s tough to achieve greatness when you’re anchored down by negative influences.

5) Learn from others. Panos Mourdoukoutas, PhD (Professor of Economics at Long Island University), wrote a great article titled Three Ways to Become Rich-One Way to Live the Good Life. Read the article to understand what Carlos Slim, Bill Gates, and Warren Buffet did to achieve wealth and happiness.

The former is a list of items that should be well understood…if you want that private jet or exotic car collection. For those of us just starting off, including myself, here are some things you can do to set yourself up for success.

1) Find an interest and dive in. Learn as much as you can about something (personal or professional), talk to an expert, and Network! Network! Network!

2) Build an online presence. Start a blog, optimize your LinkedIn profile, build your network, open a Twitter Account, read what’s going on in the world, comment on online posts (including this one). For more tips read this.

3) Build creativity. As Emily Heyward of Fast Company says there is tremendous power in cross-pollination. Want to stand out from your peers; start thinking of ways to boost your creativity. Read science fiction, take an art class, or learn an instrument. Take what you learn and develop an association between your newfound creativity and professional life (cross-pollination).

What do you think? Any other items we should add to the list?

See my WSO blog posts

Comments

BlackHat's picture

I wonder if Paulson forgot

HF
 
Points)
 on 7/13/12 at 10:59pm

I wonder if Paulson forgot how to play

I hate victims who respect their executioners

Follow BH & Co. on Twitter: @DumbLuckCapital
twitter.com/DumbLuckCapital

hugobentley's picture

sreedich: Look at John

(Chimp, 4
 
Points)
 on 7/14/12 at 12:55am
sreedich:

Look at John Paulson, one of the greatest hedge fund managers in history.

When did the Anti-Midas become one of the greatest hedge fund managers in history?

Plugston_of_Undershot's picture

common guys, optimise your

 
Points)
 on 7/14/12 at 2:29am

common guys, optimise your linkedin and you will on your way to a "multimillionaire title" 140 characters at a time!

where are all these unoriginal B-grade self-help gurus appearing from? did someone link to WSO on The Secret's forum or something?

ivedtara's picture

I have tried all the tips. I

O
(Monkey, 63
 
Points)
 on 7/14/12 at 2:09pm

I have tried all the tips. I say it is very hard, even quite impossible to be rich unless a. you are lucky or b. you are one of a kind who can overcome anything

- Strategyard.com
Virtual Stock Exchange
Stock Market Game

Shorttermbuy's picture

You also need to look into

ER
 
Points)
 on 7/15/12 at 3:45am

You also need to look into incorporation for tax benefits as an individual. Stuff like having an IRA purchase real estate pre-tax for you, and along with 1031 exchanges as you move up are all things you need to educate yourself on.

Sadly most people in the finance industry (myself included) are terrible with personal finance. The truly rich people utilize the tax code and incorporations to their advantage and its something that is never taught in school. You can choose to be ignorant like OWS protestors (and stay poor), or learn the system and use it to your advantage.

But to win the finance game in life is quite simple, although hard to execute:

1) Have more assets than liabilities
2) Have cash-flow generating assets create more income than your expenses
3) Repeat

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