Secrets of Self-Made Millionaires

They’re just like you. But with lots of money. By Kristyn Kusek Lewis From Reader's Digest December 2007 Success Stories When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud. But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like. According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion. If more people are getting richer than ever, why shouldn’t you be one of them? Here, five people who have at least a million dollars in liquid assets share the secrets that helped them get there. 1. Set your sights on where you’re going Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina. There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff. Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.” It all started for Jeff when he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.” 2. Educate yourself When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 45-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.” One of the biggest obstacles to making money is not understanding it: Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.” He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals (on their cars, cable bills, furniture) and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments. Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says. In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry. “I was an engineer who never thought this life was possible, but all it truly takes is a little self-education,” says Steve. “You can do anything once you understand the basics.” 3. Passion pays off In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.” Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting? With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.” She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says. The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. And Jill was named one of the top 25 female business owners in North America by Fast Company magazine. According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about. More Ways to Grow Your Money 4. Grow your money Most of us know the never-ending cycle of living paycheck to paycheck. “The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself,” says Loral Langemeier, author of The Millionaire Maker. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate. There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.” A little moonlighting cash really can grow into a million. Twenty-five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million. When extra money rolls in, it’s easy to think, Now I can buy that new TV. But if you want to get rich, you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate. 5. No guts, no glory Last summer, Dave Lindahl footed the bill for 18 relatives at a fancy mansion in the Adirondacks. One night, his dad looked out at the scenery and joked, “I can’t believe we used to call you the black sheep!” At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.” He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says. After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owns apartment buildings, worth $143 million, in eight states. The Biggest Secret? Stop spending. Every millionaire we spoke to has one thing in common: Not a single one spends needlessly. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because “a house with double the cost wouldn’t give me double the enjoyment.” It’s not a fluke: According to the 2007 Annual Survey of Affluence & Wealth in America, some of the richest people “spend their money with a middle-class mind-set.” They clip coupons, wait for sales and buy luxury items at a discount. No kidding! Talk show host Tyra Banks calls herself the Queen of Cheap and keeps perfume samples from magazine ads in her purse for quick touch-ups. Sara Blakely, founder of the $100 million shapewear company Spanx, gets her hair trimmed at Supercuts. And Warren Buffett, the third richest person in the world, according to Forbes, lives in the same Omaha, Nebraska, home he bought four decades ago for $31,500.

Make your money last

You're working and you're investing. As retirement gets closer to reality, you'll need a plan for turning all your savings into security - so you can really enjoy the next phase of your life. Read all about it at.. http://money.cnn.com/galleries/2007/moneymag/0710/gallery.do_it_now_moneylast.moneymag/

It is important to understand that there is still life after retirement. So stretching and managing your assets/money is very important. There may be no chance of earning it back if you make a mistake in investing it. So you must identify save investments that can keep up with inflation. Unit trust or investing in a blue chip with high dividend paying track record is advisable. Please do consult your financial planner before making any investment decision.

Laughter the best medicine

Live healthier. Reduce medical bills.

Laughter appears to cause the tissue that forms the inner lining of blood vessels called the endothelium, to dilate or expand in order to increase blood flow. Laughter offsets the impact of mental stress which is harmful to the endothelium. A compound called nitric oxide is known to play a role in the dilation of the endothelium. Mental stress may lead to a breakdown in nitric oxide that results in blood vessel constriction. Hence laughing often is a great adjunct besides proper diet and regular exercise for improving blood vessel health and for relieving mental stress.
- Courtesy of Arun's blog.

Caricature Drawing and a Better Retirement
By: Bill Trantham | Posted: 10-06-2007
What began as a hobby has become a full-time obsession. I refuse to refer to drawing as a "job",
that would defeat the original purose of what I do.
It began as a search for some part-time way of
augmenting Social Security. I needed enough additional
income to keep the wolves away and facilitate my being
able to focus exclusively on art; the fullfillment of
a life-long dream.
For the past three years I have been making the
transition from my previous life as a mental health
counselor to that of a semi-retired caricature artist.
It has been one heck of a trip, but well worth the
time and effort.
I feel very comfortable saying to one and all that
I have now made it to where I had always wished and
hoped I could someday be. My list of art clients
numbers into many hundreds and include not only orders
from nearly every State in the Union, but also from a
dozen foreign countries as well. I have divested myself
of the stressful routine of being a full-time counselor,
working in a busy community-based mental health facility. There are no more staff meetings, schedules or mountains of paperwork to deal with. I now spend my days
at home in my studio,listening to vintage rock'n roll music and creating caricatures from photos people send me.
I'm not getting rich, but I am comfortable and, more importantly, much more at ease with myself and the world. I have succeeded in making retirement a truly
"golden" experience that has rejuvenated my spirit and
replentished my hope for the future.
I strongly encourage anyone who is comtemplating what to do with themselves in their later years, those who do not necessarily see themselves fishing or playing golf until they're planted, to consider a similar course. Turn your hobby or latent passion into a means to a happier, more productive retirement.
For me, it was art and caricature drawing. Whatever it is you've always wished you could do, remember: If not now, when?



About the Author:
Bill Trantham is a self-taught artist living in Oklahoma City. He is retired from mental health counseling and creating caricatures for clients via his website.
Printed From: http://www.articlesbase.com/art-articles/caricature-drawing-and-a-better-retirement-162403.html

Chen Chow: CIMB Wealth Advisors Asset Allocation Talk

Chen Chow: CIMB Wealth Advisors Asset Allocation Talk

Thanks for sharing. Many people should be investing time and attending these seminars to gain knowledge to understand investment and the risk involved. Risk is sometimes over exaggerated. Investing is the right instruments is important as leaving money in the Fixed Deposit with the bank cannot even guarantee a return exceeding the inflation rate. Meaning every year the money in the bank actually depreciates. - FP

Socso to offer free check ups

KL: Social Security Organisation (SOCSO) members above a certain age will be entitled to free medical checks under its Prohealth programme from next year. Human Resource Minister, Datuk Seri Dr. Fong Chan Onn said Socso planned to launch Prohealth as part of its service to members.
"We are considering offering the programme to our 4.9million members, especially those aged above 40," he said. - Bernama

Spending your retirement savings too fast.

If you've made it to retirement, congrats! You've amassed enough money to create your own portfolio-generated paycheck. Excellent work.

But you can't take it too easy. Because you'll receive a severe pay cut if you deplete your portfolio too fast. How much can you take out each year and be almost certain that you won't outlive your savings? Just 4% a year. That's the withdrawal rate that would have sustained a mix of stocks and bonds over most 30-year historical periods. Sure, if you retire on the eve of the next bull market, you can take out more. However, if you quit working right before the next bear market, then taking out more than 4% a year could have your portfolio beating you to the grave.