The Secrets of Wealth Aren't Secrets, Part One

I have worked with wealthy people for the past 23 years as their estate planning attorney. Over that time, I have taught my clients a great deal about preserving their wealth, and passing it on to their heirs. As much as I have taught them, they have also taught me a great deal, as these are people who have been able to accumulate amazing amounts of money. My clients are in the top .5% of Americans as far as their net worth. In addition to listening and learning from these “wealth accumulation stars”, I’ve been taking notes. And, with their permission, I’ve started a blog to teach others what I’ve learned. The purpose of this article is to begin to share with you what I’ve learned. 

We are all bombarded with books, articles, tapes, seminars, infomercials and websites promising to make you wealthy.  If information was the key to becoming wealthy, there would be more millionaires per square mile than insects. So what, then are the keys to becoming wealthy? Here they are, in no particular order:

1.       Begin to think like a millionaire. Millionaires believe they can and will be wealthy, and they think differently than the rest of us.  Millionaires attract wealth to themselves by believing that they are worthy of wealth.  The old adage, you are what you think can be updated to, “you are what you think about”.

2.       Live within your means. Millionaires understand that it all begins with spending less than they make. This is where wealth accumulation starts.

3.       Save. Even if it’s not a lot of money, the money left over each month needs to be saved.  “Pay yourself first” and “A penny saved is a penny earned” aren’t just clichés … they are principles that when applied, produce results.

4.       Use debt strategically. Millionaires see debt differently than others.  Borrowing in order to have stuff before you can afford it is absolutely abhorrent to millionaires. Yet millionaires arent’ averse to borrowing, if it allows them to leverage their money.

5.       Create multiple streams of income.  Millionaires realize that hitting it big with one thing rarely happens.  But finding multiple streams of average income is not only do-able, it’s the single best way to get rich.

6.       Get the best return on your investments. Millionaires learn how to invest in a way that produces the best income with the least risk. Contrary to popular wisdom, most millionaires are risk-averse.  They understand, however, that there are ways to get a better than average return on your money, without taking huge risks.  They will tell you that it’s not about making a killing in the market.  It’s about getting a good return and avoiding the downmarkets.

7.       Understand that you must have the right perspective on wealth. Money doesn’t make you happy. It is merely a means of exchange. Happiness doesn’t’ come from your net worth, it comes from inside you.  On the other hand, understand that wealth gives you the opportunity for security and comfort, which are good things.

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