Many people have a false impression about thewealthy .
It's often believed that the rich are somehow different than
the rest of us. The media places them on a pedestal as fortunate
people who don't have any worries and spend their days in a
fantasy world of luxury and pampering.
But nothing could be further from the truth.
Often, the greater thewealth , the larger the problems,
worries and stress levels. The only thing that is different is
the scale of theissues ; otherwise the rich are the same as
everyone else. So just what is different about those with
self-made wealth and those without?
This subject fascinates me, so I decided to discover what
characteristics and habits are commonfactors among the wealthy.
Here are seven secrets of self-made wealth.
The Ability To Delay Gratification
This is truly a key to wealth. The wealthy are able to
concentrate on the future along with their everyday tasks.
The ability to understand how actions todaywill affect the
future is a dominant characteristic of wealthy people.
Rather than spendmoney today on short-lived pleasure,
the wealthy are able to make wise spending decisions with
the future benefits firmly in mind.
For example: Rather than lease an expensive car right
out of college, someone with a wealth-driven mindset might
buy an inexpensive car with the goal that in a decade they
will be able to afford a much nicer car with the money they
Own Your Own Business
If you take a look at any list of the wealthy figures, one
overwhelming theme emerges: The majority own at least one
business. Even those who inherited their riches can
probably thank a business owner somewhere in their past.
Rarely, if ever, can someone become super-wealthy by
rising up through the corporate ranks. Even if you are
currently a wage slave, you can start a business on the
side with the goal of taking it full time once it earns
enough to allow you to do so.
Locating stocks with long-term growth potential is a key
toprime your portfolio's way to wealth.
Regardless of theeconomy , forever stocks have proven to
outperform themarket over the longterm .
Use ARoth IRA
It takes high-growthinvestments to rapidly decrease the
time frame on your way to wealth.Taxes are a primary
obstacle to wealth building.
Placing high-growth investments within a Roth IRA
protects their growth from taxation, and as long as you
wait until you're 59 1/2 years old, there will be no tax on
Roth IRAs are powerful tools used by wealthy
entrepreneurs to protect theirgains from the perils of
High-earners often form corporations to manage theirincome
and expenses. This trick allows a high-earner to pay less
in personal taxes.
Although not everyone can use this method, checking with
yourtax advisor about applying a similar strategy may be a
Nearly every ultra-wealthy person is well versed in using
trusts to preserve their wealth.
Trusts can help avoid taxes and protect your heirs. They
also make good holding structures for hard to value assets
likeprivate company shares .
Make Like Hollywood's Smartest Superstars
While most everyone is familiar withinvestment flops of the
Hollywood elite like the Planet Hollywood restaurant chain,
the smarter movie stars have been quietlyinvesting in
masterlimited partnerships (MLPs) for years. MLPs are a
mainstay of the wealthy due to their consistentcash flow
Readers of Carla Pasternak's
are familiar with the top names in this sector.
Risks to Consider:
Whether or not you share these traits, you should be aware
that there is no magic formula for completely eliminating the
risks inherent in investing. However, these tips can give you a
good start toward protecting what you've earned.
Action to Take -->
By adopting a wealth-driven mindset, investors can take full
advantage of these seven secrets to lay the foundation for their
own personal fortunes.
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