They’re just like you. But with lots of money.
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 adviser 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.
“The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.” ~ Says Eker
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.
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.”
By Kristyn Kusek Lewis (Via Yahoo Shine)
21.Jun.10 
Uncategorized 
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Think all that’s in the fine print of your credit card is trouble? There may actually be some good news in there: hidden perks, from car rental collision insurance to return protection, that can save you cash.
Introduced to convince cardholders they were getting a bargain despite a hefty annual fee, many of these extra benefits fell by the wayside over time, forgotten in a sea of fine print. But hidden benefits may be seeing the light of day once again. “Over the last 20 years, we saw a dip in benefits,” says Heather Loftus, vice president of Affinion, a marketing company that handles benefits for a number of credit card companies. “Now there’s a renewed interest in making the consumer aware of what they have.”
Call your card issuer
So what’s the best way to figure out what your card actually entitles you to? Call your card issuer and ask for a list of benefits, or search for “cardholder benefits” on your card’s website. While it may be a pain, it’s time well spent, says Ramit Sethi, author of “I Will Teach You To Be Rich.” “You can save $500 a year easily just by using a couple of these benefits.”
Sethi should know. A few months ago, he panicked when he accidentally dumped a cup of coffee onto his brand-new Mac laptop, totally frying it. A repairman estimated it to be a $600 fix. But then Sethi remembered that the Visa card he’d used to buy the computer offered a 90-day guarantee against loss or breakage. “I called and said, ‘I’d like purchase protection to go into effect on this.’ They said, ‘Great, we’ll send you the form.’” A bit of paperwork later, his card ended up covering the entire repair fee.
Of course, as with all credit cards, “the devil is in the details,” says Loftus — so pay attention to the fine print. But first, check out our list to see what perks you might be missing out on, how much they could save you and how you can take advantage.
Perk: First crack at concert tickets.
How it works: Don’t have a prayer of scoring seats at the Lady Gaga concert? Some card issuers offer presale or preferred seating tickets to hard-to-get-into concerts and sporting events; others offer supercheap seats. When Citi rolled out its Private Pass feature, it sold select concert tickets to cardholders for $5 a pop.
What it’s worth: While it may simply save you the stress of trying to nab tickets when they go on sale to the general public, a $100 ticket through your credit card could save you a scalper’s $100 to $200 markup.
What’s in the fine print: The deals come through a third party such as Ticketmaster, so you’ll still have to pay their hefty service fees. Plus, don’t expect a discount, just a chance to buy tickets before your friends do.
Perk: Rental car insurance coverage.
How it works: According to a 2007 survey, one third of drivers spring for extra collision insurance when they rent a car. But most credit cards offer collision insurance for rentals, covering whatever your primary car insurance won’t.
What it’s worth: Prices vary, but a loss-damage waiver often costs an extra $28 a day, so taking a pass on a one-week rental could save you almost $200.
What’s in the fine print: You may not be covered for long-term rentals or rentals in some foreign countries, such as Israel or Ireland. Certain kinds of cars, such as trucks and campers, are excluded. Plus, while your credit card may cover damage, the issuer may resist ponying up for loss-of-use fees while the rental is out of commission.
Perk: Guaranteed returns.
How it works: If you buy an item that gets lost, stolen or destroyed within the first 90 days, your credit card will cover the cost of replacing or repairing it, even when the store that sold it to you won’t take it back. With some cards, you can get your money back, even if you just feel a twinge of buyer’s remorse.
What it’s worth: Card issuers put their own dollar cap on the perk; for Visa Signature cardholders, you can get back up to $500 per item. With American Express, it’s $300 per item or up to $1,000 a year.
What’s in the fine print: Expect to fill out some paperwork or provide proof that what you bought got destroyed. Plus, some cards maintain a list of products that aren’t covered — everything from antiques and jewelry to DVDs and computer software.
Perk: Cell phone replacement insurance.
How it works: If your cell phone gets damaged or stolen, your credit card will buy you a new one.
What it’s worth: Up to $200 for some cardholders; that’s the amount that Citi will pay for your new phone. But you’ll have to kick in a $50 co-pay, so unless you’re using a high-end phone, it may not be worth it.
What’s in the fine print: To be covered, you have to pay your monthly cell phone bill with your credit card, and you may have to file a police report or other paperwork to prove that your phone is gone. Plus, loss isn’t covered, so if you left it behind at the movie theater, you’re out of luck.
Perk: Trip cancellation coverage.
How it works: While only 15 percent of cards offer it, travel cancellation insurance reimburses you the cost of nonrefundable flights if an emergency or illness derails your travel plans. A handful of cards, including the Chase Sapphire, offer protection against travel delays; you’ll get back whatever you spent on meals and lodging while you were stranded during a snowstorm.
What it’s worth: You can get back up to $2,500 from Discover if illness forces you to cancel your trip, and $125 per day if your trip is delayed.
What’s in the fine print: Only a few reasons are considered just cause to cancel: the death of an immediate family member, a serious illness or an injury. You won’t be covered if a pre-existing condition flares up or if your destination turns into a war zone. You’ll also have to provide a doctor’s note to prove your case.
Perk: Cash without an ATM.
How it works: Discover’s Cash-Over program lets cardholders essentially use their credit card as a debit card. You can add an additional $40 (or whatever amount you choose) to your purchase, then pocket the difference in cash. It’s not a cash advance, so there are no fees.
What it’s worth: While it’s mostly a time-saver, you could avoid a few bucks of ATM fees and the hefty costs of a credit card cash advance.
What’s in the fine print: Your cash will still be subject to the same APR you’re paying on other card purchases, and the service is only available at certain stores.
Perk: Emergency travel assistance.
How it works: Get into a bind while you are out of the country, and some credit cards will step into the fray, whether you need help finding an American doctor or replacing a stolen passport. Discover even offers 24-7 translation services over the phone.
What it’s worth: A helping hand is priceless, but an on-the-ground guide could run you $75 an hour or more, depending on where you are.
What’s in the fine print: Some services, like translation, are free, but you’ll be charged for costs involved in, say, getting you a new passport.
Perk: Help with car shopping.
How it works: With American Express’s car-buying program, you use an online interface to build your dream car, then see a low price and a list of certified dealers who will honor it — before you enter your contact info. On used cars, you’re guaranteed to pay less than the Kelley Blue Book price.
What it’s worth: You could potentially save anywhere from a few hundred to few thousand dollars — without the stress of negotiating. Plus, if you find a lower price elsewhere, American Express will refund the difference.
What’s in the fine print: To take advantage of the low-price guarantee, you have to find a better-priced car with the exact same options and features. And you only have three days to do it. Good luck!
Perk: Price protection.
How it works: If you use your credit card to buy anything from a stereo to a sweater, then find the same thing for a lower price elsewhere within 60 days, your credit card will refund the difference. No more shopping anxiety!
What it’s worth: Your credit card sets the limit, but for a Citi MasterCard, you can get back up to $250 a pop, or $1,000 a year.
What’s in the fine print: You’ll have to produce your original receipt and a print ad showing the lower price — and for most cards, that means no online advertisements. (Seasonal sales and close-outs are also on the “no” list.) Most credit cards also have a list of excluded items, such as cell phones, cars and refurbished items.
Perk: Roadside assistance.
How it works: If your car breaks down, simply call your card’s customer service line and they’ll arrange to send a tow truck your way. Jump-starts, tire changes and locksmith services are usually included, too.
What it’s worth: Depending on what help you need, roadside assistance could save you $50 to $100 by charging you only a flat fee for the service call; with a Visa Signature or a Chase BP Multicard, it’s $59.95. Others charge a prenegotiated price for each service you use, so don’t expect to save much besides hassle.
What’s in the fine print: With many cards, you’re merely getting an over-the-phone tow truck referral, not any discount on services.
By: Melody Warnick (via CreditCards.com)
07.May.10 Uncategorized Comments (0)
Your Social Security number is one of the keys to your financial health. It’s a unique identifier lenders use to assess your creditworthiness. It’s also exactly what a would-be thief needs to apply for a credit card, mortgage, car loan or job in your name.
If you’re like most Americans, it’s also something you give out all too frequently.
“As with so many procedures in the business world, your Social Security number is something that many companies ask for, so no one really questions it,” says James Van Dyke, president of Javelin Strategy & Research, a research firm that tracks financial services topics. “But giving out your Social Security number is definitely a practice consumers should think twice about.”
Case in point: A recent Javelin Strategy & Research report — the 2009 ID Fraud Survey — found that, among identity theft victims, 38 percent said the perpetrator had obtained their Social Security number and used it in the crime. “It’s certainly logical to say that you could eliminate 38 percent of your risk of identity theft by limiting access to your Social Security number,” says Van Dyke.
‘Your Social Security number, please’
Still, saying it and doing it are two different things. Many of the forms you encounter during the day — at doctor’s offices, at the dentist, at your child’s school — ask for Social Security numbers. Retailers may ask for it, too, when accepting a check for payment or before issuing check cashing privileges. Potential employers also need it, and they may even want a copy of the actual card, says Linda Foley, founder of the San Diego-based Identity Theft Resource Center (ITRC). You’ll also be asked for it at your local Department of Motor Vehicles, car dealerships, pawnshops, drugstores — even at the airport, should you lose your luggage, she says. In fact, you may be surprised at how far-reaching this practice is, says Foley.
“A few years ago, we were putting some of my mother’s things into storage, and they wanted her Social Security number to use as a passcode,” she says. “It’s that prevalent.”
Just because someone asks for it doesn’t mean you have to comply, says Michael J. Arata, the author of “Identity Theft For Dummies,” especially since there are only a handful of organizations that actually have a valid need for it. For instance, anytime you’re applying for credit — for a new credit card, a loan, new telephone or cellular service — the creditor will need your Social Security number to run a credit check. You’ll also need to provide it if you are applying for federal or local government benefits such as Social Security, Medicare or Medicaid, unemployment insurance or disability. Another example: If you or your children receive services or aid at the state or local level, such as free or reduced fee lunch or financial aid. The local motor vehicle department, thanks to the USA PATRIOT Act, has the legal right to ask for Social Security numbers, too. In addition, when you complete a cash transaction totaling more than $10,000 you’ll be required to provide your number so that transaction can be reported to the Internal Revenue Service, says ITRC’s Foley.
Medical professionals have their own impetus, says the ITRC’s Foley. “The reason a doctor or a dentist asks for your Social Security number is that, should you die while under his or her care, they are required to put your Social Security number on the death certificate,” says Foley.
Even so, fulfilling non-credit-related requests — even medical-related requests — is purely optional, says L. Jean Camp, an associate professor at Indiana University and the author of “Economics of Identity Theft.” “The problem is that you have the right to say that you’re not going to give out your Social Security number, but a business owner has the right to say he’s not going to do business with you,” says Camp. “Most companies aren’t being malicious. They’re just being cautious by giving themselves a way to track you down if you don’t pay a bill.”
Gracefully saying ‘No’
One of the best ways to get out of giving your Social Security number to someone is to simply overlook it on your paperwork, says Arata. You may get by without a confrontation. If you’re questioned, however, ITRC’s Foley suggests being proactive. “The most basic thing you can do is ask the person or organization why they need it. One of the most powerful things you can say is, ‘Is there a law or requirement that I must provide it to you, and can you tell me what it is?’ You can also ask the person requesting your Social what will happen if you don’t disclose it,” she says.
Often, as in the case of a school or a charitable organization, they simply want it to use your number as a unique identifier. In that case, says Javelin Strategy & Research’s Van Dyke, you’ll need to start negotiating again. “Say, ‘In order for me to become your customer, I really need you to find an alternative record keeping method because I know giving out my Social Security number places me at great risk.’ When you say it like that you may get better results,” he says.
Even doctor or dentist offices should be willing to forgo your Social Security number — especially if you have health insurance. And if they won’t? Ask to give your information directly to the doctor and have him or her input it into the system for you, says Van Dyke. ITRC’s Foley says most medical offices may also feel comfortable without it as long as they have an emergency contact on file — someone who knows your Social Security number and could provide it in the event of death.
And what of the worst case scenario — when you absolutely can’t get out of it, but you still don’t feel comfortable? You can always make up a number, says Camp, but if you do, make sure you write it down and don’t inadvertently steal someone else’s identity. “If you go this route as a last resort, make sure you put zeros in for the two middle numbers,” she says. “There are no Social Security numbers that have double zeros in that section.”
By Karen J. Bannan via creditcards.com
Tags: ID Theft
01.Mar.10 Uncategorized Comments (0)
MoneyDesktop’s President was recently interviewed by radio talk show ConnectingWomen. The full interview may be listened to here.
With 43% of American families spending more in a year than they earn, consumers now owe approximately $2 trillion (not including mortgage debt). MoneyDesktop is dedicated to providing a software solution to American’s debt. For less than $20 a month, a family can save thousands of dollars a year using our product.
photo credit: AMagill
07.Jan.10 Uncategorized Comments (0)
