The rich internal strength

                                                                The rich internal strength



With the above;


      People rarely get rich by luck or high intelligence, more often the result of wealth is a way of life. Where we can learn from the rich a lot about the secret of financial and life planning.

      Perhaps we may not be able to become millionaires, but the rich where we can learn a lot about the secret of financial and life planning.

      Most people know that America's wealth rests in the hands of a few. Now, in the net assets or more than one million dollars persons, most of the money is earned on their own.

      Many of them are entrepreneurs, both those who created the high-speed network, but also garbage truck manufacturers, all-encompassing scope. Some of them building canal building, planting corn, manufacture jewelry. Some people with stamps, coins and works of art dealing, some people engaged in pest control and lawn mowing work. There are those who heal the sick, to people installing the new teeth. Others will help their neighbors, and even support them.

     They do not spend money freely. In fact relative to their wealth, these rich live in a fairly simple majority - think tall still living in shabby house in Omaha, Buffett (Warren Buffet) it - they put money on investment, so that the money will bring them more wealth.

      "Millionaire next door" (The Millionaire Next Door), author of Stanley (Thomas Stanley) and Dakota (William Danko) said how much wealth you accumulate, not how much you spend out. This book tells the story of the American rich first published in 1996, is a masterpiece produced a far-reaching impact.

     It is rarely luck, inheritance, highly educated or highly intelligent and rich. More often, the result of wealth is a way of life, a hard, perseverance, work with planning, especially self-discipline of life.

The definition of wealth there are many ways, but usually it is defined as the removal of the debt after all the things you have value. But the market of assets and personal property there is a difference, the former refers to can be quickly converted to cash, such as stocks, bonds and real estate, which is like a car, clothing and household goods you will often use such unlikely the sale of assets.

     Income of one person alone can not become rich. Of course, it is the increase of wealth can play a role, but those who achieve financial freedom their wages as a means, a means to greater wealth.

     Joint Marketing (Unity Marketing), founder of Danzig (Pam Danziger) said rich people are not looking for anything to buy. Maximize the value of their investments by making it to obtain wealth. Joint marketing is a consumer market research firm specializing in luxury goods and the consumption of.

This does not mean they will not buy expensive shoes or clothes beautiful, but most people will say that they carefully selected goods, they buy the quality and value. Danzig said that they really will purchase as an investment, not an overhead.

      But they are doing these investment diversification, which makes them when they have difficulties to have greater adaptability and flexibility to survive. JPMorgan Private Financial Services (JPMorgan Private Wealth Management), managing director Lester (Leslie Lassiter) said that the most financially strong customer has a very diversified portfolio, their investment is not limited to stocks and bonds, but also hedge funds, foreign exchange, commodities and emerging markets.

Lester said that now there are many mutual funds to choose from, you can use them to invest in these types of assets.

      The rich and those who want to be rich, one of the biggest difference between the two is that they pay in different ways. Millionaires most often used cash to buy goods, including cars, houses and yachts.

      Of course, ordinary working class, may not be able to do this, but the fact remains that sent out a truth: Do not let debt to pay for your lifestyle.

     Most of the rich is to borrow for investment, but they are very careful not to become too high debt levels. Lester said that no one should be prudent use of debt.

      They will also carry out detailed planning and investment of time for it. Many rich people like to save money while also beloved investment, they say the process of enrichment is much more interesting than this result.

      Besides their rich patient, long-term investments and are willing to wait patiently. Fidelity Investments (Fidelity Investments)'s National Finance Corporation (National Financial), president of Mirchandani (Sanjiv Mirchandani) that they hold their own stable of investment goods is likely to have developed a financial plan in advance.

     Many rich people take long-term investment strategy because they now are working to achieve financial freedom. For example, when they retired, many of them will be well aware how much money they need to earn a living, how much for the donations, and how much money left as a legacy.

      Said Lester, who is clearly the most mind living expenses amount of working capital needed, they will ensure that there are so many on hand in cash. She also said that ordinary people should do so.

     At the same time, she said most of the rich, the debt would be treated very carefully. Rich people tend to achieve a balance between assets and liabilities.

Here is some advice on how to accumulate wealth:

Living within our means: a lot of money but whose income is "moonlight clan" who is not wealthy, they are just silly.

      Make a plan: that is for today, tomorrow and do the three decades after retirement program. Time to plan, do not worry, every day, take the time to test your plan. Develop a budget and strictly enforced.

      Diversification: As Lester said, might try to invest in mutual funds, through which you can not related to each other asset classes for investment.

     Reduce the use of credit cards, using cash to pay: of course, for the rich, the use of cash to buy a house is easier than most ordinary people, but the purchase of luxury or luxury holiday credit card debt is owed will never lead you to embark on the road to riches.

      Make cash readily available: Although the majority of rich people put their wealth for investment, but as long as they can get some needed cash. Lester said that to have a line of credit that can be used, such as you've never used home equity lines of credit. It's like a safety valve. Lester suggested the cash kept on hand should be able to ensure that spending a year; Danzig that the best time for three years.

      Cash distributed: two or three years ago, when the rich people in the withdrawal of funds from the stock market, they turn to an account opened in the bank, bank deposit accounts are the Federal Deposit Insurance Corporation (Federal Deposit Insurance Corp.) Offer up to 25 million in deposits guarantee.

      The child into account, bearing in mind the importance of estate planning: the rich people will do anything to be on the financial aspects of their children's education - this is every family should do. While with the children when it comes to money is always easy to Heart ominous feeling, but you should know the successor of all your bank deposits and bank vault where - even if the above has been written with their names - - and the lawyers who will and who entrusted to the submitted material, it is very important.