Liz Pulliam Weston (seems like I'm posting a lot about her articles!) talks about 5 lessons the rich can teach you. The five bullet points, PowerPoint-style:
- They give away more. As in 50% to 200% more than $25,000-and-under households and the average American household, respectively.
- They are much more likely to own businesses. But because of this, they need to diversify to spread out their risk.
- They borrow strategically. Some — most, by some financial planners' accounts — prefer to pay (low-rate) mortgages and have the money work in other investments that get a higher return. As an aside, several people have pointed this out on my posts regarding Missed Fortune 101 by Douglas Andrew. The key is finding these investments that give the great returns so that you make money.
- They don't blow a lot of money on cars. A nice, reliable, safe vehicle probably costs at most around $30,000 or so. The rest is a prestige premium.
- They're almost always homeowners, and many own investment property, too.
Some other gems in this article: “Most of them [the rich] live a very unassuming lifestyle, but they're able to do anything they want, whenever they want.” Time is the most important thing that money can buy — the time to take hikes, travel, write bagpipe symphonies, whatever. An afternoon fishing with your granddaughter is something that money can't buy, but money can certainly buy you more afternoons fishing with your granddaughter — or whatever you choose.
Also from the last paragraph: “Don't be a miser, take strategic risks, live within your means, diversify.”
Indeed. (Almost everything I learned about terse comments I learned from InstaPundit.)
