Rich Seems Like Beggars, And Beggars Seem Like a King

If you have seen my father for a normal day, you feel sorry for him. His clothes are worn and covered with mud, paint and other unidentifiables mosaic. His shoes are solid blocks of dirt. His head is covered with a worn baseball cap, usually soaked in sweatYou'd think he was a beggar. But it is not. He is one of the richest and fastest-growing owners of the North Mississippi.
Movies and TV created a stereotype of a millionaire, and like most stereotypes, this is completely wrong. Rich people do not drive fancy cars, live in mansions, or cart around the entourage of sexy toys.They know better. As one of the most successful of my mentors told me: "How much is not about how much money to spend, but about how much money you keep."

To illustrate, here are a few of my comments to investors:

Car payment? Why I can not remember the last time I made one.

About a year ago, my father called all of our investors in a private conference in his home near Memphis, TN. You've never seen so many rich people. If you tallied up the net value of each room, I'm sure that you want to go, and over $ 100 million.When I went to the home, though, all I could do was laugh. Looking at all the cars in the driveway, you'd think you were old people's homes. The newest vehicle access has been since 1998. Most of them were models from 80 ... and older. None of them has just been detailed or elaborate. You would never guess that they are all millionaires.

Chat with them about the investors were also interesting. I did not ask anyone about my car, but not much, I spoke with told me they'd paid for the car completely new. They were also focused on continually to keep the car. The performance was as important as price.

Buy Mansion? God does not. What is all this space?

Knowing how to leverage your money and tax breaks, you'd think a millionaire real estate investor living in huge houses. But you should be fooled again. I know the majority of millionaires live in modest houses in good neighborhoods. The average value is probably around $ 300,000.They also own the house free of debt. Typically, they bought their house for years to steal a good area, and then they lived as long as it is assessed. To properly leverage their capital, they keep credit lines open so that they can benefit from short-term opportunities.

Wearing a suit? No, I would like to work in my underwear

Too many coincidences through a series of years, I learned that almost all of my investors do their underwear or pajamas. When they are forced to leave their homes, they usually wear sweats or khakis. Over the past five years, I've never seen one of them wearing a suit.

These three reasons:

* Price. Dry cleaning is expensive. You'll save money by dressing down.
* Practical. Investors face a number of less fortunate people that distrust in people suits.
* Comfort. Costumes are uncomfortable, so if you impress your banker, to feel comfortable.

Moral of the story: you live like a millionaire and you will become one

Not surprisingly, the most successful real estate investors I know are the most cost effective people I know. I'm not talking about it or was stingy. They live very well, but they do it with less money and focus more on practical than pizzazz. If you want to get rich, act like them. Start living below your means and you will see your wealth grow much faster.

Also, I learned to be suspicious of people driving fancy cars and live in huge houses. Although some of the really wealthy, most of them is a debt to their eyeballs. They are usually insecure people who are desperately trying to convince all of them rich. To use a metaphor: