MONEY TIPS FROM A REAL LIFE MILLIONAIRE
My husband and I love fishing. Since we had kids and a long spurt of bad luck (with regards to buying a boat) we haven’t been able to get much time on the water.
To celebrate our newly acquired “debt-free” status and hopefully stock up our freezer with some fresh fish my husband went on a party boat this past weekend.
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After a 20 hour long fishing trip my husband came home with less than a desirable amount of fish, but what he did come home with was even more valuable to me.
My husband had the opportunity to talk to a real-life multimillionaire for several hours on his fishing trip!!
Not gonna lie I was totally geeking out! I was curious to hear if this rich gentleman did any of the things on my Things Rich People Do post.
My husband’s interview with a millionaire.
#1 DRESS PLAINLY
First my husband said you wouldn’t even be able to tell that this gentleman was rich because he was so plainly dressed.
This might have been due to the fact that they were on a super long fishing trip in February.
I tend to rock the “I want to be warm/hobo-chic fishing look” when I go fishing so no judgement here.
Tip: If you don’t like to dress plainly remember you don’t have to spend a million bucks to look like a million bucks. I know plenty of people who dress luxuriously, but on a budget. Learn how to accessorize. Buy good quality items that can be mixed and matched.
#2 INVEST IN REAL ESTATE
This gentleman owns two brownstones in Brooklyn that he rents out. Right there is major bank.
Whenever he wants another investment property he pays for them in cash. If he doesn’t have the cash he sells one of his properties so that he has the cash to buy them.
Tip: Consider different areas to invest. Real estate is less risky compared to the stock market, but you’re almost guaranteed a return on your investment as long as you buy in a good location and at a “good” price. Explore all your options and see which ones work best for you.
#3 NO CREDIT CARDS
During my husband’s interview with a millionaire he learned that this man does not use credit cards. None. At all.
We grow up believing that we have to have credit cards to build up our credit scores. We get suckered into owning multiple credit cards because of promotions such as cash back rewards, discounts on gas, groceries, earning travel points, etc.
My husband and I have talked about cutting up our credit cards. We currently have three.
Before doing a balance transfer to help us get out of debt we have and will continue to always pay our balances in full each month. No crazy high interest rates for us. Nobody got time for that!
We are building up our cash back points and planning on putting them either towards our mortgage or vacation fund.
Tip: Do not buy what you can’t afford. If you need to put it on a credit card to buy it you probably shouldn’t be getting it.
#4 PAY CASH
Like I mentioned above this gentleman does not use credit cards. He therefore only buys something if he can pay for it in cash.
We are increasing our usage of cash and debit cards instead of our credit cards. Previously I had a credit card that offered a higher percent cash back on gas so I dedicated that card solely for that.
This is our first month using the cash envelope system. We’ll see how that goes before we start cutting any plastic.
Tip: Paying for everything in cash is a great way to avoid buying things you don’t really need and avoiding debt.
#5 PENNY STOCKS
So my husband obviously didn’t have a formal interview with a millionaire. They were fishing together and shooting the breeze.
The gentleman didn’t divulge just how rich he was (I understand), but he did say we are on the right track and should start investing with penny stocks to better understand just how the stock market works. He leans more towards a “buy and hold” mentality.
Tip: Educate yourself as much as possible. From what I’ve learned thus far, investing is risky, but the more you know the less risky it is. Whatever you choose to invest in compare and don’t become complacent.
#6 ONLY TALK TO SMART PEOPLE
This millionaire stated he only likes talking to smart people.
In my Things Rich People Do post I mention that rich people network and surround themselves with successful people.
This is very similar.
Rich people want to surround themselves with people who have something to offer them. It isn’t always in the form of money or opportunities, it can be knowledge too.
Tip: Talk to people. You’d be surprised what information they have to offer.
I have a few coworkers who have kids in college or getting ready for college so I’m always picking their brains on how best to save. Roth IRA, 529s, stocks, bonds. Still figuring it out, but seeing what has or hasn’t worked for them is a start.
#7 HAVE WOMAN MANAGE MONEY
This made me laugh because I can somewhat relate to this statement. The millionaire said that his wife never went to college, but is an extremely smart woman. He makes the money, but she is the one who manages it.
I strongly feel people need to play their strengths, men AND women. In our case my husband is the hustler/money maker and I am the planner/money manager.
Tip: Delegate money tasks based on your or your partner’s strengths. My husband chose to stop managing our money because he was so bad at it and relinquished his responsibilities to me. If you don’t have a partner then focus on your own strengths. Where you have weaknesses ask for help until it becomes a strong point.
I wish I could have been there for this “interview” with a millionaire, but he probably would have been overwhelmed or annoyed with my bombardment of questions.
Manage your money, don’t let it manage you!
Great post!
Thank you 🙂
What a cool opportunity! Talking to smart people. Genius!
I know. Never know who you’ll run into and where.
Awesome. Love the details!
thank you!
Great info! Particularly agree with paying attention to who you spend time with because it really affects our thought patterns!
Yes. If you hang out with people who like to eat out or spend money all the time you’ll end up broke fast.
Really liked your post, made me laugh. All good advice for sure!
thank you 🙂
I like the penny stock idea, and in that vein, I have a few bucks in Acorn, an investment app for small potato people like me. If you’d like to try it, Get $5 when you use my invite link: https://acorns.com/invite/UMKKRX
Thanks Maggie! I’ve been thinking about joining Acorns. You’ll have to let me know how you like it.
who you surround yourself with is so important! Gotta be a positive influence!
I’m mainly surrounded by a 3 year old and a 1 year old. My crafting game is on point lol
Thanks for sharing your husband’s experience as well as your own tips and insights. Sounds like you are on a good path.
You’re welcome 🙂
It sounds like such an interesting conversation! It is so important to surround yourself with great people!
Yes it is. Hopefully my friends think the same about me that I think of them lol
I would’ve bombarded him with a ton of questions too! Your husband still got some great tips from him!
LOL! I know right. Like how should I save for my kids’ college, how do index funds work, Roth IRA’s…
I like the way your post shows that you never can tell who is wealthy.
Great interview! I always hear paying cash is the best way to go.
I agree about dressing plainly as well- I dress very minimally but still chic and timeless. 🙂
I need to do a wardrobe overhaul in the near future.
Great post. Having people around you that you are inspired by is great.
I love this post!! I only use my credit card because I get 3% cash back from it so I use it to pay whatever bills I can and everything, but I have to stay disciplined and always pay it off in full. This can be risky, but if you can stay disciplined, you get a decent amount back. My bank also doubles it if I do direct deposit for the return and depending on the amount in my savings I can get it tripled so by doing this, it basically covers my electric bill each month.
Thank you. I didn’t know some credit cards did that. I’m going to have to look into that. I agree as long as you have self-control is it worth it to keep the cards. I’ve always used up our points to pay our bills, now I’m letting them build up.
Love these tips, especially the last one about it being okay to give up control based on partner strengths. Great post!
thank you!
Crazy how he only uses cash! That is amazing!
I know! I’m struggling now. A lot of our house bills are automatically paid on credit card each month.
I’m sure it was nice to see your previous post line up with what this man said.
Yes it did!
What a great opportunity and experience! Thank you for sharing!
You’re welcome 🙂
I found this article from a link on your article titled 11+ Things Rich People Do That Poor People Don’t – which I felt was a good read.
This article, however, I feel has some concerning advice. This person your husband interviewed doesn’t impress me as someone who understands money particularly well. And judging by tip #7 I’d say he even admits it himself (e.g. he doesn’t want to be involved in the day-to-day finances. This should be a team effort.).
Rich people use credit cards because they earn them more money than paying cash. Who doesn’t want an interest free loan?
Rich people finance investment properties – it’s called leverage. I’d rather invest someone else’s money than my own.
Penny stocks are a HORRIBLE idea, and “buy and hold” only works for index funds. For that matter, rich people invest in low fee index funds. They’re boring, and they’re reliable.
However, #6 really rubs me. It’s one thing to have mentors and others you can confide in within your own cohort, it’s another thing to “only talk to rich people”. Oh, the things we can learn by exiting our echo chambers.
When I read your comment I had to laugh. Just 2 days ago I was talking to my husband about our finances and he said “Again?! That’s all you want to talk about it. I give you the money and you handle it.” To which I said, (being dramatic) “What if I die?! You need to know these things”. So yes I agree finances should be a team effort even if one person is stronger in one area over the other.
We still aren’t great with investing and I think the average joe gets drawn to penny stocks because it doesn’t require a big investment, but unless you do your research or get “lucky” they are not the best ROI. I don’t want readers thinking this is what I personally suggest, will have to rethink my wording. As a novice investor, index funds have become my friend.
I have been going back and forth about purchasing investment properties in the future, my husband thinks they are risky. I feel everything has risk, but with proper research and knowledge that risk can be reduced. Do you have any advice or book suggestions on how to get started investing in real estate?
I’d love to pick your brain, but based on your chosen name I’m not so sure you’d be willing 😉 Well, regardless I truly appreciate your feedback and thoughtful input. I know readers will find it useful too, so thank you.