Most of them weren’t always rolling in it. Here are tips from rich people on how to make your money matter.
We find investment ideas in everyday life
After my wife got excited about the fact that Hanes sold its L’eggs panty hose in grocery stores, I figured that the company was on to something. I bought Hanes’s stock and watched it rise sixfold.—A manager of the Fidelity Magellan fund.
We accept risk in order to achieve success
I was working at AOL in the 1990s when the company let go of 300 people. I was one of them. The movie Titanic was coming out, so I took my rent money and had 500 T-shirts printed that read, ‘It sank. Get over it.’ If I didn’t sell those shirts, I was homeless. I sold 500 shirts in six hours and made five grand. Then I called USA Today and gave a reporter the story. I sold 10,000 shirts on the Web over the next two months and ultimately racked up 100 grand. That was my very first company.—Peter Shankman
We’re cheap—and proud of it
When you open up the paper and you see those coupons, it looks like dollar bills staring you in the face … It’s how I grew up. Why not?—Hilary Swank to talk-show host Kelly Ripa, on clipping coupons.
I go to the ATM only once a week and pay for everything with cash
“That way, I’m forced to stay on a budget without counting pennies and saving receipts. I can spend only what is in my wallet. I turn it into a game where each week, I reduce my ATM withdrawal amount by $20 to determine how low I can really go.”—Alan Corey, author of A Million Bucks by 30
We’re just like you
Millionaires tend to pay about $16—including tip—for a haircut at a traditional barbershop.—Researchers from the University of Georgia Survey Research Institute.
We invest on whims
During the spring of 2012, I read the Wall Street Journal and learned that Talbots was supposed to be acquired, but after the deal fell through, its stock fell nearly 50 percent in one day. That’s when I purchased $5,000 worth of Talbots stock. Its value increased by 50 percent that day, and I made the decision to sell it right then.—A partner at a prestigious Washington, DC, law firm.
We’re gutsy with our jobs
When negotiating a new salary, always end the negotiations with a request for a nine-month review, instead of the usual 12-month review. It always gets approved, and it gives you a three-month head start on a potential salary raise or bonus.—Alan Corey.
We’re not as smart as you think
It’s amazing how much smarter everyone thinks you are once you have money. Two days after I sold my company, I got asked to speak at a conference I had been trying desperately to speak at for six years.—Peter Shankman, entrepreneur and angel investor
We don’t quit until we get the deal
I once went all the way to the head of customer support at Dell over a problematic computer that was out of warranty, and I was shipped a new one the next day. If you are willing to go up the chain, you will very likely reach someone who is willing to bend the rules to rectify a complaint and fix the problem.—August Turak