The Millionaire Inside

On CNBC, there is a show called “The Millionaire Inside”. I caught part of the show the other day, and found it rather fascinating. They had four guest experts on to advise people on how to make money the same ways that they have, David Bach, Phil Town, Loral Langemeier, and Barbara Corcoran. I cannot give you all of the details about their personal backgrounds. More of that information can be find on the website for the show, http://www.cnbc.com/id/17912006, and I am sure that Google searches will also pull up even more info. I am going to do that myself to see if I can learn more about them. I always like to know what sort of background people have in order to put their advice and experiences in proper perspective.

There are some very important points that they made that I think are worth repeating and thinking about. I jotted down a few points during the show.

Invest early, and don’t fear your first investment.
This sounds pretty basic, but most people don’t follow these rules, including me. I wish that I started investing with my very first paycheck, or at least in my 20s. Instead, I am starting in my mid-30s with the better late than never philosophy. If you think about it, I might not be wealthy until my 40s or 50s since I began later in life. But I am going to be 50 one day either way. I would rather be wealthy at that age, then in the same boat that I am in now. So I don’t let these thoughts stop my actions.As far as fear is involved, it is difficult to keep ones emotions in check. Fear is a natural response to any new experience. I just have to keep in mind that investing is a risk and fear is just a natural part of it. The trick is to not let it rule your actions. I take a deep breath and look at the each situation objectively and just give it a try.

Pay Yourself First
This point really struck out in my mind. Just yesterday I read just the opposite information in a book about buying businesses. The point that the book was trying to make was that a lot of small business owners end up paying themselves last, after all of the other business needs have been finished. What the experts on the millionaire inside were trying to point out was that this is the incorrect mindset to have. If you are going to be in business to make money you need to make sure that you get paid, and paid first. If this does not work, then the business needs to be re-evaluated.

Buy, don’t lease
Home equity is your single greatest asset
Building equity is a point that I keep seeing come up over and over again. It is better to own your own home than to rent. That is a basic idea of building wealth.This was a point that the show emphasized, but not just for personal residences. They stressed that if you are going to own your own business, it is also important to own the property that houses that business. Not only is it another excellent source of income from other possible tenets, it is one extra safe-guard for the business.

REIT can be an easier way to invest in real estate
I have not personally looked into investing in REITs (Real Estate Investment Trusts), but I am going to look into them and report back.