The Seven Common Characteristics of Great Wealth-Builders

The Seven Common Characteristics of Great Wealth-Builders

That's where Dr. Thomas Stanley comes in.

As America's foremost authority on the affluent, he's conducted decades of research on the habits and characteristics of America's wealthy.

He's written several bestsellers including, Marketing to the Affluent and The Millionaire Next Door: The Surprising Secrets of America's Wealth.

Dr. Stanley points out that the vast majority of millionaires do not have exceptional skills. Most of them do not have hit records. They do not play third base for the Yankees. They did not found a software company in their garage. Instead, they're people who have worked and saved and invested their money prudently.

In The Millionaire Next Door, Stanley details seven common denominators among those who build wealth successfully:

• They live well below their means.
• They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
• They believe that financial independence is more important than displaying high social status.
• Their parents did not provide economic outpatient care.
• Their adult children are economically self-sufficient.
• They are proficient in targeting market opportunities.
• They chose the right occupation.

 
 

The Difference Between Acting Rich and Being Rich

The Difference Between Acting Rich and Being Rich

In short, your net worth is essentially a result of the choices you make. To generate significant savings to invest, you need to make the right career decisions, the right lifestyle decisions and the right spending decisions. It takes forethought. It takes discipline. And it means making hard choices.

Dr. Stanley hammers this message home in his latest book. It's called Stop Acting Rich... and Start Living Like a Real Millionaire. It's not a book for debtors and spenders who want compassion and understanding. Rather, it's a wake-up call for the millions of consumers out there who are living far beyond their means.

Most millionaires - folks with liquid assets of one million dollars or more - are not big spenders. Quite the opposite, in fact.

According to Stanley, the most productive accumulators of wealth spend far less than can afford on homes, cars, clothing, taxes, vacations, food, beverages and entertainment.

On the other hand, the wanna-be's - people with higher-than-average incomes, but not much net worth) are merely "aspirational." They buy expensive clothes, top-shelf wines and liquors, luxury cars, powerboats, all kinds of bling and more house than they can comfortably afford.

Their problem, in essence, is that they're trying to look rich. And this prevents them from ever becoming rich.

The Millionaire Mindset

The "Millionaire Mindset"

The real irony is that most rich people don't spend this way themselves. Sure, the "glittering rich" do. They have households with a net worth of $10 million or more, because they can comfortably afford it.

But the vast majority of millionaires in the United States:

• Live in a house that cost less than $400,000.
• Are more likely to wear a Timex than a Rolex.
• Generally pay less than $15 for a bottle of wine.
• Have never paid more than $400 for a suit.
• Are more likely to drive a Nissan than a BMW.
• Spend very little on prestige brands and luxury items.

Yes, they're frugal. But they're also happy, not to mention financially free. They're not dependent on their families, employers, or the government. That's a great feeling.

And they got there the old-fashioned way. They maximized their income, minimized their expenditure and religiously saved the difference.

In short, the first step toward financial independence is clear: Live beneath your means.

Or, as Dr. Stanley says, "Stop acting rich... and start living like a real millionaire."

Stock Alerts

BGOI

Bonanza Oil & Gas Company

$0.0118

It's already made a lot of money for penny stock traders not too long ago—and now it looks like it's ready to gush again!

·       The stock hit a high of 7 cents in early February and has since dropped 85%

 

·       The frenzy of selling appears to have slowed during the last 10 days —the candles are showing lower drops on down days and also on up days

 

·       The MACD is losing its bearish momentum while the price is still falling – otherwise known as a bullish divergence

 

·       The stochastics are emerging from an oversold position - suggesting that the stock has room to run again.

BGOI is a very easy trade to understand

It's an independent energy company that engages in the exploration, production, and development of crude oil, natural gas, and natural gas liquids in the United States.

Currently, they're working 5 properties in Texas: Apclark Field, Good North Project, Bourland Field, Damon Mound Field and Plantation.

A lot of the buzz concerning BGOI surrounds its Apclark field, which is reportedly ready to significantly increase production.

BGOI estimates actual reserves in the Apclark Field may easily exceed $34 Million.

In addition, BGOI has leases in the Damon Mound Field, where it believes it has reserves of about $6 Million.

 

But the bottom line is...

BGOI is a low-priced stock (trading around 1 cent) that could produce a very quick and easy gain today.  If it rises to 2 cents—you've got an easy DOUBLE!

What's not to like about that?

Do your due diligence and watch this one closely.

SECI

 Sector 10 Inc.

$0.0775 

Sector 10, Inc. announced today the release of its new mobile integration product the Mobile Response Unit or MRU that is available and equipped as a mobile cafeteria-style kitchen. Specially designed for post disaster response the MRU - Kitchen units can be air-dropped or flown in by helicopter and within minutes be set-up with no or minimal instruction to feed up to 2,000 people within minutes. 

 

Portfolio Update

This mornings portfolio update includes the following:


BSOME - already up 13%


SECI - already up 3%


CICS - up 50%

Next Week Stock Pick - CIIC

CIIC is an Transportation/Infrastructure stock that I believe is about to have a breakout!   CIIC is incorporated in the US (Nevada) and headquartered in the Henan Province of China.  Their primary focus is on investing in, constructing, operating and managing infrastructure development projects in China.

We've all heard the buzz about Chinese economy being the future, and it's interesting to note that even in the terrible economic year of 2009, China's economy grew by 8.7% last year, leaving the U.S. in the dust.  Development and infrastructure in China is still seeing strong growth in the first quarter of 2010, as the economy is recovering.  

CIIC released their 2009 financial statement (last Friday) showing strong earnings each quarter.  In fact, the company recently reported that their second quarter net income increased 526% over the previous year!  It's hard to believe that CIIC is still unknown to many investors with numbers like these.

I believe we will see a strong and steady move with CIIC over the next week.  The formula has identified CIIC's true value at $3.00 a share, and currently it's still trading under $2.00!  Just a few months ago it was trading above $3.50, and the formula is showing that we've hit a bottom and are about to see a bounce that should take us back to the $3.00 mark over then next week.  Don't miss this one!

Portfolio Review

I am excited to say that SECI did great!

- Market Cap: 4.71M

- Room to still climb!

The stock opened at $0.07 and closed at $0.12!

Increase of +0.069 and a 135.29% return!

There is another stock that is getting ready to explode!

Next Stock pick will be posted on Sunday!

Happy Trading!

Stock Alerts

This mornings stock alerts include:

BSOME - Bio Solutions Manufacturing 

$0.048  +0.023

MC: 1.33M

EPS: $7.50

Company Description

Bio Solutions Manufacturing, Inc. is a provider of biodiesel fuel and waste bioremediation services. The Company is focused on waste bioremediation solutions to municipal collection systems and food service facilities through a distributor with a network of franchisees. The Company operates in two divisions: the biodiesel division, through which it intends to produce, develop, and sell biodiesel fuel, and the cleaning division, which offers biological solutions and environmental applications for waste remediation. The Company’s subsidiaries include of Bio Extraction Services, Inc.

 *Google Finance

SECI -Sector 10 Inc.

$0.118  +0.067

MC: 4.63M

Vol: 4.20M

Open $0.07

Company Description

Sector 10, Inc. (Sector 10), formerly SKRM Interactive, Inc., is engaged in providing emergency disaster response equipment and related support services. Sector 10 is licensed to manufacture and sell all Sector 10 products that were originally developed by Sector 10 Holdings, Inc. Sector 10 develops and markets emergency and disaster response equipment known as mobile response unit (MRU) and stationary response unit (SRU). The MRU and SRU provide an emergency communications system with on-board life safety resources that are needed in an emergency event. The SRU and MRU were developed to promote the concept of pre-deploying life saving tools and supplies in office buildings, factories, schools, construction sites, airports and cruise ships. 

*Google Finance

Happy Trading!

Thursday Stock Alerts

This mornings stock watch list includes the following:


ECRY  $0.81

CBWP  $0.64

CRWG  $1.63

BLGW  $0.86

BLAP  $0.0075

Happy Trading!

Wednesday's Stock Watch List

This mornings stock watch list includes:

RCYT - Recycle Tech, Inc.

- is looking to lead the way in the green building industry.

- RCYT was up nearly 55% today while the rest of the markets were down!
- RCYT saw over 18 million in volume today! Never before seen by companies in its category!  

LIEG - Li3 Engergy

Buy shares of Li3 Energy (LIEG.ob) now at under $1.50 and look for $5.00 in 6 months or less. . .$10 in 12-18 months! Down the road, LIEG might even become a legacy investment with huge potential gains topping the long list of previous big lithium winners! 

• Li3 Energy has already locked up 180,000 prime acres smack in the center of Nevada's lithium-rich brine flats.
• In South America, Li3 Energy has 213,000 acres in the world's richest lithium deposits.
• Li3 Energy has deep-pocket, international financial backing to quickly develop its resources and bring lithium to market.
• Li3 Energy's management has both mining and venture-development experience. In their previous capacities, two company principals have been responsible for gains in the stock of their respective company stock of 1,374% and 1,554%!

Happy Trading!