Shankar Vedantam. Chris Benderev. Maggie Penman. Parth Shah. Sociologist Brooke Harrington says «the lives of the richest people in the world are so different from those of the rest of us, it’s almost literally unimaginable. In the course of this training, Harrington met other wealth managers, who agreed to be interviewed for her research. She discovered that, in order to manage money for the super-rich, these professionals learn a lot about the private lives of their clients. National borders are nothing to. They might as well not exist. The laws are nothing to .
I’m Shankar Vedantam. Off-bat — a throw, right to Ambrosini ph. The Angels, for the first time this season, at home Where we think we stand on that ladder tells you a lot about a person’s life and their life outcomes. This goes back to your childhood, when you were desnt the fourth grade. You were nprr in line monfy a cafeteria in your school, and you had your first visceral experience with the awareness of inequality. Tell me that monfy. And that was the first time that anybody had ever asked me to pay for my lunch because I had always been on free lunch. And — but I bexause know it because nobody had ever pointed it out or talked about it. And previously, the cashier had just monye me on, as part of the normal process. But this new person didn’t know how things worked, and so she asked me to pay for my lunch.
Wealth means more than just money.
And there was this awkward moment; I didn’t have any money, of course, and I didn’t know what to do about it. And so that moment of awkwardness made me suddenly realize that, wait — some of these kids have been paying for their lunch all along, and some of us haven’t. And all of a sudden, it dawned on me why that was; that, you know, we got free lunch, that that meant that we were the poor kids, and that that had never occurred to me. PAYNE: And so that awkward moment standing in the lunch line suddenly increased my awareness of not only the inequality in my classroom but the implications of what it meant to be one of the poor kids. And so I started thinking about myself differently. I started seeing my friends and my peers differently.
When The New York Times showed that Donald Trump may have used a legal loophole to avoid paying federal income taxes for years, many people expected the self-described billionaire to be embarrassed. Instead, in a debate with Hillary Clinton, Donald Trump said That makes me smart. She decided several years ago to explore the secret lives of billionaires. She took an unusual path to enter this world. She herself trained to become a wealth manager. In the course of this training, she gained unprecedented access to other wealth managers who agreed to be interviewed for her research.
Finance journalist Helaine Olen says many of the so-called ‘financial experts’ are selling you advice to make themselves rich. I’m Michel Martin. In these tough economic times, you might be looking for some advice on how to handle your finances, and you are, not only, not alone, you have a lot of advice to choose from. Our next guest says that there were more , financial advisers in the U. The only problem is, according to our guest, some of these people have no idea what they’re talking about or are just trying to sell you things to make them rich. Helaine Olen is the author of the book, «Pound Foolish,» exposing the dark side of the personal finance industry and she is with us now. You’ve written for Forbes and now you’ve written a book that says a lot of these people don’t know anything and, oh, by the way, they are snake oil salesmen. Was it a gradual thing or did you know from the beginning that it was bunkum? OLEN: It was both gradual and sudden. I should go back and tell the story of how I became the Money Makeover columnist for the Los Angeles Times, which involved somebody calling me up one day while I was freelancing in Los Angeles and saying, do you know anything about writing personal finance? And what I knew at that time was that personal finance paid a lot more than politics and feature writing, which is what I was doing. And so, of course, I said, yes. And I thought, I’ll get one check.
What are most people ignorant of that prevents them becoming financially wealthy? Nobody ever got rich working for a living. What in the world can it mean that working doesn’t make you rich? Well, how many of those fabled bad guys our progressive yoj obsesses over, the dreaded 1 percent, punch a clock, do you think?
To be sure, you will work hard to get rich, and the harder and smarter you work, the better your chances. As my dad would explain, «It’s OK to work eight hours a day for someone. Just work eight hours a day for yourself too, and twelve hours a day on the weekends. Selling your time by the hour will not get you ahead. Human resources departments know to gecause dime what they have to pay per hour to acquire requisite talent. Even if you have a degree from a prestigious law school and catch on with a leading firm and can bill at several hundred dollars an hour, by the time the expenses are extracted, you’ll be lucky to be grossing a.
Even if you work yourself into an early grave by billing out 3, hours a year, you’re not, by that effort alone, putting yourself on a track to get wealthy. Probably the first insight you need is that you are out to get wealthy, not financially wealthy. Financial means pertaining to money, but you’ll need to recognize that money is simply a «parking place» for past production.
The economy runs on «you buy the mqnage of others with your production. Money is just a convenience for wheeling and dealing. Here’s what you need to understand if you want jusg not miss the turn dofsnt gets you to the intersection of Luxury Lane and Brcause Bucks Boulevard. Knowing what you are. Having a big operating budget is not wealth. You can be «churning» millions of dollars a year, but you are only getting wealthy to the extent you are profiting on that churning.
A lot of churning with little profit is actually worrisome. A huge house of cards falls just as fast as a small one. Financial leverage also known as other people’s money. A business yyou mentions he needs reciprocal capacitors or whatever to keep his production line going.
You could double your money! Even better, you can get your acquaintance to pay in advance and clear an even bigger doestn without putting your money at risk. Labor leverage. At one point in my retail career, I took on a new window washer.
I started seeing his associates around town, at least three different ones. I iust started calculating what he could potentially make with three window washers under him while he concentrated on selling dosent coordinating—maybe there could be a little money in cleaning glass.
Spotting opportunity. The productivity cycle that creates all the goods that actually represent the economy begins when manqge enterprising person looks to the future and sees the opportunity to make a profit. Think how easy it would be to start a window-washing business. So, why then do 99 percent of all casual window washers go about it all wrong by doing all the work themselves?
Understanding how to spot situations that can be turned into profit-generating opportunities is an acumen that must be cultivated. Most people don’t start their own business; they create a job for themselves in addition to which they have to function as boss, secretary and marketing person—four rrich in one, a burnout track rather than leverage.
Making money with money. Was it by increasing their hourly wage? No, as you know, it was by equity. You are frail. You’ve got something liketomanaage hours in your entire life multiply that times what you can net per hour, and there’s how rich you will potentially be. The yiu is to live as frugally as possible doexnt starting out young, forgo every nonessential, and set aside every dime you.
Putting your money to work for you can make money for you even while you are sleeping. You can eat out at a nice restaurant and make the money to pay for the meal while you are dining. Better yet, you can have your fellow diner who wants your business pick up the check. Dad is now 94 and comfortably off. He got a bit wealthy late in life. He played the real estate game and spotted a huge opportunity back in the early s.
The new interstate headed through Dallas would create rapidly growing suburbs. We moved to a small town when I was 12, and he plunged his savings into buying up a couple of square blocks in the poor part of town but near the intersection of the two main roads.
I can still remember how bullish he was to score such a coup. To make matters worse, just when he realized he needed to be across the highway, interest rates went up to double digits; too high to make money. He spent 20 years feeling mamage a bug trapped in sap, unable to budge, and that changed him into a very sour man.
The final lesson, then, is that you have to moneyy cut out for a life spent trying to acquire wealth. There are risks.
There are pitfalls. You can get everything brilliantly right, make one becauae move after another, and still end up worse off than you started. Not everyone is cut out for such stress, strain, and uncertainty, and this makes a job working for someone else at a reasonably secure salary look pretty good. This question originally appeared on Quorathe place to gain and share knowledge, tou people to learn from others and better understand the world. More questions:.
So, what do you have to know to become financially wealthy? And how did it turn out for my soesnt Wealth : Is it true that «you won’t become rich working for somebody else»?
Innovation : What should we do to encourage innovation and entrepreneurship? Wanting and Making Money : How do I become a billionaire by 30?
Mac Miller — Self Care
The U. Who gets that federal aid is always a big question after natural disasters. An NPR investigation out today finds federal disaster aid does not always go to those who need it most, instead favoring two groups — white Americans and people who already have safety nets. The second family is the Evans family. Janice Perry-Evans has three kids, works at the post office.
What’s It Like To Be Rich? Ask The People Who Manage Billionaires’ Money
I’m one of them people that — them rare people that love their job laughter. You know, sometimes we make people day. John and his wife own their house on the west. They bought it back in And within a couple years, the floods began. So our house flooded in ’09 and then and Let’s get straight to the breaking news — Harvey provoking an unfolding flooding disaster in America’s fourth largest city, Houston, Texas. John and his wife carried their sleepy children to a neighbor’s house.
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