Daily Habits of Rich People

by Marylove Moy 22. August 2013

Alarm Clock

Ever wonder how the rich people get rich or stay rich? With so much economic uncertainty these days, it seems almost everyone I know is a bit nervous about their financial future. Interestingly enough, there seems to be some common traits in how rich people structure their day.

Farnoosh Torabi of Yahoo! Finance recently highlighted financial planner Tom Corley and his book Rich Habits: The Daily Success of Wealthy Individuals. (“Wealthy” here is defined as earning at least $160,000 annually and maintaining assets of at least $3.2 million.)

Mr. Corley spent 5 years studying 320 “rich” individuals and determined several common behavior patterns.

1) Early Risers

Almost half of the wealthy individuals are early risers, waking up 3 hours before work; the time is spent reading or working out.

2) Structure

Wealthy people do not waste time. They maintain daily lists of tasks and complete (and check off) approximately two-thirds every day. Also worth noting, wealthy people have short and long term goals (which they review diligently).

3) No Long Lunches

In the movie Wall Street, Gordon Gekko said, “Lunch is for wimps.” He appears to have good company in that Mr. Corley determined that most wealthy people forgo long social lunches; instead they network or conduct business at lunch.

4) Calorie Counting

Wealthy people watch their weight. They limit alcohol and junk food snacks to 300 calories a day. Health is wealth to them.

5) Gossiping

Only 6% of those interviewed admitted to gossiping; they are too busy making money to care about anyone else’s business.

6) Limited Internet

High net worth people spend their down time networking or socializing, whereas the lower net worth interviewees spend at least one hour a day on Facebook and/or elsewhere on the internet.

I don't know about you but I am going to start setting my alarm clock quite a bit earlier and avoid the snooze button!

The Fiscal Cliff

by Marylove Moy 28. December 2012

Fiscal Cliff

I wish I had a dollar for every time I have heard the term "fiscal cliff" in the past six weeks - my Christmas bills would be paid off in full.

Evidently 25% of the voting population understands the term. In short, the FC refers to expiration of the Bush (W) tax cuts on December 31 in addition to "sequestration" which means radical cuts across the board in government spending.

So...what does that mean to you and me? Well, as a few examples, workers will see an immediate 2 ½% cut in their pay due to the lapsing of the payroll tax cuts. Annually, many middle income families will see their annual income taxes rise by roughly $2500. Many individuals on unemployment will lose their benefits. Many governmental programs that aide the middle class will be slashed: student loan grants, physician payments from Medicare could drop by up to 30%, governmental agencies budgets will be cut by approximately 7%. These are just to name a few.

Most people think the market will take a massive hit.

The biggest issue is that our economy—which is starting to strengthen – will most likely slip back in to recession. When businesses see uncertainty of this size they don’t hire, they don’t make capital purchases or expand. Individuals cut back on discretionary spending. Markets falter.

It ain't over 'til it's over; our friends in Washington have three days to prevent this fiasco. My guess? They will pass something in the 11th hour. Stay tuned.

Marylove Moy is Program Director of 1st Mariner Financial Services. Her opinions do not necessarily reflect the opinions and beliefs of 1st Mariner Bank.

To Buy Facebook or Not to Buy Facebook? That is the question...

by Marylove Moy 18. May 2012

Facebook IconHistory was made today with the roughly $16 billion dollar IPO of Facebook (FB).

Is it another Apple? Microsoft? Google? Absolutely…..

So, should I buy it today?

I think only the gutsiest of individuals should buy it today, just because there is so much hype in the stock that it may well skyrocket initially and then trend down over the coming weeks.  I may be very well wrong (I frequently am). However brilliant Zuckerberg is, he is now at the helm of a publicly traded company; he is going to face shareholders and analysts who will question and criticize his decisions. They can be a tough bunch. Zuckerberg is no longer operating in a black box.

A safer bet would be to buy either a mutual fund, which focuses on social networking, or a broader based technology fund that in all likelihood will buy it. Mutual funds offer the diversification that can absorb more efficiently erratic stock price swings than holding a stock outright.

Remember Enron? MCI Communications? Woe betide to the poor individual who held these stocks outright; their personal wealth would have been more protected if they had held these shares indirectly in a mutual fund.

Don’t get me wrong…if anyone can chart the future and shape it, I believe it is Mark Zuckerberg and FB; I just think he will need some time first.



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