He picked me up in his Mercedes Benz S class for our luncheon interview. Riding with a millionaire, the first thing you notice is the ease and confidence in his voice and the way he drives. He has a very calm demeanor, but you know he is listening and processing; you must respect his aura.
Interviewer (I): So how did you make your money?
Millionaire (M): It took me 30 years to get where I am now, and the money was a by-product of getting here.
I: So getting here was the important part of making the money?
M: Don’t get me wrong, look, the money was always the over-riding goal but focusing on making money and always moving up, was more important than saving money. I figured if I made enough, the accumulated payoff would happen.
I: You don’t think you could have made a million bucks if you focused on saving it rather than focusing on making it?
M: I never focused on saving, it was all about making more of it and then I thought once I had made enough, then I could worry about saving it. While I was making it, though, I always did my homework and learned about what makes money work and how to use its value to my benefit. It was always about the deals and single-minded goal of getting things done, no matter how long or how much effort it took.
I: Your intentions were to make a lot of money then learn how to manage it?
M: That’s about right.
I: Switching gears then, if you were advising a teacher how to make a million, what would you tell them?
M: Hmm, a teacher? That’s challenging, in my opinion that is a real conundrum because I think goals guide us and in general I don’t see teachers’ as focused on goals related to making millions of dollars. In general, I would say the first thing a teacher would have to recognize is their goal setting would have to take a new direction.
I: For example how would you advise a teacher who chooses to make a million dollars?
M: I would tell them;
First, goals to be a millionaire should be set in increments of 5 year, 10 year and longer term.
Second, the goals should be put in quantifiable terms, for example to make a salary that would achieve geometric growth in salary, way beyond the established annual cost of living increases called for in most educator contracts.
Third, a teacher must be able to imagine that what they are doing will allow them to live, spend and accumulate material things like a millionaire, not a struggling educator.
I: Breaking the mold, so to speak?
M: Yes, I tell young people I know, that if they want to be a millionaire, go to a very upscale neighborhood and see what the people in those neighborhoods do to live in that lavish lifestyle. It is so simple and common sense, see what a millionaire does to make a million and try to do the same thing. Teachers are smart and able to motivate people, and that is more than half the battle to making a lot of money.
I: What would you tell a teacher that wants to teach children but wants to make a million anyway, since not many millionaires in high-end neighborhoods are teaching 5th grade.
M: I would say to them, that it would be very difficult to make and keep a million dollars available for retirement. Furthermore, teachers would have to sacrifice, and/or meet someone you can share your life with and combine your talents to save and invest. That is your best shot if you want to make a liquid million for retirement. It can be done but it takes discipline and focus on long term investing. Investing in stocks has done the best job for anyone working on a salary that has upside caps on earnings.
I: To summarize then, a teacher can set goals but must find out what someone in a high-end neighborhood does for a living and try to do that, it will usually involve their teaching skills but maybe not. And the other way to make a million is to have a partner and invest for the long term in stocks.
M: Very true, over simplified but accurate.
I: Thank you; hopefully we can continue this dialogue. Especially, if teachers want to hear more.
M: I am glad to help; I am now in a savings mode and wanting to give back, let me know.