The developer of a $55 million Embassy Suites near the downtown convention center and Discovery Green park officially broke ground on the project Tuesday.
Construction of the 262-suite hotel, located at 1515 Dallas Avenue at La Branch, is expected to be completed in Spring 2011.
The project was supposed to get off the ground last year, but developer Nick Massad lost his loan to build it. Massad, of Houston-based American Liberty Hospitality, secured new funding at the end of last year.
The developer also got a boost from the city when council authorized a $9.6 million tax subsidy to the project as part of an effort to spur hotel development close to the George R. Brown Convention Center.
City Council passed a resolution last October which allows a hotel developer to keep hotel occupancy taxes for seven years if it builds within four blocks of the convention center. The Embassy Suites is the first hotel to fit that program, and city officials said they hoped it would make it easier to bring more midsized conventions to the city.
The Embassy Suites will include approximately 6,000 square feet of meeting and event space, a rooftop swimming pool, spa and fitness center, a restaurant, a street-level cafe and wine bar and two levels of underground parking.
By NANCY SARNOFF Copyright 2009 Houston Chronicle
May 26, 2009, 9:46PM
Wednesday, May 27, 2009
Wednesday, May 13, 2009
Credit in deep freeze in commercial real estate
There's no sign of a thaw in the frozen credit markets. If anything, the situation is getting worse for the real estate business.
The number of new loans for commercial properties plunged 70 percent in the first quarter from a year earlier, the Mortgage Bankers Association said Tuesday. And nationwide mortgage originations for the quarter were down 26 percent from the end of 2008.
"In the first quarter of 2009, we saw the effects of the continued recession, coupled with little demand from borrowers and a constrained supply from lenders as a result of the credit crunch," Jamie Woodwell, a Mortgage Bankers Association researcher, said in the report.
A lack of lending for commercial real estate deals has put the brakes on most new projects in the Dallas area and made it almost impossible for investors to finance purchases of offices, shopping centers, warehouses, hotels, apartments and other buildings.
Nationwide, the biggest drop in funding – 88 percent – was for hotels. Lending through mortgage-backed securities fell 96 percent from a year ago and bank loans for commercial real estate slid 80 percent, the trade group said.
12:00 AM CDT on Thursday, May 14, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
The number of new loans for commercial properties plunged 70 percent in the first quarter from a year earlier, the Mortgage Bankers Association said Tuesday. And nationwide mortgage originations for the quarter were down 26 percent from the end of 2008.
"In the first quarter of 2009, we saw the effects of the continued recession, coupled with little demand from borrowers and a constrained supply from lenders as a result of the credit crunch," Jamie Woodwell, a Mortgage Bankers Association researcher, said in the report.
A lack of lending for commercial real estate deals has put the brakes on most new projects in the Dallas area and made it almost impossible for investors to finance purchases of offices, shopping centers, warehouses, hotels, apartments and other buildings.
Nationwide, the biggest drop in funding – 88 percent – was for hotels. Lending through mortgage-backed securities fell 96 percent from a year ago and bank loans for commercial real estate slid 80 percent, the trade group said.
12:00 AM CDT on Thursday, May 14, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Houston home prices fall for first time in 14 years
Housing values in nearly two-thirds of more than 2,000 Houston-area neighborhoods declined or stood still last year, according to an annual home price analysis commissioned by the Houston Chronicle. “That’s unusually high. In good years, we usually have many more up than down,” said Crawford Realty Advisors’ Evert Crawford, who conducted the study in conjunction with the University of Houston’s Institute for Regional Forecasting.
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years. A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. "That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop. Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate.
“Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
nancy.sarnoff@chron.com
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 9:05PM
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years. A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. "That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop. Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate.
“Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
nancy.sarnoff@chron.com
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 9:05PM
Average mortgage interest rates - May 13, 2009
Average interest rates for Mortgages as of May 13, 2009
Product
Avg. Rate
30-yr Fixed 4.899
15-yr Fixed 4.622
30-yr Fxd Jumbo 5.890
5/1 ARM 4.585
Powered by INFOTRAK
Product
Avg. Rate
30-yr Fixed 4.899
15-yr Fixed 4.622
30-yr Fxd Jumbo 5.890
5/1 ARM 4.585
Powered by INFOTRAK
Tuesday, April 28, 2009
Worst foreclosure rates found in 4 states
WASHINGTON – The 26 U.S. cities with the worst foreclosure problems are concentrated in four states — California, Florida, Arizona and Nevada, a report released Wednesday shows.
The report on foreclosures for the first quarter by RealtyTrac Inc. said the highest foreclosure rates were found in Las Vegas, Merced, Calif. and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield.
Rounding out the top 10 were Phoenix and Port St. Lucie, Fla. Outside of the four high-foreclosure states, the worst foreclosure rates were in Boise City, Idaho (No. 27) and Greeley, Colo. (No. 29).
The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break. Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same period a year earlier, RealtyTrac said last week.
The big unknown for the coming months is President Barack Obama's plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans.
The Obama administration expects it to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace the efforts, despite a promise of $75 billion in incentive payments.
__
On the Net:
RealtyTrac Inc.: http://www.realtytrac.com
The report on foreclosures for the first quarter by RealtyTrac Inc. said the highest foreclosure rates were found in Las Vegas, Merced, Calif. and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield.
Rounding out the top 10 were Phoenix and Port St. Lucie, Fla. Outside of the four high-foreclosure states, the worst foreclosure rates were in Boise City, Idaho (No. 27) and Greeley, Colo. (No. 29).
The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break. Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same period a year earlier, RealtyTrac said last week.
The big unknown for the coming months is President Barack Obama's plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans.
The Obama administration expects it to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace the efforts, despite a promise of $75 billion in incentive payments.
__
On the Net:
RealtyTrac Inc.: http://www.realtytrac.com
In volatile market, investors choose to buy, then rent
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 6:05PM
Share Check out your neighborhood's prices here
Karen Davis and her boyfriend, Danny Diaz-Granados, just closed on their sixth investment property: a three-bedroom foreclosure in Richmond. They paid $78,000 for the 1,700-square-foot home, which was built in 1981 and is appraised for $140,000.
They plan to spend $15,000 fixing it up before they put it on the rental market. “Essentially we’ll be all in on the property for $100,000, but if we wanted to sell it immediately we could make 40 grand,” said Davis, a 29-year-old former waitress and student.
The couple started buying single-family homes last year after joining a real estate investor and mentor group that Davis now works for full time. They own four other houses in Spring and one in Katy. Their strategy is to buy properties for between 60 and 70 cents on the dollar, spend 10 percent to 15 percent fixing them up, and then rent them out.
“There are so many people who can’t afford to buy,” she said. “It’s very easy to rent.”
They are getting the cash to fix up the house through a rehab-to-permanent loan, which is like a short-term construction loan that’s refinanced once the renovations are completed.
After paying the monthly mortgage, Davis and Diaz-Granados, a 33-year-old oil landman, expect to net about $300 a month from rental income. That’s on top of the $1,200 they already earn on their other properties. Eventually, they’d like to own apartments. “The ultimate goal is to have enough passive income to replace my income and eventually his,” Davis said.
nancy.sarnoff@chron.com
April 4, 2009, 6:05PM
Share Check out your neighborhood's prices here
Karen Davis and her boyfriend, Danny Diaz-Granados, just closed on their sixth investment property: a three-bedroom foreclosure in Richmond. They paid $78,000 for the 1,700-square-foot home, which was built in 1981 and is appraised for $140,000.
They plan to spend $15,000 fixing it up before they put it on the rental market. “Essentially we’ll be all in on the property for $100,000, but if we wanted to sell it immediately we could make 40 grand,” said Davis, a 29-year-old former waitress and student.
The couple started buying single-family homes last year after joining a real estate investor and mentor group that Davis now works for full time. They own four other houses in Spring and one in Katy. Their strategy is to buy properties for between 60 and 70 cents on the dollar, spend 10 percent to 15 percent fixing them up, and then rent them out.
“There are so many people who can’t afford to buy,” she said. “It’s very easy to rent.”
They are getting the cash to fix up the house through a rehab-to-permanent loan, which is like a short-term construction loan that’s refinanced once the renovations are completed.
After paying the monthly mortgage, Davis and Diaz-Granados, a 33-year-old oil landman, expect to net about $300 a month from rental income. That’s on top of the $1,200 they already earn on their other properties. Eventually, they’d like to own apartments. “The ultimate goal is to have enough passive income to replace my income and eventually his,” Davis said.
nancy.sarnoff@chron.com
Monday, April 20, 2009
10 Secrets of Millionaires' Money Management
Kimberly Palmer
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality. Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it. [For more, read: "7 Killer Insurance Mistakes You're Probably Making."]
Work hard--and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it. [For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality. Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it. [For more, read: "7 Killer Insurance Mistakes You're Probably Making."]
Work hard--and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it. [For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
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