All Articles Tagged "wealth building"
Today, the multi-hyphenated entertainer is commonplace. No longer do celebrities limit themselves to one field or one business venture – actors are directing and penning bestselling books while recording artists front clothing lines and high-end fragrances.
But, as hard as it to believe, it wasn’t that long ago when entertainers routinely relied on one check from a record label or production company. Then, in the mid-nineties, attorney Darrell Miller began introducing a revolutionary concept that forever changed the thinking – and financial portfolios – of his clients and, ultimately, the general public.
His “Seven Streams of Income” theory was the result of years of research into the earning habits of extremely high-wealth individuals outside of the entertainment industry. We recently spoke with Miller about putting this theory into practice for his clients and how it can be equally effective for non-celebrities, as well as his path to becoming one of the elite entertainment attorneys in the country.
You are definitely one of the most successful entertainment attorneys in the industry right now, and you’ve worked with a Who’s Who of some of the biggest celebrities. How did you break into such a lucrative field?
My first high profile client was Kim Fields. She had just finished getting her degree at Pepperdine, and she had done a national search for a lawyer. It turned out that I was the lawyer that she picked, and she afforded me the opportunity to be her general counsel and portal to a big firm. At the time I didn’t have a lot of knowledge because I was a relatively young lawyer, but she knew that I was a trustworthy person and someone that would make sure that her business was handled well. So she was a big boost to my credibility and my client book. We landed a series (Living Single) within a year.
So after establishing a successful independent firm that you operated for around 13 years, why did you decide to join a large firm like Fox Rothschild, where you currently practice?
For me the decision was very simple. I was very, very successful as a boutique doing one thing, and I starting seeing many of my clients become very successful enterprises. If you remember my theory of Seven Streams of Revenue, I’ve been practicing that for 15 or 16 years before people caught up. So a lot of those people that I was working with early on have now become successful in creating seven or more revenue streams, and that has created a lot of other areas of legal needs that are outside of my expertise. In my own shop, I would just shop that out and watch everybody around me make money. What I started doing was looking at how much money I was giving to other people, and I thought that if I was in a larger firm that could actually service my clients in those areas, it would come to my bottom line and make me and the firm overall more successful.
I am a 19-years-old business student. I recently inherited land from my grandfather and have decided to cultivate it and go into crop farming. I’m in the process of getting a low interest loan from an agricultural development bank, and am working on everything else such as labor, equipment, nursery and customers. My family has told me to seriously think about it because I am more of a girly-girl who likes nails, make up, dresses, fashion and modeling. They say it is not for me since it will be a lot of hard work, but I really want to do this. Do you think I should? I’d really appreciate your advice. Thanks.
I am so proud of you for being ready to take action and grow the value of your inherited land. So many people sell their inherited real estate and then blow through the money, squandering what a relative worked so hard to build and leave behind. Kudos to you for proactively pursuing wealth; you are one smart girl.
That said, a farming business? And you’re a girly-girl? You are brave for even considering that option!
To be a wise steward of your inheritance without becoming a frustrated business owner, think about these three steps:
1. Get some experience: Clearly you want to start a business. I’m not sure how you came up with the farming idea. From what you’ve shared with me it doesn’t seem like a natural fit, but only you know the answer. Before you start farming or any other business, write down a list of businesses you think you might be interested in. Research the market for those businesses and consider whether you want to start a business that will remain local or that has regional or global reach. Do you plan to live where you are now after graduation? In researching your business ideas, find out whether growth trends are flat or moving upward or downward. Using this information, narrow your list down to three businesses you might like to start and find internships in those areas. Commit to each internship for a minimum of three months. If you find you are really enjoying one of the internships, extend your time to six months so you can learn more.
2. Lease your land to someone else for another purpose until you figure out what you want to do: Perhaps one of the reasons you were eager to start farming is because you wanted to make good use of the land and generate income from it. You can still achieve that outcome. Earn income on the land by leasing it to someone else for farming or another purpose while you intern to decide what business you would like to pursue. Be sure to get an ironclad leasing contract in place. Know the eviction laws in advance just in case you have the unfortunate responsibility of removing and replacing a tenant who is not paying on time or at all. Also, charge the first month’s leasing fee up front.
3. Revisit starting a business after you have done your homework: After your three internships you will know which business you like best. Get help from one of your professors and use all the resources available to you on campus to write a plan for that business. During your time of learning and preparation you will have collected nine to 12 months of leasing fees. Save most of that money. This way, you will have a great new business to pursue, experience in that industry as a result of your internship, plus assets and money to pursue it.
Write to me at email@example.com and let me know how it’s going. Good luck!
Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise. She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press. Felicia operates Ms. CEO Inc., a company that helps women entrepreneurs achieve more success, faster — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at firstname.lastname@example.org or www.twitter.com/feliciajoy.
As many high school students make their college decisions, the debate continues on the link between higher education and future success. While colleges may enable students to pursue rewarding careers, many graduates may still lack the financial literacy and knowledge to develop wealth. As author, Robert Kiyosaki, describes in his book Rich Dad, Poor Dad, higher education and a job don’t guarantee wealth. It’s the application of financial knowledge, which separates the wealthy from the lower class.
Robert Kiyosaki compares two case studies of financial knowledge through his two “dads”. The first being his Poor dad, his biological father who was a well-educated, highly paid government official and the other being his Rich dad, a close mentor who owned a successful business despite only having an 8th grade education.
Although the well-educated biological father had a high paying job, he was constantly struggling with debt and paying off most of his expenses. The business owner, however, developed a fortune allowing him to live comfortably and not be concerned with current expenses. This goes against common logic where job security and income are the key markers to wealth. As Kiyosaki illustrates through his two dads, income isn’t everything, it’s the approach to money and wealth that is life changing. Kiyosaki provides readers with 6 main lessons of the wealthy to help provide guidance.
Lesson One: The Rich Don’t Work for Money
There are two main emotions which can prevent people from developing wealth: fear and desire; fear of not being able to pay monthly expenses or fear of losing money keep many entrenched in the day-to-day work, preventing many from evaluating investments and other sources of income.
The desire to keep up appearances via buying expensive clothes or cars drives expenses so high that people have no choice but to stay focused on their jobs to maintain their lifestyle. Lesson one is all about understanding those two emotions and stopping them from hindering one’s success. The Rich Dad was more focused on ways of creating residual money, money that increases even if you don’t work, rather than waiting for the next job with a pay raise.
Given that our children are likely our greatest expense and greatest love, perhaps it might be helpful to discuss how we teach them about money. If you raise your kids to be financially responsible, they can be assets to you during retirement. If they are taught about money in the wrong way, they become horrible economic liabilities that leave you riddled with guilt. So, although I don’t claim to know everything about child rearing, I thought I’d share some guidelines you might want to consider when it comes to teaching your kids about money.
by R. Asmerom
It’s safe to say that many people have been disillusioned by the recession. The sense of job security and stability evaporated for many with the massive layoffs in the workplace and the spiraling depreciation of assets in real estate and investments. Despite the bad times, many Americans still had faith that real estate prices would bounce back up and finding a bargain of a real estate deal via foreclosure sales or otherwise would put them back on the fast track to ride the next wave. That’s very wishful thinking says The New York Times. “More than likely, that era is gone for good.”
According to analysts interviewed for the piece, Americans have largely come to understand the relationship between housing and wealthbuilding as iron clad, when that is not necessarily the case.
It’s difficult for many to disassociate one from the other since home buying has been pushed as the most responsible and reliable ways of building security since the 1960s. The George W. Bush era, with its home buying incentives, and the witnessing of everyone from real estate tycoons like Robert Kiyosaki of Rich Dad, Poor Dad fame to everyday Joes quadrupling their investment in a very short amount of time has provided some powerful imagery when it comes to real estate economics 101. But now Americans have to contend with a new school of thought.
“People shouldn’t look at a home as a way to make money because it won’t,” said Dean Baker, co-director of the Center for Economic and Policy. Maybe the outlook is not very optimistic but, of course, it can’t be all gloom and doom. There will still be bargains to be had for the astute homebuyer. As for the basic real estate investors, the takeaway is that real estate riches may not come so easily again for the lucky masses, but will be reserved for the well prepared and strategic players – as is the case in most business-related matters.