[an error occurred while processing this directive] Money Lessons from the Rich - Steven and Chris

Money Lessons from the Rich

Most of us will never be millionaires or billionaires but our finance expert Rubina Ahmed-Haq says we can still learn important everyday lessons from the rich.

Money Lessons from Jay-Z
AP Photo/Matt Rourke

What can we learn from his financial success?

Nothing comes easy: Jay-Z worked really hard to come from nothing and make something of himself. So many people think wealth goes to the undeserving. Sometimes it does, but in Jay-Z's case he's worked hard.

Collaboration is key: Jay-Z's name is attached to so many songs and so many brands. He loves to collaborate with smart people and together make money! He's a pro at picking the right people to merge with and seems to have a knack for building powerful relationships that stand the test of time. You can do this to by recognizing the people you can trust and rely on, those who share in your vision and understanding of business.

Diversify: Notice how the majority of Jay-Z's wealth comes from things other than rap? Diversification in everyday finances is so important. Make sure you follow Jay-Z's lead and build a portfolio of investments across sectors. This is a true case of don't put all you eggs in one basket.

Money Lessons from Warren Buffett
AP Photo/Nati Harnik

What can we learn from his financial success?

Always live below your means: Buy a home you can afford! No matter where you live the cost of living is going up. The cost to own and pay for utilities and buy groceries and other necessities is getting more expensive. Live as frugally as you possibly can so you can enjoy a rich retirement. Rubina always suggests the first place to cut costs is your variable expenses, groceries, clothing, daily coffee, etc.

Start early: Start saving and investing at a young age. This is a great lesson for all parents because you need to teach children that investing early, but with smaller amounts, is better than investing later with large amounts. It's the power of compound interest.

Invest where you know: Invest in companies you truly believe in and understand. This is so important because it's the only way you'll stay interested in the the daily running of the company, which means you'll be better equipped to respond to changing environments.

Money Lessons from J.K. Rowling
Dan Hallman/Invision/AP

What can we learn from her financial success?

Never give up: J.K. had to go through 12 publishing houses before being accepted. If you're passionate about something, turn it into a career but don't give up until you succeed.

Avoid excess: J.K. has not been tempted into any fashion excesses. She never buys expensive cars or watches and her husband, a doctor, still continues to work.

Invest in some real estate: It is sill one of the safest places to put your money without fear that its value will drop.


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