Ordinary People, Extraordinary Wealth: The 8 Secrets Of How 5,000 Ordinary Americans Became…

Paperback | December 26, 2000

byRic Edelman

not yet rated|write a review

How did a secretary, a firefighter, a retired naval officer, a housewife, a construction worker, a schoolteacher, and a pharmacist become wealthy? Bestselling author Ric Edelman has studied the wealth-making habits of these 5,000 other ordinary Americans and reveals his findings in this extraordinary book that outlines in eight easy, practical steps to secrets to achieving and maintaining wealth.

Here you′ll find a lifetime of wealth-building experience from people just like you -- people who have figured out how to arrange their finances and make wise investment decisions so that they can reach their goals and achieve financial security. Plus, you′ll find tips on

How to turn your mortgage into a wealth-enhancing tool

Why small investments work better than big ones

How to max out on your employer-sponsored retirement plan

When to hold investments and when to fold them

When to pay attention to financial news and when to turn it off

Let your neighbours lend you a hand. And let Ric Edelman guide you through their lessons in this eye-opening journey with thousands of ordinary folks who found their way to extraordinary wealth.

Pricing and Purchase Info

$18.96 online
$19.99 list price (save 5%)
In stock online
Ships free on orders over $25

From the Publisher

How did a secretary, a firefighter, a retired naval officer, a housewife, a construction worker, a schoolteacher, and a pharmacist become wealthy? Bestselling author Ric Edelman has studied the wealth-making habits of these 5,000 other ordinary Americans and reveals his findings in this extraordinary book that outlines in eight easy, p...

How did a secretary, a firefighter, a retired naval officer, a housewife, a construction worker, a schoolteacher, and a pharmacist become wealthy? Bestselling author Ric Edelman has studied the wealth-making habits of these 5,000 other ordinary Americans and reveals his findings in this extraordinary book that outlines in eight easy, p...

other books by Ric Edelman

Rescue Your Money: How to Invest Your Money During these Tumultuous Times
Rescue Your Money: How to Invest Your Money During thes...

Paperback|Jul 19 2016

$19.56 online$22.00list price(save 11%)
The Truth About Retirement Plans and IRAs: The Best Way to Manage Your IRA and Retirement Plan
The Truth About Retirement Plans and IRAs: The Best Way...

Paperback|Apr 8 2014

$13.95 online$18.00list price(save 22%)
see all books by Ric Edelman
Format:PaperbackDimensions:336 pages, 9.12 × 6.12 × 0.84 inPublished:December 26, 2000Publisher:HarperCollinsLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0062736868

ISBN - 13:9780062736864

Look for similar items by category:

Customer Reviews of Ordinary People, Extraordinary Wealth: The 8 Secrets Of How 5,000 Ordinary Americans Became Successful Investors--and How You Can Too

Reviews

Extra Content

Read from the Book

Secret #1They Carry a Mortgage on Their Homes Even Though They Can Afford to Pay itOff.If you had enough money to pay off your mortgage right now, would you? Manypeople would. In fact, "The American Dream" is to own your home--andto own it outright, with no mortgage. Imagine owning your home without having tosend a check to a mortgage company or bank every month! Being so fortunate mustevoke such a sense of security, satisfaction, and well-being that you could onlydream of it! Imagine the feeling you'll enjoy when, after 30 long years--360monthly payments--you finally make your last payment, and the house is yoursforever!If The American Dream is so wonderful, how can you explain the fact thatthousands of financially successful people--people who have more than enoughmoney to pay off their mortgage right now refuse to do so?Consider these facts derived from my survey research. Of the respondents: The average home value is $255,700; the average mortgage balance is $142,000. Even though 100% have the ability to own their home without a mortgage, 83% carry a mortgage anyway. 100% have the ability to send in extra money along with their monthly payments, to eliminate the mortgage ahead of schedule--but 90% choose not to. Instead, 85% of the respondents have a 30-year loan and no one in this group sends in extra principal payments or participates in bi-weekly mortgage plans.Clearly, these successful Americans are not bothered by carrying a big, longmortgage. Compare yourself to them. If you have a mortgage and are struggling topay it off, or if you're dreaming of the day when you make your final payment,you're trying to do something that financially successful people do not do.What do they know that you don't?It's vital that you understand what's happening here. And we begin with thefact that talking about mortgages is not a conversation about economics orfinance.It's about emotions.You "love" the idea of owning your own home. You "hate"your mortgage. If you're like many, you may even "fear" it. All ofthese are emotional words; none of them are financial. Yet, a mortgage is afinancial tool--not an emotional state of mind.Why, then, do you feel the way you do about your mortgage?Blame it on your parents.Just about everything you've learned about money, you've learned from yourparents. Even though Mom and Dad never said a word to you about money, they hadlots to say about mortgages--especially when you announced you were planning tobuy your first house. "Make a big down payment," they told you,"and keep the mortgage payment low." "Pay it off early, child.You don't want that mortgage hanging over your head."Indeed, your parentsand grandparents made it very clear to you that mortgages are bad, something tominimize, or to avoid whenever possible. A necessary evil at best. But what theynever told you was why they felt this way about mortgages. It's important youunderstand their perspective or you'll fail to understand why their advice isbad for you. So let's look at mortgages from your parents' and grandparents'point of view.Why People Fear Mortgages--and Why You Shouldn'tOur story begins in the 1920s. Back then, houses typically cost $5,000. Suredoesn't sound like much, until you consider that the average annual income inthe US. was $1,434 in 1925. Consequently, few people could afford to pay cashfor their homes--just like today. So, people borrowed the money frombanks--again, just like today. But the loans were structured differently backthen. A common clause in the loan agreement gave banks the right to demand fullrepayment of the loan at any time; if you failed to repay your loan when asked,the bank had the right to take your house from you and sell it to recoup itsmoney.So although the terms called for you to send $24 to the bank every month topay off that $4,500 balance over 30 years, you knew you suddenly might berequired to repay the remaining balance in full at any time. You didn't worryabout that clause, because you knew that having the bank ask you for $4,500 incash, well, they might as well ask for the moon.Then came October 29, 1929.When the stock market crashed, millions of investors lost huge sums of money.Problem was, it wasn't their money they had lost. You see, most investors backthen had bought stocks with borrowed money--money lent to them by theirstockbrokers, called a "margin account." Under rules then in effect,you were allowed to buy $100 worth, of stock by giving your broker just tenbucks; your broker would loan you the other $90. So when the Crash hit, knocking30% off the value of everyone's stock portfolios, a typical brokerage accountthat previously was worth $100 now contained stocks worth only $70. But theinvestor had borrowed $90 to buy them! This led to a "margin call,"where the broker would tell the investor that because his account had exceededthe "margin limits, " he had to come up with more cash. If theinvestor failed to do so, the broker would begin to sell some of the investor'sstocks, and the broker would continue selling until enough cash was raised tomeet the margin call.Selling off the portfolio was the last thing the investor wanted his brokerto do. The stocks were already down 30%--this was the worst time to sell. So, toavoid the margin call, the investor went to his bank and withdrew enough cash tomeet his broker's margin call. The investor had to act quickly, because understock exchange rules, margin calls must be fulfilled within 24 hours. Therefore,in the days following the Crash of '29, a lot of investors went to their banksand made withdrawals.It didn't take long for the banks to run out of cash.When they did, word quickly spread. Bank depositors stampeded the banks,demanding their money. To get more, the banks started calling their loans due.They sent telegrams to their borrowers, demanding they pay off their loansimmediately and in full. Because these homeowners didn't have the cash--youmight as well ask for the moon--the banks foreclosed and put the houses up forsale in a desperate attempt to raise capital.It didn't work.With no one willing or able to buy the houses, banks found themselves owningvirtually worthless real estate. Unable to satisfy depositors who were demandingtheir cash, the banks closed their doors, many of them never to reopen. Withinvestors unable to get their cash from their banks, they were unable to meettheir margin calls--so their brokers started selling out their holdings. Buteveryone was in this dilemma, so the brokers couldn't find buyers for thestocks. With no one willing to buy, the brokers had to continually drop thestocks' prices.Ultimately, the Great Depression saw the stock market fall more than 75%,from its 1929 highs. More than half of the nations banks failed. Tens ofmillions of Americans lost their jobs as companies went bankrupt. And millionsof homeowners, unable to raise the cash they needed to pay off their loans, losttheir homes. The American Dream had become a national nightmare.But not for those who owned their homes outright. These lucky few were immuneto the banks' collapse, With no loans to repay, they got no telegram demandingfull payment. As their neighbors went broke and lost their homes, with thousandscommitting suicide, those who owned their homes outright succeeded in keepingthem. They might not have found work, or had much to eat, but they kept a roofover their children's heads.And thus was born America's mantra: Always own yourhome outright.Never carry a mortgage.

Editorial Reviews

"If you follow these simple rules, you will not only accumulate wealth for yourself but you will enjoy a much happier and healthier life."-- Dr. Paul B. Farrel, CBS MarketWatch