Jason Hartman’s NEXT Ten Commandments: Don’t Be a Sucker

An old man eats dinner alone at a restaurant and when it’s time to go, tells the owner that he’s accidentally forgotten his wallet back at the hotel. He promises he’ll be back with it and, as a sign of his intentions, leaves his violin as collateral. I’m a traveling musician, he says, this is my source of income. The old man leaves and the manager is approached by another guest in the restaurant. The guest examines the violin and says that his is a dealer in rare instruments and that this is indeed a rare and valuable violin, probably worth thousands of dollars, he says. Here, take my card and tell the owner to call me if he’s interested in selling.

The old man returns with his wallet, but the restaurant owner is no longer interested in money. He wants thousands of dollars for the violin that he’s planning on selling to the other guest, so he offers the old man a few hundred, which he takes. But the number on the card is fake, the violin is worthless, and the greedy owner has been tricked by two con men skillfully pretending to be an old musician and an instrument dealer.

It’s all too easy to get sucked into the lure of the flashy salesman promising instantaneous wealth, a hefty bank account with the latest get-rich-quick scheme. Dangled like a carrot in front of a horse’s head, these promises are unattainable—the more you give, the less you get.

If it sounds too good to be true, it probably is. We’re thinking now about things like infomercials, promises packaged into 20 minute TV spots designed to make you want them. Remember the Aqua Rug? Carpet for your shower—an idea that, at two am sounds great, isn’t one that works so well in the real world.

To avoid falling for these sort of flavor-of-the-week schemes, it is important to have a philosophy that you’re comfortable sticking with. Know inside and out what you believe to be true about investment, and you’ll consistently make smart decisions about where your money goes. While you won’t get rich overnight, you’ll avoid making mistakes. Often, success isn’t about big wins—but the absence of mistakes. Act in accordance with your core philosophy at all times and avoid getting swept away in the flash of the next big thing. There’s a sucker born every minute—and it isn’t you.

And, perhaps disappointingly, building wealth through real estate doesn’t happen overnight or in a few days or even a week. It can take a few years to build wealth this way, but it is safe, consistent, and very rewarding. If that carrot doesn’t taste great, we don’t know what does. (photo credit: the half-blood prince via photopin cc)

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