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Ben Stein How Not to Ruin Your Life

Ben Stein, How Not to Ruin Your Life

To Get Rich, Just Follow the Instructions

by Ben Stein

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Posted on Friday, February 16, 2007, 12:00AM

My little brain simply can't stop putting things into categories and seeking to find the patterns in life.

One of the many patterns I've noticed is that some people in the United States are much richer than others. We have a nation filled with opportunity: free education, easy investing, and cheap interest rates. And yet there's stunning financial inequality.

Disparity by the Numbers

According to my wonderful pal, Phil DeMuth, the top 1 percent of all wealth-holders in the U.S. own about 44 percent of the financial assets of the country, mostly in stocks and bonds. The top 10 percent own about 80 percent of the financial assets of the nation.

The top one-tenth of 1 percent of earners in the nation earn about as much as the bottom 40 percent. That is, about 130,000 high-income Americans earn as much as the bottom 120 million Americans combined.

To me, this is stunning -- almost frightening. But the real question it poses is, how did the ones at the top get there? Obviously, some do it through inheritance, and some have spectacular athletic or musical abilities. But what about the others? How did they get to the pinnacle of wealth?

Think First, Get Rich Later

I'll to offer some homely speculation. First, as the genius financial planner Ray Lucia would say, the first step is to have a plan to save. Without equilibrating assets and liabilities by accumulating lots of stocks, REITs, and cash, you won't get there

But I'm looking for something more basic here. How do you get the income to start saving meaningful sums?

Here's a clue: think. In 1996, when I started shooting "Win Ben Stein's Money," I was assigned a bodyguard named Yaniv. He was a former Israeli soldier, and as tough as old boots. We worked together happily for about 900 shows, and then we worked on "Star Search" together, after which we went our separate ways.

Occasionally, Yaniv would help me set up electronics equipment. He always did a great job because he read the instructions and then followed them.

Up the Ladder

Not long ago, I bought some new stereo equipment for my house and I called Yaniv to come over to install it. He showed up in an immense truck and told me what he'd been doing for the past few years.

He'd become a construction foreman on a jobsite building condos. He was so good at reading instructions that he became a contractor. He was so good at that, investors hired him to build still bigger buildings and paid him a good chunk of the profits.

Now he's building large developments and gets an even bigger share of the startlingly large profits. If a unit costs $300,000 to build, it's not unusual for it to sell for $600,000 to $800,000. Of course, you have to factor in the cost of the land, permits and legal issues, advertising, and the time value of money. But all in all, the profits are consistently immense.

Yaniv, a 32-year-old who still gets a thrill out of his Ford truck, is well on his way to being in the top 1 percent and, after that, the top one-tenth of 1 percent.

Outstanding in Your Field

How did he do it? He reads instructions. Yaniv reads building plans very carefully, then he reads permit applications carefully, and soon a building is done.

Beyond that, he reads life's instructions carefully, too. People make a lot of money building condos in Los Angeles even in an economic slowdown, so Yaniv entered a field that leads to making money.

If he'd continued on as a bodyguard he would've had fun, but he never would've gotten rich. And here his experience proves the great advice of Warren E. Buffett: It's better to be medium-good in a great field than great in a medium field. There are some fields where a lot of money can be made, and real estate development is one of them.

Law is another one, at private firms. Medicine -- if you're a surgeon -- is another, and finance is the highest-paid one. Starting a restaurant isn't a moneymaking field. Teaching and writing, except in the rarest of cases, aren't either. Acting is almost never highly paid, and police work never is highly paid.

Making the Choice for Wealth

Please notice a pattern: the most interesting and psychologically rewarding work is rarely the best-paid. So choices must be made.

If your goal is to be in that top 1 percent of wealth-holders, you have to do what Yaniv did. Follow the instructions to where the money is, and to where it isn't.

There's nothing -- absolutely nothing -- about people who have money that's better than people who don't. But if you want it anyway, simply follow the instructions as to where to find it. It's not that complicated.

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1237 Comments

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  • Yahoo! Finance User - Friday, June 8, 2007, 4:58AM ET  Report Abuse

    • Overall: 5/5

    he's right...you must go where the money is! Think first *where is the money fields... then...take action into getting in

  • n a n a. - Thursday, April 26, 2007, 2:50PM ET  Report Abuse

    • Overall: 2/5

    This is a good article but what are the instructions to getting rich is it to go into the firlds that make alot of money or to think first and then your thinking helps you get rich????

  • WesleyA - Tuesday, April 10, 2007, 1:40PM ET  Report Abuse

    • Overall: 3/5

    Sounds like a great plan, but what are the instructions? Go to school? Get a Degree? In Law, Medicine, or Finance? Easy to say for some, but many people don't have the drive to reach those goals, and thus will never be wealthy. Not so easy...

  • OVIRAD - Wednesday, April 4, 2007, 5:16PM ET  Report Abuse

    • Overall: 2/5

    Only 5% of all contractors are doing well; the rest are just hard working for a decent salary, enough to pay business insurance, workers comp. and all the other bills, plus something for their family. The real winner are the "buy-and-sell" and build-and-sell" at a prohibitive price speculants...

  • Yahoo! Finance User - Monday, April 2, 2007, 7:17PM ET  Report Abuse

    • Overall: 1/5

    yea yea-ever hear of buy low sell high- sounds good-but how come we are not all wealthy?

  • Yahoo! Finance User - Monday, April 2, 2007, 6:59PM ET  Report Abuse

    • Overall: 4/5

    There's nothing -- absolutely nothing -- about people who have money that's better than people who don't. The more you have, the more you want. It's a never ending quest.

  • Little Flower - Wednesday, March 21, 2007, 9:30PM ET  Report Abuse

    • Overall: 4/5

    So simple yet powerful. Kinda like a big DUH, but one that pays.

  • Yahoo! Finance User - Wednesday, March 21, 2007, 11:41AM ET  Report Abuse

    • Overall: 4/5

    Hope my grandson read this - very good article

  • __A_YAHOO_USER__ - Tuesday, March 20, 2007, 10:32AM ET  Report Abuse

    • Overall: 4/5

    Makes a lot of sense !

  • charlotteb - Tuesday, March 20, 2007, 6:52AM ET  Report Abuse

    • Overall: 4/5

    Ben, I found your article very informative, I will apply it. I would like to see something credit knowledge with regards to repairing others credit. I believe this would come under the catagory of finance with rates as the the highest-paid, please enlighten more. Financial education I believe is one of the turn-key to financial wealth. Thanks Ben, C. Burks

  • Yahoo! Finance User - Tuesday, March 20, 2007, 1:41AM ET  Report Abuse

    • Overall: 5/5

    There's a MORAL to this story. It's not about 'being a contractor' or 'but what steps did he take' or 'how did he start with nothing to get where he is?'. It's about learning and doing things proper in the way you have learned to. Learn what life decisions will get you to your financial security goals, in the long run. Learn how to get there, safely and effectively, by absorbing details, and implementing them properly, and by following what you have learned you will learn and grow to better prosperity. Know that being 'medium-good' in a high dollar occupation (usually) outweighs being 'super-good' at a lower dollar career. Stop saying 'Ben! MAKE ME RICH or you are useless to me!'. For everyone out there who wants to HELP you get richer, there's more that want to take your riches, and if you arent knowledgable in the money making as well as the money retaining through your learning, you will not ever be as successful. You need to do this yourself, with advice like this. Read between the lines and open your mind up to what's really being suggested people...

  • Yahoo! Finance User - Monday, March 19, 2007, 11:58PM ET  Report Abuse

    • Overall: 1/5

    tells absolutely nothing

  • DesertFoxxM - Monday, March 19, 2007, 11:52PM ET  Report Abuse

    • Overall: 1/5

    So should we all become contractors? You didn't explain to people how much money your buddy had in order start his construction business. Reading a manual is one thing doing is another. Everyone has there learning strenghts. No one person is alike, personality and will is another factor you didn't tell people about. You must have will to do somthing things and personality helps alot when you trying to sell an idea. Patterns isn't always the way to go. In addition people procrastinate, if you do that you might as well prepare for that nice rest home in death valley. The thing most people don't understand is that they should do the things they love to do. If you get a job doing what you love you will accel at it. I want to read some real advise this stuff is generic and obvious crap i keep reading everywhere. To some it all up this experience was DR Phillish.

  • donaldf - Monday, March 19, 2007, 8:27PM ET  Report Abuse

    • Overall: 2/5

    Not mush meat to the article! Don Orange, California

  • replicator - Sunday, March 18, 2007, 2:16PM ET  Report Abuse

    • Overall: 3/5

    Mr. Stein since your column is called "How not to ruin your life" I would like to see an article about how not to waste one's life. Something that will help me to keep on track to live a most productive life possible. You know when you die you think to yourself: " I had a good life, it was not a waste"

  • James - Friday, March 16, 2007, 11:44AM ET  Report Abuse

    • Overall: 5/5

    Bravo Ben Stein! Your article should be required reading in every classroom in the USA. The basic skills of READING, WRITING, and ARITHMETIC are the ones to emphasize throughout the entire educational system. And English should be every student's first language, regardless of country of origin. The country needs more patriots, like Ben Stein.

  • rajesh singh - Wednesday, March 14, 2007, 4:12AM ET  Report Abuse

    • Overall: 4/5

    Easily understandable and the bottomline of the whole article is "invest in areas where there is plenty of money - follow where money is!"

  • M A - Wednesday, March 14, 2007, 3:37AM ET  Report Abuse

    • Overall: 5/5

    great steps to follow

  • Yahoo! Finance User - Saturday, March 10, 2007, 12:03AM ET  Report Abuse

    • Overall: 1/5

    I think the advice over choosing the right industry is over simplified and absolutely useless. Stocks and bonds do have their shortcomings, having money to make money is only the beginning, maintaining the money you have, is an even bigger challenge than earning money.

  • Timothy - Friday, March 9, 2007, 11:36PM ET  Report Abuse

    • Overall: 3/5

    I have a dream of becoming rich, I want to carry fame in that though. I guess what you mentiioned could help, but its like I tell people all the time. Buy what you need and not what you want. I wantr clothes right now because im short of a full weeks wardrobe, but my bills come first. Once my bills are paid off, i'll treat myself nice with a few outfits then continue to save. Life is a like a game, you either win at it or you lose. Thats totally up to you, as of the article, its pretty goog. I think it could be inproved though.

  • yvonne - Friday, March 9, 2007, 2:43PM ET  Report Abuse

    • Overall: 5/5

    Excellent article, easy to understand

  • Yahoo! Finance User - Friday, March 9, 2007, 3:34AM ET  Report Abuse

    • Overall: 1/5

    This story is ridiculous. First of all, do you really think someone's going to hand over a contracting job for multi-million dollar buildings to a guy with very little construction work experience, simply because he can "read instructions well"?? Give me a break. His Ben Stein connections got him that job. In other words, don’t expect to get hired on as a contractor (or even a foreman) based on the fact that you can “read instructions well”… Second, most foreman or contractors started out working in construction. They learned the ropes and worked their way up. It’s not exactly something they teach at college or that you can learn reading a Home Depot “home improvement book”… Stick to the old fashioned way of making money in real estate: get yourself a college education, get a job, save your money, and then buy real estate. Note: College education not required, but usually makes it easier to earn more money.

  • Robert - Friday, March 9, 2007, 12:53AM ET  Report Abuse

    • Overall: 5/5

    I'm one of few who would love to fall in this category of financially free I’m only 19 and I never hold back on an investment that is legal and will pay off I am living proof that if you push hard and then push even harder you could achieve something great I have no intention in saying what I have accomplished or how much I have gained but my love of money is what drives me. Like everyone I can think of getting that pay check is great and realizing your bills in the bad part because you then know that all that work is for nothing but someone else to be happy getting rich. I know it’s hard to make it but the first thing you must realize is that you are entitled to your dreams but that will never do a thing for you. You find one day when your life has passed by that dreams are thins you wake up from. You have to set goals and yes to become rich is the ultimate goal but get real you have to but so into your goals that you could see the 1,000,000 million steps to get there. you need to wake up knowing what you will, not want to, will accomplish for that day, you need to do it and take step two, by the time you get to step 1,000 you see possibility and while that dream is a goal you are on your way to reaching it. sooner or later, but hopefully sooner rather than later step 999,999 will be staring you in the face and that last step will be hard a risk and feeling worthless but you take it and wake up to find that dreams do come true. A near 1,000 people are billionaires. Billion is a lot to have think how many are millionaires and how soon you could become one. so wake up smell the money and do it be # 1,001 because now your a part of something more than a money man your free from so much more and you could use all that money to help this disheveled world of ours. Would love to hear from you Ben could use a closer connection I'm ready if your willing!

  • david - Friday, March 9, 2007, 12:39AM ET  Report Abuse

    • Overall: 5/5

    thats a great story and all, but what if you have social phobias and can not deal with people to be able to go out and do that? its hard trying to raise your 12 yr old when your on a fixed income and unable to save up for stocks and bonds and all that other good stuff. or to be able to go out and earn a good living for your family. then what? i guess the rich just keep getting richer, and the poor just keep getting poorer. but hey thats life you just do the best with what you have and go on. and i use to watch Win Ben Stein's Money all the time it was a good show.

  • Guerda - Friday, March 9, 2007, 12:36AM ET  Report Abuse

    • Overall: 4/5

    That was a very good story. with my master degree, I can't seem to find a good job. I always believed in real estate. I needed to hear that the money is still in that field, thanks.

  • Yahoo! Finance User - Thursday, March 8, 2007, 11:39PM ET  Report Abuse

    • Overall: 4/5

    Ben, Big fan of your work. About getting rich, from what I have seen, a person needs to develop some idea or thing that is extremely useful, can be sold to the masses, and is a relatively simple system. For example, Bill Gates focus was on creating a very useful system that he could sell at a relatively low price. The value spread all over the world in a fast pace. The cash flow generated comes from nearly 1 in 5 people around the globe. The cash adds up quickly. So, we can either create the next Microsoft and sell to the masses or we can make large profits on a few projects such as real estate. Working 9 to 5 is not going to do it. Later,

  • Adi Imran - Thursday, March 8, 2007, 11:21PM ET  Report Abuse

    • Overall: 3/5

    Excuse me...!!! Hello...!!! But don't you need money to make money...

  • Tom and Kevin - Thursday, March 8, 2007, 11:17PM ET  Report Abuse

    • Overall: 5/5

    I agree with Ben. I am the third of ten children. My oldest sibling is the only one with a doctorate degree, while all the rest have at least a BA. His was in geology, and while he is the most educated, he has the lowest income compared to his siblings. I worked in many fields and realized along the way that some industries make large profit volumes while most mature industries make marginal profits with little chance of ever again making the big profits. I learned to get out of these businesses and go where your talents will truly be rewarded.

  • Yahoo! Finance User - Thursday, March 8, 2007, 11:06PM ET  Report Abuse

    • Overall: 5/5

    SO,SO TRUE.THANKS FOR THE ADVISE

  • Yahoo! Finance User - Thursday, March 8, 2007, 11:05PM ET  Report Abuse

    • Overall: 2/5

    Everyone is entitled to their opinion...the point I got from the article was "find something you're good at and do it", you'll make great money...unless it's a restaurateur, policeman or a teacher. You have to have passion for what you do in life and especially when most of your life it is spent working. The truth still remains that rich people still get sick, get cancer, die in car accidents and lose people they love.....what does money do for them then?

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