July 5, 2011 - There are personality traits of the rich that most of us can easily imitate, incorporate into our everyday lives without an increase in income. No, it's not buying bling or an Escalade with a loan. It has to do with behavior patterns that are tested and found to be most effective, no matter what the stock market does or the gold market or any other market.

Second, pay off all credit cards every month. When some banks are charging 18% or more for lending you money, there isn't another investment that can match these rates, unless it's an outright gamble which then raises the odds tremendously that you'll lose all your money rather than beat 18%. Credit card borrowing is not an option.

Third, invest carefully, wisely, and for the long term. Buy stocks that have a record of strong earnings and rising revenues, new products and a long history of solid management. Don't concentrate too much in any one of them. Make sure most of them pay dividends. Sell them only when there is absolutely a change in the fundamentals of the business, not because you feel lucky and want to take a flier on the latest social networking stock.

Fourth, spend less than you earn. Doesn't matter how much you make, it's how much you keep for yourself that really counts. That means a smaller apartment or home, an older car....you know the drill.

Fifth, have patience. Rome wasn't built in a day, and neither will your level of comfort. It takes time for stocks to appreciate and savings to grow. The first few months are the hardest. It seems like nothing is happening. But if you stick with your program, you'll find that in a year or two, your balanced portfolio should be higher than when you bought it, that your savings have, in fact, increased, even if only by a small amount because interest earned is so low. But everything goes in cycles, and that interest rate will go up quickly once inflation comes back. And it will. It most certainly, definitely will.

Sixth, stay low key. Keep your extravagances non-visual. Most of the really wealthy try to stay under the radar. They don't own Lamborghinis or Ferraris. They most likely drive a Chevy. Whatever it is, it's not this year's model. Don't own the biggest house on the block. And keep it for years. Warren Buffett has lived in his house in Omaha since 1958 when he bought it for $31,500. He's doing all right. (For full disclosure: he also owns a home in Laguna Beach, CA. valued at around $4 million and has a private jet. Both were purchased long after he was established as one of the great investors of all time. He still can't justify the jet. He calls it The Indefensible.) When you make billions, you can spend a few million on luxuries. First, hit the billion dollar barrier.

The rich are different from you and me. They have more money. (I know it's Fitzgerald, but it's spot on.) They have more money, most of the time, because they established patterns that allowed them to keep what the made or grew what they were given. Acting rich is hard because it's usually more about sacrifice than extragavance.

- Ted Allrich