Secrets of Self Made Millionaires

When you think “millionaire”, what image comes to mind? For many of us, it’s a flashy ’80s entrepreneur who flies a private jet and lives the kind of decadent lifestyle that most of us can only dream about.

But many modern millionaires live in middle-class neighbourhoods, go to work and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring.

“For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of

Secrets of the Millionaire Mind. Wealth means you can send your child to any school or leave a job you don’t like.

According to the 2008 World Wealth Report, more people are living the good life than ever before. There are 22,000 New Zealand millionaires – and most of them are self-made. This year’s NBR Rich List found our top 178 wealthiest people are worth a total of $44.4 billion, compared with $38.6 billion in 2007. If more people are getting richer than ever, why shouldn’t you be one of them? Here, four people who have at least a million dollars in liquid assets share some of their secrets.

1. No guts, no glory
Many of us dream of becoming our own boss but rarely spot an opportunity to do so, and this desire is what prompted Annah Stretton, 48, to take a risk.

Twenty years ago, Stretton was working as a product sourcer for a clothing company. She flew around the world, spotted fashion trends, brought samples back to New Zealand and sold redesigned replicas in bulk to department stores. “I was really good at it,” she says. “I knew how to pick styles and wheel and deal.”

Then when the opportunity arose, Stretton decided to set up her own wholesale clothing business. She converted buildings on her family’s Tatuanui farm and her father guaranteed an overdraft of $30,000. Stretton then got busy contacting business connections and, before long, started to get orders – her first being for 20,000 dresses. “It was a hell of a task for one woman sitting on a farm,” says Stretton. “But I never doubted I could do it.”

There were times when Stretton couldn’t make her monthly payments, but she communicated with her creditors, telling them why and when she’d have the money: “I was very upfront with them.”

By the end of its first year of trading, Stretton Clothing Company had turned over $1 million. Stretton was too consumed with the business to enjoy her success. She worked hard, driving around in her Mitsubishi L300, sourcing fabric and visiting customers.

But as the Asian import market started to grow, many of the big retailers began buying through their parent companies rather than independently for the New Zealand market. “I wasn’t prepared to follow the same path,” says Stretton.

To strengthen her business, she broadened her product line and launched a boutique-collection line of clothing, Sam & Libby. Stores were paying a wholesale price of about $40 a garment and selling them for about $180. Eventually, Stretton decided to open her own boutique. “I planned to go into rural areas that were fairly affluent, and offer them services that they would expect from a city store, such as a quality tailor and exciting visuals.”

Within two years, she had seven stores. Today, there are 32 Annah S. and Annah Stretton stores in New Zealand, her company exports to around 150 boutiques throughout the world and generates over $10 million revenue a year.

As her business grew, so did Stretton’s public profile; she started writing a monthly column in Her Business magazine. One day, the editor e-mailed saying the future of the magazine was uncertain, cheekily adding, “You don’t want to buy it, do you?”

Stretton made the snap decision to do precisely that. “I didn’t know much about publishing but I quickly became passionate about it,” says Stretton. Her publishing company now produces three magazines.

Today, the mother of two runs both of the companies, is heavily involved in charity fundraising and mentors women on how to succeed in business. Stretton’s top tip: “If you don’t love what you are doing – get out and find something you do!”