Achieving Financial Success

Graduation season is here, and it's a time for new beginnings. Get advice on how to prepare for the real world in our Grad Guide 2008.

Business mogul and best-selling author Dr. Farrah Gray rose from poverty to become an entrepreneur by age 6 and a millionaire by age 14. He founded the Farrah Gray Foundation, which provides scholarships for at-risk youth attending historically black colleges and universities, at age 21. Gray's books, "Reallionaire" and "Get Real, Get Rich: Conquer the 7 Lies Blocking You from Success," focus on helping young people achieve financial success.

Today, he will be taking your questions and offering advice to graduating seniors.

Find more career-related news and advice in our Jobs section.

The transcript follows.

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Farrah Gray: I humbly thank and welcome you to the Dr. Farrah Gray "Get Real, Get Rich: Conquering the 7 Lies Blocking You From Success" discussion.

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Dillon, Mont.: What are the seven lies you reference in your book title?

Farrah Gray:

1. The Born Lucky Lie: I have to be born with connections or a special talent to be rich.
2. The Celebrity Lie: I have to hit it big in entertainment or sports to be rich.
3. The Money Lie: I have to have money to make money.
4. The Debt Lie: I have to have zero debt to be rich.
5. The Microsoft-Gates Lie: I have to be super smart and invent something the world relies on to be rich.
6. The Wall Street Lie: I have to know a lot about the stock market or work on it to be rich.
7. The Work Hard Lie: I have to work hard, pay my dues, and be willing to make sacrifices to be rich.

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Bowie, Md.: Dr. Gray, how exactly did you become a millionaire? I mean, it's so fantastic but seems so unattainable to the average person. I haven't read your book yet. Would you mind sharing some of your secrets?

Farrah Gray: I'm sure to some it may sound unobtainable, but entrepreneurship takes place really for all of us in the lunch room -- I'll trade you your chocolate cookies for my chocolate milk. But, growing up poor, instead of trading I would ask for 50 cents. That was the start of my entrepreneurial spirit. Along the way my millionaire journey, I started selling hand-painted rocks as book ends and door stoppers. A handmade lotion company and I founded a kids business club with my friends who grew up on the Southside of Chicago as I did. In that club, I started to focus on what came natural to me -- which was cooking. So, I developed a strawberry and vanilla pancake syrup after hanging out with my grandmother in the kitchen. She would always say that reading is fundamental. I then was able to put my hands on a book called "From Kitchen to Market" -- I looked up food industry resources and conferences which helped direct me to starting Farr-Out Foods, earning $1.5 million dollars in contracts. I sold the company a year later.

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Washington, D.C.: What paths do you recommend for investing, at what amounts -- from 10K to 100K?

Farrah Gray: As I talk about in my new book one of the secrets that I believe in is to invest in what you know. The problem that people are having is the fact that there are chasing
the most popular investments ("the fad"). When it is more important to get back to basics. There are people who make money in things they understand such as: antique auto collectors, paintings, Barbie dolls and sports collectables.

The value of those types of investments have rivaled Wall Street investments. What has worked well for me and provided a multi-million dollars investment base has been the precious metals and commodiites markets. Check out www.kitco.com and www.monex.com. This investment has worked well for me that I started at a very early age.

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Arlington, Va.: Dr. Gray -- in being such a driven person, how many hours of sleep do you need to feel well-rested?

Farrah Gray: I believe it is important daily to practice what the author Brian Tracy talks about -- The Law of Self-Preservation. You must preserve (take good care of your body; rest and meditate). If you don't have your health... you will not be able to enjoy your hard-earned wealth.

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New York, N.Y.: The best advice you can give any graduate is to live within their means. Do not use credit cards. Do not take out loans unless necessary. Get a roommate, eat ramen noodles, use public transportation -- whatever it takes to stay within your means.

I am 36 years old and am still "paying" -- literally and figuratively -- for my youthful financial transgressions. I figured I could pay it off because I had a good job. But you can't plan for a rainy day or 9/11 or a recession unless you live within (or beneath) your means. And enjoy your youth! Floss. Use sunscreen.

Farrah Gray: Living below your means, MEANS you won't go broke! In this society we use our credit cards that drive us into deby to buy things... as I called them "lie-abilities" what is in style today and go out of style tomorrow. So, it is important to remain disciplined. There is an old saying, "Discipline weighs ounces but regrets weighs tons."

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PG, Maryland: Where are the black female millionaires (Oprah is a billionaire -- love it!), but what advice can you give to females trying to step out on their own and create wealth?

Farrah Gray: In this economy where the media is ducking using the word RECESSION, it is important to identify your area of excellence. Ask yourself these three questions:

1. What comes easy to me, but harder to others?
2. What would I do for years, and years and not be paid for it?
3. How can be of service?

Once you are able to answer those three questions you will find your niche. The world and the marketplace will open up for you, your gifts and your talents. After being a guest on 'Oprah & Friends,' and being featured in O - The Oprah Magazine, I believe that she (Oprah) applied the answers to those questions to her life!

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Odenton, Md.: I have not read your book but as a Washington Post reader and a huge Michelle Singletary fan, I am left wondering how you can say that having debt and becoming rich can work together. There are several finance books out there that talk about your everyday millionaires that get there by living within their means. Are you suggesting some other model?

Farrah Gray: Yes, I am.
Everyone that has developed a business empire has had to borrow money from someone or a financial institution. So, you have to go into debt in order to launch a business. For example, I live in a multi-millionaire high-rise that overlooks Steve Wynn's hotel on the Las Vegas strip, where millions of people visit and admire his hotel where he took out 1.5 billion for Wynn Enterprises. He went into debt with a mission and a business plan to become the most stellar talked about hotel property in Las Vegas. We need to stop fearing debt and embrace debt as a leveraging tool to achieve our dreams, goals and objectives.

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Fairfax, Va.: How far below your means should you live? I don't want to be one of those people who never buy anything and then die and leave it all to my cats... having never enjoyed the fruits of my labor.

Farrah Gray: LOL! I always say that it is up to the individual to define in their lives that they can do without. I encourage people before making a substantial purchase to ask themselves one key question: Do I really need this item/thing? Don't purchase the item/thing -- leave it overnight. Then see it you feel the need to go back the next day, which should be a great test of will. As it relates to enjoying the finer things of life -- take 10% of your income to purchase absolutely anything you want to buy/spend your money on.

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Herndon, Va.: Dr. Gray, do you see real estate as a means to wealth -- even in this housing market?

Farrah Gray: Absolutely! I co-own Realty Pros, a company with Ronald Branch, former president of the National Association of Real Estate Brokers, where we manage and market over $30 million dollars in assets on behalf of some of the largest institutions in the country. I believe the best time to invest in something is when the prices drop and the potential reward becomes higher.

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Paris, France: I am not against making money as this is the system that we live in. However, as someone who has spent my entire adulthood looking into the world's problems, I find the shameless promotion of trying to make everyone very rich, a sad thing. Being good, honest and a caring person is a successful person in my book. Everything else is promoting materialism and selfishness.

So unless you use the vast majority of your riches to make the world a better place, you are going to create a future that will be more materialistic and greedy.

Farrah Gray: I totally agree with you! The name of my first book was "Reallionaire: 9 Steps to Become RICH from the INSIDE Out." I believe that what you're saying has become obvious with Cable/TV shows like "Entertainment Tonight," "Access Hollywood" and "TMZ TV," which have shown celebrities that have built more in their outer world than they have in their inner world... they end up going on a mission of self-destruction! I think the answer lies within my grandmother's words, "The positive seeds you plant today will be harvest tomorrow."

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Washington, D.C.: Hello. Once we (hopefully) land jobs, we should learn proper ways of saving and investing for the future. Do you know of any local organizations that provide personal finance seminars or investing seminars? I think these seminars should relate to managing your 401K and other retirement funds, as well as investing on your own for someone with limited experience.

Farrah Gray: Visit my Web site: www.getrealgetrich.com offers a plethora of resources and links that I recommend highly for your research purposes.

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Capitol Heights, Md.: Hello Dr. Farrah! I have so many questions, but I won't take up your time, and thanks for the chat. My daughter Tiffanee will be graduating in 2009. I've guided her through so many things all her life, but recently she seems to not want any help from me. It seems most kids today are just anxious to just be graduating. I guess I have to let her find her way, and it's hard for me to not make the decisions for her. (I still give suggestions though.) If she was your audience right now, what would you say to her? Thank you, in advance.

Farrah Gray: I would encourge your daughter in the beauty of her dreams. But, to value the sage wisdom that comes from her mother. I know this situation may be very difficult for you. Khalil Gibran once said, in his book "The Prophet":

"You may give them your love but not your thoughts,
For they have their own thoughts.
You may house their bodies but not their souls,
For their souls dwell in the house of tomorrow,
which you cannot visit, not even in your dreams.
You may strive to be like them,
but seek not to make them like you.
For life goes not backward nor tarries with yesterday."

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Bethesda, Md.: Mr. Gray, I was a very good friend of your mother's when she lived in Los Angeles, but I lost touch with her when she moved back to Chicago. I am so happy to hear of your success. May you continue to inspire other young people... and some old ones, as well.

Farrah Gray: I will be pleased to forward any communication to my mother,
please go to the Contact page of www.drfarrahgray.com and email Thomas Michaels at tmichaels@farrahgrayfoundation.org. Thank you for your words of endearment.

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Farrah Gray: Thank you to the readers who participated in this discussion. Feel free to email me in the future at fg@farrahgrayfoundation.org.

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Editor's Note: washingtonpost.com moderators retain editorial control over Discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions. washingtonpost.com is not responsible for any content posted by third parties.