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It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality. Here are 10 secrets of millionaires' money management:

Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.

Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.

Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."

Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.

Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it.

Work hard--and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."

Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.

Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it.

[For more, read: "Juggling Your Money in the Recession."]

Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.

Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.

Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.

[For more, read: "How to Go Broke Like a Rock Star."]

On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.

Democrats are using Rush Limbaugh to raise money. AP Photo by Ron Edmonds

A number of Democratic candidates and committees are using the controversial remarks made by conservative-talk radio host Rush Limbaugh about President Obama to raise money and recruit volunteers to their causes.

In an email sent to supporters late Thursday and entitled "Kowtow," Democratic Senatorial Campaign Committee executive director J.B Poersch writes, "when Rush says jump, congressional Republicans say how high?" and urges recipients to sign a petition condemning Limbaugh's behavior and calling on Senate GOPers to "declare their independence" from him.

A similar missive came out of the Democratic Governors Association as well. "Did you hear what Rush said?" writes DGA executive director Nathan Daschle, adding that Limbaugh and his acolytes will do everything they can to block the implementation of Obama's economic stimulus plan. The best way to stop Rush? Why, send money to the DGA of course.

And, the Democratic National Committee is raising money to sponsor a billboard in Limbaugh's hometown to "send him a message", according to an email sent by DNC executive director Jen O'Malley Dillon.

The appeals by the DNC, DSCC and DGA are the latest but far from the only evidence of how Democrats are seeking to use Limbaugh's comments as a cudgel against Republicans. Former Democratic National Committee Chairman Terry McAuliffe, who is running for governor in Virginia, sent a letter to state Attorney General Bob McDonnell, the GOP nominee, calling on him to renounce Rush, and followed that up with an email petition drive aimed at pressuring McDonnell to "prove" his bipartisan credential by casting Limbaugh off the Republican island.

"Bob McDonnell says he knows how to work across party lines," said Mo Elleithee, a consultant to McAuliffe's campaign. "He can prove it by showing that he is willing to stand up to the de facto head of his party and repudiate his divisive rhetoric."

The appeal of these appeals is obvious for Democrats. As popular as Limbaugh is among the conservative base, he is equally reviled among liberal Democrats -- the very same group that is most likely to give money or donate their time to a candidate or committee.

While neither the DGA nor the DSCC would discuss what sort of response -- financial or otherwise -- their email petitions have received, one source familiar with the DSCC effort said it was on pace to rival a similar email sent out after then President George W. Bush commuted the sentence of former Cheney chief of staff Scooter Libby, who was convicted of obstruction in the Valerie Plame leak investigation.

In the end, this may be the lasting impact of Limbaugh's raised profile in the national political debate. It's highly unlikely that any candidate will win or lose in 2010 as a direct result of Limbaugh but the indirect effect on Democratic fundraising, organizing and base-rallying could be sustained and significant.

Obama in Ohio: President Obama jets to Columbus, Ohio today to speak at a police officer graduation. The idea is to tout the economic stimulus plan as some of the money sent to the Buckeye State was used to retain these new graduates rather than let them go.

Friday Must-Reads: Scanning the world of news for the best and brightest.

1. After a one day respite on Wednesday, the Dow continues its plummet.
2. The White House launches a new website (www.healthreform.gov) and announces a series of town halls to sell the public on the need for healthcare reform.
3. The man who beat, and subsequently lost to, Connecticut Sen. Joe Lieberman (I) is mulling a run for governor in 2010.
4. Politico.com commander in chief John Harris steps down from on high to pen an interesting piece on the uncertain future of the Democratic Leadership Council.
5. The Obama Administration is no longer "Paging Dr. Gupta."

DCCC Weighs in on NY-20: Keep an eye on the Albany media market today and you just might catch the first ad paid for the by the Democratic Congressional Campaign Committee's independent expenditure arm. With a little over three weeks remaining in the special election race between state Assemblyman Jim Tedisco (R) and businessman Scott Murphy (D), the DCCC will weigh in -- seeking to use their financial might to overcome the efforts of the National Republican Congressional Committee for Tedisco. GOP strategists have privately fretted about the DCCC's continuing financial edge and how they might bring it to bear in this race. No details on the extent of the ad buy yet but Democrats want to keep this Upstate seat in their column to keep up the momentum built last fall.

Twitter Drive: As of yesterday, we are nearing 7,750 followers. The goal is 10,000. Perhaps a giveaway of a few Fix T-shirts would do the trick? Tell your friends. Tell your enemies. Sign up to follow "TheFix" and "TheHyperFix."

McCain Mafia Reunites: John McCain's presidential campaign is over but four men who were intimately involved in that effort have banded together to form The Trailblazer Group, a GOP consulting firm based in Alexandria, Va. The four founding partners are: Craig "Goldy" Goldman, who ran McCain's Straight Talk PAC and served as a regional campaign manager during a portion of the general election; Christian Ferry, deputy campaign manager for McCain; Doug Davenport, a regional campaign manager who stepped aside last May due to his lobbying ties; and Ryan Price, the deputy national political director of McCain's presidential bid. "We are pleased to be able to offer our clients a public affairs business model that allows us to work both inside the beltway and in all the 50 states to best represent their needs," said Goldman.

The Clown is Back: For all of those (like the Fix) who mourned the departure of Krusty Conservative from the Iowa blogosphere, the time to rejoice is now. Krusty along with a passel of other GOP bloggers has re-formed under the umbrella of The Iowa Republican. Bookmark it. You'll thank us when presidential caucus season rolls around.

More Charlie Pics!: For those of you who have wanted to see a few more shots of the latest addition to the Fix family (and who wouldn't?), check out this and this.

Say What?: "It really is an honor to have him here and I know for some of my staff, and for bragging rights to my children and my grandchildren, a real treat for me as well." -- Speaker of the House Nancy Pelosi (Calif.) gushes, er, introduces actor Brad Pitt on Capitol Hill Thursday.

According to the White House plan to aid General Motors and Chrysler with money drawn from the $700 billion fund voted by Congress, Treasury Secretary Henry Paulson will temporarily oversee loans to the two ailing auto giants.

After Jan. 20, President-elect Obama will need to choose his own more permanent overseer. This person, identified as "the president's designee" in the failed Auto Industry Financing and Restructuring Act, is now widely referred to as the "car czar."
 

The imagery and reality of a car czar is fraught with problems. First of all, under what authority will this person be able to orchestrate sacrifices required by the carmakers, United Auto Workers, bond holders, and suppliers to make the loan recipients economically viable and competitive by March 31? It is by no means clear what power, apart from personal suasion, such a person would have to resolve disputes and align interests among key stakeholders during the coming months.

Furthermore, arriving at a plan for economically viability by March 31, as stipulated by the White House, will not save loan recipients from bankruptcy unless the financial community judges the carmakers' debt to be commercially bankable. This final and most important judgment is not for the car czar, the White House or even Congress to make.

So, with little formal authority to force changes in a 50-year-old business model and an extremely limited role in certifying the economic viability of business plans submitted by loan recipients, how can the car czar truly be a czar?

What's even more problematic is that the concept of a bridge-loan program with or without a car czar has a dream-like quality in the absence of an economic stimulus program that gets fast traction and an immediate increase in the availability of consumer credit.

Unless the volume of car and truck sales recovers to the industry's current break-even point of 14.5 to 15 million units per year from its current run rate of around 11 million units, the Big Three cannot remain solvent--czar or no czar. There is no near-term financial problem facing General Motors (nyse: GM - news - people ), or any other automaker, that a surge in volume wouldn't cure.

Suleman Ali needed a change. So, in mid-2007, he left his programming gig at Microsoft to start a company--any company. On a whim, he wrote an application for Facebook, the social networking Web site, called Superlatives, which lets visitors rate their friends as the smartest, best-looking and such. It immediately caught fire.

"I basically started building it out of boredom, and people started noticing it three days after I launched it," says Ali. So did interested suitors: Nine months later, the 26-year-old sold his hobby-cum-enterprise, called Esgut, to Palo Alto, Calif.-based Social Gaming Network for "several million dollars" (he's not allowed to share the exact purchase price).

For all the troubles in the economy, the Internet continues to be a hotbed of innovation, entrepreneurship and, as development costs continue to decrease, stiff competition. Some of the most lucrative ideas have yet to hit the drawing boards. "I could almost make the case that the idea you think is really stupid is [the one that will] succeed," says Guy Kawasaki, partner at Garage Ventures.

In Pictures: Nine Ways To Make Money Online

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Ali financed Esgut, with an eight-employee roster, by selling advertising that runs alongside its applications. By the time he sold the business, the company's six apps had attracted some 14 million unique users. Now Ali is ready for round two. Despite the downturn, the young entrepreneur says he's in "brainstorming" mode with a high school friend and MIT graduate.

In Pictures: The Stimulus Cities

As part of his plan to revive a flailing economy, President-elect Barack Obama recently pledged to "Create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s."

His plan would include potentially hundreds of billions of dollars for infrastructure projects. And while economists debate whether this is the most effective form of fiscal stimulus, the mayors of the nation's cities line up at the trough. Schools, roads, rails, pipes and airports? Can we have some more, sir?

Even by Washington standards this would be a once-in-a-lifetime spending spree on projects that would be called pork in less-prodigal times. Cities across the country are ready to pig out.

On Dec. 8, just two days after Obama's pledge for massive infrastructure spending, the U.S. Conference of Mayors released an 803-page report--a wishlist of some 11,391 infrastructure projects they would love to press ahead with.

Talk about a dream scenario. Build all those projects, do it with federal money, say you're rescuing the economy with the spending and, since it's not your local taxpayers' money, don't even stress too much about whether or not the project's cost effective.

Give the money to banks or individuals and they might just horde it. Give it to states or the federal government and it will get stuck in the bureaucracy. But give it to the cities and they'll spend, says Miami Mayor Manny Diaz, the president of the Conference of Mayors. (Not that the governors are sitting idly by--they have $136 billion in plans they'd like to initiate.)

In January, President George W. Bush will join the growing ranks of the nation's unemployed. And though he's guaranteed a presidential pension that will approach $200,000 next year--and has his family's oil fortune to fall back on--being an ex-president can often be a boon.

In Pictures: Out Of Office, In The Money

Between speeches, book deals, consulting arrangements and sitting on myriad corporate boards, ex-presidents stand to make far more than the $400,000 annual salary they earned while in office.

How much will Bush make in the coming years? It's difficult to say. He'll surely be able to earn a few million dollars giving speeches at an estimated $100,000 a pop to right-leaning think tanks and advocacy groups.

But Bush likely won't come close to the megabucks President Clinton has banked since leaving office. The reason: With his approval ratings below 25%, Bush is being advised to hold off on signing a multimillion-dollar book deal--the linchpin of any former president's money machine.

"There's just a little bit too much animosity [toward Bush] right now," says literary agent Harvey Klinger, adding that, with time, more people will be interested in the president's introspection.

Klinger says it's likely that first lady Laura Bush will write her memoirs first. She reportedly has been entertaining publishers at the White House to discuss a possible book deal, which will likely fetch at least $5 million. Hillary Rodham Clinton received an $8 million advance for her 2003 memoir, Living History, which focused largely on her years in the White House.

Kim Witherspoon, founder of literary agency InkWell Management, who has represented Anthony Bourdain, Cindy Crawford and Lionel Shriver, says there is no doubt that Bush will get a book deal if he wants one.

The bond market is bracing for deflation, yet inflation looks like the greater threat. Our advice: Buy TIPS.

Helicopter Ben Bernanke is showering money on the economy. What will it wreak?

The economic numbers are scary. October car sales were off by a third. Retail revenues (before subtracting inflation) fell 4.1% from a year earlier. Housing starts are at their lowest level in at least a half-century. About the only things that seem in high demand are "For Sale" signs and that perennial recession staple: spam.

At first blush it looks as if the "D" word is upon us. Not "depression" but "deflation"--the vicious phenomenon in which falling spending begets wage and price cuts, which beget further spending cuts in a debilitating downward spiral. That, anyway, is what the bond market is suddenly signaling (see chart).

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A year ago investors priced Treasury Inflation-Protected Securities based on the expectation that consumer prices would rise 2% a year over the next half- decade. These days five-year TIPS are yielding 0.5 percentage points more than five-year Treasurys, implying prices will fall 0.5% annually. The last time U.S. prices fell consistently was in the midst of the Great Depression.

If prices merely flatline for a few quarters they could ignite "waves of bankruptcies," says Joseph Stiglitz, the Nobel Prize-winning economist. That's because many firms went into debt counting on a whiff of inflation to bail them out. Commercial real estate investors, for example, made heavily leveraged investments assuming they could hike rents. Deflation would turn such plans into financial disasters.

Merrill Lynch (nyse: MER - news - people ) chief economist David Rosenberg expects prices to fall at an annualized 1% or 2% a year from now, and lays 50-50 odds the drop will continue through the first half of 2010.

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"It's going to be a very steady and significant decline," Rosenberg says. "You have deflation in commodities, labor markets, assets and credit."

His advice: Buy zero coupon 30-year Treasurys, which have been rising sharply as the economy slows. Rosenberg's is a cogent case in view of recent data. But the danger is that this bull market in Treasurys is about to end. Inflation might replace deflation. If that happens, those zeros will get clobbered.