Building wealth is a lifetime process. Use Insurance to protect your hard work from danger. Building your fortune is like a game. Play good offense (make a lot of money) and good defense (spend little and protect what you have). … [Read more...] about Step 18: Carry adequate insurance
Archives for August 2024
Step 17: Learn about money
People have been taught that talking about money is rude. Ignore them. Start talking about money. Why? Because it's the best way to learn about money. And you need to make learning about money a life long goal. Never stop. Learn all you can about it - if you want to be come wealthy. … [Read more...] about Step 17: Learn about money
Step 16: Maximize Income from all sources
Get as much education as possible – meaningful education leads to higher salary. Manage your career like an asset to maximize your income. Maximize and protect your career - which is your biggest asset. ? … [Read more...] about Step 16: Maximize Income from all sources
Step 15: Create Multiple Sources of Income
The biggest risk one can make is having a singly source of income. If something happens to that "job" you have no income at all. Diversifying is not just for investing. It's also for income generation. … [Read more...] about Step 15: Create Multiple Sources of Income
Step 14: Suppress your realized income
Step 13: Invest savings aggressively in appreciating assets
An asset should provide low risk, positive cash flow. The best assets (most passive) do this with little to no work from you. 1. Stocks & bonds. 2. Real estate / rental property. 3. Small business. Start here, and branch out judiciously. … [Read more...] about Step 13: Invest savings aggressively in appreciating assets
Step 12: Save
Regular saving is the key to a successful retirement. Even more generally, regular saving is the key to building wealth. Period. Full stop. Do it early and often, and it can be relatively painless. Wait until the last minute, and you will be in trouble. … [Read more...] about Step 12: Save
Step 11: Building an Emergency Fund
The common advice on emergency funds, in my humble opinion, is completely wrong. You need to customize your emergency fund to your very specific needs, that are almost as unique as your fingerprint. Here's how I think we go about figuring out how big out safety net needs to be. … [Read more...] about Step 11: Building an Emergency Fund
Step 10: Eliminate Debt (Minimize Liabilities)
Debt is a tricky subject. It's a tool. And like all tools, it can be incredibly useful, or incredibly dangerous. for almost all situations, and for almost all individuals, the best options is to limit or eliminate borrowing of any kind. Get and stay out of debt. Eliminate credit card debt:Practice responsible credit card use. You need only one or two credit cards. Credit … [Read more...] about Step 10: Eliminate Debt (Minimize Liabilities)
Step 09: Compare Purchases to True Hourly Wage
Determine your True Hourly Wage – Tax and Location Adjusted. This is a basic business metric every business tracks – and you should too. … [Read more...] about Step 09: Compare Purchases to True Hourly Wage
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