4 Laws To Generate Wealth
.4 Laws To Generate Wealth
By The Money Mix
Want to generate wealth? Play by the rules.
Have you ever come across the phrase – ‘play by the rules’? It’s perhaps the most powerful phrase in the world we live in. Why? Because the world itself is in existence because it plays by some specific rules.
All-natural laws are just what they are; they are not there for us to judge their fairness or otherwise. The best we can do is to take advantage of them and be a blessing to ourselves and our generation.
If you want to generate wealth, for whatever reason you might need it for, these laws should be your best companion.
I have compiled these four laws because of the evergreen nature, and if they are considered with a kin eye, you are on your way to wealth.
4 Laws To Generate Wealth
By The Money Mix
Want to generate wealth? Play by the rules.
Have you ever come across the phrase – ‘play by the rules’? It’s perhaps the most powerful phrase in the world we live in. Why? Because the world itself is in existence because it plays by some specific rules.
All-natural laws are just what they are; they are not there for us to judge their fairness or otherwise. The best we can do is to take advantage of them and be a blessing to ourselves and our generation.
If you want to generate wealth, for whatever reason you might need it for, these laws should be your best companion.
I have compiled these four laws because of the evergreen nature, and if they are considered with a kin eye, you are on your way to wealth.
The Great Law To Generate Wealth – Law Of Saving
Unto he who continues to keep not less than 10% of his income shall more income visit, and from he who keeps no such store shall fresh income avoid, and even the little that struggles to get to him shall be quickly removed and given to he who keeps the store.
Gentle words fall lightly, but they have great weight!
We already know that more leads to more, and that loss lead to more losses until something drastic stops the trend. If you want to generate wealth seriously, you must be careful with our saving plans, why we must not lose the momentum.
The Law of Income According To Earl Nightingale
This states that all money that will come to you as an individual, group, state, company or nation, all income hinge on demand for what you do, how well you do it and the difficulty of replacing you.
From this, you can infer that as you improve your earning capacity by taking in more useful information and motivation, you earn more.
To continue reading, please go to the original article here:
Why Wealth is Only Half the Story
.Why Wealth is Only Half the Story
By Max From The Money Mix
When financial freedom is mentioned, what comes into your mind?
You probably think of having plenty of material wealth and possessions, perhaps.
Well, that’s just not the whole story. I will let in on a secret that most people miss. Financial freedom is not just about attaining plenty of monetary possessions, it’s more than that.
Financial Freedom Secret
A majority of people make the mistake of tagging their value of financial freedom on some imaginary figure or a specific amount of money. They envision that, once they hit that target amount, then they will have attained financial freedom and will no longer have to work again.
Well, think about the likes of Bill Gates, Warren Buffet and other fellows who are wealthiest in the world. The money they have can sustain them for their entire life. But, they still work, however, their motivation is now different.
Why Wealth is Only Half the Story
By Max From The Money Mix
When financial freedom is mentioned, what comes into your mind?
You probably think of having plenty of material wealth and possessions, perhaps.
Well, that’s just not the whole story. I will let in on a secret that most people miss. Financial freedom is not just about attaining plenty of monetary possessions, it’s more than that.
Financial Freedom Secret
A majority of people make the mistake of tagging their value of financial freedom on some imaginary figure or a specific amount of money. They envision that, once they hit that target amount, then they will have attained financial freedom and will no longer have to work again.
Well, think about the likes of Bill Gates, Warren Buffet and other fellows who are wealthiest in the world. The money they have can sustain them for their entire life. But, they still work, however, their motivation is now different.
What drives and motivates them to do the things they do is something totally different from just the need for money. They still work to probably make the world a better place, to get recognition, to build a legacy among other forms of motivation. There are numerous quotes about financial freedom. Warren Buffet once said, “Someone is sitting in the shade today because someone planted a tree a long time ago”.
Investing for a long-term impact should be the driving force.
So, why is wealth only half the story? Let’s look at some basics of wealth.
The Basics of Wealth
Wealth and possessions are just one among many other means to financial freedom. Economically, wealth represents a person’s net worth and financial position. It is obtained using a personal financial ratio where the total liabilities are deducted from the total assets. Wealth is categorized into three categories which include personal property, monetary savings and capital wealth.
Personal property includes tangible items such as the automobiles, houses, the monetary savings include an accumulated past income and capital wealth includes the value of the income-producing assets.
Wealth can provide some form of safety net or protection against the unforeseen decline in the individuals’ living standards in the event that they lose their job or has another form of financial emergency.
Wealth is a compilation of things that are limited in supply, are transferable and can be useful to meet certain human needs. Therefore, scarcity forms a key factor in wealth. Wealth is considered an accumulation of something that is scarce and a resource with net asset value.
When you have the abundance of these resources, you will not have to worry about the money you need to meet your physical needs. However, it is still possible to feel inadequate once you obtain the amount of money you’ve always figured. Wealth can help you meet various physical needs such as shelter, clothing, food, but does it really help meet all human needs?
Let’s see how you can achieve financial freedom in relation to diverse human needs:
Human Needs and Achieving Freedom
To continue reading, please go to the original article here:
The Things People Say About Money
The Things People Say About Money
And What to do About It — So Your Voice is Heard
Sherry Parks
I remember it as clearly as if it happened yesterday. I was right in the midst of my accounting career and was working my way up the ladder. At that point, I had already received several pay increases and promotions.
I was out shopping with my mom and I don’t remember exactly what we were talking about, but I do remember my mom’s words. She came out with this zinger:
“If you can’t live on $25k per year, then something is wrong with you”. Let me tell you, this wasn’t in the 70’s or 80’s. This was in the 2000’s. A time when the average annual income was between $45 and $50k.
I chose to ignore her statement. I was already making more than double that amount and I wasn’t prepared to share that with my mother. In fact, I was a little bit afraid of telling her.
What would she expect of me? What would she think of me? What would her judgments of me and my lifestyle become?
This is one conversation that has never left me. Not because it was a big emotional scene. Not because I received specific judgment on me personally. I think it was because I needed to remember that moment.
I’ve already shared that I made a decision as a teenager that I wasn’t going to live in constant struggle with money. You can read more about that here. I was clear that $25k per year wasn’t enough.
I was determined to feel good about money and that meant that more would have to flow into as well as back out of my life in order for me to have ease with money.
The Things People Say About Money
And What to do About It — So Your Voice is Heard
Sherry Parks
I remember it as clearly as if it happened yesterday. I was right in the midst of my accounting career and was working my way up the ladder. At that point, I had already received several pay increases and promotions.
I was out shopping with my mom and I don’t remember exactly what we were talking about, but I do remember my mom’s words. She came out with this zinger:
“If you can’t live on $25k per year, then something is wrong with you”. Let me tell you, this wasn’t in the 70’s or 80’s. This was in the 2000’s. A time when the average annual income was between $45 and $50k.
I chose to ignore her statement. I was already making more than double that amount and I wasn’t prepared to share that with my mother. In fact, I was a little bit afraid of telling her.
What would she expect of me? What would she think of me? What would her judgments of me and my lifestyle become?
This is one conversation that has never left me. Not because it was a big emotional scene. Not because I received specific judgment on me personally. I think it was because I needed to remember that moment.
I’ve already shared that I made a decision as a teenager that I wasn’t going to live in constant struggle with money. You can read more about that here. I was clear that $25k per year wasn’t enough.
I was determined to feel good about money and that meant that more would have to flow into as well as back out of my life in order for me to have ease with money.
And that decision moved me to a place where what my mom’s personal belief about money didn’t matter. I was secure in my belief that money could and would be easy for me.
But here’s the thing, we all have family or even friends who say things about money that could potentially keep us stuck.
Fear of judgement.
Fear of loss of loved ones.
Fear that we won’t fit in anymore.
Fear that we will leave them behind.
When we hold onto those fears, we do stay stuck. When we listen to what they say and buy into their beliefs, those things can hold us back and keep us from truly experiencing what we want for our money and our lives. Today, I’m sharing a few of my favorite tips for helping you to lean into your own beliefs and create the life you want.
Get really clear. Before you can even start creating the money and life you want, you have to get really clear on WHAT you want. It can’t just be something like: “I want enough money to pay my bills”. It has to be so clear that a 3rd grader can understand it.
Something more like: “I need $3k per month to pay my bills, I also need $1k per month for giving and saving and I need $500 per month for my personal enjoyment.”
This is 100% clarity about how much money you want flowing into your life. Anything less than that allows rooms for others to influence you.
Decide. I know I’m always using this one, but honestly, decision has been the biggest factor in changing my money path. Once I decided, there was no other choice but to create what I wanted.
You need to decide what you are going to stand for and put up with in your money life. Are you going to allow others to dictate the amount of money you have? Are you going to allow others to judge you for wanting more?
To continue reading, please go to the original article here:
https://medium.com/thrive-global/the-things-people-say-about-money-1370963a2fbb
Why You Should Buy Travel Insurance
.Why You Should Buy Travel Insurance — Even if Your Credit Card Offers It For Free
By Holly Johnson. 18 October 2019.
Travel is never cheap, and that's especially true if you're flying to a destination far from home. For that reason and plenty of others, savvy consumers tend to pay for travel insurance before they even head to the airport.
With a travel insurance plan, you can buy coverage that will reimburse if you if your trip is canceled or delayed for a covered reason beyond your control. You can even purchase "cancel for any reason" policies that let you back out of your trip any time you want.
Other inclusions travel insurance policies offer include medical coverage, baggage delay coverage, lost luggage insurance, travel accident insurance, and more.
Why You Should Buy Travel Insurance — Even if Your Credit Card Offers It For Free
By Holly Johnson. 18 October 2019.
Travel is never cheap, and that's especially true if you're flying to a destination far from home. For that reason and plenty of others, savvy consumers tend to pay for travel insurance before they even head to the airport.
With a travel insurance plan, you can buy coverage that will reimburse if you if your trip is canceled or delayed for a covered reason beyond your control. You can even purchase "cancel for any reason" policies that let you back out of your trip any time you want.
Other inclusions travel insurance policies offer include medical coverage, baggage delay coverage, lost luggage insurance, travel accident insurance, and more.
Many consumers lean on the free travel insurance their credit cards provide — and that can sometimes make sense. After all, premier travel credit cards offer most of the coverage you get with a travel insurance policy for free. And if you can get insurance for free, why pay for it?
The reality is, there are a ton of reasons to buy travel insurance even if you get some coverage with a credit card. Here are a few of the most important details to consider as you plan your next trip.
Pay For Sufficient Medical Coverage
Even though travel credit cards are pretty good about offering perks like trip cancellation/interruption insurance and baggage delay coverage, they're notoriously bad when it comes to offering medical coverage. That's a real problem if you're traveling to a destination where your own health insurance coverage won't work, such as any trip abroad.
With travel insurance, however, you can buy a policy that offers a much higher limits for medical expenses. It wouldn't take long to rack up huge medical bills if you wind up in the hospital due to illness or broken bones during your trip, but you can protect yourself with adequate travel insurance coverage that includes coverage for medical bills. (See also: How Emergency Medical Coverage Could Save Your Vacation)
You Need Medical Evacuation Coverage
To continue reading, please go to the original article here:
https://www.wisebread.com/why-you-should-buy-travel-insurance-even-if-your-credit-card-offers-it-for-free
5 Reasons Not to Use Debit Cards When You Shop Online
.5 Reasons Not to Use Debit Cards When You Shop Online
By Holly Johnson 18 October 2019
Many consumers use their debit cards for everything they buy. Using debit instead of paying with a credit card can help you avoid the potential for debt. The money is taken out of your bank account directly and immediately, so there’s little chance to spend more than you have, unlike using a credit card.
But when shopping online, there are reasons to consider using a credit card instead.
Using a debit card for online purchases can mean enduring greater losses if you're a victim of fraud. Plus, you're giving up valuable consumer protections and rewards each time you make a purchase with debit in a store or online.
Here are all the reasons you may want to stop using debit and use a credit card instead.
1. You May Be Putting Yourself At Risk For Fraud
It's easy to assume you won't be liable for fraudulent purchases made with your debit card or checking account number, but this isn't the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don't apply to transactions made with a debit card.
In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don't notice or report it in time, you won't have any way to get your money back.
5 Reasons Not to Use Debit Cards When You Shop Online
By Holly Johnson 18 October 2019
Many consumers use their debit cards for everything they buy. Using debit instead of paying with a credit card can help you avoid the potential for debt. The money is taken out of your bank account directly and immediately, so there’s little chance to spend more than you have, unlike using a credit card.
But when shopping online, there are reasons to consider using a credit card instead.
Using a debit card for online purchases can mean enduring greater losses if you're a victim of fraud. Plus, you're giving up valuable consumer protections and rewards each time you make a purchase with debit in a store or online.
Here are all the reasons you may want to stop using debit and use a credit card instead.
1. You May Be Putting Yourself At Risk For Fraud
It's easy to assume you won't be liable for fraudulent purchases made with your debit card or checking account number, but this isn't the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don't apply to transactions made with a debit card.
In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don't notice or report it in time, you won't have any way to get your money back.
According to the Federal Trade Commission (FTC), your level of liability depends on when you notice the fraud and report it. For example, if you report fraud within two business days after it's noticed, you're only liable for up to $50 in losses.
If you report fraud within two to 60 days of your statement being mailed to you, you're only liable for up to $500. If you fail to report fraud once it's been 60 days from the date your statement was mailed to you, the FTC notes that you could lose "all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account."
2. You're Missing Out On Rewards
In addition to putting yourself at risk for fraud, there are plenty of ways you're missing out when you shop online with a debit card. For example, you could be earning cash back or travel rewards if you made the same purchases with a rewards or travel credit card. These rewards can add up quickly, making it easier to see the world or splurge on merchandise, gift cards, and more.
While you can typically earn 1% to 3% back with a rewards or travel credit card, you can also double up on rewards by shopping through a cash back, travel rewards, or airline portal. You can also shop in portals with a debit card in some cases, but you'll mostly be limited to earning airline miles or cash back. (See also: How to Use Airline Shopping Portals to Cash In On Rewards)
3. You Won't Earn Any Sign-Up Bonuses
To continue reading, please go to the original article here:
https://www.wisebread.com/5-reasons-not-to-use-debit-cards-when-you-shop-online
What a Financial Trainwreck Can Teach Us
.What a Financial Trainwreck Can Teach Us: Six Mistakes to Learn From
By Donna Freedman
Debt Management Family Getting Started
What A Financial Train Wreck Can Teach Us
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
What a Financial Trainwreck Can Teach Us: Six Mistakes to Learn From
By Donna Freedman
Debt Management Family Getting Started
What A Financial Train Wreck Can Teach Us
A married couple recently confessed to some horrifying money blunders in an interview on the WealthSimple website. In their mid-40s and the parents of three kids, the pseudonymous Kate and Tom bring in $160,000 a year through their day jobs in insurance, with additional funds whenever Tom moonlights as a bartender for private parties.
Yet they have always spent more than they earned, and cannot seem to learn from previous mistakes. A few examples:
After wiping out their credit card balances a decade ago, they charged them back up even higher.
They have postponed paying back Kate’s law-school loans, which are now up to either $120,000 or $140,000 (she isn’t sure – and incidentally, she has never practiced law).
They spend “insane amounts” of money on groceries at places like Whole Foods (where one of their kids likes to snack on $15 sushi).
They bought their son a tux at prom time, because they couldn’t afford the rental fee but hadn’t yet maxed out the Nordstrom card.
Clearly this couple is a financial trainwreck. But they have something to teach us, if we’re willing to listen.
It’s easy to scorn the protagonists as entitled or clueless. You’d never be that foolish. You’d never go into debt, get yourself out, and then go back in. You’d never borrow from family members, or cash in a 401(k), or use a credit card to put your kids in private school.
Maybe you wouldn’t. Or maybe scorning other people’s mistakes keeps you from having to look too hard at your own behaviors.
If you’ve absolutely got a lock on your dollars, good for you. But keep in mind that all across the country, otherwise intelligent and rational people are spending more than they earn.
Losing Sight of What Matters
Some debtors have little choice. For example, someone going through a serious health issue or a protracted divorce can’t just check out of the ICU early or stop paying for legal representation.
Others, like Kate and Tom, have simply lost sight of the big picture in favor of short-term gratification: sushi, private school, a big house in a nice neighborhood.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/what-a-financial-train-wreck-can-teach-us/
5 Money Conversations Every Couple Should Have
.5 Money Conversations Every Couple Should Have
By Ashley Marcin
Did you know that the secret to a healthy relationship maybe hiding in your wallet? No, money can't buy you love, but talking about the dollars you have may make a lot of, well, sense. In a recent study, researchers discovered that lack of communication about money leads younger couples to both arguments and added stress.
Here are some financial discussions worth having, especially if you share the bulk of your expenses. Heck, they may even bring you closer together!
1. Where Is Our Money Going?
Have you sat down with your partner to really dig into your bank accounts lately? It may be a good idea, especially if you hope to spend many Valentine's Days together. A national survey conducted by Money Magazine revealed that 70% of couples fight about money matters more than they do about chores, sex, snoring, and togetherness.
What's high on their hot points? Frivolous spending.
5 Money Conversations Every Couple Should Have
By Ashley Marcin
Did you know that the secret to a healthy relationship maybe hiding in your wallet? No, money can't buy you love, but talking about the dollars you have may make a lot of, well, sense. In a recent study, researchers discovered that lack of communication about money leads younger couples to both arguments and added stress.
Here are some financial discussions worth having, especially if you share the bulk of your expenses. Heck, they may even bring you closer together!
1. Where Is Our Money Going?
Have you sat down with your partner to really dig into your bank accounts lately? It may be a good idea, especially if you hope to spend many Valentine's Days together. A national survey conducted by Money Magazine revealed that 70% of couples fight about money matters more than they do about chores, sex, snoring, and togetherness.
What's high on their hot points? Frivolous spending.
Take some time — over candlelight and wine, perhaps — to delve into your check registers and online accounts. Do you see any patterns? Were you both aware that all that money was going toward the groceries each week? Or what about those online magazine subscriptions? Unused gym memberships? You may be able to quickly spot some areas that need work before they turn into shouting matches.
2. How Do We Each Deal With Money?
Once you know what you're spending your money on, you can move on to what makes your partner tick — financially speaking. Is he a big spender? Is she a penny-pincher? Does he thrive on a cash system? Is she a credit card rewards ninja? Often, these habits are set in family history, internal motivations, or simple habit.
In my marriage, I am the one who loves drafting up budgets, doing taxes, and planning for paying off debt faster. My husband? He gets super stressed doing any of this stuff, even if it's just keeping track of the cable bill. We used to bicker about dividing everything "fairly" between us. In the end, and through many discussions, we decided that my strength with money matters made me a more natural choice for these duties.
What we share is that we are both really bad with credit cards. So, we do cash for more of our variable expenses. The message here is to find your similarities and differences. Discover what makes one person thrive or the other person freak out. Avoid condemning certain behaviors or weak points. Instead, celebrate your differences, split up duties according to your strengths, and find common ground.
3. Should We Bank Together — Or Not?
To continue reading, please go to the original article here:
https://www.wisebread.com/5-money-conversations-every-couple-should-have?ref=seealso
The 10 Most Valuable Financial Lessons I Learned
.The 10 Most Valuable Financial Lessons I Learned in 2018
By Trent Hamm Updated on 01-10-19
Getting Started
Each year, during the period between Christmas and New Year’s, I sit down and look over what happened during the past year, what I can learn from that, and what I can apply from that to the year to come.
I usually come up with a big handful of life lessons during that review, things I learned from situations in my life that didn’t quite go as I liked. What went wrong? Where did I go wrong? What can I do better?
These life lessons spread across all spheres of life and usually number in the dozens. I tend to literally make a list of them as I review the year as a way to figure out how to do better in the coming year.
Among the lessons I learned in the past year were 10 that have real personal finance implications, though some tend to branch over into other spheres of life. I thought it might be valuable to share those lessons, along with what I hope to do differently going forward.
Lesson #1: If the stock market is scaring you in terms of your future, you’re either not invested appropriately or don’t know what you’re invested in.
This is something I did right this year, but the bumps in the stock market reminded me of the panic I felt in 2008 when I watched my retirement balance fall by 40%. I didn’t change anything back then, but I was often sick to my stomach about it and my instinct kept screaming to run away from the risk.
But then… things recovered. Between 2008 and 2018, my retirement accounts tripled in value.
The stock market is swooning again, but this time I don’t have the butterflies. Why?
The 10 Most Valuable Financial Lessons I Learned in 2018
By Trent Hamm Updated on 01-10-19
Getting Started
Each year, during the period between Christmas and New Year’s, I sit down and look over what happened during the past year, what I can learn from that, and what I can apply from that to the year to come.
I usually come up with a big handful of life lessons during that review, things I learned from situations in my life that didn’t quite go as I liked. What went wrong? Where did I go wrong? What can I do better?
These life lessons spread across all spheres of life and usually number in the dozens. I tend to literally make a list of them as I review the year as a way to figure out how to do better in the coming year.
Among the lessons I learned in the past year were 10 that have real personal finance implications, though some tend to branch over into other spheres of life. I thought it might be valuable to share those lessons, along with what I hope to do differently going forward.
Lesson #1: If the stock market is scaring you in terms of your future, you’re either not invested appropriately or don’t know what you’re invested in.
This is something I did right this year, but the bumps in the stock market reminded me of the panic I felt in 2008 when I watched my retirement balance fall by 40%. I didn’t change anything back then, but I was often sick to my stomach about it and my instinct kept screaming to run away from the risk.
But then… things recovered. Between 2008 and 2018, my retirement accounts tripled in value.
The stock market is swooning again, but this time I don’t have the butterflies. Why?
First of all, I recognize that the stock market will rebound. The entirety of the American economy is not going to disappear in a puff of smoke. There are millions of Americans out there every day working hard and innovating, and that’s where the value of the stock market comes from. This is a correction, like every other, not an apocalypse.
Second, I recognize that the stock market is only a place for individual investors to put their money if they have long term goals. If you’re going to use that money within the next ten years, it shouldn’t be in the stock market.
Over a period of more than ten years, it will enjoy several years of growth and multiple corrections, which is enough time for that investment to start to approach the long term average annual return of a stock market investment, somewhere between 7% and 10% depending on how you calculate it. I have nothing in the stock market that I intend to use within the next ten years.
I’ve honestly barely paid any attention to the ongoing correction. It’s just another good sized correction, like 2008, like 2001, like 1992, like 1987, and so on. It’s part of having investments in stocks – every several years, the stock market corrects itself.
If you know this and you still feel the butterflies, one of two things are happening. One, you’ve got too much risk – you have money in stocks that you’re going to need within 10 years. You fix this by moving such money out of stocks.
Two, you’re looking at the trees and can’t see the forest – the success of long-term investments is judged over the long term, not over a few months.
What I’ve learned from this correction is that I’m a lot more confident and sure about my investing plan for an early retirement than I was ten years ago and, because of that, there’s no risk of me making an emotionally driven bad financial decision in the face of a momentary change in the stock market.
Lesson #2: Give yourself plenty of breathing room in terms of both time and money when doing a major home improvement project.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/the-ten-most-valuable-financial-lessons-i-learned-in-2018/
The 3 Things You Should Do To Build Wealth
.The 3 things you should do to build wealth in 2019 (updated regularly)
by Steve Adcock January 10, 2019
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot of time. Let me explain.
The 3 things you should do to build wealth in 2019 (updated regularly)
by Steve Adcock January 10, 2019
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot of time. Let me explain.
How to build huge wealth in 2019 / 2020
First, let’s set the record straight about high incomes.
If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.
Just. Plain. Wrong.
It makes us feel better to believe that we’ll never be able to retire early without a huge income, but that’s just not true. The truth is a high-income job often comes with a set of assumed requirements that keep high-income earners churning on the hamster wheel for years.
You might be surprised at how many high income earners still live paycheck to paycheck just to maintain their high income job.
The strategies that I’m about to talk about apply to anyone – with any level of income. Big incomes or small, building wealth ultimately comes down to a small set of insanely basic principles.
Principle #1: Invest Your Cash
Nobody ever got rich just by “saving money“. Those articles about how to save money by ordering water instead of a soft drink in restaurants? Yeah, that’s nonsense. That’s not how we build wealth.
Wealthy people build wealth by devoting years of their life to investing their cash in appreciating assets.
Wow. Okay, what does this mean? It means we’re not just putting our money in a bank. That only makes banks rich. Instead, we’re placing additional value on our cash by investing it in assets that gain value over time.
Historically, the stock market builds serious wealth for investors. This chart from Macro Trends shows how the Dow Jones has performed over the years. Over time, Wall Street investors tend to build wealth because their investments appreciate. They go up in value as this chart demonstrates.
Others have chosen real estate investments through house flipping. The idea is investors buy undervalued “fixer-upper” homes that need some love. They fix them up and re-sell them at a profit.
Jeremy Biberdorf from Modest Money says that to be a successful house flipper, get as many properties as you can. Go all in or don’t even start.
Jeremy’s tips include:
Resist a total remodel; instead, look for undervalued properties
Know your budget and stick to it (it’s easy to go overboard)
Understand the neighborhood and its pros and cons
Never say No to an inspection; it might save your butt!
In whatever way you choose to save your money in 2019, investing your cash in appreciating assets builds wealth over time.
How much should you invest? There isn’t a one-size-fits-all approach.
I always encourage new investors to talk to a financial advisor to develop an investment strategy that works best for them. But if you’re looking for high-level advice:
If you don’t have an emergency fund, start one now. The immediate goal is to build up at least three months of living expenses to account for an unexpected job loss or health issue.
Take advantage of company-sponsored 401ks. Many companies match contributions made by their employees. This is free money. And, 401ks reduce your taxable income. Talk to your company about investment opportunities. They might even provide free financial advisor services.
Streamline your expenses. Spend a weekend diving through your expenses. Take a look at your bank and credit card statements and make judgment calls about each and every expense. With every dollar that you’re spending, is it actively contributing to your happiness? Be honest. And, be brutal.
To continue reading, please go to the original article here:
Personal Lessons Learned Since The 2008 Financial Crisis
.Personal Lessons Learned Since The 2008 Financial Crisis
By Financial Samurai
On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered.
Despite all the economic devastation, I wish I could rewind time. I’d rather be 31 than 41, simply because I love life and want to live as many years as possible.
The period between 2008 – 2018 was the most exciting 10 years of my life. Here are some of the lessons I have learned since the financial crisis.
Lessons Learned Since The 2008 Financial Crisis
Personal Lessons Learned Since The 2008 Financial Crisis
By Financial Samurai
On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered.
Despite all the economic devastation, I wish I could rewind time. I’d rather be 31 than 41, simply because I love life and want to live as many years as possible.
The period between 2008 – 2018 was the most exciting 10 years of my life. Here are some of the lessons I have learned since the financial crisis.
Lessons Learned Since The 2008 Financial Crisis
1) It’s really hard to go all-in, even when you know you should. Despite telling myself over and over again that we were in the buying opportunity of a lifetime, I couldn’t convince myself to invest much more than my usual 401(k) maximum because my world was falling apart.
A couple dozen friends had been laid off, including my best friend at the time, who worked at Lehman. I feared I might be next and would need as much cash as possible to hold me over just in case.
In 2005, I had taken a $1,200,000 mortgage to buy a single family home. I already had around $380,000 in mortgage debt from the first property I bought in 2003. With property prices in San Francisco falling along with the stock market, bankruptcy was a very real possibility if I had lost my job.
Therefore, I built a significant CD portfolio with most of my excess cash instead. The best 5-year and 7-year rates were at 4.25% at the time, so I decided that was where most of my savings went.
The only things I did right were keeping my job and not selling any real estate or stocks in the middle of the downturn.
2) Chaos is a great motivator. I had been putting off starting Financial Samurai since 2006, but once the financial crisis hit, I decided to finally launch in the summer of 2009. If I got laid off, I needed a backup plan.
I also decided it was time to get married. I had known my wife since college, and she would be turning 28 in 2008. For some reason, 28 always stuck in my head as the perfect age for her to get married. Further, I had also wanted to focus on my career until 30 to see how far I could get.
The difficult times of 2008 made me want to hold onto her even more. I could lose everything, but I couldn’t lose her. Relationships were more important than money back then, and they are more important than money today.
3) You gain a tremendous amount of confidence and expertise in 10 years. Previously, I’d always been embarrassed to ever say I was an expert in anything. But once I turned 32, I felt I had developed some expertise in the Asian Equities market. And now that I’m in my 10th year building Financial Samurai, I have no problem believing and saying I have expertise in digital media.
Because of this experience, I also no longer fear financial ruin. If Financial Samurai shuts down and all my passive income goes away, I know I can get a job back in finance, fintech, or online marketing. The base pay would range between $150,000 – $250,000 + stock, and my family would be fine.
Age discrimination is no longer a fear either. Instead, you realize experience makes you incredibly valuable. Once you’ve been able to earn income by yourself for so many years, nothing will stop you from living the life you want.
To continue reading, please go to the original article here:
https://www.financialsamurai.com/personal-lessons-learned-since-the-2008-financial-crisis/
From Debtor To Millionaire: How A Windfall Changed My Life
.From Debtor To Millionaire: How A Windfall Changed My Life
Post From Financial Samurai
This is a guest post from J.D. Roth, who founded the blog Get Rich Slowly in 2006 and is the author of Your Money: The Missing Manual. I first met JD four years ago for lunch up in Portland when I was still working.
By that time, J.D. was already a mini-celebrity in the personal finance world through his story telling abilities and topical focus of paying down debt and living a more frugal lifestyle. We came from opposite ends of the financial and topical spectrum, but as fate would have it, we’re in pretty similar boats now.
I admire J.D. because he is a “blogging purist” – someone who writes for the love of writing first, community second, and income a distant third. Instead of an interview, I asked J.D. to share his story of how he went from debtor living paycheck-to-paycheck to financially free in just a few short years.
His latest project is a year-long course on how to master your money, which explains how to slash costs, properly budget, and boost income so that you can pursue early retirement and other goals. Please enjoy this great post about struggle, loss, change, and love.
From Debtor To Millionaire: How A Windfall Changed My Life
Post From Financial Samurai
This is a guest post from J.D. Roth, who founded the blog Get Rich Slowly in 2006 and is the author of Your Money: The Missing Manual. I first met JD four years ago for lunch up in Portland when I was still working.
By that time, J.D. was already a mini-celebrity in the personal finance world through his story telling abilities and topical focus of paying down debt and living a more frugal lifestyle. We came from opposite ends of the financial and topical spectrum, but as fate would have it, we’re in pretty similar boats now.
I admire J.D. because he is a “blogging purist” – someone who writes for the love of writing first, community second, and income a distant third. Instead of an interview, I asked J.D. to share his story of how he went from debtor living paycheck-to-paycheck to financially free in just a few short years.
His latest project is a year-long course on how to master your money, which explains how to slash costs, properly budget, and boost income so that you can pursue early retirement and other goals. Please enjoy this great post about struggle, loss, change, and love.
In The Beginning
I’m a lucky man, and I know it. But for a long time, it sure didn’t seem that way.
When I was a boy, my family was poor. We lived in a single-wide trailer house in rural Oregon. My father was often out of work. When he was unemployed, things were rough. We never went hungry, but sometimes we came close. More than once, we were bailed out by the kindness of other families in our church.
We didn’t always struggle. Sometimes my parents had money, at least for a little while. You see, my father was a serial entrepreneur. He was always starting businesses. Even when he had a job selling boxes or staplers or candy bars, he had something going on the side. Most of his businesses failed, but some succeeded.
In 1977, my father sold one business for $300,000. He was supposed to receive $5000 per month for fifteen years, which seemed like a lot of money at the time. To celebrate, he went out and bought an airplane, a sailboat, and a Kenwood stereo. Life was good — until the buyer went bankrupt. Because he hadn’t saved anything from the few payments, Dad was broke again. And unemployed. We were right back where we’d started.
This “famine or feast” pattern continued throughout my entire childhood. Most of the time, it was famine — not feast.
In the late 1980s, I went away to college. Because I knew my parents couldn’t help me pay for school, I took care of things myself. I was a good student with a lot of extracurricular activities: president of the computer club, national competitor in Future Business Leaders of America, editor of the school literary magazine, and so on. Plus I had terrific scores on the the PSAT and SAT. As a result, I earned a full-ride scholarship. I worked two or three or five jobs to pay for housing and to earn spending money.
During college, I developed a spending habit. In order to keep up with my friends, many of whom seemed to be rich (as I defined it at the time), I used credit cards. I began to carry debt. At first, I only owed a few hundred dollars, but by the time I graduated with a psychology degree, I had a few thousand dollars in credit-card debt.
After college, my debts continued to mount. I bought a new car. When I had money, I spent it. When I didn’t have money, I still spent it. By the middle of 1995, just four years after I’d graduated, I’d accumulated over $20,000 in credit-card debt. It got worse. In 2004, my consumer debt topped $35,000. I felt like I was drowning. (See: How Many Credit Cards Should I Have Until It’s Too Many?)
Getting Rich Quickly
One night in October 2004, after I’d bounced yet another check and missed yet another payment, I reached rock bottom. I began to wonder why I didn’t use my entrepreneurial skills at home. I was helping to manage the family box factory, and I’d started a computer consulting firm on the side. Both businesses made money, and I made smart decisions with the profit. But at home, my money situation seemed dire.
I asked myself: What if I made decisions in my personal life as if I were making them for a business? What if I installed myself as CFO of JD, Inc? How would I cut costs? How would I increase revenue? Where were the best places for me to direct my cash flow?
That night, I drafted a three-year plan to get out of debt. According to my calculations, I could pay off everything I owed by December 2007 — if I managed my money wisely. I decided to give it a shot.
To continue reading, please go to the original article here:
https://www.financialsamurai.com/from-debtor-to-millionaire-how-a-windfall-changed-my-life/
Your Home Insurance May Not Cover Your Gold’s Value
Rebecca Payne Moneywise Sun, January 11, 2026
The soaring price of gold means your home insurance may not cover its value. How to know if your pieces are safe in 2026 The price of gold has shot up this year, even hitting a record high in October. While that may be good news for investors, those who own gold jewelry might want to consider what climbing prices mean for the pieces sitting in their jewelry box at home.
Gold — and other precious metals such as platinum and silver — have been trading higher, with the price of the yellow metal jumping from around $2,658 at the start of January 2025, to a staggering $4,467 per troy ounce by the first full week of January 2026 (1).