Sep 132015
 

Imagine that instead of buying that expensive thing that you can probably live without, you took your money and invested it instead. Depending on your age and investment skills I’d say over a lifetime that money could easily triple. For example:

$10 invested for 25 years at 7% return = (10*1.07^25) = $54.27

Which in today’s dollars is $36.81. Lets round it down to a conservative $30.

This means that a dollar saved today will became three dollars in 25 years with proper investing. This isn’t anything new, we all realize that compound interest multiplies your cash like rabbits. So I’m going to draw the opposite parallel. Spending money is like murdering those rabbits. Not only do you murder that rabbit, but you murder all future offspring of said rabbit. This is the part most people choose to ignore (the spending part, not rabbit murdering. I don’t condone murdering rabbits unless you are really hungry). Every spent dollar is one that can’t be put to work making more dollars. Continue reading »

Aug 292015
 

Coins
FreeImages.com Jerzy Müller
Poor people tend to believe that money is meant to be spent. This is why they tend to remain poor. This is why so many lottery winners are broke. If you want to build wealth you need to save money. I can summarize my entire financial mantra into one sentence:

Spend less than you earn

I’ve come across this time and time again in books, seminars, audio programs, and financial guides. It’s also called living below your means, and sometimes pay yourself first. But before I go on lets define what I mean by “rich”

Continue reading »