Sometimes it’s hard to get ahead. Sometimes your financial goals take forever to accomplish. Staying the course is a challenge. You know you need to build some kind of wealth, but time goes by and you still haven’t made a plan.
The problem is that you think there’s always tomorrow. The reality is that tomorrow always brings something new for you to deal with and that something usually takes money.
The biggest problem with all of this is time. Before you know it, you start wondering why your finances aren’t where they should be and you need to do something about it to ensure a future.
These are three things that hold you back and ultimately destroy your wealth as time goes on. Continue reading 3 Destroyers of Wealth
What exactly is wealth? Where does it come from?
I prefer to define wealth as the value of all assets free and clear on any debt. This means wealth includes the equity in your home, your stocks, bonds, mutual funds, ETF’s, 401k, and IRA’s. It even includes your cars, rental homes, and equity you have in your business. As long as the assets you own continue to accumulate and rise in value, your wealth increases accordingly.
Wealth is also the ability to live off your investments. In other words, you don’t have to work (or work as much) in order to sustain your lifestyle. When your investments can produce enough income to pay your bills, that’s wealth.
Continue reading 3 Things That Builds Wealth
Earning, saving, and investing, are the three mantra’s of stacking dollars. Also known as building wealth, these three words sound so simple, yet many find so hard to pull off. Earning may be hard to do more of. Saving is almost non-existent in America. Investing is a scary process for the average person. However, these three words will lead your financial freedom or at the very least a nice retirement. Continue reading Earn. Save. Invest.
One of my favorite classes during my college years was finance. It was my window to see how people in finance think about the subject in a business and investing context.
A topic I found interesting was the concept of the time value of money. In short, money is more valuable today that it is tomorrow. In addition, if I want to know what a future value of a number is worth today, I apply time value of money formulas for either the present and future value in order to make financial decisions. Continue reading A Dollar Saved Is $10 Earned
When getting your financial life together, you may attempt to do multiple things at once. You may determine you have to build an emergency fund, eliminate credit card debt, invest in your 401k, and save for a home. You may not realize it, but you’re spreading your money over too many goals and making it hard to achieve them. Continue reading The Power of Focus
The great thing about investing these days is that we have the technology to make things easier. For example, index funds (which track a particular index such as the S&P 500 or US Treasury Bonds), are probably the best product from today’s financial technology. Investing your money has never been a more simple and inexpensive way to put your money to work. For most of us, index funds are the king of investment products. Continue reading Index Funds Are King
I had a conversation with a co-worker the other day about money. She had received her quarterly commission check and the first thing she did with it was buy some sort of handbag that was north of $1,000 as a way to reward herself for her hard work.
Usually in these situations I play shocked and say “wow, that’s nice!” I don’t remember the brand but she went on to explain to me what goes into a $1,000+ handbag when I asked what does into something like that. This isn’t unusual for her. Continue reading Think of What Money Can Earn, Not What It Can Buy