Find Nobel prize winning article in economics on diversification probably from the 70's from Paul Krugman?
"Personal Overstretch" is what happens when people over-leverage and over-extend their personal resources. Most people agree with the concept of diversification, but when to diversify and how much to put at risk has been a source of anxiety for many investors., The following guide has investment categories presented in order of risk from least to highest and if completed in that order, will give all levels of investors a series of checkpoints to follow on their diversification journey
Odds of Risk: What is the likelihood of your investment depreciating? Severity of Risk: How much depreciation risk potential does your investment carry?
The first investment category is relationships., The rest of the checkpoints to follow will be about investing finances, but we didn't feel this guide would be complete if we didn't advise you to invest time and energy into your most precious relationships., “The quality of your life is in direct proportion to the quality of your relationships.” -Anthony Robbins, “So many people walk around with a meaningless life. They seem half-asleep, even when they're busy doing things they think are important. This is because they're chasing the wrong things. The way you get meaning into your life is to devote yourself to loving others, devote yourself to your community around you, and devote yourself to creating something that gives you purpose and meaning.” - Mitch Albom, "I contend that the ability to establish, grow, extend, and restore trust is not only vital to our personal and interpersonal wellbeing; it is the key leadership competency of the new, global economy."-Stephen Covey, The golden rule is alright, but not everyone wants to be treated like you. The platinum rule is better because it acknowledges the differences between individuals and tells us to treat others as they would like to be treated., "Service to many leads to greatness." -Jim Rohn, “You will get all you want in life, if you help enough other people get what they want.” -Zig Ziglar, "Love thy neighbor as thyself." -Jesus Christ
The second investment category is learning materials., We don't know what we don't know., We're constantly forgetting what we do know., We've learned a lot that is not true., We should always be learning, so that we at least know something!, "Better information leads to better thinking which leads to better results every time." - Christopher Mattis, "The significant problems we face cannot be solved at the same level of thinking we were at when we created them" -Albert Einstein, “If a man empties his purse into his head no man can take it from him. An investment in knowledge pays the best interest.” - Benjamin Franklin, Feed the goose that lays the golden egg. (Improving your thinking improves your results in your craft which supports and builds the rest of the investments to follow.), Not the old broken system of conveyor belt education, but self directed education by meritocracy, Meritocracy: following the advice of those with results/credibility/fruit on the tree in that particular area., It's best to find a mentor with vested interest in your success.
The third investment category is a "rainy-day" fund., We don’t like to consider the fact that bad things happen, but let us paraphrase a universal truth: “Doo-doo occurs!”, History has shown that instability is a constant and we don't know when circumstances will separate us from our income. Saving the equivalent of 3-6 months of expenses allows people to maintain lifestyle in case of cash flow interruptions. Stocking a few survival essentials and securing insurance protection can help us take care of ourselves and our families in case of disaster:, Water, Food, Fire, Shelter, Prescriptions, Insurance protection against major incidents, Life, Home, Health, Auto
The fourth investment category is for "targeted goals.", Vacations, Cars, Homes, Toys, Causes, Debt Relief, What do you want?
The fifth investment category is "Inflation hedges.", Money Market Accounts, Municipal Bonds, CD's (Certificates of Deposit), Treasury Bills, Precious Metals, These low risk options won't outrun inflation, but they'll preserve the value of your money longer than if you just stuffed cash in your mattress.
The sixth investment category is Real Estate which is the preferred playground of the wealthy., Quotes from Historical Figures, "Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate." Andrew Carnegie, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” ~Franklin D. Roosevelt“, "No investment on earth is so safe, so sure, so certain to enrich its owners as undeveloped realty. I always advise my friends to place their savings in realty near a growing city. There is no such savings bank anywhere." Grover Cleveland - American President, "Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth." Theodore Roosevelt - American President, "There's no trick to buying land, just find out where the people are going and buy the land before they get there." "Will" Rogers, "Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security." Russell Sage - American Financier and Politician, Within real estate there are several investment niches:, Wild Land, Unpredictable profit margin / Return On Investment, Flipping Houses, Requires foresight, time and construction skills., Income Properties (Commercial and/or residential), Require time, energy and skills to successfully own, manage and lease rental properties., Pre-developed Land, Unlike income properties, pre-developed land requires minimal knowledge, skill and time investment, but leverages money invested with low risk, medium to high rewards., The key factor for high value in this niche is to invest in land in an area that has consistent population growth
The seventh investment category is the stock market, "Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway." -Warren Buffett, Many people have turned substantial profits from investments made in the stock market, but Wall street has conditioned us to look for quarterly profits rather than long term investment vehicles., Based on "fiat" currency which historically leads to deflation or inflation and economic collapse, Rome - The denarius, China - Flying Money, France - Livres, Assignats, and Francs, Germany - Marks, Mexican - Peso, Indian - Rupee, Thai - Baht, Russian - Ruble, Turkish - Lira, Zimbabwe - ZWL
The eighth and most risky category of legitimate speculative investments includes start-ups, inventions, technology, and currency trading., High Risk / High Reward, Requires successful timing of the market, SUCCESSFUL Venture Capital groups pick failures 9/10 times!, Generally avoid these investment options until you have surplus money and you can afford to lose your investment without losing sleep over it.
The ninth and highest risk/reward ratio investment is under the umbrella of Criminal Activities (Money Laundering, drug/arms smuggling), Super high risk / high reward / terrible downside, Avoid these avenues at all costs in order not to lose your character, peace of mind, and quality of life.
If you are not financially fit and you have a bunch of "toys," it means that you do not really deserve them and you are using your savings or debt on the wrong things. If your debts are all paid off, you are following the savings guidelines listed in earlier principles, and you have the cash, you can buy a few "toys" and still be financially fit.
If you aren't financially sound, don't get caught in the trap of using "business debt."
Do not use credit cards to build your credit, because this almost always leads people to more debt.
Never use title pawning, "ninety-days-same-as-cash" loans, payday loans, rent-to-own plans, layaway debt, or similar schemes.
See your car(s) as transportation, not status symbols. Save up and always pay cash for them.
Debit cards are better than credit cards for many people, and cash is even better.
Teach your children and youth the principles of financial fitness. Set the example for them. Mentoring them will help you as well as them.
If you are not wealthy, do not get sucked into using second mortgages.
Use the roll-down method to pay off all credit card debts and then apply it to all other debts.
Learn to be skeptical of advertising, media and marketing.
Accumulate slowly; build your inventory of resources and wisdom, not stuff.
Get right with God, apply true principles in all areas of life including finances. Pursue your stewardship, serve others, and leave impressing others in God's hands.
Do not use consumer debt. Wise financing for business investment may be OK at times, but consumer debt is like a cancer. Cut it out!
Make memories part of your lifestyle, budget, and life plan. Start simple and add big memories too.
Be very, very careful as you make decisions about the danger zones:, Taxes, Home ownership, Divorce, Credit Cards, Lawsuits, Insurance, Seeking status, College, Addictions, Investments
If you buy a home follow the 2x rule. For example if your income is $50,000 per year; do not buy a home that costs more than $100,000. If you want a bigger home, earn more money.
Get rid of debt.
"We want one class of persons to have a liberal education, and we want another class of persons, a very much larger class, of necessity, in every society, to forego the privileges of a liberal education and fit themselves to perform specific difficult manual tasks.", Do career counselors ask which you'd like or do they have you take a test and then show you a list of difficult manual tasks that you can pick from?
Cash Flow Quadrant (The four legal ways to earn money), Employee, Has a job, Solves boss' problems, Trades time for money, Dependent, Values Security, Self Employed, Owns a job, Solves customers' problems, Trades time for money, Independent, Values Independence, Business Owner, Owns a system, System solves a market problem, Earns a % of the profits, Interdependent, Values Time Freedom, Investor, Owns lots of money, Solves cash flow problems, Puts money at risk; collects returns, Interdependent, The playground of the wealthy, Criminal, Owns nothing, Creates problems, Takes from others that own, Parasitic, Values plunder
Time = Money?, 95% of people are on E and S side and share 5% of the money, This is the equivalent of trading time for money, Employees get 7 tax deduction, Self employed gets about 56 deductions, 95% of the money is divided among 5% of the people on the B and I side, This methodology is about investing time into systems that create passive residual income, Big business gets 157 deductions
Do not ever use your savings to speculate.
Financially fit people are avid readers and consistently invest in themselves by increasing their financial and leadership education, skills, experience, knowledge, and ability.
Financially fit people excel at the work and projects they are doing now, and at the same time, they invest in themselves in order to achieve their long-term vision.
Never sacrifice principles for money or possessions. Be honest. Keep your integrity. Keep your priorities in the right order.
Do the work to gain mastery in what you do. (Usually about 10,000 hours)
Financially fit people don't ask, "Can we afford it?" As much as they ask the following questions:, "Do we really want this?, Will it help our purpose and dream?, How will it help our purpose and dream?, In what ways might it be a distraction?, Will it cost more money to take care of it or keep it (through things like insurance or annual fees)?, Would saving or investing the same amount be a bigger help to our purpose and vision?, Is now the best time for this purchase, or would it be less expensive or just better for our family or business at a later date?"
Financially fit people analyze their habits - in life as well as finances - and work to break bad habits and cultivate good ones. They think about and choose the habits they want and need to achieve their life dreams.
Own a business, even if you start out working on it part-time. You can apply all the other principles in this book and obtain wealth over time, but those who apply them in their own business can become wealthy much more quickly.
Increase your passive income to the point that 1. Most of your income is passive and 2. you can live off your passive income.
Retirement should not be an issue of age, but rather a function of having enough passive income to live on for life. Retirement means retiring from things that are not part of your purpose, so you can focus your productive work on your life mission.
To really attain financial success, focus on these things:, Truly excel in your current job and projects and simultaneously start a business., Put in the 10,000 or so hours needed to gain mastery over your business while still excelling at your current job, Make a plan to become financially free by reaching a point where the passive income from your business more than covers your family's needs., Once you are financially free, put your full-time focus on building your business to the point that it funds your life purpose.
Get good mentors and really listen to them.
Use your money Productively - by putting it where it will bring you back more than you put in - rather than non-productively. The best investment is in yourself and your own business. Wisely and appropriately use some of your savings to increase your business assets and returns.
Put some money into preparing for a worst case scenario. Don't be fanatical about this, but don't ignore it either.
Build up a regular targeted savings fund for things you want to buy later. Consistently fund this account and buy consumer items with cash (not financing).
Only invest money you can afford to lose entirely in speculations outside your area(s) of mastery. Only invest a little, if any, in such ventures.
People with the right "moneyview" discipline themselves to live the principles of financial fitness, make financial decisions based on a long-term vision, adopt the habit of delayed gratification, and use the compounding nature of money to constructively achieve their dreams., Money as a mystery, Money as a master, Money as a monster, Money as a major, Money as a motivator, Money as a manipulator, Money as a minimizer, Money as a maximizer, Money as a monument, Money as a menace
If you were playing a strategy game and the rules changed halfway through the game you would probably be upset if your past strategies instantly became irrelevant. Unfortunately this is happening to many of us on the field of personal finances. The variables affecting supply and demand and the changes to the tax laws can often hurt the ability to profit within the reasonable amount of time dedicated to economics. This section contains a few of the historic moments that continue to affect our ability to make, save and leverage our money.
Fiat Currency: Using the Past to See into the Future The Daily Reckoning Presents: Fiat Money -Toilet Paper Money The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well. Why would it be different here in the U.S.? Well, in actuality, it hasn’t been. In fact, in our short history, we’ve already had several failed attempts at using paper currency, and it is my opinion that today’s dollars are no different than the continentals issued during the Revolutionary War. But I will get into that in a moment. In the meantime, I will show you that fiat currencies have not been successful, and the only aspect of fiat currencies that have stood the test of time is the inability of political systems to prevent the devaluation and debasement of this toilet paper money by letting the printing presses run wild. Fiat Money -Rome — The Denarius Although Rome didn’t actually have paper money, it provided one of the first examples of true debasement of a currency. The denarius, Rome’s coinage of the time, was, essentially, pure silver at the beginning of the first century A.D. By A.D. 54, Emperor Nero had entered the scene, and the denarius was approximately 94% silver. By around A.D.100, the denarius’ silver content was down to 85%. Emperors that succeeded Nero liked the idea of devaluing their currency in order to pay the bills and increase their own wealth. By 218, the denarius was down to 43% silver, and in 244, Emperor Philip the Arab had the silver content dropped to 0.05%. Around the time of Rome’s collapse, the denarius contained only 0.02% silver and virtually nobody accepted it as a medium of exchange or a store of value. Fiat Money -China — Flying Money When the Chinese first started using paper money, they called it “flying money,” because it could just fly from your hands. The reason for the issuance of paper money is simple. There was a copper shortage, so banks had switched to the use of iron coinage. These iron coins became overissued and fell in value. In the 11th century, a bank in the Szechuan province of China issued paper money in exchange for the iron coins. Initially, this was fine, because the paper money was exchangeable for gold, silver, or silk. Eventually, inflation began to take hold, as China was funding an ongoing war with the Mongols, which it eventually lost. Genghis Khan won this war, but the Mongols didn’t assume immediate control over China as they pushed westward to conquer more lands. Genghis Khan’s grandson Kublai Khan united China and assumed the emperorship. After running into some setbacks with paper currency, Kublai eventually had some success with fiat money. In fact, Marco Polo said of Kublai Khan and the use of paper currency: “You might say that [Kublai] has the secret of alchemy in perfection…the Khan causes every year to be made such a vast quantity of this money, which costs him nothing, that it must equal in amount all the treasure of the world.” Even Helicopter Ben would be impressed. Marco Polo went on to say: “This was the most brilliant period in the history of China. Kublai Khan, after subduing and uniting the whole country and adding Burma, Cochin China, and Tonkin to the empire, entered upon a series of internal improvements and civil reforms, which raised the country he had conquered to the highest rank of civilization, power, and progress.” Wait a second, I thought we were bashing fiat currencies here…Can anyone say crackup boom? Since Marco Polo experienced this firsthand, and has been very helpful to us thus far, I think I will allow him to finish his analysis of China’s paper money experiment. “Population and trade had greatly increased, but the emissions of paper notes were suffered to largely outrun both…All the beneficial effects of a currency that is allowed to expand with a growth of population and trade were now turned into those evil effects that flow from a currency emitted in excess of such growth. These effects were not slow to develop themselves…The best families in the empire were ruined, a new set of men came into the control of public affairs, and the country became the scene of internecine warfare and confusion.” I wonder if Keynes read Marco Polo’s experiences with Chinese fiat currencies when he said that the U.S. government should just bury bottles full of money in old mine shafts to spur economic growth. Fiat Money -France — Livres, Assignats, and Francs The French have been particularly unsuccessful in their attempts with fiat money. John Law was the first man to introduce paper money to France. The notion of paper money was greatly helped along by the passing of Louis XIV and the 3 billion livres of debt that he left. When Louis XV was old enough to make his own mistakes, he required that all taxes be paid in paper money. The currency was backed by coinage…until people actually wanted coins. The theme of the day…the new paper currency rapidly became oversupplied until nobody wished to own the worthless junk anymore and demanded coinage for their currency. Oops. It looks like Law didn’t think that anyone would actually want coins ever again. After making it illegal to export any gold or silver, and the failed attempts by the locals to exchange their paper currency for something of actual value, the currency collapsed. John Law became the most hated man in France and was forced to flee to Italy. In the latter part of the 18th century, the French government again tried to give paper money another go. This time, the pieces of garbage they issued were called assignats. By 1795, inflation of assignats was running at approximately 13,000%. Oops.Then Napoleon stepped on the scene and brought with him the gold franc. One of the good things that Napoleon realized is that gold is the way of a stable currency, and that’s what pretty much ensued during his reign. After Waterloo had come and gone, the French gave it another go in the 1930s, this time with the paper franc. It took only 12 years for them to inflate their currency until it lost 99% of its value. History has proven a couple things about the French: 1) They are quick to surrender and 2) They are very talented at making worthless currency. Weimar Germany — Mark Post-World War I Weimar Germany was one of the greatest periods of hyperinflation that ever existed. The Treaty of Versailles was essentially a financial punishment placed on Germany to make reparations. The sums of money to be paid by Germany were enormous, and the only way it could make repayment was by running the printing press. (Huge unpayable debt — that sounds familiar. I wonder what the solution in the U.S. will be.) Inflation got so bad in this period that German citizens were literally using stacks of marks to heat their furnaces. Here is a brief timeline of the marks per one U.S. dollar exchange rate: April 1919: 12 marks November 1921: 263 marks January 1923: 17,000 marks August 1923: 4.621 million marks October 1923: 25.26 billion marks December 1923: 4.2 trillion marks. Fiat Money -More Recent Times In recent times, fiat failures have become more common occurrences. For the sake of time, I won’t go into extensive details of all these examples of paper money failures, because there are SO many. But here you have it: In 1932, Argentina had the eighth largest economy in the world before its currency collapsed. In 1992, Finland, Italy, and Norway had currency shocks that spread through Europe. In 1994, Mexico went through the infamous “Tequila Hangover,” which sent the peso tumbling and spread economic hardships throughout Latin America. In 1997, the Thai baht fell through the floor and the effects spread to Malaysia, the Philippines, Indonesia, Hong Kong, and South Korea. The Russian ruble was not the currency you wanted your investments denominated in in 1998, after its devaluation brought on economic recession. In the early 21st century, we have seen the Turkish lira experience strokes of hyperinflation similar to that of the mark of Weimar Germany. In present times, we have Zimbabwe, which was once considered the breadbasket of Africa and was one of the wealthiest countries on the continent. Now Mugabe’s attempts at price controls, combined with hyperinflation, have the nation unable to supply the most basic essentials such as bread and clean water. Fiat Money -Lessons to Be Learned Here in the U.S., I should say the lessons were not learned. There are many consistencies from the above-mentioned stories that led up to the eventual collapse of the currencies. The scary thing is that the U.S. has some of these above-mentioned characteristics, the ones that lead to toilet paper money becoming just that. More on that in just a second. I would first like to give a brief look at the U.S. attempts with paper money in our short history. The first attempt with paper money came in 1690 with the issuance of Colonial notes. The first Colonial notes were issued in Massachusetts and were redeemable for gold, silver, corn, cattle and other commodities. The other Colonies quickly jumped on the toilet paper money bandwagon and began issuing their own paper currencies. Like a broken record, the money quickly became overissued. The lessons of John Law and others were definitely not learned. It is not good enough just to say that a currency is backed by commodities. It actually HAS to be backed by commodities. Essentially, it was still a fiat money, and in a short period of time, Colonials became as good as toilet paper. The next experiment came during the Revolutionary War. Big surprise — the issuance of paper money was used to finance the war efforts. This time, the currency was called a continental. The crash of the continental was spectacular, and the phrase “not worth a continental” was coined. This brought on a large distrust for paper currency, and until 1913, toilet paper money in the U.S. wasn’t used. Enter the infamous Federal Reserve and its monopoly on money and interest rates. Now we have the greenback. Although the money was “officially” backed by a gold standard until 1971, it wasn’t a true gold standard. When the government found it inconvenient to have a gold standard, it just made it illegal for U.S. citizens to hold gold or exchange dollars for gold. As reported on Strike-the-root.com: “Under the infallible leadership of President Franklin Roosevelt, it was made illegal to own gold. On March 11, 1933, he issued an order forbidding banks to make gold payments. On April 5, Roosevelt ordered all citizens to surrender their gold — no person could hold more than $100 in gold coins, except for collector’s coins. He also made it unlawful to export gold for payment abroad, unless done through the Treasury. The penalty for defying Roosevelt was 10 years in prison and a $250,000 fine.” But the official demise of the dollar was locked into place in 1971 when “Tricky Dick” Nixon completely severed all ties between the dollar and the gold standard. During the decade that followed, the U.S. experienced some of the worst inflation in its history, only matched by today’s U.S. monetary and fiscal irresponsibility. The U.S. of A. has all the characteristics set in place that have led to the collapse of every other fiat currency money in history. We are currently at war, and the financing of this war is extremely inflationary. In fact, if you look back at our history, since 1914, the U.S has engaged in 16 military conflicts. We have been involved in some form of violent international accord in 44 of the past 93 years. The overwhelming majority of military conflicts result in monetary inflation. The U.S. has a debt similar to that of Weimar Germany. All though the reasons for the debt are completely different, it appears thatthis Mount Everest of IOUs is going to be impossible to pay back. I guess the U.S. could just print 10 trillion dollar bills and hand them out, but the implications of such actions are obvious. We are currently increasing the supply of dollars at a rate of 13% per annum. This overissuance of a currency has been the leading indicator of a currency on the brink. So what’s in the future for the dollar? Some, myself included, might say that the dollar has already failed. It has lost over 92% of its value since its initial issuance in 1913. After the revaluation in 1934, the dollar dropped another 41%. In my opinion, it already is toilet paper money, but for the above-mentioned characteristics, which are alarmingly similar to the circumstances that led up to the eventual collapse of the dollar’s toilet paper predecessors, I believe that we have seen only the tip of the iceberg of the dollar’s inevitable path toward becoming toilet paper money. Until Next Time, Nick Jones
Roman Denarius, China's Flying Money, France's livres, Weimar German Mark, Continental Dollar, Mexican Peso, Indian Rupee, Thai Baht, Russian Ruble, Turkish Lira, Zimbabwe dollar, Petrodollar
16th Amendment, Allowed a national federal tax to be levied on personal income
17th Amendment, Allowed senators to be elected by society thereby expanding the impact of the 16th Amendment and eliminating the previous system that automatically checked and balanced itself
Federal Reserve, Neither federal, nor with any reserves; this private central bank established for the purpose of profit has the power to increase the currency within circulation thereby artificially impacting inflation and deflation
Rule 144, Securities and Exchange Act 144
Federally Insured Deposits
Bretton Woods Agreement, International Monetary Fund (World Bank), American dollar becomes the reserve currency of the world
PetroDollar Agreement, Monopolized world oil trade to only the USD. Expanded the ability to print USD without matching hard assets
Studying and understanding free enterprise is an essential part of financial fitness
Financially fit people who want to maintain an environment that encourages opportunity and prosperity pay attention to the principles of freedom and the ongoing actions of government.
In addition to cash savings, save some of your money in something other than fiat currency.
Study up on investments in metal and any other investment before you buy. Do your homework. Take your time.
Invest even more in yourself by learning to be the kind of person who consistently engages in an enterprising, creative, enthusiastic type of life. Fill your days with enterprise, action, and doing things that matter. And teach your children and the people you work with to do the same. Become the kind of person and leader who consistently works on your current enterprise.
Study the strength and/or weaknesses of your nation and economy (and others where you do business) and wisely consider and prepare for potential economic downturns.
Using your time, money and talents to genuinely help others naturally increases your happiness. Seeking money for money's sake may or may not influence your happiness, but seeking money in order to fulfill your stewardship and serve and bless others automatically increases it.
Money is a gift. It has a specific use. This means that you have a stewardship. You are to use your money for something that matters, for your family and beyond.
Live within your mean. Always. No Exceptions. Period. Follow a good budget. Give each spouse a small allowance so you have a little discretionary money each month and don't nitpick each other on the little things.
Stop getting financial advice from broke people; get it only from those whose finances you want to emulate.
Consistently Budget and save for unexpected expenses.
Pay 10% of your income to tithing. Give even if you are really broke. Giving puts you in a mindset of abundance and puts any financial worries in their proper perspective, so it should not be limited to just tithing. The Bible categorizes giving as 1. Tithes and 2. Offerings.
It's not what you make, but what you keep that determines financial success. Pay yourself first and save what you pay yourself.
Know what you make, Accurately define your net monthly income
Know all your expenses, Document ALL expenses
Get your expenses to no more than 75% steady state, Set a financial goal, Live on 75%
Never finance anything that depreciates outside of your house, Never finance anything that depreciates
Sleep on it rule, Set a ceiling on spontaneous buys and sleep on anything bigger
If you can't pay your credit card monthly; you can't afford to have a credit card, Don't use credit cards if your spending goes down when you use cash
After interest debt is eliminated; save 10% immediately, Wipe out consumer debt before you work on building up savings
Interest on debt is a CANCER, Know the difference between an investment and an expense
Invest in your brain, As you make more money focus on quality of life and contribution, Don't let your life get complicated
Focus on quality of life and peace of mind when you do get wealthy, Never invest in a business where you are not the prime mover, Advance slow enough so you don't ever have to go back, Never purchase something on something you are going to do, When you have enough money; give to the causes you believe in, Be a blessing to others, The richness of life is about what we can do to serve others, Robert Kyosaki's 3 keys to wealth, Delayed Gratification