I've read a couple of financial articles and these are the ones that I really find interesting. I'd like to share it to you; you might learn a lesson or two...
To build wealth, minimize your realized (taxable) income and maximize your unrealized income (wealth/capital appreciation without a cash flow).
THEY LIVE WELL BELOW THEIR MEANS.
Efficiency is one of the most important components of wealth accumulation.
Simply: People who become wealthy allocate their time, energy, and money in ways consistent with enhancing their net worth.
Begin earning and investing early in your adult life. That will enable you to outpace the wealth accumulation levels of even the so-called gifted kids from your high school class. Remember, wealth is blind.
Planning and controlling consumption are key factors underlying wealth accumulation.
Money should never change one's values.
Making money is only a report card.
It's a way to tell how you're doing.
Building wealth is not something that will change your lifestyle.
Even at this stage of life, I don't want to change the way I live.
The more dollars adult children receive,
the fewer dollars they accumulate,
while those who are given fewer dollars accumulate more.
I am not impressed with what people own. But I'm impressed with what they achieve. I'm proud to be a physician. Always strive to be the best in your field. ... Don't chase money. If you are the best in your field, money will find you.
• I'm in control of my own destiny.
• Risk is working for a ruthless employer.
• I can solve any problem.
• The only way to become a CEO is to own the company.
• There are no limits on the amount of income I can make.
• I get stronger and wiser every day by facing risk and adversity.
*My Personal Realizations:
> When you generate a high income, it doesn't mean you have to spend every bit of it (high income = high costs). You still have to stick with your (low) costs -- the same costs when you're income is still 5-digits or less. Extra income (income - costs), must be put into investments and/or savings.
> Attitude matters: goals, discipline, hard-work and frugality.
To build wealth, minimize your realized (taxable) income and maximize your unrealized income (wealth/capital appreciation without a cash flow).
THEY LIVE WELL BELOW THEIR MEANS.
Efficiency is one of the most important components of wealth accumulation.
Simply: People who become wealthy allocate their time, energy, and money in ways consistent with enhancing their net worth.
Begin earning and investing early in your adult life. That will enable you to outpace the wealth accumulation levels of even the so-called gifted kids from your high school class. Remember, wealth is blind.
Planning and controlling consumption are key factors underlying wealth accumulation.
Money should never change one's values.
Making money is only a report card.
It's a way to tell how you're doing.
Building wealth is not something that will change your lifestyle.
Even at this stage of life, I don't want to change the way I live.
The more dollars adult children receive,
the fewer dollars they accumulate,
while those who are given fewer dollars accumulate more.
I am not impressed with what people own. But I'm impressed with what they achieve. I'm proud to be a physician. Always strive to be the best in your field. ... Don't chase money. If you are the best in your field, money will find you.
• I'm in control of my own destiny.
• Risk is working for a ruthless employer.
• I can solve any problem.
• The only way to become a CEO is to own the company.
• There are no limits on the amount of income I can make.
• I get stronger and wiser every day by facing risk and adversity.
*My Personal Realizations:
> When you generate a high income, it doesn't mean you have to spend every bit of it (high income = high costs). You still have to stick with your (low) costs -- the same costs when you're income is still 5-digits or less. Extra income (income - costs), must be put into investments and/or savings.
> Attitude matters: goals, discipline, hard-work and frugality.
No comments:
Post a Comment