Total net worth is the difference between the market value of what you own minus what you owe.
There are a lot of different definitions of net worth, but in the most extreme, it is what you would have left over if you sold everything of value today and paid off all of your debts.
It [...]
Filed under: Definitions, Earn To Invest | Tagged: net worth, personal finance | No Comments »
The two extremes of money-styles (consumer and accumulator) can be broken into six distinct types.
These six types are pictured in the graphic below. The bars represent your total net worth, the difference between the market value of what you own minus what you owe. There are a lot of different definitions of [...]
Filed under: Definitions, Earn To Invest | Tagged: Family, personal finance | No Comments »
This is the third in a series of articles on how to earn to invest. The previous article is an exercise teaching you how to keep more of your next million.
Your money-style is the cumulative result of the relationship between your time and your money.
We all consume stuff at some level: lodging, transportation, [...]
Filed under: Earn To Invest, Family, Money Mindset, Money-Styles | Tagged: budgeting, Family, investing, money, personal finance, spending | No Comments »
This is the third article in a series about how to earn to invest. The second article is Keep More of What You Earn.
You keep more of your next million by doing these three things:
Holding your cost of living steady.
Capturing good fortune as productive assets.
Reinvesting the passive income (Options 2).
Alternatively, you could spend [...]
Filed under: Earn To Invest, Exercises, Family, How To | Tagged: Family, investing, money, personal finance, saving | No Comments »
This is the second article about How To Earn to Invest. The first is, Separate Your Finances from Your Profession.
Being “financially independent” doesn’t necessarily equate to being “wealthy.”
The vaunted goal of being a “millionaire” just doesn’t get you the same economic power that it used to.
In 1967, a modest annual return of 5% on [...]
Filed under: Earn To Invest, Family, How To | Tagged: Family, investing, millionaire, money, personal finance, saving | No Comments »
Once you decide to earn to invest, you can take three steps to make that attitude a habit.
Start by separating your finances from your profession. (This post.)
Then, plan to keep more of what you earn. And, do this exercise about keeping your next million.
Finally, get a grip on your money-style.
Step 1: Separate Your [...]
Filed under: Earn To Invest, Family, How To | Tagged: budgeting, Family, money, personal finance, spending | No Comments »
When you earn to invest, you replace your habit of earning to acquire stuff with earning to invest in your own financial independence. You dump leaky bucket thinking and focus on gathering many healthy, self-sustaining and growing sources of income in addition to your job.
The word sustainable is very popular right now.You see it [...]
Filed under: Earn To Invest, Exercises, Family, Money Mindset | Tagged: budgeting, Family, personal finance, spending | No Comments »
Somewhere in the 1980s, we became a nation of spenders. The average savings rate as a percentage of disposable personal income from 1952 to 1985 was 9.0%. In 2005, it dropped to -0.4%.
After some adjustments to the 2005 numbers to make them reflect the paycheck cash flows of an everyday person, I estimated [...]
Filed under: Earn To Invest, Family | Tagged: budgeting, Family, personal finance, spending | No Comments »
Financial independence is a lifestyle;
one unfamiliar to us because Americans are consumers by design and training.
We are groomed from birth to desire stuff, and we love to buy the objects and experiences that furnish our lives.
We know the ins and outs of purchasing all kinds of things and entertainments that TV ads say [...]
Filed under: Definitions, Earn To Invest, Family | Tagged: budgeting, Family, Financial Independence, investing, money, personal finance, saving, spending | 1 Comment »
Dana Kunz