Winning At Investing

Investing takes patience. It also takes a mindset.

You hear about your friend’s big investment win. You see the car he bought or the trip she took, claiming it was from some hot stock pick. How do you react?

Do you start to doubt your strategy? Do you fear you’re losing in some way? 

When you feel this doubt, look at your lifetime returns.

Has it risen? Has it…

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Assets vs. Liabilities

Do you know the difference between assets and liabilities? Or, to rephrase, do you know the difference in how you should view them while building wealth?

For most people, assets are those THINGS that could become money one day. This can include items like your house, your car, or jewelry.

For most people, liabilities are those THINGS that you’re still paying for. This can include things like credit card debt and student loans.

But when accumulating wealth – and really you can view these terms in this way for most of your life – assets bring in money.

Liabilities take away money.

How does that change your financial outlook?

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The Power of 1

Think small changes can’t make a difference in your finances? Then think about the power that the lowly number 1 has in building your wealth.

By upping your savings rate by just 1% a year, you can increase it from 10% to 20% in ten years, vastly improving the probability you can safely retire one day.

Saving $1 more per day can save you $30 more a month, and $365 more a year.

Having one car versus two can save you over $800 a month, on average, or nearly $10,000 a year.

A difference of 1% in investment fees can result in a difference of hundreds of thousands of dollars by the time you retire.

Imagine…

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Beating Your Neighbor

Want to do at least as well as your neighbor?

It’s not a riddle, a secret or even that difficult:

15% of your income + broad based index funds = Market Returns

If you stick with that formula when investing then, overtime, your money will grow faster than inflation. And if your neighbor does the same, then your money will grow in lock step with his.

If you want to outperform your neighbor…

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My Money Regrets

Why didn’t I invest more in my 20s, when the impact of compounding would have been even greater than it already will?

Why didn’t I ensure I earned the company match in my first 401k, losing out on the free money?

Why didn’t I look towards homeownership earlier since it’s one of the best buys of my life?

Why didn’t I read more, beyond the basics of finances, as my professional career began?

Why didn’t I diligently budget when I…

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Sharing With Your Significant Other

If you can’t discuss your financials with your significant other (SO), ask yourself why.

Does it have to do with how your parents viewed money, never discussing it? That’s a shame; don’t be like them. Break the cycle and discuss it with your SO.

Does it have to do with fear you will disappoint her? If she really loves you, then there’s no reason you can’t share your financial truth. Break the cycle and discuss it with your SO.

Are you afraid of what he might think…

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Know Your Goal

I spoke to a lady that had started businesses, bought real estate, had a nice car, lives in a large city, and “had goals.”

When pressed to outline those money goals, she simply said, “I want money to create more money.”

In part, she made complete sense, since it’s the basic principle of investing. You have to invest money so it will grow.

Yet, in other ways, she was lost.

Without tangible goals for the money, then when does that creation-cycle end?

We all know where it will end. By then, you may be rich, but what good does that do for you…

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