Lots of investors like real estate. And sometimes for the average person it’s hard to understand why. One of the biggest reasons for that disconnect is the way people view their return on investment (how much money you make on an investment). Let’s help you grow a wealth of understanding as we take a look […]
Wealth of Understanding
Helping others learn and apply the fundamentals of wealth and personal finance.
Because of the effects of compounding, money grows quicker as the numbers get bigger. And after a while it takes less and less time to hit the next milestone. Just like when you’re building a wealth of understanding, you can learn faster after you’ve learned the basics.
All of us have a story about how we did something stupid with our money. Even though these lessons hurt, it’s best to treat them as the cost of education, and to learn from them. As you grow your wealth of understanding, consider learning from others instead of making the mistakes yourself. One of the […]
If I open two investment accounts for my kids and fund them with the same amount, for the same length of time, when they both turn 65, my younger daughter will have $1M more than her sister because her account will have been invested for 4 years longer.
Robert Kiyosaki was one of the first finance authors I read when I began amassing a wealth of understanding. His book Rich Dad Poor Dad really shifted how I thought about riches, wealth, freedom, and my current circumstances. His follow up book Cashflow Quadrant took a lot of the theoretical concepts in Rich Dad Poor […]
People assume they need a huge salary and a great return on investment (ROI) in order to retire early. But someone with a wealth of understanding knows that more than either of those, the true determining factor of how long you need to work until retirement (or financial independence) is your savings rate.
Chris Johnson had a fire thread recently about money and wealth creation on Twitter its exactly what we’re hoping to teach–it’s a wealth of understanding. To help unpack it I’ve created some simple graphics to help us understand these concepts more easily. Take a look:
In 2013 I had just gotten married and didn’t have anything in savings because it had all gone to the wedding and the condo that I had financed for my wife and I. Understandably, she wasn’t interested in being the 4th roommate in the small apartment that I had co-leased before our union. That’s where […]