Category: Wealth

  • While Taking Risk, Protect the Downside

    Always take measures to protect the downside. This applies to all areas of your life, and has been most relevant to me with my startups.
    Entrepreneurs are typically portrayed as reckless risk takers… the fact is entrepreneurs are some of the best people at taking calculated risk while protecting their downside. The best entrepreneurs don’t dive headfirst without looking… they prepare for multiple scenarios and get creative in ways to protect the downside of what they are doing. You can do this with financial investments,

    Said another way: Hope for the best, plan for the worst.

  • On Becoming a Millionaire

    On Becoming a Millionaire

    Become a millionaire, but not for the money. For what it will make of you to achieve it. – Jim Rohn
    Greatest value of your activities is not what you get. It’s what you become.
    The flip side of this is beware of what you become in pursuit of what you want.
  • How to Get Rich

    How to Get Rich

    Assets make your rich.

    The first step to getting rich is knowing the difference between liabilities and assets. Liabilities take money out of your pocket, Assets put money into your pocket. By investing in assets, you are investing into your future earnings. The key is to do this early, in your 20s. The simple formula to get rich is to live cheaply in your 20s and 30s and use your savings to purchase assets that will produce income for the rest of your life. It compounds over time, so your earnings from your assets can be used to purchase other assets. This pattern of savings and investing isn’t a forever thing, only until you can support your ideal lifestyle. The not rich will spend all of their earnings on liabilities, and they spend before they really have the income to support the purchases.

    Suggested reading: Rich Dad, Poor Dad