Who Needs Money Anyway?
Why even worry about having money in the first place? Money does not define who someone is, money does not buy you friends or buy happiness, but it sure does buy you things that make you happy. In a nut shell, you need money. I don't care what anyone says, you need it to survive, just like you need water, shelter, and food. How do you think you supply yourself with those needs?
My favorite quote from Robert Kiyosaki, who is the author of a fantastic book called Rich Dad Poor Dad, is "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for". This quote is sends a good message, if you want you financial views changed, and everyday life views changed, I suggest reading this book.
My favorite quote from Robert Kiyosaki, who is the author of a fantastic book called Rich Dad Poor Dad, is "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for". This quote is sends a good message, if you want you financial views changed, and everyday life views changed, I suggest reading this book.
Honestly, I get tired of hearing people say they don't care about money. Those are usually the ones who need it the most. I respect most people in the world, wealthy or poor we are all here for a reason. If someone wants to go off, build a company, become as wealthy as they possibly can, and live how they want and buy some flashy things they worked for, why not? If someone wants to work at McDonalds their whole life and earn minimum wage and hardly support themselves, why not? Life is what you make it, and if you make it flipping burgers, that is okay. If you make it building empires and businesses around the world, that is okay. The only difference, one will be financially stable and one will struggle paycheck to paycheck their whole life. Which do you want to be?
This post is more off topic on investing, but I want to reach out to all sorts of people. Through these posts I want people to learn that even if you work at McDonalds, you can save money. Even wealthy people who own corporations and built empires may not have a lot of money because they spent it all, or can't live below their means and that is why most people go bankrupt. All spend, no save.
Lets do some math, here is an example of someone who smokes a pack per day.
Smoking Cigarettes: Lets say you smoke a pack a day, some States vary in price so I will use around $5.00.
$5.00 X 365 (days in the year) = that is $1,825. Now lets say instead of spending that money on cigarettes, you put that $1825 into a ETF at the end of the year. The following year you made 10% on the $1825, thats $182.50, lets say you reinvested that back in to buy more shares now you have a total of $2007.5, then lets say the market had a down year and you only had a return of 6%, this would give you $120.45. Reinvest that back in and you have $2127.95. On the third year the market performed fantastic, and you received as return of 12%. This would give you $255.35. Added back into the original investment you would have $2383.30.
In three years, on the original investment of $1,825, it grew to be $2383.30. For doing nothing but investing into an ETF that gave you pretty good returns. This is basically a 30.5% return on a small investment, imagine putting even more money into and adding to it each year!
To find out your return on an investment, Final number/Original Investment, or 2383.30/1825 and this gives you 1.305 or 130.5% of what you invested or 30.5% return.
I realize people may not have the money to save, maybe make a list, and cancel some small things out that you could live without, and start saving over a few years and when you have a good chunk of cash saved up, talk to a trustworthy financial advisor and put the money into some safe investments.
Although these returns are very high for three years, it is completely possible.
Next post will be on the fundamental analysis of a company.
https://www.facebook.com/chrisbartoinvesting/
Chris Barto
This post is more off topic on investing, but I want to reach out to all sorts of people. Through these posts I want people to learn that even if you work at McDonalds, you can save money. Even wealthy people who own corporations and built empires may not have a lot of money because they spent it all, or can't live below their means and that is why most people go bankrupt. All spend, no save.
Lets do some math, here is an example of someone who smokes a pack per day.
Smoking Cigarettes: Lets say you smoke a pack a day, some States vary in price so I will use around $5.00.
$5.00 X 365 (days in the year) = that is $1,825. Now lets say instead of spending that money on cigarettes, you put that $1825 into a ETF at the end of the year. The following year you made 10% on the $1825, thats $182.50, lets say you reinvested that back in to buy more shares now you have a total of $2007.5, then lets say the market had a down year and you only had a return of 6%, this would give you $120.45. Reinvest that back in and you have $2127.95. On the third year the market performed fantastic, and you received as return of 12%. This would give you $255.35. Added back into the original investment you would have $2383.30.
In three years, on the original investment of $1,825, it grew to be $2383.30. For doing nothing but investing into an ETF that gave you pretty good returns. This is basically a 30.5% return on a small investment, imagine putting even more money into and adding to it each year!
To find out your return on an investment, Final number/Original Investment, or 2383.30/1825 and this gives you 1.305 or 130.5% of what you invested or 30.5% return.
I realize people may not have the money to save, maybe make a list, and cancel some small things out that you could live without, and start saving over a few years and when you have a good chunk of cash saved up, talk to a trustworthy financial advisor and put the money into some safe investments.
Although these returns are very high for three years, it is completely possible.
Next post will be on the fundamental analysis of a company.
https://www.facebook.com/chrisbartoinvesting/
Chris Barto
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