Wealth in Words

Starting anything new can be daunting. Certainly, learning to invest your money is no different. However, whether you have saved some money and want to begin investing or you just want to learn how to invest, putting a proven plan  in place will set you on the right path to tackle this new challenge. If you don’t take the time to design and plan your life you will have to settle for what life gives you… -         Joe Duncan, @Before5AM Select an Investment Strategy Before you start investing you need to learn about markets and understand how they work. The odds of making money are greatly stacked against most individual investors so getting familiar with different profitable strategies  is important.  Perhaps you choose to focus on timeless methods like value investing  (buying under-priced stocks) or cost-effective indexing (passively managed assets) that are proven to grow your wealth. The “Little Book” ...

If you are like most Americans you will be getting money back from the government this year. In some cases this tax refund can be fairly substantial. Managing the money correctly  will help give you some serious breathing room in your finances . No matter what you did with your money in the past, try picking one or a few of the options below to set yourself up for a better financial future . Pay Off Debts The first priority should be paying off any outstanding debts  as much as possible. For example, any student loan, car loan, credit card, or mortgage balance outstanding should be eliminated with some of the tax refund you get back from Uncle Sam. Additionally, focus on paying off some of the highest interest rate debt (typically, credit cards) before any lower interest rate loans. Debt accumulated on credit cards will continue to compound , but not in your favor. In other words, as your outstanding credit card balance grows so too will the amount of ...

As the saying goes, the best time to plant a tree  was 30 years ago. The next best time , is right now. With all the questions you may have around saving and investing  it can make it hard to actually get started. But the best thing you can do for yourself and your family is just begin! Start learning, begin acting on the information you find, assessing the outcomes, and implementing changes to best suit your needs. Heading into 2016 I knew that I needed to start boosting my savings account  substantially as it was slipping below the minimum threshold that serves as a psychological comfort zone. The previous year, I had to purchase a new vehicle which depleted a significant portion of my savings. Compound that with irresponsibly managing my monthly cash flows  two years before and I was approaching a slippery slope. With only 3 months of savings in my emergency account I decided to make some immediate changes for the year ahead. Below are some of the...

If you want to succeed in business, you should study this man’s work. It was no accident that he amassed a personal fortune  of $100 billion dollars. Walmart has become a worldwide business thanks to his drive and entrepreneurial tactics  employed during his tenure. Sam Walton is considered the greatest entrepreneur  of the 20 th century. In his autobiography, “Made in America,” he shares insight and experiences that allowed for him to build his iconic brand . Learn to Value a Dollar Walton learned how to organize Walton Enterprises into a partnership from his wife Helen’s family farm business. Each of the family members had a partnership status with regular payouts and voting rights as well as a vested interest in the family business. Over the years the Waltons accumulated wealth through this partnership by starting humbly with anything they could save to where they eventually compounded a fortune  in Walmart stock in the partnership. Mr. Sam, as h...

Warren Buffett and Bill Gates have referred to this individual as the smartest man they know. He may be best known for his book of witty remarks and sage advice called “Poor Charlie’s Almanac.” Of course, I am alluding to Charlie Munger. Munger is the long-time business partner of Warren Buffett . Together, this team has grown their conglomerate, Berkshire Hathaway, into one of the world’s most respected businesses. Below are some observations from “Charlie Munger: The Complete Investor” that should help you in your own financial , professional  and entrepreneurial journey . Solve Hard Problems by Using a Checklist Munger is a proponent for using checklists  to get your most important tasks done. He states that “I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.” Similarly, Buffett has said that “if you haven’t written it down, you ...

Knowing whether or not you are saving enough is a constant concern. The uncertainties of life consisting of its twists and turns can create even more room for question. Financially speaking, the best way to protect yourself from these unforeseen events and to minimize your worry is to have adequate savings. However, before answering how much you should save, we need to look at how much you can possibly save. In other words, you need to begin documenting your monthly income and expenses. Start by using a simple budgeting worksheet . Fill in your income and subtract expenses to get a quick estimate on whether or not you have any money left over each month based on your current spending habits. If there is no money left, you need to find ways to immediately cut extra expenses, find discounts, and minimize costs  to create money that can be used for savings. Once you do have some positive net income there are several options. First, a portion of it should be put into c...