Let’s get straight to it, this is the cheat code:
If you want to be a Millionaire, go into real estate. If you want to be a Billionaire, get into stocks.
Like Frank Lucas said about his product, “I wanna’ get it where they get it from”.
But to be well rounded, you eventually need to be in more than 2 asset classes.
If you have a great idea for a business, go for it.
But there’s risk.
If you have a business already that you’re trying to get profitable, keep going.
But there’s a huge energy expenditure.
If you have a job and no idea what type of business to start or you don’t want to start one, buy into a business.
When you buy stocks, that’s exactly what you are doing. You are buying into an established business and getting the price appreciation when the value of the stock goes up, and, or, you’re getting dividend payments from the company (a piece of the profits).
But there’s risk in the price going down.
To help with your understanding, buy the companies that you know. Buy the companies the make the products you buy and understand.
When you buy a bond, you are becoming the payday lender and YOU get paid interest instead of the other way around.
Now here’s the hard part, you’re going to have to spend a lot to get to your goal.
You’re going to have to spend a lot of time.
You’re going to have to spend a lot of energy.
You’re going to have to spend a lot of money, or, a little bit of money over a long period of time to get there.
Here’s the insight:
Time is going to pass anyway. Use it in pursuit of your goal.
Energy is going to be spent doing something. Spend the energy towards your goal.
Money is going to be spent doing something. Spend it on something that keeps you moving closer towards your goal.
In the last 30 years, the wealth of the bottom 50% in the country has decreased. While the income growth in the richest 1% has increased by a factor of 300%.
We spend 12 – 20 years in school learning about every subject, except for money. Then we spend the rest of our lives trying to figure out how to make money or how to grow the money we have.
My approach to financial literacy is to teach it in a way that makes the complexities of finance so simple that your investing actions become instinctive.
To the youth, young adults, and the mothers who raise them,
Financial Literacy: Monk Says… Learn the Game
#FinancialLiteracy
#FinancialFreedom
#MonkSays