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Most of what you learned growing up about money, income, and wealth are not true. This is understandable - think about whom you first learned them from (odds are good, it was from those who were not rich themselves). From confusing high incomes with wealth most people believe the key to wealth is a high-paying job. but the true secret to increasing your net worth is to spend less than you make. It is a cliche; but it is the fundamental, absolute, non-negotiable reality of money. To escape this trap, you need to understand that income is not wealth.
Obama used the ignorances of the masses to increase taxes on high income (your road to wealth), he did not go after truly rich.
Reinvest Your Profits: When you first make money in the stock market, you may be tempted to spend it. Don't.
Be Willing To Be Different: Don't base your decisions upon what everyone is saying or doing.
Limit What You Borrow: Living on credit cards and loans won't make you rich.
Know What Success Really Means: Despite his wealth, Warren Buffett does not measure success by dollars.
Most of what you learned growing up about money, income, and wealth are not true. This is understandable - think about whom you first learned them from (odds are good, it was from those who were not rich themselves). From confusing high incomes with wealth most people believe the key to wealth is a high-paying job. but the true secret to increasing your net worth is to spend less than you make. It is a cliche; but it is the fundamental, absolute, non-negotiable reality of money. To escape this trap, you need to understand that income is not wealth.
Obama used the ignorances of the masses to increase taxes on high income (your road to wealth), he did not go after truly rich.
Reinvest Your Profits: When you first make money in the stock market, you may be tempted to spend it. Don't.
Be Willing To Be Different: Don't base your decisions upon what everyone is saying or doing.
Limit What You Borrow: Living on credit cards and loans won't make you rich.
Know What Success Really Means: Despite his wealth, Warren Buffett does not measure success by dollars.
If you want truly practical advice about how to get out of debt and remain that way, you need to look into Dave Ramsey. While his program does require a bit of short term sacrifice (getting rid of non-essentials such as cable, expensive cell phone plans, and credit cards as well as possibly sacrificing some time on a second job for a bit), it is extremely effective at teaching you how to achieve and maintain a debt free status in order to build wealth, no matter what your income level is.
Ya'll are forgetting that Warren took advantage of a time when America was successful.
That's a cop out. You can still be successful in America, you just may need a different approach from that used by Warren Buffet. As long as you have an income, you can grow your wealth - you just have to learn to do without some things depending on your ratio of income vs. basic expenses.
If you want truly practical advice about how to get out of debt and remain that way, you need to look into Dave Ramsey. While his program does require a bit of short term sacrifice (getting rid of non-essentials such as cable, expensive cell phone plans, and credit cards as well as possibly sacrificing some time on a second job for a bit), it is extremely effective at teaching you how to achieve and maintain a debt free status in order to build wealth, no matter what your income level is.
I'm not in debt. But yes David Ramsey is a good plan. People have to be dedicated and smart about it though. Some people will consolidate debt into one larger debt then they turn around and use their credit cards again <just this one time> creating debt on top of the initial debt.
These types support Obama. They got themselves into trouble and now blaming it on everyone else.
I'm not in debt. But yes David Ramsey is a good plan. People have to be dedicated and smart about it though. Some people will consolidate debt into one larger debt then they turn around and use their credit cards again <just this one time> creating debt on top of the initial debt.
These types support Obama. They got themselves into trouble and now blaming it on everyone else.
We used the debt snowball to get caught up on a few bills when we were younger. It's extremely effective and actually gives you a sense of achievement when you are able to write one off the list.
That's a cop out. You can still be successful in America, you just may need a different approach from that used by Warren Buffet. As long as you have an income, you can grow your wealth - you just have to learn to do without some things depending on your ratio of income vs. basic expenses.
This is true but don't forget the rich work to set the foundation first, meaning that they get educated to increase skills that will get higher pay or they start a business. If you have a lower pay rate it takes longer to achieve wealth but if you have a higher pay rate if you are smart you can achieve wealth quicker.
Raise taxes on higher income and it takes longer to achieve wealth. So if your kid goes to school to be a doctor not only will he/she work hard to learn skills so they can get paid a higher income he will have to work longer to achieve wealth. Taxes can keep you poor. People don't understand that Obama made it harder to achieve wealth.
We used the debt snowball to get caught up on a few bills when we were younger. It's extremely effective and actually gives you a sense of achievement when you are able to write one off the list.
Back when I was in debt I didn't hear of Dave Ramnsey but used the debt snowball idea too. It worked and I have to say there is nothing better than no debt and to stop throwing money away paying interest. It's is a peace of heart that some who refuse to listen will never understand. Those types will always remain poor. Sadly these types believe in bad debt and support a government who wants to borrow more.
If you want truly practical advice about how to get out of debt and remain that way, you need to look into Dave Ramsey. While his program does require a bit of short term sacrifice (getting rid of non-essentials such as cable, expensive cell phone plans, and credit cards as well as possibly sacrificing some time on a second job for a bit), it is extremely effective at teaching you how to achieve and maintain a debt free status in order to build wealth, no matter what your income level is.
One thing that irks me generally about personal finance teachers (authors, bloggers, etc) is that they generally assume the target audience to have a mainstream income i.e. one that is within shouting distance of the median.
Dave Ramsey at least doesn't assume an income near the median, but he does assume a 'respectable' income, from multiple jobs if necessary.
His guidelines suggest one spend no more than 38% of their income on housing, and this is where income really does matter. People living at or near poverty level are going to have a hard time finding housing for less than 38% of income, unless they are in subsidized (by government or mom and dad etc) housing.
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