I post on my blog when the spirit moves me and I might even get another book or two written. Or I can just sit on the porch with a cup of coffee and read the books others have written. One of my very few regrets is that I spent far too much time worrying about how things might work out. The older I get the more I hold each day precious. Money is a small part of it. But F-You Money buys you the freedom, resources and time to explore it on your own terms.
Retired or not. Enjoy your journey. But first, please be sure to carefully read the important notes that follow. Chapter IV Important notes. While these were all accurate at the time of writing, like many things in this world they are subject to change. Indeed, frequently during the various rewrites of the manuscript I found myself having to update them. By the time you read this book, some will surely be out-of-date.
However, if you find for your situation or even just for your own curiosity it does, by all means take the time to look up the most current rules and numbers for yourself. In creating these, I had first to select a given calculator and then the parameters to enter.
By definition, this means these scenarios are only for the purpose of making or demonstrating a point. While the data and input are accurate, the results are not, and cannot be, a prediction of what the future will hold. In each case, the URL for the calculator used is provided along with the settings chosen. For example:. To ignore inflation too unpredictable , taxes too variable between individuals and fees also variable and if you choose the index funds I recommend, minimal.
If you want to see what the numbers look like including any of these variables, I encourage you to visit the calculators and run the numbers with your own specifications. It is a nice, solid year period and this book advocates investing for the long term.
As it happens, from January - January , using the parameters I chose above, the market returned an average of But when the dust settled, over that year period, the average was That is a breathtaking number.
True enough. Returns then were an ugly But that time frame encompassed one of the very worst investment periods of the last years. During one of the best, January - January , returns blew past More recently, since January until January the return has been The fact is, in any given year, it is exceedingly rare that the market will deliver any specific return.
Moreover, the average market return will vary dramatically depending on exactly what period you choose to measure. So, this left me with a bit of a dilemma. The real, actual return for that year period was But, and let me be absolutely clear about this, in no way should it be used as an expected return going forward. I am NOT for a moment suggesting that you can count on The idea that someone might think I am gave me serious pause.
So I considered using a different time span. But given the variables above, that would only project a different percentage equally unlikely to hold going forward. Using the same year span but with different parameters was an option. Those results look like this:. Without reinvesting dividends: 8. As they say, it is what it is. But, and again,…. If A couple of years after I was out of college, I got my first credit card. They were tougher to come by in those days.
Not like now when my unemployed pet poodle has his own line of credit. When the bill came, there was each charge listed by vendor, with the total at the bottom. I could hardly believe my eyes. And I can still buy more? This is awesome! Fortunately, my older sister was sitting nearby. She pointed out the fine print. Did these people think I was stupid!? As a matter of fact they did. It was nothing personal. They think the same of all of us. Pause for a moment and take a look at the people around you, literally and figuratively.
For marketers, it is a powerful tool. Think again. Not surprisingly, debt has been promoted as, and largely embraced as, a perfectly normal part of life. By the time you read this, these numbers will undoubtedly be higher. And most disturbingly, almost no one you know will see this as a problem. This book is about guiding you towards financial independence.
It is about buying your financial freedom. It is about helping you become wealthy and putting you in control of your financial destiny. Look around at those people again. Most will never achieve this, and their acceptance of debt is the single biggest reason why.
If you intend to achieve financial freedom, you are going to have to think differently. It starts by recognizing that debt should not be considered normal. It should be recognized as the vicious, pernicious destroyer of wealth-building potential it truly is. It has no place in your financial life. The idea that many indeed most people seem to happily bury themselves in debt is so beyond my understanding it is hard to imagine how, let alone why, the downsides would need be explained.
But here are a few:. Your lifestyle is diminished. Set aside any aspirations to financial freedom. Even if your goal is living the maximum consumer lifestyle, the more debt you carry the more of your income is devoured by interest payments.
A sometimes huge portion of your income has already been spent. You are enslaved to whatever source of income you have. Your debt needs to be serviced. Your practical ability to make choices congruent with your values and long-term goals is seriously constrained.
Your stress levels build. It feels as if you are being buried alive. The emotional and psychological effects of being saddled with debt are real and dangerous. You endure the same type of negative emotions experienced by any addict: shame, guilt, loneliness, and above all, helplessness. Your options can become so narrowed and your stress levels so high, you risk turning to self-destructive patterns that only reinforce the dependence on spending.
Drinking perhaps, or smoking. Or, ironically, shopping and still more spending. Your debt tends to focus your attention on the past, present and future exclusively in the worst possible way.
You become fixated on your past mistakes, your present pain and the disaster looming ahead. Your brain tends to shut down on the subject with the vague hope it will all resolve itself in some magical way and in the magical time of later. Living with debt becomes hardwired in your financial attitudes, habits and values. OK, but what do I do about the debt I have? But this is just looking at the numbers. There is a lot to be said for focusing on just getting it out of your life and moving on.
Especially if keeping your debt under control has been a problem for you. What now? Countless articles and books have been written about ridding yourself of debt. If after reading this chapter you feel you need more guidance and help, by all means embrace them. But be careful not to let the pursuit of the methods get in the way of the doing.
The truth is, there is no easy way. But it is pretty simple. Make a list of all your debts. Eliminate all non-essential spending, and I mean all of it. This is what will free up the money you need to pour on the debt flames that are burning up your life. The more you pour, the sooner you stop burning. Rank your debts by interest rate. Pay the minimum required on all your debts and then focus the rest of your available money on the one with the highest interest rate first.
I would not pay a service to help. This only adds to your cost and such credit counseling services have no magic formulas or techniques to make this less painful. You, and only you, can do the work.
I would not worry about trying to consolidate your loans into one place, not even for a lower interest rate. You are going to pay these puppies off fast and hard. Focus your time and attention there, rather than on exploring clever strategies. I would not pay off the smaller loans first for the psychological boost. I know this is a key part of at least one popular strategy, and if it makes you more likely to stay the course, so be it. Better to adapt yourself and your attitudes to the numbers than to adapt the strategies to your psychological comfort levels.
In short, nothing fancy. Just do the work and get it done. This is not going to be easy. Simple, yes. Easy, no. It will require you to rather dramatically adjust your lifestyle and spending to free up the money you need to direct toward your debt. It will require serious discipline to stay the course over the months, maybe years, it will take to eliminate your debt. Once the debt is gone, you need only shift the money to investments.
Waste no time. Debt is a crisis that needs immediate attention. If you are currently in debt, paying it off is your top priority. Nothing else is more important. Look again at those people around you. For most, debt is simply a part of life. Business loans Some but not all businesses routinely borrow money for any number of reasons: acquiring assets, financing inventory and expansion to name a few.
Used wisely, such debt can move a business forward and provide greater returns. But debt is always a dangerous tool and the history of commerce is littered with failed companies ruined by the debt they took on. Astutely dealing with such debt is beyond the scope of this book, other than to say those who use it successfully do so with great care.
Shamefully, this overspending is often encouraged by real estate agents and mortgage brokers. If your goal is financial independence, it is also to hold as little debt as possible.
Remember, the more house you buy, the greater its cost. Not just in higher mortgage payments, but also in higher real estate taxes, insurance, utilities, maintenance and repairs, landscaping, remodeling, furnishing and opportunity costs on all the money tied up as you build equity. To name a few. More house also means more stuff to maintain and fill it. The more and greater things you allow in your life, the more of your time, money and life energy they demand.
Houses are an expensive indulgence, not an investment. Each week summer I worked taking down diseased Elm trees. Of course, I lived in one room of a dilapidated old house that should have been condemned. White rice and ketchup were served as dinner two or three times a week. Then buying another. For four consecutive years.
Inflation certainly played a role. A six-fold increase. A fold increase. Make no mistake: Easily obtained student loans have flooded the system with money.
Universities have been and continue on a building boom. Fancier prices require fancier settings. Not only has this driven up the cost of everything college related, it has effectively eliminated the option of living cheaply.
That ramshackle house I lived in? Torn down to make way for fancy new dorms. Eat in on rice and ketchup? No worries, my friends did the same. It was a source of pride. Today, it would be a source of embarrassment as all your student loan funded pals go out for sushi. Moreover, one of the more unfortunate results of spiraling college costs and debt is the way it has warped the very concept of higher education. Rather than the pursuit of learning and culture, it has become the pursuit of job training in an effort to secure employment that will justify the astounding cost and debt incurred.
Even successfully applied, this shackles young people to jobs long after the appeal has faded. They survive bankruptcy. They will follow you to your grave. Your wages, and even Social Security, can be garnished to pay them. No wonder banks are falling all over themselves to issue this debt. I am a firm believer in personal responsibility and that debts freely taken on should be faithfully repaid.
But the ethics of encouraging 17 and year-olds—who likely have little financial savvy—to almost automatically accept this burden give me serious pause. We are creating a generation of indentured servants. Chapter 2 Why you need F-You Money. Six months earlier our division president had taken me to a congratulatory lunch for a record- breaking year.
We were growing explosively and embarrassingly profitable. Over a bottle of fine wine we discussed my very bright future. We had a great team, great leadership, great fun, and I made great money. I had just cashed a bonus check for more than I had ever made in a single year before. A year later, my little girl and I were sitting on the couch watching a news broadcast. The concerned news crew was filming people standing in a depression-era style bread line.
They were, the reporter said, the newly poor suffering from job loss in the dismal economy. I was still unemployed and licking my wounds. Who even thought she knew what a job was? I may not have known at first what it was called, but I knew what it was and why it was important. There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and to work for whom you respect. Those who live paycheck to paycheck are slaves. Those who carry debt are slaves with even stouter shackles.
As already described, I first accumulated the modest amount of F-You Money I needed to negotiate extra vacation time two years into my first professional job. By the amount and the freedom it provided had grown substantially. Not enough to retire, perhaps, but easily enough to say F-you if needed. The timing was fortunate. I wanted to take some time off to pursue business acquisitions. When one morning I found myself and my boss in the office hallway screaming at each other, it occurred to me perhaps the time had come.
I may not have owned a Mercedes, but I owned my freedom. Good thing. Chapter 3 Can everyone really retire a millionaire? Want nothing less than the full million? If you think about it, this is pretty amazing considering all the financial turmoil of the past 40 years. Of course, a million dollars is a very arbitrary goal. Perhaps the better question is: Can everybody achieve financial independence?
On blogs like www. See Chapter 29 On the other hand, I remember having lunch with a friend of mine in shortly before Christmas. Somewhat stunningly, listening to him list his expenses, he was right. Financial independence was a distant dream for him. Money is a very relative thing. Being independently wealthy is every bit as much about limiting needs as it is about how much money you have. It has less to do with how much you earn—high-income earners often go broke while low-income earners get there—than what you value.
Money can buy many things, none of which is more important than your financial independence. Not just in money. But if your lifestyle matches or exceeds your income, you forfeit your hopes of financial independence.
Two important things would immediately happen. You can now not only quit working, you can give yourself a rather substantial raise.
Unfortunately, few will ever even see this as an option. There are pervasive and powerful marketing forces at work seeking to obscure the idea that such a choice exists. We are relentlessly bombarded with messages telling us that we absolutely need the latest trinket and that we simply must have the most fashionable of currently trending trash.
This is not some evil conspiracy at work. It is simply business pursuing its own needs. But it is deadly to your wealth. The science behind the art of this persuasion is truly impressive, and the financial stakes are huge. The lines between need and want are continually and intentionally blurred.
Years ago, a pal of mine had bought a new video camera. Actually you can. In fact, billions of children have been raised over the course of human history without ever having been videotaped.
And horrific as it may sound, many still are today. Including my own. You likely know your share of people like this. But if you want to be wealthy—both by controlling your needs and expanding your assets—it pays to reexamine and question those beliefs.
Chapter 4 How to think about money. Now prop it up on the table in front of you and give some thought as to what it means to you. For instance…. You might think about what you could buy with it right now. One hundred dollars buys a very nice dinner for two at a good restaurant. A fancy pair of sneakers. A few bags of groceries. Maybe a nice sweater? I dunno. Bean bed for my dog.
You might think, Mmmm…I could invest this money. You might think, but inflation and market drops are a concern. Consider Mike Tyson Mr. Tyson was one of the most intimidating and formidable boxers of all time. And as is always the case with the suddenly wealthy and financially unaware, I suspect sharks looking to bite off chunks of that fortune for themselves rapidly surrounded him.
But the root of the problem is that at the time he understood money only in terms of buying stuff. In this attitude towards money, he is not alone. The world is filled with athletes, performers, lawyers, doctors, business executives and the like who have been showered with money that all too often immediately flowed right off of them and into the pockets of others.
In a sense, they never really had a chance. They never learned how to think about money. Stop thinking about what your money can buy. Start thinking about what your money can earn. And then think about what the money it earns can earn. And so on. Clearly, none of this is to say we should never spend money.
Rather, it is to fully understand the implications when we do. Even the least financially sophisticated person should see that once you buy the car you no longer have the twenty grand. I sure hope so, anyway. I want to pay much, much more. There is an opportunity cost to no longer having that money available to work for you. All you need to do is select a proxy for how the money could be invested and earning for you should you choose not to spend it.
As our proxy it gives us a tangible number to use as our opportunity cost. And what those earnings could then have been earning. That interest then earns interest itself.
This causes a snowball effect as you earn interest on a bigger and bigger pool of money. Like the snowball it starts small, but as it rolls along it soon begins to grow in a rather spectacular fashion. Think of opportunity cost as its evil twin. One of the beauties of being financially independent is that by definition, you have enough money such that the power of compounding is greater than the opportunity cost of what you spend. Once you have your F-You Money, all you need do is make sure you continue to reinvest to outpace inflation and keep your spending below the level your stash can replenish.
Unfortunately, too many people take this at face value and leap to the conclusion that Mr. Buffett has found a magical way to dance in and out of the market, avoiding the inevitable drops. How could you lose money during a period like that? A lot of people did because they tried to dance in and out. I only wish I could have lost 25 billion!
He knew that such events are to be expected. In fact, he continued to invest as the sharp decline offered new opportunities. When the market recovered, as it always does, so did his fortune. So did the fortunes of all who stayed the course. Now there are likely many reasons Mr. Having 37 billion left surely helped. Though another clue is in how he thinks about the money in his investments. Buffett talks in terms of owning the businesses in which he invests. Sometimes he owns them in part—as shares—and sometimes in their entirety.
When the share price of one of his businesses drops, what he knows on a deep emotional level is that he still owns precisely the same amount of that company. As long as the company is sound, the fluctuations in its stock price are fairly inconsequential.
They will rise and fall in the short term, but good companies earn real money along the way and in doing so their value rises relentlessly over time. We can learn to think in this same way.
Collins sure is smart. That Collins guy is a bum. As little slips of paper or, more accurately in this day and age, little bits of data that go up or down in value. But there is a better, more accurate and more profitable way. Take a few moments to understand what you really own. That in turns means you own a piece of virtually every publicly traded company in the U. These companies are filled with hardworking people focused on prospering in the changing world around them and dealing with all the uncertainties it can create.
As those fall away, they are replaced by other newer and more vital firms. There is no upside limit. As some stars fade, new ones are always on the rise. We live in a complex world and the most useful and powerful tool for navigating it is money. It is essential to learn to use it. And that starts with learning how to think about it. It is never too late. Oh, and somebody please send Mr. Tyson a copy of this book. Chapter 5 Investing in a raging bull or bear market.
This is the very definition of a raging bull market. Whether you are considering investing a new chunk of cash that has come your way, or thinking about selling and sitting on the sidelines for a while, it is times like these that test your core investing principles and beliefs. Here are some of mine:. It is simply not possible to time the market, regardless of all the heavily credentialed gurus on CNBC and the like who claim they can.
The market is the most powerful wealth-building tool of all time. The market always goes up and it is always a wild and rocky ride along the way.
I want my money working as hard as possible, as soon as possible. If only I had bought when it was down. Since I launched www. On a fairly regular basis, I get questions and concerns like these:.
If the market happened to be plunging into one of its periodic bear cycles these questions, and the psychology, would be much the same:. This is all about fear and greed, the two major emotions that drive investors. Fear is perfectly understandable.
Nobody wants to lose money. But until you master it, such fear will be deadly to your wealth. It will prevent you from investing. Once you are invested, it will cause you to flee in panic for the exits every time the market drops. And drop—repeatedly on its relentless march upward—it will. The curse of fear is that it will drive you to panic and sell when you should be holding. The market is volatile. Crashes, pullbacks and corrections are all absolutely normal. They are all, each and every one, expected parts of the process.
Learning to live with this reality is critical to successful investing over the long term. And successful investing is by definition long term. Any investing done short term is by definition speculation. Therefore, if we know a crash is coming, why not wait to invest? Or, if currently invested why not sell, wait till the fall and then go back in? Nobody does. Think you can?
Every day, heavily credentialed experts are predicting a market crash. At the same time, equally credentialed experts are predicting a boom. One may not be rich now or in six months, but one can become wealthy if he change his mindset and adopt proven financial strategies that have helped countless others become true millionaires. The Simple Path to Wealth provides the strategies to build your wealth quickly and permanently.
The Simple Path to Wealth is about creating a way of living where you aren't controlled by fear, inertia, or poverty. You, instead, are motivated by creative, positive action, and an open mind that is ready to receive prosperity in every area of your life. Do not fall into the trap of reading without practicing. Always take action! Read, learn and apply the main ideas, key points and principles from the original book by recording your lessons in this book. You can use it as your diary, writing book, notebook, journal or even a book to doodle in.
It is always in the top 10 of the greatest self-help books recommended by influential people. Written by J L Collins, the book contains the most essential principles of financial management and highly effective techniques of dealing with money. Since its first release, the international bestseller has sold millions of copies and counting, proving the fact that J L Collins' principles are just relevant for anyone in any society no matter their race and gender.
The book has helped many individuals and teams to move from being serial self-help book readers to becoming highly productive people who learn and put into practice what they have learned. Become a master at your craft by reading, learning and acting upon your newly found knowledge wisdom and experiences. Highlight and capture the key ideas and most important lessons found in the original book so that you can put them into practice. If you've already read the original book, go ahead and write your notes on lessons learned before you start trying to apply them and see if you remember anything that you can take action on.
If you are just starting out on reading the original book, here is a suggestion: Whether you are a fast paced reader or a thoughtful reader, read and recor. There is no question that retirement means doing what you want and living life without money worries. Deciphering this doesn't seem like a fruitful endeavor, so we should get straight to the equation. And What Is That For? When the author speaks of "simple," he means the strength you have.
So, it appears that if you are willing to be smart and courageous, you will never be stopped in your endeavors. Thus, one could rightly say that "The Simple Path to Wealth" is a guide for anyone seeking financial independence from dependency.
In place of an incomplete treasure map, you'll be handed something more valuable: a proven technique that will increase the likelihood of attaining freedom in a financial sense. If you are looking for path to wealth, this book is your best companion. No other book shows you how to gain financial independence than this book.
Get a copy for yourself today. Contained in this book is a detailed summary and analysis of the ideas and thoughts of the author in simple and and easy-to-understand form.
You can get this book by scrolling up and clicking on the "Buy now with 1-click" button at the top of the page. Would you like to start your own business, be your own boss and earn more money? Would you like to be financially free and improve your overall life?
Becoming wealthy is one of those things that is usually near the top of most of our wish lists. The idea that we could have enough money to live well, have a nice home, go on great vacations and generally enjoy the finer things in life is something that seems to be almost instinctive. And finding that path to wealth can actually be simpler than you first thought.
Inside the pages of this book, Your Simple Path to Wealth: The Ultimate Guide to Build your Financial Freedom and Significant Improvement of your Life, you will discover an abundance of information such as: How to think about and view money Why debt should be eliminated Investing in markets Developing a successful portfolio Passive income streams Starting your own business Savings and other investment strategies And more If you have ever wondered if you could make it on your own and build a life of abundance for yourself then look no further, because Your Simple Path to Wealth starts right here.
The main characters of this economics, finance story are ,. The book has been awarded with , and many others. Please note that the tricks or techniques listed in this pdf are either fictional or claimed to work by its creator. We do not guarantee that these techniques will work for you.
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Loved each and every part of this book.
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