The World's Best Book Summaries
What is an annual wealth tax? How can it help increase wealth equality? A wealth tax is an annual tax on a person’s net worth, which includes personal assets and ownerships. In the book Capital in the Twenty-First Century, Thomas Piketty says that a global wealth tax has many benefits, including the even distribution of economic resources. Continue reading for an overview of the proposed wealth tax.
Why should you have passive income? What can passive income do that active income can’t? Working for wages is no way to achieve financial freedom. That’s the view of Naval Ravikant, who argues that passive income is the way to go. He explains why that is, and he identifies what he thinks is the best way to generate passive income. Keep reading to learn Ravikant’s view on why passive income is important.
What is a progressive income tax? Why should the wealthy pay more taxes? In Capital in the Twenty-First Century, Thomas Piketty argues that since the 1980s, wealth inequality has made a troubling comeback that demands a response. His proposed solution is a progressive income tax. Read more about Piketty’s case for progressive taxation and why other economists think differently.
What’s leverage? How can you use this principle to build wealth over time? The Almanack of Naval Ravikant shares Ravikant’s ideas on leverage. He argues that leverage is a key component of building a passive income. He explains how you can leverage labor, money, and products that can be replicated without further inputs. Keep reading to learn about three types of leverage in financial management.
What is the difference between money and wealth? Which one should be your focus? Typically, we understand wealth to be the same as net worth, the sum of your assets. However, entrepreneur and self-made millionaire Naval Ravikant sees wealth a bit differently. The Almanack of Naval Ravikant shares his definition of wealth and how he distinguishes it from money. Then, it explains why Ravikant believes you should focus on generating wealth rather than money. Keep reading to learn about this way of looking at money and wealth.
Why do you need a will? What would happen to your assets if you don’t have one? An important part of sound personal finances is protecting yourself and your family. If you don’t have a will, all of your financial planning and success could be lost after you’re gone. David Chilton, in his book The Wealthy Barber, strongly advises that you have a will in order to leave a strong financial legacy and protect your family. Read more to learn why it’s important to have a will.
What would happen to your income if you got sick or disabled? Is your employer’s health and disability insurance policy adequate? If you’re sick or injured, you can’t work. You need a plan for such circumstances. Protecting yourself financially is a vital element of having a sound financial plan. In The Wealthy Barber, David Chilton discusses health and disability insurance in this context. Keep reading for more information on this kind of financial protection and why you need it.
Do you need life insurance? If you have dependents, is it a must? If you get life insurance, what kind should you buy? If you’re expending the time and effort to become financially successful, you’ll want to ensure that your loved ones are provided for in the event of a loss. That might involve life insurance. You should determine whether or not you need it and, if so, what kind of insurance makes the most sense for you and your family. Let’s take a look at life insurance advice from The Wealthy Barber by David Chilton.
Do you want to know how to make money as an artist online? Is it easy to make money online as an artist? As you create things, you’ll invariably reach a point where you consider making money from your work. In Show Your Work!, Austin Kleon has ideas on how to earn an income as a creative person online. Keep reading to learn how to make money as an artist online in three ways.
Is the economy an open or a closed system? Why does traditional economics treat the economy as a closed system? According to Kate Raworth, traditional economics has a closed-system model for the economy, which operates simply as a series of “inflows” and “outflows” of money, closed off from everything else. This model puts the economy in isolation and treats it as a machine, governed by a simple and predictable set of inputs and outputs. In an open economic system, on the other hand, the economy is embedded within the environment and the planet itself. Here’s why the economy is an