Money Archives

Calculating Investment Risk Using Probability

How do you calculate investment risk? What do you need to know to calculate the expected payoff of a financial investment? Investors often use probability to assess risk when making financial decisions. This is typically done with a statistic called an “expected value.” To calculate the expected value of a financial investment, you need to know the probability of each possible outcome and its respective payoff. Here’s how to use the expected value statistic for calculating investment risk.

The Great Wealth Transfer Is Coming—Here’s Why

What is the Great Wealth Transfer? Should you worry about it? Inherited wealth will come to account for a much greater share of overall wealth than that earned through work and savings. This is because of the Great Wealth Transfer, where baby boomers transfer their wealth to the younger generations. Learn more about why the Great Wealth Transfer is coming.

Capital in the Twenty-First Century by Thomas Piketty

Guaranteed Basic Income: Creating A Better Tomorrow

What is Capital in the Twenty-First Century about? Why does Thomas Piketty believe capitalism generates economic inequality? In Capital in the Twenty-First Century, Thomas Piketty analyzes national incomes, income tax returns, estate tax returns, and other financial data across multiple countries and centuries. The result is a groundbreaking study of the history of economic inequality and its implications for 21st-century society. Keep reading for an overview of Capital in the Twenty-First Century by Thomas Piketty.

The Almanack of Naval Ravikant: Quotes From the Book

What’s The Almanack of Naval Ravikant about? What are some of the book’s quotes that give insight into the overall message? Many everyday people strive for wealth and happiness, but most of us struggle along the way and very few seem to achieve both. Still fewer share their insights about how to get there. Entrepreneur and self-made millionaire Naval Ravikant has become known for doing this online, via Twitter, podcasts, interviews, and blog posts. The Almanack of Naval Ravikant is a collection of those insights on wealth and happiness compiled by business blogger Eric Jorgenson. We’ve pulled together several The

Best Cryptocurrency Blogs & Podcasts to Follow in 2022

How to Create a Wealth Mindset to Change Your Reality

Do you want to learn about cryptocurrency but aren’t sure where to start? Perhaps you’re already a successful crypto trader looking to follow up on the latest trends and glean expert insights? Cryptocurrency is a dynamic and fast-paced industry. Even experienced investors have a hard time keeping up with all the happenings. Thankfully, there are lots of resources available to help you make sense of the endless stream of crypto news and put them into a larger perspective. In this article, we’ve compiled a list of the best cryptocurrency blogs and podcasts to help you navigate this fascinating and ever-changing

What Causes Economic Inequality? Expert Explains

What causes economic inequality? What is different about economic inequality now vs. before World War I? Economic inequality is a growing issue today. In Capital in the Twenty-First Century, Thomas Piketty argues that high salaries for executives and managers are the driving forces for inequality. Read more on how uneven salary distribution could be the leading cause of this imbalance.

How to Create Wealth: 7 Tips From Naval Ravikant

How important are long-term business relationships when it comes to creating wealth? Should you rely on active income or passive income? Should you specialize or generalize? The Almanack of Naval Ravikant shares Ravikant’s wisdom on creating wealth and achieving financial freedom. He explains the difference between wealth and money, the importance of passive income, three types of leverage, what it means to exercise good judgment in business, and more. Let’s look at seven pieces of Ravikant’s advice on how to create wealth, along with a practical exercise to get you moving in the right direction.

What Is Wage Inequality and How Does It Happen?

What is wage inequality? Why is wage inequality rising? According to Thomas Piketty in Capital in the Twenty-First Century, wage inequality is inequality of income from labor. Many factors contribute to wage inequality, and it’s not getting any better. Read below for a basic overview of wage inequality, as explained by Piketty.

Inherited Wealth Is Making a Return—And It’s Not Good

How to be Rich and Successful: 3 Steps to Follow

Why are more people inheriting wealth? How does inherited wealth contribute to rising inequality? During their lifetimes, baby boomers accumulated large stocks of capital. As they begin to pass away, their children are inheriting this wealth—but it’s creating an unequal society. Keep reading to learn why a new Gilded Age might be upon us thanks to a growth in inherited wealth.

The Fundamental Law of Capitalism: R>G

What does R>G mean in economics? What is one of the fundamental laws of capitalism? The formula R>G states that the net rate of return on capital (R) is greater than the economic growth rate (G). In Capitalism in the Twenty-First Century, Thomas Piketty claims this is one of the fundamental laws of capitalism. Read more to learn how R>G explains wealth inequality.