Money Archives

Want to Be Financially Secure? Quit Your Job!

What does it mean to be financially secure? Why is having a job no longer a safe bet for financial security? According to Robert Kiyosaki, the traditional path to financial security (Education → Good Job → Great Benefits and Pension → Secure Retirement) no longer works. In the 21st century, this path leads to hard work in exchange for job dependency, inadequate retirement, a pernicious debt cycle, tax disadvantages, and diluted savings—not financial security, and almost certainly not financial freedom. In this article, we’ll discuss five problems with the traditional path to financial security.

Rich Dad’s Cashflow Quadrant: Review & Background

What is Rich Dad’s Cashflow Quadrant about? What is the key message to take away from the book? In Rich Dad’s Cashflow Quadrant, Robert Kiyosaki argues that to generate wealth, what kind of income you generate is more important than how much income you generate, or what kind of work you do. Kiyosaki uses the stories of his now-famous “Rich Dad” (his friend’s father) and “Poor Dad” (his own father) to illustrate how different income types lead to different results. The following Rich Dad’s Cashflow Quadrant review covers the book’s context, background, and critical reception by the readers.

Money Is Freedom to Pursue Life on Your Own Terms

As you advance in your career, do you have less free time or more free time? What would you do with more free time? American investor and financial educator Robert Kiyosaki has been both rich and poor. Rich is better, he says, because money is freedom—the more money you have, the freer you are to pursue life on your own terms. Here is what Kiyosaki has to say on money being a means to an end—the end being freedom, and why you shouldn’t feel guilty about wanting more money.

Loss Aversion Bias: Explained With Examples

The 25 Cognitive Biases: Loss Aversion Bias

What is loss aversion bias? How do you avoid triggering the tendency? The loss aversion bias is the tendency to prefer avoiding losses to acquiring new gains. This bias is triggered by the pain of losing something valuable in the past. You can manage the tendency by calibrating all your losses in true absolute terms, rather than relative terms. Read on to learn more about the loss aversion bias.

Why Cash Flow and Cash Position Matter

Do you stay on top of your business’s cash flow and cash position? How are they connected to your vision? If you’re a business owner, you naturally keep an eye on profits. But, to ensure that your business continues to grow and stay on track, you also must remain aware of your cash flow and cash position. These are vital pieces to your overall strategy. Keep reading to learn about cash flow and cash position for your business.

Invest in Your Employees to Make More Money, Faster

Do you own a business? How do you use your earnings? How can you use that income to generate even more income? If you run a business, you may be tempted to save your income for a rainy day (or to put in your pockets). However, the authors of Who Not How say that you’ll actually make more money, and faster, if you use that money to invest in hiring more employees. Here is why you should invest in employees rather than saving your money.

3 Pro Tips From Charlie Munger on Investing

3 Major Tips From Charlie Munger on Investing

Why should you listen to Charlie Munger on investing? What are Munger’s recommendations on investing? You should listen to the recommendations of Charlie Munger on investing because he along with Warren Buffet successfully built Berkshire Hathaway from a textile mill into a massive conglomerate. Their success has made them legendary in the investment community. Munger’s advice to investors is to always wait patiently for great opportunities, and be decisive when those opportunities come along. Read on to discover the recommendations of Charlie Munger on investing in the stock market.

How to Invest Wisely in the Stock Market

How do you master how to invest wisely? What is the investment strategy of Warren Buffett and Charlie Munger? You master how to invest wisely when you learn to find fairly-priced, high-quality businesses with good management. Buffett and Munger applied these principles along with a focus on investing in companies that are underpriced by the market to become the legends they are today. Read on to fully discover how to invest wisely in the stock market.

Wealth Building and the Power of Compounding

How do you use the power of compounding to build wealth? Can a compounding investment strategy help with taxes? A passive investment approach utilizes the power of compounding to build wealth. You will earn interest on the money you originally invested plus on the interest you have accumulated. As the pool of money grows, your rate of returns will also grow exponentially. This strategy will also help with taxes because you only have to pay taxes once on the accumulated pool of money as opposed to paying each year and diluting the impact of your capital gains. Read on to

The 4 Common Investment Mistakes to Avoid

What are the four common investment mistakes? Why do investors fall prey to investment pitfalls? Common investment mistakes you must avoid include adopting overly complex investment models, listening to false oracles, combining companies with flawed synergies, and buying into companies that don’t expense stock options. The mistakes happen because of the competitive and profit-seeking nature of investors. The desire to get ahead and not lose out leads to avoidable and costly mistakes. Read on to discover more about the four common investment mistakes you must avoid.