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And how, exactly, does one embark upon an endeavour such as owning real estate, starting a business, buying stocks, acquiring education, or starting a family?
by mfoy_ 9y ago
And how, exactly, does one embark upon an endeavour such as owning real estate, starting a business, buying stocks, acquiring education, or starting a family?
For almost every single person, the main source of their wealth will be their career.
Unless you are planning on inheriting more money than you expect to make from your career from your extremely wealthy parents, you're going to have to accept Rule #1.
And if you borrow money to accomplish these things, you are in violation of Rule #7, don't use leverage.
- PatientTrades 9y ago> And how, exactly, does one embark upon an endeavor By using the money earned from your career to fund ventures. A stable career should provide you with money to build wealth. However, simply working a 9-5 everyday will not provide wealth as the rules implies. It provides money, not wealth. There is a difference
- mfoy_ 9y agoIt will take you decades of saving to have the kind of capital that can show a return that's even remotely comparable with your salary.
- loeg 9y agoBut you don't need to replace your salary, just cover your expenses :-). For example, if you can save ~96% of your gross income and safely draw 4% from your investments, you can cover your expenses after only a single year. (Of course, you will never save 96% of your gross income, due to taxes.)