You risk very little by keeping a "safe, secure" job, and you are rewarded very little by the time you retire. Perhaps the greatest risk to your financial health is your plan to have a "safe, secure" job, work for earned income for 40 years, and save for your retirement.
Most people think investing is risky. These people have not looked closely enough at the risk and how it relates to the reward. They have chosen not to invest their time to learn these things. By telling themselves "investing is risky", they have taken the easy way out. This group of people no longer has the burden of gathering facts and looking at proof...they have already told themselves investing is risky. Instead of investing or learning, this group of people is most likely to save.
People who do compare the relationship of risk to reward in different financial situations will realize an important lesson. By investing time to learn the details of any investment, you can lower the risk involved in the investment in relation to the possible rewards. This leads to the idea that it does not take money to make money investing, it takes knowledge...knowledge you gain from research and from personal experience.
As far as rewards are concerned, there are short term rewards and there are long term rewards. Most people are short sighted and do not plan far enough into the future. Most people have large commitments of their time focused on short term goals and rewards. Again, people choose to willfully keep themselves ignorant instead of taking the time to educate themselves. The people who keep themselves ignorant remain focused on their income and expenses, tied to a lifetime of working for money. The people who increase their knowledge and base their decisions on the logical comparison of risk versus reward ultimately change their focus. This change in focus determines a plan...a path of continual improvement, with a final goal being your own financial independence and philanthropy to your friends, family, and community.
Cultivating Savings: The Financial Benefits of Organic Gardening
Organic gardening is not just a hobby; it's a cost-effective strategy for reducing your grocery bills while contributing positively to the environment. By managing your garden organically, you can cut down on expenses for fertilizers, pesticides, and even water. This article delves into the practical ways organic gardening can be both a source of fresh produce and a means of financial savings, with a focus on the effort involved, the potential savings, and the long-term benefits.
How to Tell Good Advice from Bad Advice
Through our lives, we get our advice from many people...our parents, our teachers, family and friends...but how many of these people are wealthy? The advice you receive has a cash flow pattern, and it follows the cash flow pattern of the person from whom you receive it. The better you know the fundamentals of money and personal finance, the easier it will be for you to tell good financial advice from bad.
The Difference Between Good Debt and Bad Debt
A few simple ideas, when understood fully, lead people down the road to financial independence and wealth. You need to understand the difference between an asset and a liability. You need to understand the difference between earned income and passive income. You need to understand three basic cash flow patterns. Finally, you need to understand how your focus in life ties it all together.
