In life, there are choices that make us poorer and choices that make us richer.
Poor Choice: Not pay attention in class.
Rich Choice: Get all we can out of our education.
Poor Choice: Do just enough at work.
Rich Choice: Figure out how to delight customers and go the extra mile to do so.
Poor Choice: Spend all of free time on entertainment.
Rich Choice: Use some free time on self-improvement, such as reading books on skills and useful knowledge.
Poor Choice: Letting things come as they will during our careers.
Rich Choice: Planning our careers and doing what is needed to execute the plan.
Poor Choice: Spending our entire salary each month.
Rich Choice: Putting away 15% into retirement, funding things like college accounts, and then saving another $300-500 per month to put into investments.
Poor Choice: Buying the biggest house we can afford the payments on.
Rich Choice: Buying a home that meets our needs with a payment of no more than 25% of our take-home pay.
Poor Choice: Buying new cars and losing $4000 per year on depreciation per vehicle.
Rich Choice: Buying four-year old cars and losing $500 per year on depreciation per vehicle, and investing the difference.
Poor Choice: Going to school on student loans, especially using student loans for living expenses.
Rich Choice: Saving up for college, and then going to a college you can afford without loans.
Poor Choice: Eating out most meals.
Rich Choice: Cooking at home, using crockpots and making a lot of meals at once to save time.
Poor Choice: Keeping credit cards for emergencies.
Rich Choice: Keeping cash for emergencies.
Poor Choice: Listening to poor friends for financial advice.
Rich Choice: Listening to rich friends for financial advice.
Poor Choice: Buying things with credit cards.
Rich Choice: Buying things mainly with cash, but using debit cards when needed for convinience.
What rich and poor choices have you made?
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The SmallIvy Book of Investing, Book 1: Investing to Grow Wealthy
Disclaimer: This blog is not meant to give financial planning advice, it gives information on a specific investment strategy and picking stocks. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.
