Darya Sinusoid, Author at Shortform Books

Financial Setpoint: Why the Poor Stay Poor

Why Socioeconomic Status and Depression Are Linked

What is the financial setpoint? Why do the poor stay poor and the rich stay rich? One of the main reasons poor people stay poor is because they lack money management skills. Even when a huge sum of money lands in their lap (e.g. through lottery or inheritance), people often end up broke within a few years. According to T. Harv Eker, the author of Secrets of the Millionaire Mind, the reason for this is their “financial setpoint.” Keep reading to learn how one’s financial setpoint—the amount of money they feel they can comfortably manage—keep poor people poor and rich

How to Invest for Retirement: Spread Your Risk

Wealth Building and the Power of Compounding

How many years do you have left until you hope to retire? Considering your age and the time you have until retirement, how would you balance your investment portfolio? According to David Bach, the author of The Automatic Millionaire, the key factors to consider when it comes to investing for retirement are how long you intend to invest your money for and how aggressively you want to invest. The younger you are, the more you can afford to take risks with your money because you have more time on your side. In this article, we’ll explain how to invest for

Crossing the Chasm: Technology Adoption Life Cycle

What is the Technology Adoption Life Cycle? What is the “chasm” in the context of the Technology Adoption Life Cycle model? The Technology Adoption Lifecycle is a theoretical model that aims to describe customer behavior in relation to the adoption or acceptance of a new product or technological innovation. According to Geoffrey Moore, the author of Crossing the Chasm, the Technology Adoption Life Cycle model doesn’t account for gaps that create the “chasm” between the early market and the mainstream market. In this article, we’ll discuss the flaw in the TALC model (according to Moore) and his revised explanation of the

The 10 Signs That You Have a “Poor Mindset”

Are you tired of being a victim of your financial circumstances? What are the different ways you tend to sabotage your finances? According to T. Harv Eker, the author of Secrets of the Millionaire Mind, there are 10 negative tendencies that reinforce your belief that you’re powerless when it comes to money. Challenging these negative tendencies is the first step to eliminating them. In this article, we’ll help you to identify the specific thoughts and beliefs that discourage you from taking positive actions to improve your finances.

The Automatic Millionaire: Book Overview

What is The Automatic Millionaire about? What is the key premise behind Bach’s Automatic Millionaire process? In his book The Automatic Millionaire, David Bach provides a simple yet powerful plan to quickly grow and automate your finances. He argues that financial freedom doesn’t come from how much you earn, but how you manage your earnings—if you’re not saving your money with your current income, you’re unlikely to save it in the future. Here is a quick overview of the book’s key ideas.

Tech Startup Funding: Beware of Venture Capital

How do tech startups get funding? What is the danger of funding a tech company with venture capital? Tech start-up companies in the early market often run on investment capital from venture capitalists. According to Geoffrey Moore, the author of Crossing the Chasm, there are two pitfalls in relying on venture capital as a source of funding after the product is launched. Keep reading to learn about the dangers of funding a tech startup with investment capital, according to Geoffrey Moore.

How to Overcome Limiting Beliefs About Money

What’s your idea of money? Do you believe you aren’t capable of earning past a certain benchmark? Do you think of yourself as a person who doesn’t have what it takes to achieve financial success? Your limiting beliefs about money are the result of negative conditioning you adopted throughout your childhood—the more you engage in this type of thinking, the more you associate money with the feeling of powerlessness. As a result, you’re incapable of achieving the financial success that you want. In this article, we’ll talk about how we form and then hold on to limiting beliefs about money,

How and Why to Build a Financial Safety Net

Why is it important to have a financial safety net? How many months’ worth of living expenses should your safety net cover? No matter how much money you earn, it’s important to have a financial safety net—a savings account with money you can use for emergencies—to prepare for worst-case scenarios. To start building your safety net, figure out how much you need to save to cover your living expenses so that you can decide how much money to set aside each month. In this article, we’ll explore how to automate contributions toward your safety net to ensure that you’re prepared

Products That Died Crossing the Chasm (Examples)

Why do most new, high-tech products fail to reach the stage of mass adoption? What are some examples of products that died in the chasm? In his book Crossing the Chasm, Moore discusses two products that failed to cross the chasm: Segway’s personal transportation device and Motorola’s Iridium network. In both cases, Moore argues, they failed to reach the chasm stage due to technical limitations. Keep reading to learn why most high-tech products die before crossing the chasm—with examples.

Why Are You Poor? Because of Negative Conditioning

Do you feel powerless when it comes to money? How did you inherit your limiting beliefs about money? What attitudes and ideas about money did your parents model? If you’re not happy with the state of your finances, it’s because you’ve been negatively conditioned to have a poor mindset. This negative conditioning is the main reason you are poor: it impels you to act in ways that move you away from financial success. In this article, we’ll explore how negative conditioning works, and how negative conditioning may have led you to develop a “poor mindset.”