Money Archives

The Benefits (and Drawbacks) of Owning a Home

The Millionaire Next Door and Wealth Building

What are the benefits of owning a home? In a financial sense, how does renting compare to owning a house? According to David Bach, the author of The Automatic Millionaire, you’re more likely to build long-term wealth if you own your own home and accelerate your mortgage payments. Bach believes that renters are less able to build wealth because they’re funneling the majority of their money towards their rental expenses. In this article, we’ll first explore the benefits of owning your own home. Then, we’ll cover how you can get on the property ladder and automate your payments to pay off

Secrets of the Millionaire Mind: Quotes by T. Harv Eker

Are you looking for Secrets of the Millionaire Mind quotes by T. Harv Eker? What are some of the most noteworthy passages worth revisiting? In his book Secrets of the Millionaire Mind, author T. Harv Eker argues that the key difference between the (self-made) rich and the poor boils down to mentality. Specifically, he says that the way you have been conditioned to think about money in your childhood is the reason why you are where you are money-wise. Below is a selection of Secrets of the Millionaire Mind quotes by T. Harv Eker.

Compound Interest: Explained With Examples

What is compound interest? How does putting even a small amount of money into an account that accrues compound interest benefit your finances? Compound interest is the interest accrued on a loan or deposit. According to David Bach, the author of The Automatic Millionaire, everyone can leverage the power of the compound interest to start building wealth. While investing a few dollars itself won’t make you a millionaire, putting those dollars in an account that pays compound interest is much better than keeping them in a checking account. Keep reading below to learn about compound interest, explained with examples.

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

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