Money Archives

The Growth of Wal-Mart: Expansion and Low Costs

How did Sam Walton manage to grow Wal-Mart so quickly? What growth strategy did Walton use? In 1970, Sam Walton decided to take Wal-Mart public, which contributed to the growth of Wal-Mart. However, Sam Walton’s strategy of going into smaller towns with less than 5,000 people, keeping costs and prices low, and setting up distribution centers was the real reason for Wal-Mart’s success. Keep reading to learn more about the growth of Wal-Mart and Sam Walton’s business strategies.

Are You a Prodigious Accumulator of Wealth?

Who is a prodigious accumulator of wealth? How do you calculate to see if you are a prodigious accumulator of wealth (PAW) or an Under Accumulator of Wealth (UAW)? A prodigious accumulator of wealth has a net worth (excluding inheritance) at twice the expected level for their age, while an under accumulator of wealth has a net worth less than half of the expected level. You can calculate your expected net worth by multiplying your age times your annual household income divided by 10. Read more about prodigious accumulators of wealth below.

The Millionaire Next Door Formula for Net Worth

What is The Millionaire Next Door formula? What net worth is considered wealthy? The Millionaire Next Door formula multiplies your age times your pretax annual income divided by 10 to get your expected net worth—this excludes inheritances. You are wealthy if your net worth is twice as large as your expected net worth. Discover more on how to calculate your net worth using The Millionaire Next Door formula.

The Three Key Traits of a Top Wealth Accumulator

The Three Key Traits of a Wealth Accumulator

What are the traits of the best wealth accumulators? How can you adopt the habits of a prodigious wealth accumulator? A prodigious wealth accumulator prioritizes wealth-building investments, minimizes taxable income, and controls household spending to accumulate wealth. You can become an excellent wealth accumulator by changing the way you spend and manage your money. Discover the three major traits of wealth accumulators below.

Economic Outpatient Care: Financial Help Actually Hurts

How Economic Outpatient Care Leads to UAW Children

What is economic outpatient care? Why is this type of help for adult children problematic? Economic outpatient care is when an affluent parent bestows economic subsidies on a fully capable adult. The problem with economic outpatient care is that it trains the adult child to consume money rather than invest it to build wealth. Read more about how economic outpatient care can actually hurt adult children.

Amazon: Competitive Advantage & How They Won

How did Amazon survive the 2007 recession? What did Amazon do to acquire Zappos and Diapers.com? Why did the Kindle cause so many problems? Thanks to Amazon’s competitive advantage in the market, they managed to thrive during the 2007 recession. The additional money allowed them to control the online market, which gave many other companies no choice but to be acquired. However, Amazon’s success didn’t come without issue. Keep reading to learn how Amazon slowly overtook the online market thanks to its competitive advantage.

The U.S. Pharmaceutical Industry—Explained

The Three Reasons Why Antidepressants Don't Work

What is the market share of the U.S. pharmaceutical industry? How does the U.S. pharmaceuticals market compare to single-payer systems? The U.S. is the largest market for pharmaceuticals, capturing the dominant market share in the world. In the U.S., Medicare is legally prohibited from negotiating prices with pharmaceutical companies. In contrast, single-payer systems like that in the UK have more leverage to choose a subset of drugs to support and squeeze prices down. Keep reading to learn about the U.S. pharmaceutical industry, its history, and its drug approval process.

Blitzscaling Companies: Should You or Shouldn’t You

Are you thinking of blitzscaling your company? If you blitzscale, when is the right time to stop? How do you blitzscale? Blitzscaling companies isn’t always the answer, sometimes the conditions aren’t right. But when speed is the critical strategy, blitzscaling is the answer. However, you should only blitzscale your company for a limited amount of time because your company will eventually outgrow the strategy. Continue reading to learn more about blitzscaling companies.

Why You Should Be Spending More Money on Food

Is spending a lot of money on food really worth it? Is expensive food really significantly better than cheaper, more affordable staples? Most people are geared towards quantity and cheap, accessible food. But according to Michael Pollan, the author of In Defense of Food, we shouldn’t be too frugal when it comes to spending money on food. In general, more expensive food (especially, food of natural origin) is better for you because of a lack of toxins and improved nutritional quality. Here is why spending more money on food is indeed worth it, according to Michael Pollan.

Obama and the 2008 Financial Crisis: Plan and Action

What was Obama’s role in the 2008 financial crisis? How did he respond to the crisis in his presidency? For Obama, the 2008 financial crisis was one of the most important things that he wanted to address in his presidency. During the campaign, it became clear that John McCain wouldn’t be able to handle the crisis. Read more about Obama, the 2008 financial crisis, and what happened during his presidency.