• KillerDonkey

    This doesn’t really tell you how to grow your wealth… just how to defend it, and when all you do is defend, you’re just a sitting duck waiting to be picked off and you’re going to die in a nursing home unloved. Be bold and audacious!

  • Mlewis

    The odds of making an investment, other than in your own skills and education, with returns in excess of 10% – 12% over extended period are extremely low. Returns in excess of that amount are usually luck, great connections or a financial bank roll large enough to withstand short- and medium-term fluctuations. losing half your investment chasing a high risk, high return investment means you have to double your money the next time. Most people aren’t prepares for “bold and audacious”, so I wish you luck.

  • William_Drop_Dead_Money

    I would also add that’s vital to watch the economic cycle. Buying a house at the top of the market can wipe out many years’ of hard saving – just one example…

  • MLewis

    William, Thanks for writing. I’m not sure that buying a house is the best example since a “home” is usually more than an investment, but the consequences of buying (or selling) at the wrong time can be disastrous.

  • Leora Xu

    1. Pay off college loan debt (if you have it) with automatic monthly payments.

    2. Live small. Buy the smallest, cheapest home you can live with and pay if off before retirement. Do not count on your home’s appreciation value for retirement funds. A paid off home is a cheap place to live during retirement.

    3. If you want to buy a car, get a reliable beater. Get insurance for $25/month from Insurance Panda. Forget about buying a house until your debts are paid off.

    4. Only one credit card per family. Keep it in a lock box for emergency use only. If you can’t buy with cash, you can’t afford it.

    5. Be careful as you develop your retirement portfolio. The Bush years taught us not to trust the stock market and banks. Gold, cash, rare stones, high end collectables, rental properties, cottage industry cash and at-work saving accounts with a big employer contribution will keep the money in your pocket. Roth IRA’s are also a good way to save without excessive taxes. Avoid annuities, and accounts that make more money for the bank than for the clients.

    6. Assume that everyone wants a piece of your retirement portfolio. Beware of con artists-they come in all forms. If it seems to good to be true-it is.

    7. If possible, use public transportation and cut back on car ownership. You will save a bundle.

    8. Plant a vegetable garden. Learn to can and freeze food.

    9. Do not buy long term health care insurance. The rates are too high to keep the policy going as you retire. It’s a sucker play for young adult money.

    10. Eat out once a week. Make a shopping list and learn to cook. It’s healthy and you’ll save a lot of money.

    11. Cut off cable TV and watch shows online. You’ll save over $100.00 per month.

    12. Create your own power (sun, wind, whatever cuts the price of heating, electric and gas.)

    13. Co-op services. Barter when you can for goods and services.

    14. Work at home several days a week. You’ll save on gas and meals.

    15. Shop the educational market for a cheaper graduate education.

    16. Live in a neighborhood with good public schools so you can skip the cost of private schools.

    17. Always look for ways to save and cut the budget.

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