Principle #4: Owners Make More Than Loaners
Financial assets can be classified into the following two groups: “Loaner” assets such as interest-bearing accounts, treasury bills, GICs (Guaranteed Investment certificates) or bonds. These are assets where interest payments are collected from a borrower based on a lending contract (a debt instrument); and “Owner” assets such as shares of businesses (small and large company […]
Principle #3: Strive to Earn Passive Income
Money buys happiness. Not because of the things it can buy. In fact, it’s likely the more money you have, the more you realize you can’t buy anything material that will provide you with sustained happiness. Rather, money buys the freedom to pursue your dreams. Money empowers your ability to jump out of bed each […]
Principle #2: Value Creation is Making Money
The secret to making money is to: Add Value; and Find a context to deliver the value you added. Ultimately, making money requires both your ability to add value combined with a context to add that value whether it is in a job or in a business where the customer is the consumer of that […]
Principle #1: Make, Save, Live
“Pay yourself first” and “Spend less than you earn” are popular themes in personal finance which means savings a portion of your earnings (e.g., from each paycheck) before you spend a dime. Practicing Make → Save → Live, in this order, is the most important habit for wealth creation. If you only spend the money you […]