ABC's of Money
Each of us has the latent talent and ability to achieve financial success. Financial success is a matter of informed action. We need to be money conscious, we need a financial plan, and we need to invest regularly in our financial future. Happy surfing!
Understanding money is the foundation of financial success. Financial success involves developing money-consciousness; about personal money motivation, about the effect of time, about ROI (Return on Investment), about your choice to invest or save, about the effect of taxes, and about the destructive power of inflation.
Two key factors, time and ROI, are commonly underestimated. We intuitively know they are important to financial success, but we don't get involved in understanding their impact. Stock1 provides ideas and information to help you become money conscious.
What is Money?
Money is controversial; it means different things to different people. Some worship money, as a god. To others, it is the National debt. Money can be a badge of status and it can be a symbol of ingenuity. The meaning of money is not found in money itself. It is found in the attitudes, values and motives of those who seek to possess it.
"Money is the master of the poor,
the slave of the prosperous."
We are motivated to earn money for different reasons. It may be an expression of integrity and devotion to family. For others making money is easy, it requires little effort and offers no challenge. Some want to create wealth for the thrill of the chase, money represents the trophy for winning. However, we all share one common motivator for wanting to achieve wealth. It is our nature to seek independence. And in a free economy, independence is often expressed in terms of financial success.
We all can attain financial independence. That is the assurance this program gives you. That is its purpose and design. Many who use these ideas may choose to go on to become millionaires. But its primary purpose is to show that the ordinary person using latent talents and abilities he already has can become financially independent.
Financial Independence is achieving the ability
to live for the rest of your life without outside help.
You can work if you choose, but you choose!
Are you Money-Conscious?
Most of us do not seem to be. If we are conscious of the basics of money, we don't do much about it. Think about these ideas and consider how you can make them work for you.
- Few Achieve Financial Success.
Fewer than five of 100 people achieve financial success during their lifetime. Join the select group, take the first step, become money-conscious.
- Invest or Save.
When you put $1,000 in a 5% savings account, you accumulate $2,700 in 20-years. When you put $1,000 in a stock investment that yields 20% ROI, you accumulate $52,000 in 20-years. Invest or save, a question of money-consciousness.
- The Effect of Time.
When a stock price doubles in value every three years, $1,000 grows to $32,000 in 15-years. May not sound great, but the money-conscious person realizes they are halfway to $1,000,000! Check it out, you are there in 30-years. Time, a question of money-consciousness.
- Inflation Erodes Your Buying Power.
When prices inflate, the value of your money erodes. You will need $180,000 20-years from now to equal the current buying power of $100,000. Inflation, a question of money-consciousness.
- Taxes Erode Your Buying Power.
A person earning $65,000 today may have a total tax burden of $20,000. That is $20,000 taken right off the top of your paycheck. Stocks appreciation is not taxed until you sell your stock. So if your stock appreciates $65,000 and you keep the stock, you defer the tax obligation. Possibly the #1 advantage of investing in stock. Taxes, a question of money-consciousness.
Understanding Money is a critical building blocks to financial success. Other keys to success: Financial Plan, Understanding DRP's, and Buy & Sell Strategies. To move up the financial success ladder, master these concepts.
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