DISQUS

Aaarggh ... I'm caving under pressure ... I'm posting my $7MDJ on my own site on Friday. Principles ... shminciples ... gotta keep the readership happy ;)

But, I taking down (actually have already) my NetworthIQ profile ... from now on, I'll claim $7 mill. / 7 years nothing more (or, less) and point back to that post if anybody ever questions my integrity again ... then they can go back to making up their own minds.

At least your blog gets better & better every time I read it ... thanks!

Show me the money ... take my 13 y.o son [please!] as an example:

1. How does he handle his own money

2. How does he earn his own money

A.1. - Splits into two equal piles: spends half with impunity and no guilt on things that he needs and can afford; invests the other half in my portfolio (he asked me!).

A.2. Chores = $28 / Month Allowance + his eBay Store = $30 / week (all his own initiative ... we do nothing to help).

Do I really care how he answers a few theoretical questions?

Great advice, Steve! I turned down an opportunity to become an independent consultant (even though, at the time, I was a well-regarded 'staff' consultant for one of the most prestigious companies in the IT world) because I knew my income would be capped to:

# hours in the working week - # hours no jobs available - # hours prospecting for more jobs - # hours administering paperwork - # hours wife wants the kids minded - # ???

In other words, it's a 'business' (or a job, if you're doing it for somebody else) with no real upside ... UNLESS you hire other consultants to do the work for you!

Thanks Steve - You'll have more to budget for now ;) I tried writing down ALL of my expenses (every penny that I spent) for just one month. It was eye opening when I did it, but never found the need to do it again.

Like you, I focus on the income FIRST and the expenses SECOND - income is unlimited; expenses <= 100% of what you earn. The equation is too compelling to ignore.

@ Steve/BrBl - We know he's a recluse only from our perspective ... from his perspective, there's always a party ...

Note to Self: remember to thank BrBl for yet another great (and innovative) post!

AJC.

Good Luck BrBl ... it's a worthy entry! AJC

BripBlap ... you deserve to win this whole shebang ... good luck!

I would add a couple of additional items:

14. Start a business or three ... just for the 'experience', but, don't get too upset if you make a ton ;)

15. Buy a rental property or two ... don't live in it (yet) .. again, just for the experience of handling tenants and finances.

16. Read these books (in this order): Richest Man in Babylon; Rich Dad Poor Dad; The E-Myth Revisited; The Art of the Start ... then STOP reading and START ACTING!

BrBl - seems that people only want to read your piece on 31 Successes ... you know, the one that comes with the free step-by-step blueprints so that we can all simply copy with your patented Guarantee of Success ;)

Of course, if we don't learn from failure, then all the 'success formulas' in the world will do absolutely nothing for us!

I, for one, will feel the loss ... please reconsider.

Hi BrBl; I agree that "purpose of wealth was to free up your life to achieve your purpose" (whether that's giving to charity ... or just Spitzer-syle whoring for the rest of your life is a personal choice!).

In fact I would restate this as: "the VERY DEFINITION of wealth is when you have freed up your life to achieve your purpose".

Knowing this amount is Step 1 to achieving real wealth ... Steps 2+ are a little more complicated!

AJC.

BripBlap hit the nail on the head that every owner/operator of YOU Inc. needs to know: you can only CUT up to 100% of the money flowing out, but you can increase the money coming in by 100%, 500%, 5,000% ... unlimited.

YOU do the math ...

While even the great Warren Buffet recommends that the neophyte investor puts their money into broad-based, low-cost index funds ...

... if you are a student of investing, have a long-term view and are willing to dedicate some time and effort, take note that Warren offers exactly the opposite advice for you …

"Wide diversification is only required when investors do not understand what they are doing." Warren Buffett

I also bet that if you compound Warren's 40 year returns, you will get FAR MORE than 5.3% compunded!

So, now you have two "Warren Buffet Approved" strategies to choose from!

Halleluja Brother! Net Worth don't mean no hill o'beans because you have to guess at the valuations of all of them little ol' businesses and investment real-estate that produce all of that sweet cash.

Mah own little ol' net worth just kept climbin' and climbin' as I sold off those little ol' income-producing assets and businesses to big, fat corporations with deep pockets ... suggest y'all do the same using some of the same tricks o'the trade that ah did ... c'mon over, pull up a chair, and sit by the fire and ah'll tell y'all about 'em ...