DISQUS

Money clearly has one and only one purpose: to be spent.

Whether you horde it now to spend later, or spend now and risk your 'later' is a matter that is overly analyzed, particularly on the web.

Instead, simply:

1. Embrace the Life that you want to live - focusing on what is / will be vitally important to you;
2. Calculate how much money you will need (usually a necessary evil for most, but not all, Life plans);
3. Put in place strategies and tactics to ensure that you have at least that much money available when you need it;
4. Happily spend the rest (or horde it, or give it away, or ... whatever turns you on).

Creative Income, potentially leading to licensing/royalties and other 'back end' deals SEEMS to be passive, but of course is really are earned - hence active - income, as I explained to Scott who is a prolific inventor, known actor, and documentary maker:

http://7million7years.com/2008/09/08/if-its-not...

7 years ago I cood not even spel millyunare, now I are won! :)

This is a GREAT question BrBl and an easy one to answer, as I just told this person that they were my hero a couple of months before I returned from USA to Aus:

It's my grandmother ... she's now 96 years old, and finally in a nursing home because her legs don't works so well, her hearing is not great (but she doesn't wear hearing aids), but she is still sharp as ...

She's my hero because she saved her entire family during WWII from the Nazis ... not once, but multiple times - because of her actions, the family survived almost intact (she 'only' lost one brother).

When she arrived in Australia she became one of Australia's first traveling saleswomen (in a time well before 'equal rights' for women). For a woman of wealth ad privilege prior to the war, nothing was beneath her both before and after the war to help her get the family back on its feet.

She was the financial lifeline for everybody in the family - including me, when I needed it the most - even when she had nothing (at least in cash) left for herself.

As to my own 'movie' ... she definitely acted as inspiration; but, all the other 'actors' (incl. me and my wife) helped, too.

Hi BrBl: I'm sure that you've taken inflation into account in coming up with your 'bimillionaire' number?

It's great that you are willing to share your number ... I have a new social network in Beta where others can do the same ( naturally: shareyournumber.com ) ... AJC.


AJC.

Andee, your message seems clear: treat your real-estate investment as a BUSINESS.

A real business is bought (or started) because it does (or soon will) produce profits and free cash-flow year in and year out, and then MAY be sold at a future date for a speculative gain. At least, that's what happened to me ...

... I can't understand why we shouldn't look at any other investment, including property, exactly the same way?

I think MBA's were 'devalued' about 10 years ago when 'everybody' started to get their MBA's ... good ol' supply and demand in action (MBA Economics 101).

The next wave will be the crash in general business & finance degrees, for the same reason.

The BEST school is still the 'school of hard knocks' ... save the time that you would have put into any post-grad degree that isn't directly tied to specific employment (e.g. medical specialist) and put that effort into learning business by starting a (part-time) business.

Hey Tim, didn't see you there ... but, Warren was kind enough to invite 'international visitors' (which I qualified for even though I live in the US ... nice, huh?) to get a t-shirt signed. He was exhausted by the time I got to him, though.

Heard your question but already knew that he would sidestep MOST of your question. His Index Fund advice is fine for the novice, but if you are going to become rich - well, not you & I exactly, others - then you need to cast your investing net wider:

individual stocks; RE; businesses; etc. and you are going to need to apply some leverage (money, time, and knowledge/talent) ...

... but, with multiple streams of income, you know this already ;) AJC.

Thanks for the link Steve.

Whether you ultimately choose to put your money in your 401k or not is personal choice. Just don't do it because you get something for 'free' (employer match; tax benefit; etc.) ... do it because - when YOU run the numbers and compare the alternatives - those 'extras' tip the balance of long-term return in favor of the 401k (will they? Maybe ... maybe not!).

Dana ... also, it's the whole "give them a fish" or "hand them a rod and teach them to fish" thing. There was a documentary where a homeless person was handed a briefcase with $100k in it.

Of course, he spent it all within weeks ... back to homeless. Why?

I don't know, but a combination of whatever mind-set made him homeless in the first place, together with a lack of guidance as to what to do with his 'windfall'.

The same thing has happened even with 'rich' people who won a huge payout in the lottery and suddenly became MUCH richer ... it's the 'suddenly' but that usually does them in ...

AJC.

@ Ron - we share the same income! That is, anywhere from $100k to $999k ... I guess that covers quite a slice of middle- to upper-America ;)

Steve, I had to make similar choices years ago ... as it happens, I lucked out. But, part of that 'luck' stemmed from first realizing that if my 'product' is my time (as in 40 hours a week for salary, or 40 hours a week billable time) then my supply - hence income - is limited:

http://7million7years.com/2008/04/24/what-is-th...

Of course, you still need to bring some bucks in the door ... multiple mouths to feed, and all that :) AJC.

As usual, you beat me to a story: Paul Potts ... I also posted his first audition for Britain's Got Talent a few weeks ago.

Just the look on Simon Cowell's face, and (you can't see it very well in the little YouTude video) the tears running down the female judges face, tells it all: ANYBODY can achieve 'greatness' (whatever that means).

Just got back from NY ... still an amazing place ... lived there for a short while about 20 years ago.

You mean I can take OFF my uber-cool X-men sunnies???

... but, I still think that the internet is the best way for Inter-Noob's to hang out their shingle - and, a blog is a great way to get feedback and seed traffic for it (but, not the best way to actually try and MAKE it).

So, if I had my time over again - actually, I do have 'my time over' ;) - I would do it via the Internet (and, am ... two in the works + blog + new 7m7y.com 'secret project') ...

Thanks for the mention, Steve. My wife seems to think that 'retirement' = clean out garage, etc., etc., etc.

I am DEFINITELY getting an office away from home ... even if it's just to blog, look after my investments, and play a little on-line poker - appearances (especially, if it's the 'appearance' of being busy) counts!

Earnings/schmearnings ... as long as you're making money :) I want to think of using your 'weatherstreaming' concept to help evaluate whether an Opportunity is Worth Pursuing ... I'll let you know if I come up with anything, but you just might have something here!

Thanks BripBlap ... I'm glad to be here (via Guest Post); I'd also like to welcome your readers to check out my new Grand Experiment at 7m7y.com :)

I'm not an expert, but I believe that urine is germ-free, so (aside from the smell ... where are the 'green inventors' when we need them?) there's no real reason to flush (or even wash your hands). Just for the record, though: I flush AND wash ... thoroughly!

BTW: There is a useful business lesson on the subject of toilets:

There was a very successful bakery in a country town ... tourist buses make special trips to this bakery (now they have expanded to multiple areas). One of the reasons is that they survey their customers and deliver what they want.

And, when they surveyed their female customers, what did they want from a quaint little bakery in the countryside?

More/better toilets!

That was the #1 request ... so they renovated to provide LOTS of pristine-clean female toilets and the rest is ... history. AJC.

You're just peeved because you can't invest in BRK-A or -B because they don't pay dividends :) Warren takes the (perhaps rather) presumptive view the he can invest the dividends better than we can. AJC.

Makes me wonder how much we could cut down our spending if we all carried around a 'Future Value Calculator'? :)