This is an archive of all previously published Weekly Ideas to Ponder. Oldest ideas are listed
first. Pick one that makes sense to you and apply it to your life. Repeat at will.
Do you have a defined wealth goal?
Do you know how much income you need per month to be financially free? How much capital do you need to generate this income?
Without knowing the numbers, a goal to reach for, it's easy to drift through the years...
Now that you have defined your desired yearly income,
and based on it, the amount of capital you need - what figure did you use for the rate of return? What if you could get a rate of return
that's twice what you used? This would cut the capital you need in half. How much sooner could you reach your goals?
How little income would you need each month
if you had no debt?
If you needed less income, because you paid off all of your debt - how much lower would your taxes be?
Most Americans could give themselves a 20% to 40% pay increase by simply paying off their debt.
Where would you be financially if you bought only 1 income producing property per year - for the next 20 years?
What would happen to the price of oil if we would all park our cars every weekend, and spend time with family, instead of
driving to the mall? What would happen to the trade deficit if the demand for second rate goods from China disappeared,
because we all stayed home instead of shopping?
What will you do with the tax rebate from the IRS? US government wants you to spend it to stimulate US economy. But if you spend it in any
of the big chain stores - you will be stimulating Chinese economy, since big chains buy almost everything in China.
It makes more sense to spend the money in a small local store, checking that what you are buying is locally produced.
Better yet, pay off all or part of a credit card balance - if you carry balances month to month,
your interest rate is probably close to 20%. If you pay it off, that's like getting a 20% return on your money - after tax - forever.
Risk free and guaranteed.
In 1933 1 oz of gold cost $20 - and this ratio was fixed for a hundred years, today 1 oz of gold costs over $900 - so the dollar today is worth
45 times less than it was worth in 1933. What has changed? Our money is no longer backed by gold - it's merely pieces of paper
printed in whatever quantity government desires. Inflation, properly understood, is simply a way to measure the drop in the value of currency,
as government prints more and more money. When all currencies are being printed with abandon, it's difficult to tell how bad things really are.
That's when you turn to gold - it's a yardstick that cannot be changed by government manipulation. Looking at gold prices today gives you a good measure
of how badly governments are mismanaging money supply. Another way to put it - it shows you the extent of the hidden tax that governments call "inflation"
In good times and bad (and especially during bad times) those truly wealthy buy assets - do you?
Warren Buffet was adding to his stock market holdings all through the first quarter correction. Did you?
Right now, real estate is seriously down - have you considered adding to your real estate holdings?