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Collecting the best personal finance articles around the web.
12 Jan 19
The basic principles taught in "Rich Dad Poor Dad":

1. The rich don't trade time for money. They acquire assets that make money for them.
2. The rich acquire assets (stocks, bonds, real estate, websites, businesses, etc.) while the poor and middle class acquire liabilities that they think are assets (houses, cars, most material possessions, etc.).
3. The rich focus on their assets while everyone else focuses on their income statement.
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30 Oct 18
The basic principles taught in "Rich Dad Poor Dad":

1. The rich don't trade time for money. They acquire assets that make money for them.
2. The rich acquire assets (stocks, bonds, real estate, websites, businesses, etc.) while the poor and middle class acquire liabilities that they think are assets (houses, cars, most material possessions, etc.).
3. The rich focus on their assets while everyone else focuses on their income statement.
Read 7 tweets
25 Oct 18
THREAD // Important concepts to understand about psychology and human behavior that impact your finances
1. Nobody cares about your failures.

Many people are scared to ask for a promotion, apply to a new job, or reach out to new clients because they fear failure. The truth is, nobody cares. Nobody is tracking your failures. Everyone is too consumed with tracking their own failures.
2. People don't care about your lifestyle as much as you think.

The “Rich man in the car paradox” - when you see someone in a fancy car, you don’t think about how impressed you are with the person inside the car; instead you think about how cool it would be if you had that car.
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24 Oct 18
THREAD // Should you pursue money or your passion in your 20s?

One question Tim Ferriss asks interviewees in Tribe of Mentors is:

"What advice would you give to a smart, driven college student about to enter the ‘real world’?"

I noticed a common trend among answers.
Most interviewees said to pursue skills, money, and knowledge as much as possible in your 20s so that you can have the means to actually impact society in a meaningful way in the following decades.

Specifically, three interviewee responses stood out.
"Many students come to me full of intentions to change the world...I tell them to first graduate and make a lot of money, then figure out how to help those in need. I have seen so many former students in their late 30s and 40s struggling to make ends meet." -Ayaan Hirsi Ali
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24 Oct 18
THREAD // Ideas that have had a profound impact on my life

Nature: more time outside = less anxious, more calm

Stoicism: it's not about what happens to me, but how I react

Finance: wealth comes from accumulating assets and avoiding liabilities
Essentialism: say no to anything/anyone that threatens to consume my time without giving me joy in exchange

Minimalism: less stuff = less mind clutter

Resilience: being gritty is better than being talented
Non-linearity: growth compounds over time at a nonlinear rate in almost all fields

Time-frames: I consistently overestimate what I can accomplish in short-term and underestimate what I can accomplish in long-term
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23 Oct 18
THREAD // 7 lessons from 7 mentors that have changed my life

1. Great relationships and great wealth are both a product of compound interest. The serious returns come from consistent investments made over the course of many decades. (Naval Ravikant)
2. The best source of new business is the work on your desk. To acquire new clients, please the ones you have. To grow your following, focus on writing a great post today. To get promoted, do your best work on your current project. (Charlie Munger)
3. The relationship between ‘talk’ and ‘work’ is that one kills the other. The more time you spend talking, the less time you spending doing the work. When actively working on a project, focus on the work. You can talk about it and promote it once it’s finished. (Ryan Holiday)
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23 Oct 18
THREAD // My favorite quotes from "A Guide to the Good Life" by William B. Irvine:

"The easiest way for us to gain happiness is to learn how to want the things we already have."
"Humans are unhappy largely because we are insatiable; after working hard to get what we want, we routinely lose interest in the object of our desire. Rather than feeling satisfied, we feel a bit bored, and in response to this boredom, we go on to form new, even grander desires."
"Throughout the millennia and across cultures, those who have thought carefully about desire have drawn the conclusion that spending our days working to get whatever it is we find ourselves wanting is unlikely to bring us either happiness or tranquility."
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20 Oct 18
THREAD // Advice on Saving & Investing in Your 20s

1. When you’re just starting out, focus on becoming an income machine, not an investment guru.

2. Don't obsess over finding your passion. Instead, master some skill, interest, or knowledge that others find valuable.
3. Once you do start making serious money, resist the temptation to blow it on lifestyle upgrades.

4. Outside of your day job, become a voracious learner.
5. Aim to minimize the “big three” expenses of housing, transportation, and food. Get these three under control and you can slip up in other areas (entertainment, dining out, etc.) and still not break the bank.
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