Theory | wealthymatters

Pay Yourself Twice

April 5, 2012 1 Comment

wealthymatters.com The details of this idea can be read here:http://7million7years.com/2011/05/26/the-pay-yourself-twice-wealth-strategy/

The general idea is that if we want to be seriously wealthy we need to do more than just save a small part of our incomes to be invested for the long term in various savings instruments so that we can achieve various life goals .Such a strategy will help us secure a middle class lifestyle but no more.So paying ourselves once secures us some insurance against the vagaries of life.To raise the capital to build businesses and participate in other higher risk ventures and to buy other truly passive assets we need to pay ourselves once again.

BTW the savings rate suggested so that we pay ourselves twice is over 75%. To check your savings rate why not use the calculator here:https://wealthymatters.com/2011/01/17/am-i-wealthy-calculator/ ?

Filed under Theory, Tool Kit Tagged with capital building, pay yourself, pay yourself twice, paying oneself, postaday

The Rate Table

April 4, 2012 Leave a comment

wealthymatters.com The table above is from http://7million7years.com/2011/05/26/the-pay-yourself-twice-wealth-strategy/. I put it up here as it is such a nice way of explaining things and keeping expectations of returns from different types of investment vehicles realistic.

Filed under Theory, Tool Kit Tagged with postaday, returns from various investment vehicles

When To Buy Silver ?

February 3, 2012 1 Comment

If you are like me, the contents of the table here https://wealthymatters.com/2012/02/01/heart-stopping-silver-price-movements/ should be unsettling.But at the same time it shows how much money could be made in silver in relatively shorter periods and in a pretty passive way too.So the key to making some money from silver is to know when to buy it and when to exit it safely.The article below from yesterday’s ET should help a bit in buying and selling silver profitably.I have highlighted the parts I felt would be useful.

Silver’s path rarely smooth; don’t forget the dark clouds

Nidhi Nath Srinivas, ET Bureau Feb 2, 2012

Silver fell 44% last year, the most by any metal. Many punters in India lost their shirts. Silver is up 20% in January. Is it a good time to once again dip your toe in the water? ET helps you join the dots. Read more of this post

Filed under Precious Metals, Theory, Tool Kit Tagged with 200 days daily moving average, Bullion, postaday, Silver, Silver investing, silver prices

Advice For Speculators

February 3, 2012 Leave a comment

Below is a nice write-up I found here: http://www.numbersleuth.org/trends/.It has some pretty sage advice if you like to gamble or speculate.

Personally,while my brain can grasp the fact that Warren Buffett’s style of investing is the best way to make and keep money,I find it hard to control my urge to speculate.I deal with this problem by clearly delineating what resources I will gamble with and what I won’t ever hazard ,come what may.Next I’m willing to do what ever I need to to better my odds.Do read the article below;I have highlighted the important part.It will remind you of Rakesh Jhunjhunwala’s advice to buy with conviction.