Showing posts with label Early Retirement & Financial Freedom. Show all posts
Showing posts with label Early Retirement & Financial Freedom. Show all posts

Wednesday, July 10, 2019

How Warren Buffett Become Wealthy and Successful

Many value investors out there probably know who Warren E. Buffett is. If you don’t know him yet, let me give a short summary about him. Warren Buffett is an American successful investor, business man as well as a benevolent philanthropist. He was born in August 30, 1930, and apparently he is still alive as this article is written in the year of 2019. He is considered as one of the most successful investor in the world that inspired many people. Many value investors try to understand how he invests and replicate his strategy. I as a dividend growth and value investor am inspired by his success and teachings. Even though I had never met him in real life; however I became really inspired by him for his investment ideology and respect him for his benevolent philanthropist act to the society. As this article written today (June 30, 2019), Warren E. Buffett has an estimated net worth of $87.5 billion USD making him the third richest person right before Bill Gates and Jeff Bezos. Having him to be one of the richest people in the world is not the reason why I idolized him so much. Warren Buffett is not the typical rich person that spent his money on materialistic things such as fancy cars, huge mansion, or lavish yachts. He lives just like the typical average American who purchases his breakfast at McDonald every day before going to work. In addition, he still lives at the same modest home he purchased back in 1958 for $31,500 or about $250,000 if adjusted with inflation. Like I said, he is not the typical rich people who want to have lavish things and life style but he is just a humble person that loves to build his business empire that will eventually go back to society. He pledged more than 99% of his wealth will go to philanthropy during his life or at death and he couldn’t be happier with that decision. I’m so amazed of his generosity since he has dedicated his life building his wealth without much inheritance from his parents. He didn’t come from a wealthy family but an average middle class family and through hard work and dedication; he has built the fortune he has today. I love building wealth and doing business just like Warren Buffett and believe that wealthy people who is in the 1% wealth list should donate at least 50% of their wealth before or after their death. My dad similar to Warren Buffet who started from nothing, and he is considered to be wealthy today; however I don’t see his wealth as my success. I believe in building my own score card and fortune just like my dad and Mr. Buffett; and I would not be upset if my parents decide to give away their wealth to charity later on. I mean after all I believe that their wealth is theirs and I don’t want them to feel obligated. However, if my dad let my brother and me to inherit his business legacy, I would still continue to expand his wealth. It would be better for me and my brother to grow the wealth since my dad has already built the tree for us which gives tremendous head start. However, towards the future if I become really wealthy, I might pledge to give away up to 50% of my wealth to charity after my death. Anyways let’s not get distracted about me being philanthropy; I’m still far from being in the 1% list!  Let’s go back to topic of Warren Buffett. After understanding his stories of his success and the amount of wealth he accumulated, you readers might wonder how on earth he does it. I myself was curious on how Warren Buffett did it. After doing many bibliography studies and research about him, I learned how Warren Buffett became successful and wealthy therefore I’m here to share his stories with you guys.

Saturday, July 6, 2019

5 Reasons to Become a Dividend Growth Investor

The America stock market has been one of the greatest long-term wealth generators in history. It has a record of compound annual growth rate of 9% since the late 1990s. Even after Great Depression of 1929 and other stock recessions and stock collapses, the U.S. stock market has always performed well for investor in the long run. Many people have different strategies towards their investment. Some like to speculate stock in short term period such as day trading, some prefer to let the experts do their job such as fund managers to manage their money in a form of mutual fund. However, an average person can learn how to invest safely. Dividend growth investing is a good strategy if you want invests on your own. Here are five reasons why you should become a Dividend Growth Investor.

Sunday, December 23, 2018

How Inflation Affect On Consumers and How Can You Protect Your Money Now

Plenty of us have our older generation telling us that how things used to be cheaper back in their days, and how thing are more expensive now. For example in 1908, a Hershey’s chocolate bar cost only 2 cents, while the same chocolate bar cost $1.34 at your local store. Inflation is the increase in price of goods and services over a period of time. Inflation impacts all of us as consumer, what inflation does is, it devalue our currencies. So over a long term period of time, if you are not managing your wealth properly, inflation can eventually eat up the value of your money. So how inflation affect us as consumer and how to protect our money now?

Tuesday, February 23, 2016

The Power of Compound Interest & Why You Should Start Investing Early

Many people don't realize the benefit of investing early in life. Especially the young ones, who tend to have fun while they are still young. It's understandable why do such boring things while there are so many other fun activities in life besides investing. I myself sometimes find that saving and investing can be really boring (I am a human being and I want to have fun too). However, once you realize the power of compounding, you might get another picture why there are many benefit to start investing early in life. You see saving and investing is not a "get rich quick kind of thing", and if there is someone who claim to be able to get you rich quickly by investing, I hope you do your research diligently since there is probably high risk involved. Saving and Investing to create wealth is a long time procedure, but the sooner you start to put your money to work for you the more time your investment would grow better. 

Wednesday, February 3, 2016

How To Get Out Of The Rat Race

The Rat Race is a term that is used to describe the frustrating financial grind, hard-to-break financial lifestyle that most people are stuck in. It conjures the image of a “lab rat trying to escape while running around a maze or in a wheel, expending a lot of effort, but ultimately achieving nothing.” It’s very much alike to people who everyday work their butt off in a time-consuming nine to five job, for five days a week just to be able to pay their high expenses: a heavy mortgage/rent, bills, children, and liabilities. They have to wake up early in the morning when the alarm goes off, commute to work in a traffic environment, do the work that they probably dislike in their office cube, then commute back home in another hour of traffic, then repeat the same procedure the next day. The problem with the rat race is that there's no finish line. The illusion that working at the same job will be better bars off alternatives. They are trap in this vicious cycle believing the more money they make will solve their problem. However, this is not necessarily true. When income increases, they have a tendency to boost their spending, which can quickly spiral into dangerous overspending habits. The wheel just keeps spinning, and the longer they are caught in the cycle of consumption, the harder it becomes. Sadly the cycle get worse as they get older if not prevented. So how do we stop this insanity and get out of the Rat Race?