Why do some people to have money and others have no money?

Now I got to read the book:
https://en.wikipedia.org/wiki/The_Intelligent_Investor
The Intelligent Investor by Benjamin Graham.


Do you think a book can help you get out of poverty?
Or people with money talk about this book, just to hide their real business?

The book says that this success does not depend on school grades, maybe neither on the IQ: It would be a good chance for me ....

I read a part of this book, but my ability to earn money has not improved at all .......

 

Reading a book can't make any difference unless you choose to apply what you have learned and to do so diligently and consistently.

 

The ability to acquire wealth is a process with a sensitive dependence on the time horizon. If your time horizon is 6 months then no strategy except winning the lottery is likely to be successful. If the time horizon is 30 years then that is something you can accomplish. It takes discipline and sacrifice to save and invest for the future.

 

Mine was on the N.Y. times best seller list.
"How to turn $2m Worth of Real Estate into $50.00."
Max.

 

Mine was on the N.Y. times best seller list.
"How to turn $2m Worth of Real Estate into $50.00."
Max.

Sounds like the parallel to my own book. 'How to turn 8+ million shares of stock into pocket change over night.'

 

I am going to be outrageously controversial.....

If you want money, get a job.

I realise that this a totally out-dated idea and completely unacceptable in today's world.

 

I read a part of this book, but my ability to earn money has not improved at all .......

Basic economics. Your marginal propensity to save must be greater than your marginal propensity to consume (spend).

 

Why do some people to have money and others have no money?

You MUST read or watch "Guns, germs and steel" It is not a short answer. Available on Youtube. The shortest way I could say it is "Time to think is key"

There is an addition to that... good use of inheritances of wealth and family values, family education (not only schooling education)

hexreader : NOT controversial at all. Hard work is the answer. Today's idea of work is massaging a keyboard 8 hours daily.

 

Money is important in today's society. However, if you become obsessed with money you will miss out on the real purpose of life.
Regardless of your current income, learn to save.
If your income is next to nothing, try to save 1/10 of what you earn. As your income improves, save ¼, then ⅓, and even ½.
Then you will never be left for want.

 

Yes, living with minimum necessary 'luxuries' and pleasures and comforts works for savings.
There is an Arab saying like.. "If you are not able to save at least half of your income, you are not doing well"

 

Money is important in today's society. However, if you become obsessed with money you will miss out on the real purpose if life.
Regardless of your current income, learn to save.
If your income is next to nothing, try to save 1/10 of what you earn. As your income improves, save ¼, then ⅓, and even ½.
Then you will never be left for want.

Exactly!

Don't just chase after money for the sake of being able to say you have more of it that someone else. Invest in yourself and your other resources to the best of your limits. It's what I have done all my life and I am now at the point my personal resources are large enough that they easily make my costs of living and general wants in life near effortless to uphold.

I'm not rich by any means but I am resourced to the point I am now in my mid 40's and don't really need to work for a living, beyond seasonal jobs and whatever interests me, if I don't want to. Every major thing I own is and has been paid for for some time which means I have no major financial overhead obligations to deal with.

Same with my knowledge and experience. I have put a good deal of work into building up a wide and deep knowledge and experience base as a life resource. Something that now, if I so chose, can get me into high 5 nd low 6 figure oilfield related tech jobs with ease, if and when I want one.

So as for buying a book it won't do you much good, It's just a book. What will do you good is buying a better more resources you by putting in the time to learn skills that pay well in either financial terms or resource and assets accumulation, as I largely have done, while learning how to objectively what you need to make your life better.

The downside to that approach is more than likely the first 5 - 10 years of personal construction are rather rough given the sacrifices involved in and for the building process. Knowledge and experience building takes time no matter how you play the game.

 

Basic economics. Your marginal propensity to save must be greater than your marginal propensity to consume (spend).

Keynesian economics wrongly applied ?

This is true when personal income increases.
But when it decreases ?

 

But when it decreases ?

Adjust your lifestyle so you live within your means and save your way out of your current situation.

When I started my first real job, I was spending more than I was making. I cut back wherever I could and paid keen attention to my monthly expenses. When finances improved, I made sure I replenished my savings before making any new acquisitions.

 

Keynesian economics wrongly applied ?

This is true when personal income increases.
But when it decreases ?

There is no shortage of people that believe (via their actions) that when your income goes down the best response is to borrow money in order to bring their income back up. Of course, a significant fraction of those people live their lives paying a significant amount of their income, even if and when it does go up, in interest on what they borrowed, at least up until they file bankruptcy.

 

Adjust your lifestyle so you live within your means and save your way out of your current situation.

When I started my first real job, I was spending more than I was making. I cut back wherever I could and paid keen attention to my monthly expenses. When finances improved, I made sure I replenished my savings before making any new acquisitions.

That was and still is basically my approach to life. I started out doing everything I could to cut my cost of living expenses down while ever building up my resources that would cut even more cost of living outlay down and so on.
As that went on I also put more and more freed up resources into my self employment and other sideline income revenue generating processes so that I would become less and less dependant on needing to have a normal job to survive.

Sure I don't live ian $500,000 house like my neighbor down the road, whose ~ 15 years younger than me, but I unlike him I am not stuck in a job I am growing to hate and with no way out because I have a near million dollars in loans plus their compounded interests to pay off over the next 40 years.

 

Hi tcmtech... That younger person living in a $500,000 house has no clue it does not belong to him. Belongs to the mortgager, but hey! he lives in full luxury, comfort, all the toys and pleasures. Too many people living the 'American dream' = feeding bankers.
Too many saying "I bought a home" actually bought a debt.
Renting a cheap humble place, working hard, saving, and then buying a home cash or on a 5 year mortgage is the way.

 

And another thing, don't pay by plastic. Pay with cash.
Carry as little debt as possible.

 

Renting a cheap humble place, working hard, saving, and then buying a home cash or on a 5 year mortgage is the way.

To each his own. Tax law allows mortgage interest as a deduction; there's no deduction for rent. Each time I bought a home, I bought what I could afford. Now I own my home.

According to Zillow, rent for my home would be over $3K/mo; my mortgage payment was half that.

 

To each his own. Tax law allows mortgage interest as a deduction; there's no deduction for rent. Each time I bought a home, I bought what I could afford. Now I own my home.

According to Zillow, rent for my home would be over $3K/mo; my mortgage payment was half that.

Generally the mortgage interest deduction is a false savings. You pay $10,000 in interest because you are in debt in order to save $2,500 in taxes -- and it seldom actually saves you the $2,500 (or whatever it would be for your tax bracket) because a lot of people that take the home mortgage interest deduction wouldn't itemize deductions otherwise, and so their only savings is from the amount of the home mortgage interest that is above the standard deduction.

Now, it does need to be considered in the overall scheme between the two options. How much will you pay in rent and what other costs do you have (generally not very much, perhaps some pretty cheap renters insurance, but it varies as rent often, but not always, includes some combination of trash, telephone, internet, cable, water, gas and/or electric), versus how much will you pay in ownership, which has a lot of other costs in addition to the utilities not covered by rent. There's the obvious, such as property taxes and homeowners insurance. Then there's often HOA dues. And then there's the big one that most people don't take into consideration -- the liability for repairs and maintenance. You get to replace the appliances, furnace, hot water heater, air conditioner when they fail. You generally have to shell out the bucks for these when they happen since you don't have a landlord to call in the middle of the night. You get to paint the inside and outside, recarpet the place, put a new roof on it, pay for foundation repairs, pay for landscaping and that new driveway.

I'm a big proponent of home ownership, but I don't hang it's value on being able to deduct mortgage interest. Much better to not pay $10k in interest and have to pay an extra couple thousand in taxes. Whenever I bought a home and was then able to itemize as a result, my first objective was to aggressively pay down the mortgage until I could just claim the standard deduction, since now I was getting the full tax savings without paying the full interest. The big payoff of home ownership is when you get it paid off (which, if you bought reasonably within your means should be doable in under ten years). At that point you have an extreme amount of security in additional to greatly reduced minimum monthly cash outlays, particularly if you are debt-free in all respects.

 

And another thing, don't pay by plastic. Pay with cash.
Carry as little debt as possible.

Or, if you do pay by plastic, pay it off in total each and every month. The goal shouldn't be to just pay off the statement balance, but to have a zero statement balance by checking the outstanding balance a few days before the statement closing date and then making a payment that pays that, plus whatever you expect to charge before the closing date, right then.

But, whether you do this or use a debit card or even use checks (although those days are almost gone), you need to be aware of the natural tendency to be willing to pay more for something when you aren't paying with physical cash. Perhaps the best way to avoid this is to write out a detailed budget every month and then carefully track your spending against it. Another way is to plan out an overall budget and pay ahead to your credit card. Then if you have a balance owed at the end of the month you know you overspent and need to adjust next month.