Every person faces unique financial challenges. The biggest and most shared challenge is the need for finance (capital), but yet we are taught from day one to give up control of our capital to other third parties.
Rate of return can be deceiving and is calculated a couple ways. Average. This is misleading because down years hurt you more than up years help you. Why? The down years are calculated on a larger bucket of money than the up years.
Many of us have been told from a very young age that debt is bad and should be avoided like the plague. Is this true? Just like with everything else, it depends. Debt can be a great way to build wealth at a faster pace than saving up cash for everything. It can also be a quick road to ruin if you misuse it.
Use it or lose it relates to the common tendency for humans to revert back into their old ways of doing things or thinking. To overcome this, we need to regularly put into practice what we have learned and fully understand why we are doing it that way.
“This phenomenon probably limited the achievements of mankind more than anything else. When this thing infects us, we stop growing, stop learning. We ROT! We turn off or tune out the ability to receive inspiration-because we already know all there is to know!”
In Becoming Your Own Banker, Nelson writes about the “Golden Rule.” This is the third out of five human problems that Nelson Discusses in his book. The Golden Rule states “Those who have the gold make the rules.”