My niece already has the saving money gene.  She has been putting coins in a bank coin bag and decided that it was time to "bring the monies to Joshie".

My niece already has the saving money gene. She has been putting coins in a bank coin bag and decided that it was time to "bring the monies to Joshie".

My niece, who turns three this fall, has somehow come to associate me with money (or as she calls them, “monies”). When she goes to visit my grandma Ruby, which is her great grandmother, she gets to save up an allowance in a bank bag for when they go shopping or out on the town.

Anyway, she is now up to roughly $6 and change in her little coin purse, causing it to be quite full.  Realizing this, she runs up to “granny” as she calls Ruby and insists, “We have to take the monies to Joshie.  We have to take the monies to Joshie.”

Apparently her entreaties were so great that they walk into the office that afternoon and she runs up, hands me the “monies” and then goes and plays with Aaron.  Satisfied her task was done, she was happy.  I’m not sure if she realizes yet why people give me money (so I can turn it into more money) but the fact she is intelligent enough to figure out that the capital flows through headquarters just amazes me.  I think we’re not far off from opening a lemonade stand and issuing stock in it to teach her how that works …

Update: My brother tells me that when he last saw her, she asked him to take coins out of a coin sleeve.  Once he did, she put the money in her pocket and said, “my monies”.  So, we’ve figured out she is getting all of the money she can, storing it in a bank bag, and then dropping it off at my office because that is what she thinks is supposed to happen … she isn’t even three yet!  I cannot tell you how much I love this kid!!!

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Voltaire the Investor

How One of History’s Greatest Thinkers Amassed a Fortune

Voltaire

Voltaire led a life that is extraordinarily useful for those who want an example of how to contribute to the improvement of civilization, live extremely well, and follow your passion.

One of the people upon whom I have based the way I live my life is Francois Marie Arouet de Voltaire, or Voltaire for short. Born on November 21st, 1694, he passed away on May 30th, 1778 after a long and extraordinarily successful life pushing for social reform and a more enlightened society, harshly criticizing superstition and slavery.  Besides the fact that we can thank him for heavily influencing the American Revolution and later, the French Revolution, we can look to his example for investing wisely.

Voltaire Generated Significant Sums of Passive Income Each Year from International Investments

As a young man, Voltaire was wise enough to realize that he would need to become financially independent if he were to speak the truth and remain unencumbered with the chore of making a living.  Thus, he purposely cultivated friendships and relationships with the Paris brothers and other wealthy bankers, who taught him how to invest, speculate in currencies and commodities, and manage his money.  As a result of his wisdom, Voltaire was a millionaire by the time he was 40 years old and maintained investments in ships that sailed the globe as part of international trade, art, and direct lending to customers (he was, in essence, a bank).

Furthermore, Voltaire stashed significant sums of money in many, many nations around the world, all earning profits, dividends, and interest in the local currency.  He did this so he could continue to live in comfort if he had to escape due to his political and social ideas, plus to protect himself against dependence upon any one economy.  In fact, he caused an enormous scandal because he betrayed his friend, the King, who had forbidden foreign bond ownership.  Voltaire was loyal to his own financial house, first and foremost. (more…)

Investing for Beginners at About.com by Joshua Kennon

You can click the image to go to the article on the Investing for Beginners site at About.com, a division of The New York Times.

This is a cross-post of The Secret Philosophy of Successful Investing from About.com, a division of The New York Times because I want to highlight the piece in case any of you missed it and get you to head over to the Investing for Beginners site to check it out! Why?  I’ve received tons of private messages, emails, and other communications thanking me for writing this specific article, causing this to become, hands down, one of the highest rated pieces of content I’ve published in the past ten years. I realize most of you who read my personal site also head over to my About.com site, but in case any of you missed it, I wanted to give you a heads up, promote it, and link to it from here.

How New Investors Should Approach Their Portfolios

Whether you are just now realizing that you need to invest for your future mid-career or you are starting out as a recent college graduate, you may get the impression from financial sites, newspapers, and television shows that your highest purpose in life should be to amass as much money as possible. That is foolishness. Here is the real story.

Your Goal Is Not to Have as Much Money as Possible

When you are investing, your goal is not to pile up more treasure than your neighbor. Instead, it is to find the right balance between satisfying your needs, wants, and desires today and delaying them for a bigger pay-off tomorrow. (more…)

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Isn’t that a fantastic quote?  I got it from Tara Beth Workman a few days ago and I’ve been thinking about it since.  I realize that it is entirely true and that my life is a reflection of that.  All of our lives are reflections of that.  Let me explain.

This afternoon, Aaron and I decided to take an impromptu trip to Hall’s department store because we were restless and wanted to get out of the office.  Turns out, we hit a major financial milestone so rewarded ourselves by spending just shy of $1,100.00 at the Creed fragrance counter.  We called an audible and determined that this reward was more important than finishing the book (no, I’m not going to tell you what it is) so that is why I chose to buy more after my purchase of Creed bois du portugal and Creed original vetiver the other day even though I was supposed to put it off until after the manuscript was complete.

Our Lives are the Sum Culmination of Our Past Choices

Partial Selection of Our Creed Fragrances

You must unlearn what you were taught about money growing up if you were middle class or lower class. The $1,100 we spent today on Creed fragrances may seem excessive but it is the same amount a husband and wife would spend in only 5 or 6 weeks if both of them smoked a pack of cigarettes each day. Learn how to focus your cash on the things you want and cut costs in areas that go to someone else. YOU should be the beneficiary of your work ... not your utility companies, the car manufacturers, or the credit card issuers.

Years ago, I told my younger brother that every single choice we make either gets us one step closer to our goals or one step further away from our goals. For example, I am well off financially for a variety of reasons.  I also need to lose roughly 45 lbs. because I made some not-so-good choices and I eat very, very well at restaurants like Ruth’s Chris and such.  My present reality reflects those past choices; some good, some bad.

Small Things Make a Big Difference Over Time

Take the trip to Hall’s this afternoon.  It was part of the incentive system I was telling you guys about and why I’m able to get so much done even though I’m relatively young.  It started in college with small items from Hamilton Jewelers in New Jersey.  Even though dropping $1,100 may seem like a lot of cash for a few bottles of rare French cologne, it is less than a couple who smokes a pack of day spends in 5 weeks! Because we’ve bought bottles in the past, we now have thousands upon thousands of dollars worth of it at the office, as you can see from the picture (and that isn’t even all of them!). (more…)

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When it comes to real estate, business acumen, and interior decor, Ozzy and Sharon Osbourne have my admiration.  Not only are their properties flawless in appearance, they use them as cash generators.

According to one of my favorite blogs, Mr. and Mrs. Osbourne purchased this 4,500 square foot, 5 bedroom, 5 bathroom beachfront property in Malibu, California for $5,100,000 in March of 2003.  Today, they rent it out for several months during the summer at $40,000 per month.

This is what separates those who are successful from those who can’t hold onto money, like former NBA stars.  You must keep cash rolling in the door and the cash you generate must exceed the cash going out by a considerable margin each year after paying taxes.  It is simple but that doesn’t mean it’s easy.  Here, the Osbournes are having their cake and eating it, too. (more…)

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Sweet Grapes and Bananas

I just sat down at the desk in my home investing office to start working on the book, as I enjoy a fruit salad of sweet grapes and bananas with a cup of black coffee ... which, actually, reminds me of the Palm Court Terrace at the old Plaza Hotel in New York City during college.

Last night, I cleaned up roughly forty pages of my new book. Tonight, I am hoping to get at least the bulk of the remaining “hard math” section done, which focuses on the formulas and equations (stuff like, “If I put $10,000 into an account seven years ago and now it is worth $32,150, what was my compound annual rate of return?).

This is always the part I enjoy least because it is very technical and I prefer talking about businesses, investments, and the philosophy of money. Still, the most gifted architect needs to know how to design functional buildings, so it is absolutely necessary before I can show my readers how to apply it in every day life.

I spent most of the day discussing the tea party movement’s takeover of the Texas Republican Party, as well as the proposed platform, with my grandmother.  It really is deserving of its own blog post so I can’ t talk about it now … there is just too much crazy to go into, especially once I got to the part about stripping people with learning disabilities of their employment protections under the Americans with Disabilities Act.

It is likely that I’ll be around the computer for the next few hours (or twelve, whatever) as I work.  What are your all’s plans for tonight?  (Yeah … that would be the Midwest upbringing.  That is how you say it.  Don’t be hating on the colloquially.)

 

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