Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Two Simple Financial Rules Young People Should Learn to Live by

Personal_Finance / Debt & Loans Oct 14, 2012 - 03:20 PM GMT

By: DailyWealth

Personal_Finance

Best Financial Markets Analysis ArticlePorter Stansberry writes: Aaron Brabham: So Porter, it turns out we have a new demographic that we never sought to attract... the 20- to 25-year-olds.
 
I love it, personally, because I feel like this could be the next generation of conscientious voters and good investors. These people could have some good sense about them if they keep listening to Stansberry Radio...

 
Porter: I think it's great. The young people I correspond with seem to be extremely smart, very normal people...
 
For the young folks out there, the single most important thing you can learn at your age has nothing to do with investing, per se...
 
It's simply this: 
 
•   Live beneath your means.
•   Do not borrow money.
 
It's that simple.
 
If you just go to work every day, try your best, build a career, save money – save 20%-25% of your income – and don't get into debt, then by the time you are 35 years old, you will be well ahead of the game.
 
By the time you're 40, you can be a millionaire, easily. And you don't have to do anything with investing beyond corporate bonds, municipal bonds, local real estate deals. There is no reason for you to become a stock trader or an options seller or anything like that. You don't have to do that, and I wouldn't recommend you do it until you can do it full time.
 
Now, let's say you're 55 years old, you're retiring. You've got 40 hours a week to spend on your investments. Fantastic! You can do the options stuff. You can start getting into the junk bonds. You can learn to trade the junior mining stocks, which is hard to do but can be very lucrative.  
 
But if you're 20-something right now, don't waste your time and energy with all that stuff...
 
You can read about it, you can learn about it. That's great. But just focus on increasing your income by building a career and/or having a part-time business of your own and living beneath your means.
 
Now here are some easy things to avoid: Don't ever borrow money to go to college. College is a waste of time to start with... why would you borrow money to waste time? It makes no sense.
 
Secondly – and this is the trap that a lot of people fall into, Aaron – they want a huge house. They're 28 years old, they're 30 years old, they get married. They have a kid, and they believe, therefore, they've got to have a house, the house, and they go crazy into debt to buy it.
 
Don't do it. I swear, you don't have to do that. If you just focus, instead, on living within your means, you can buy a small condo. You can live there for five years until you can afford to buy a small house. And by the way, I said buy. I didn't say mortgage. I said buy.
 
If you become dedicated to never getting into debt, your entire financial life will be brilliantly successful. If you can't avoid the temptation to get into debt, there's a 50/50 chance that you'll never make it. So what's the best thing you can do to increase your odds at financial success? 
 
Simple. Live within your means... avoid debt. But guess how many listeners will follow that advice...
 
Aaron: I hope at least one does... because guess who didn't do that? This guy. Two thumbs pointing up at myself...  
 
I was in a sales career path. And sales dangles the carrot in front of you because you can make some good money. Man, it is nice to get those big checks, but then... you want to keep up with the Joneses. You've always got somebody – maybe one of your friends – who's a little bit better off than you, who you're chasing after. It will get you off-track quick...
 
But I'm a minimalist now. You know this, Porter. Now, I save like crazy. I live way below my means. I have zero debt, and I've never felt better. I sleep better now than I've ever slept in my entire life.
 
Porter: The thing I want to tell young people is that unless you can do it on a full-time basis, you don't need to start investing yet... 
 
Sure, some of your money should go into high-quality, blue-chip, dividend-growing stocks. Absolutely. That's part of your savings program. You can do it via your 401(k). You can do it with an IRA. I'm not saying avoid stocks all together. But I'm saying most of your money should be in corporate bonds, municipal bonds, gold, silver, and rental real estate.
 
More importantly, figure out how to avoid being in debt. There is an easy way to do it. Just say, "I'm not going to borrow money." Then everything else in your life will become a lot more simple... You're not going to be shopping for a new car, for example. You could buy a decent car for $2,000. Why would you borrow $20,000 to buy a new one? It makes no sense.
 
If you really want to be rich, the first step is: Don't ever borrow a penny. As soon as you understand interest, you will only be a lender. You will never be a borrower. Out of all the things I did right financially, that was the most important one.
 
The second step was I was dedicated to always working for myself. And if you can put those two things together, you can be rich by the time you're 30.
 
But I'll tell you this. There is more to life than being rich. And, Aaron, you know me... you know my story. I gave up on lots of other things in my life... for many, many years.
 
Aaron: A decade.
 
Porter: But this is what I wanted. I wanted to be rich, and I sacrificed everything else to get it. There are people out there, who are 20 years old who are listening, who say, "Yeah, that's what I want to do, too." 
 
Aaron: But they're not willing to make the sacrifices or have the dedication to achieve it.
 
Porter: Right. Guess how many credit cards they have in their wallet...
 
Aaron: As many as the offers they've received in the mail.
 
Porter: Exactly. So don't tell me you want to be rich and then tell me that you borrow money all the time. Because you're just fooling yourself.
 
 
Editor's note: To hear this and all of Porter's interviews, arguments, and insights, you can click here to subscribe to the free podcast. You can also download all Stansberry Radio episodes from iTunes here. You probably won't agree with everything Porter says, but every episode provides investment ideas and a view of the world you won't hear anywhere else...

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2011 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in