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Reflections From The Front Porch
The Principles of Accumulating Wealth
Written by Darrell Anderson.
Many people have wondered about the secrets to accumulating wealth or just living a comfortable life. The fundamentals are easy to find if one is willing to look and learn.
- Produce more than you consume (to create a surplus).
- Pay yourself first (place the surplus aside).
- Control expenses (delayed gratification).
- Invest what you pay yourself (let the surplus perform for you).
- Seek wise counsel to provide security and safety for your investments (all humans are creatures of limited knowledge).
- Borrow only in emergencies (interest payments hurt you just easily as help you).
- Own your home (a home is a place to live, not an investment).
- Improve your skills (to improve earning and exchange potential).
- Own your own business (eliminate middlemen who reduce your surplus).
- Take care of yourself (difficult to produce when you are sick or disabled).
- Ignore the market (be a Steady Eddy).
- Diversify skills and investments as much as possible (reduce overall risk).
- All actions have consequences (think first, think second, act third).
- Life is 10% events, 90% attitude (observe life as full of challenges not obstacles).
- Eliminate “drain people” from your daily life (whiners observe life as full of obstacles instead of challenges).
- Be willing to change (good luck is nothing but recognizing opportunity).
- Accept the fundamental principle explained by the Second Law of Thermodynamics.
Finis.
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