Simple Liberty  

 

     
   
     

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.

  1. Produce more than you consume (to create a surplus).
  2. Pay yourself first (place the surplus aside).
  3. Control expenses (delayed gratification).
  4. Invest what you pay yourself (let the surplus perform for you).
  5. Seek wise counsel to provide security and safety for your investments (all humans are creatures of limited knowledge).
  6. Borrow only in emergencies (interest payments hurt you just easily as help you).
  7. Own your home (a home is a place to live, not an investment).
  8. Improve your skills (to improve earning and exchange potential).
  9. Own your own business (eliminate middlemen who reduce your surplus).
  10. Take care of yourself (difficult to produce when you are sick or disabled).
  11. Ignore the market (be a Steady Eddy).
  12. Diversify skills and investments as much as possible (reduce overall risk).
  13. All actions have consequences (think first, think second, act third).
  14. Life is 10% events, 90% attitude (observe life as full of challenges not obstacles).
  15. Eliminate “drain people” from your daily life (whiners observe life as full of obstacles instead of challenges).
  16. Be willing to change (good luck is nothing but recognizing opportunity).
  17. Accept the fundamental principle explained by the Second Law of Thermodynamics.

Finis.

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