Financial Education

16 Oct: The Velocity of Money Concept

Have you ever heard of the velocity of money? Let’s compare it to compounding interest. If you remember, we said that compounding interest needs to be uninterrupted and continuous to work for us. We’re not going to throw this out, we want to use compounding, but we want to use it the only way that it works. Yet, there is something more powerful than compounding. It’s actually known as the velocity of money. Some have called it the motion or the movement of money. And in nature, everything is moving.

16 Oct: A Wells Fargo Story and How Banks Really Work

The next concept you need to understand is, how do banks work? How do they use money? They use money differently than you do because they work on a different playing field. They work with a different set of rules. So to give you a graphic picture of this, I'm going to tell you a true story. Our daughter-in-law works for Wells Fargo. She started there after college, age 22, roughly. When she started working there, they said to her "You're an employee here, so we want you to have a checking and savings account here."

16 Oct: How Compounding Interest Can Work For You

Compound interest is powerful. They can’t prove this but Einstein said that compound interest was the eighth wonder of the world. He said, “Either you can earn it or you can pay it. It’s your choice.” It’s either working for you or it’s working against you. If you know how it works and if you know what’s necessary for it to work, you’ll be able to be in control of it.

11 Oct: Jesus The Banker and the Parable of Talents

The velocity of money and compounding are commonly understood principles. They even go all the way back to biblical times. Jewish traditions on money are very solid and they've been around for thousands of years. Have you heard the story in the Bible called the parable of the talents? The parable goes like this. Some followers come to Jesus and they say, "Jesus, when are you coming back?" He says, "I don't know. No man knows and the son of man doesn't know. I don't know when I'm coming back, but let me tell you a story. A parable."

11 Oct: Tony Robbins And What you need to know about your Rate of Return

Another thing we want you to understand is what is an average rate of return? This one's going to surprise you a little bit. First of all, I want you to know that everything I'm going to show you is legal. A lot of the time you view money through a certain set of glasses and you think you understand what's going on. If I were to give $1,000 to an investment and say I got a 20% return on my first year and a 20% in my second year. That's an average 20%, and I would now have $1,440. When I say an average 20% rate of return, this is the big picture you have in your head. I'm going to end up with $440 more than I had before.

10 Oct: The Most Important Rule, Pay Yourself First.

Rule number one is pay yourself first, okay? This means before you go spending money you need to be setting some money aside for your own future. For your own well-being and for your own ability to grow wealth. Pay yourself first. If you start to accumulate some money, somebody's going to tell you, "We need to start creating some sort of schemes to protect your money." Usually what that means is paying a lawyer or an accountant a lot of money to help you protect that money. And then paying that money to maintain it for years.

08 Oct: The Need for Debt Reduction and Savings

ur paychecks are mostly consumed by the time we get done with living and lifestyle. Most people don't have anything left, but now we understand we need savings and emergency funds. Any plan that I help you provide or develop for yourself has to include a decent living and lifestyle. It also has to include having some savings or an emergency fund. The harsh reality is, is that according to in 2016, 34% of Americans had zero dollars of savings, and the next 35% had less than $1,000. So, that's 69% of the American population at the end of 2016 has less than $1,000 of savings or an emergency.

08 Oct: How Your expenses can expand to equal or exceed your income.

This blog is about how you handle money and about how money flows. Let's talk about Parkinson's law. This law is extremely powerful. It's always in play, whether you're aware of it or not. It's like gravity. You may be unaware of gravity and jump off the roof of a building. But you are going to be very aware by the time you hit the bottom. It's going to work whether you're aware of it or not. Gravity always functions.