Skip to main content

How Wealth was created 1970 to 2022

How wealth is created in 2022 or 1970. 

The US suffered significant inflation through the 1970's.  The Oil Embargo and taking the US off the gold standard changed the US and the world economy.  We have seen several bubbles and crashes since then. 

My view is in order to go from poor to middle class and beyond you must invest in assets.  I chose Rental Real Estate and it worked very well for me.  One of my brothers chose Stocks and it worked well for him also. 

The people of the US still have the most potential in the world for financial mobility.  In other words, it is the best environment available to go from poor to middle class to wealthy.  

How to Become Wealthy

You do not have to make a lot of money to become wealthy. You have to invest in assets that increase significantly in value.

What is the F.I.R.E. Movement?


The FIRE (Financial Independence Retire Early) movement is a large group of people that are working toward retiring at a young age. They have an active forum with a lot of good advice on the steps to take to become independent. In this case independent means you can quit your job and semi retire if you want.


Why I like Rental Real Estate

Yes being a landlord has issues however being broke forever is an ugly issue also. The Rental Real Estate I bought always made the payments from the rent. If the rent did not cover the payment I would not buy it. Check out Rental Real Estate Advantages. One of the most common Real Estate financing options is using a HELOC.

I Believe in Inflation

I am not a financial advisor. However from my Father's youth to his old age house prices went from less than $10,000 for a average house to $300,000 for a medium house. In my adult life average house prices have gone from $20,000 to $350,000. My first rental apt was $60 a month in 1974. That same apartment now is over $1000 per month.

My suggestion
Buy a rental property that makes its own payment and let inflation work on the value of the rental and the price of the monthly rent.

Bigger Pockets
Online podcasts, books, videos produced by Bigger Pockets have great advice on owning rental properties, Airbnb, and anything real estate. I strongly recommend them. They have a youtube channel that is awesome.

Does Delayed Gratification help you become rich?

Delayed gratification is the first step most people take to become wealthy. Delayed gratification refers to the ability to resist the temptation of immediate pleasure or reward in order to invest for a greater reward or goal in the future.

For example, instead of spending money on expensive gadgets, clothes, or vacations, you may choose to save and invest that money, which can help you accumulate wealth over time.

Delayed gratification can also help you develop better financial habits, such as living below your means, avoiding debt, and sticking to a budget. These habits can help you manage your finances effectively and build wealth over time.

Ultimately, becoming rich is not just about earning money but also about managing it wisely. By developing the ability to delay gratification and making smart financial decisions, you can increase your chances of becoming wealthy over time.
Labels:

Comments

Post a Comment

Popular posts from this blog

New Account Notification

I have four different Free ways to be notified of a new account being opened in my name on my Social Security number.  This is the critical notification that your Identity is being stolen if you did not just open a new credit line. My Discover card, Credit Karma, Chase Bank, and Credit Sesame accounts all notify me if there has been a new account opened in my name with my Social Security number.   New Credit Account I recently opened a new Home Depot* credit card.  You know those Black Friday tool sales sucked me in again.  I do it almost every year.   Anyway right on time the next day and the day after I opened a new account I was notified by Credit Karma, Discover, Chase Bank, and Credit Sessame. Why This is Important Any time your credit is checked you need to be notified.  If you did not apply for new credit it is likely to mean someone is attempting to STEAL Your Identity.   The first step in Identity Theft is for the thief to apply...
Post a Comment
Read more

My Introduction to Airline Miles

 I was first introduced to airline miles by a friend who had just gotten a United Airline Chase Credit Card .   I signed up and started getting airline miles for all of my business purchases.  Just for signing up I received 50,000 miles.  I believe I had to spend $3,000 in the first three months to get the 50,000 points.  This was a great bonus, two free flights anywhere in the US for spending $3,000 which I would have spent anyway.   The annual fee for this card is $95 which is waived for the first year. It took 25,000 airline miles to get one round trip ticket anywhere in the US.  Short flights would only cost 20,000 airline miles. I used just this Chase United card for a couple of years and earned a couple hundred thousand Airline Miles on the purchases my business made.   More Chase Points Cards I applied for and got more Chase credit cards for points.  I got the first Chase Freedom card with no annual fee.  This ca...
Post a Comment
Read more

Bank Fees and How to Avoid Them

I hate to pay fees. Little fees, big fees, they all irritate me. In the old days of checking accounts where local companies all accepted checks, banks used to charge $15 to $25 on bounced checks. In my area of Montana they made enough in Bad Check fees to pay all of their full time tellers.  A friend who was a banker told me this. Fees are a huge revenue source for banks. I try to avoid most bank fees. My checking account is does not have a monthly fee. My savings account does not have a yearly fee.   I do have an annual fee on my lines of credit, HELOCs, but I have not been able to talk my banker out of those fees. Debit Cards Fees will grow quickly if you don't pay attention. Debit card fees can vary depending on the bank or financial institution you use, as well as the type of account and the transaction type. Here are some common fees associated with debit card usage: ATM withdrawal fees : When you use an ATM that is not owned by your bank or financial institutio...
Post a Comment
Read more