Invest with Daniel Pecaut: Investing in Stocks, Personal Development, Relationships, Meditation and Yourself
The Money Blueprint - Part 1 - Saving, Spending, Giving, and Compounding
Manage episode 151202763 series 1019974
To begin, I stated my mission: to teach and share what I've learned.
The need for this is high in my judgement.
America is the cradle of capitalism (which is now the world’s primary ideology for economic development). Yet our constituents know so little about it.
How can it even work when people don't know how it works? Luckily, enough do that is works anyway. But I want everyone to know.
So the first step in that process to understand is that money is a tool. It's not a conspiracy. It doesn't know you. It doesn't have any feelings. We project a lot of stuff onto it. So pull all that away. It's just a tool. There’s three things you can do with the tool: you can spend it, give it, or save it. Each has its own level of consciousness. So money trains you over time in different ways.
Then we discussed compounding. We'll discuss that in more depth in the next chapter because it's such an important concept.
We discussed the rule of 72. You'll recall that if the rate of interest times the number of years equals 72 that's a double. That's a fantastic simplifier to understand significant economic and numeric concepts.
Then we also discussed the importance of timeframes. So the longer your time horizon is, the more likely owning businesses will work for you. The shorter your timeframe is, the more you should keep it in cash. Because everything outside of cash fluctuates: Whether it be gold, real estate, collectibles, you name it. Everything else fluctuates.
For more information, visit DanielPecaut.com and download his free investing ebook.