40 Truths about Money

  1. You control inputs, not outcomes.
  2. Since outcomes are most affected by inputs, the right inputs usually lead to the right outcomes.
  3. Money is the effect of your work; it should never be the cause of your work.
  4. The more you sacrifice for a dollar, the more you respect it.
  5. How you use money reflects your values and priorities more than anything else.
  6. Setting specific goals greatly increases your chances of getting what you want.
  7. Specific goals are quantifiable – they have an amount and a date.
  8. A goal without a plan is just a wish. Know how you’re going to achieve your goal.
  9. If you’re not sure how to plan for your goal, get professional help.
  10. Plan for worst-case scenarios first. Insurance helps here.
  11. Plan for most-likely scenarios next. Long-term planning is important here.
  12. Plan for best-case scenarios last. Liquidity and flexibility enable you to seize opportunities.
  13. Your first priority is to avoid becoming a burden to others.
  14. Pay yourself first second, right after God.
  15. You can’t change the past. You can change the future, but only through your actions in the present.
  16. Your money has the ability to earn far more than you ever can, but only the money you don’t spend.
  17. Income is what you make; wealth is what you keep.
  18. Wealth is affected far more by habits than by income.
  19. Patience and persistence are the most important ingredients to financial independence.
  20. If you want to be wealthy, financial independence must supersede social status.
  21. Overcoming inertia is hard because humans have a bias for the status quo.
  22. Humans fear loss more than we value gain, and you’re no exception.
  23. Risk and reward move in the same direction. Greater rewards require greater risks.
  24. Your risk tolerance determines your reward; desired reward doesn’t determine risk tolerance.
  25. Low risk tolerance is the product of fear, which is often the product of inadequate knowledge.
  26. Education reduces fear, which raises risk tolerance, which increases rewards.
  27. Don’t risk a lot to gain a little; don’t spend a lot to reduce risk a little.
  28. Money isn’t currency; it’s purchasing power. If wages rise 10%, but prices rise 20%, you’re poorer.
  29. An investment performs work. If it can appreciate without performing work, it’s a speculation.
  30. Investment success is 10% investment selection, 20% asset allocation, 70% investor behavior.
  31. Never sink any more into an investment than you can afford to lose forever.
  32. Diversification reduces risk without reducing rewards.
  33. When you own bonds, you’re a loaner to an organization.
  34. When you own stocks, you’re an owner of an organization.
  35. Dollar-cost averaging is the only proven method to beat the market.
  36. The asset side of your balance sheet is soft; the liability side is hard.
  37. Add liabilities (debt) reluctantly and only after careful consideration.
  38. You’re going to die. Failure to plan for your death will not alter this fact.
  39. Your death will be hard enough on loved ones. Don’t make it worse by failing to plan.
  40. You can’t take it with you, so use it wisely here.
Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck