What is the best financial advice that you’ve ever received?
I had the great opportunity to ask a number of experts this exact question. The answers they provided were all quite different, yet are all so important.
Make your money work for you, not against you. Debt works against you, investing works for you. – John Lee Dumas
Compound Interest:
The wealthy understand the power of compound interest. Albert Einstein called compound interest “The most powerful force in the universe,” and “The greatest mathematical discovery of all time.” Debt uses compound interest against you (for example, if you buy a house for $150,000 and pay 7% interest and minimum payments for 30 years, you actually pay $360,000 for the house!). Alternatively, investing the right way works for you. $10,000 invested every year at a continual 10% growth rate will be $1,000,000 in fewer than 25 years! If you start at 22 years old, this is $1 Million from a mere $10,000 investment each year by the age of 47. Of course, the plan is to increase the amount you save/invest and achieve this milestone much, much earlier. Learn the power of compound interest, and utilize it.
Simplification is one of the great things. Get to a point in life where you don’t need to make too much, because most people are trapped. The other great thing is having multiple streams of passive income. Passive income is taking your income and putting that money to work for you. So while you sleep, that money is working harder than you work. – David Wood
Passive & Residual Income:
Multiple streams of income are a huge part of becoming wealthy, and will be a big focus for YoPro Wealth. With working income, you only get paid once for the work that you do. With residual and passive income, you get paid over and over again for your efforts – even while you sleep! These other income types are very similar. Passive income is derived from investments in which the individual is not actively involved (doesn’t require effort from you). Residual income is recurring payments after an initial effort. Examples of each include:
- Passive income: online advertisements, affiliates, rental property, royalties from invention, dividends and interest from stocks/bonds, etc.
- Residual income: books, songs, network marketing, online training courses, etc.
It is easy for young professionals to create financial freedom – all that you have to do is create passive income that exceeds your expenses. If you keep expenses low, then this is relatively easy to achieve. [Read more…]
Growing up, I always thought of wealth as being “rich”, and having the fancy car and the huge house. Don’t get me wrong; I am still highly motivated by money itself… But what I’ve realized, is that ‘wealth’ is altogether something different.
Andres Zuleta is the President of 