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 Post subject: Re: Investments
PostPosted: Mon Dec 24, 2012 10:43 am 
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Jared wrote:
I keep a savings account that will cover my expenses for about 2 years
if I´m not to work during that time, with my current level of life style.
^^ THIS

This is something I have done for decades now.

To the others on the forum: it gives you options. You know for at least 2 years you are covered, no matter what.

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In building a statue, a sculptor doesn't keep adding clay to his subject.He keeps chiseling away at the inessentials until the truth of its creation is revealed without obstructions. Perfection is not when there is no more to add,but no more to take away.


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 Post subject: Re: Investments
PostPosted: Mon Dec 24, 2012 11:51 am 
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Diego,

In order to invest, you have to save first. You can always borrow to invest, but this would not be prudent. If Orcam advocated saving over investing, it would not exist in the first place. Its goal is to educate and empower investors (not savers).

On the many myths of Warren Buffet:
http://pragcap.com/the-many-myths-of-warren-buffett

I endorse the trip on Wikipedia for Jesse Livermore, proposed by peregrinus, and that link too:
http://pragcap.com/the-best-of-jesse-livermore

Notice how his bad discipline and self-control cost him his entire fortune twice. That happens when you violate your trading rules.

In light of the new peregrinus's post:

Building a sufficient financial buffer zone is one of the most effective things a person can do to reduce his or her life stress. You can do this with a very simple philosophy. Make a habit to spend less than you earn.

If you don't have a few months worth savings in reserve, each time the boss looks a bit displeased, stress responses, such as anxiety and tension, can result. If you need a reliable vehicle to get to work, but cannot afford potentially expensive repair and maintenance bills, every strange noise your car makes can initiate a stress response.

Regardless of how much or little you can afford, start saving this month. After applying this simple philosophy, let compound interest work its magic: http://www.investopedia.com/university/ ... z2FxtSycqe

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 Post subject: Re: Investments
PostPosted: Mon Dec 24, 2012 11:39 pm 
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zogler wrote:
If you don't have a few months worth savings in reserve, each time the boss looks a bit displeased, stress responses, such as anxiety and tension, can result. If you need a reliable vehicle to get to work, but cannot afford potentially expensive repair and maintenance bills, every strange noise your car makes can initiate a stress response.
Great Point. Saving for emergencies I agree with, but not for the future.

Are there any banks that will give you a rate that outpaces inflation? I'm pretty sure inflation is just going to get worse in the coming years...



I remember buying silver when it was cheaper and watching the price near triple. When I was in forth grade me and my friends wanted to invest in the stock market lol. I was resistant, I was skeptical and didn't know much either. My goal is to learn as much as I can and start investing this summer. I hope to help pay for college this way. Indeed emotions play a big part. What are some "rules" you guys go by when investing?


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 Post subject: Re: Investments
PostPosted: Tue Dec 25, 2012 1:20 am 
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foofatron wrote:
Are there any banks that will give you a rate that outpaces inflation? I'm pretty sure inflation is just going to get worse in the coming years...
Of course not. They are not your slaves. In fact, it's the other way around :geek:

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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 2:53 pm 
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Article to read for those who want a source of income : http://www.azam.biz/residual-income/

Originally from : http://therawness.com/the-hustle-mentality/

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Alvin Toffler


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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 4:32 pm 
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GoldenBoy I read those two links you posted.

Like I stated in another thread I am a huge fan of therawness, and his article on the hustle mentality clearly explains the get rick quick mentality that sacrifices long term financial health for short term gains.

I have my reservations on the article posted on residual income. In theory, it actually makes sense and you can't really argue with the fact that the paradigm of exchanging time for money is limited as opposed to creating work that is timeless, in which you receive money for a significant period of time after its completed.

In other words residual income is what self-help and internet marketers refer to as passive income. The examples of passive income shown in that article are basically mainstream advice: real estate, capital markets (stock, bond, etc. markets), money market accounts (deposits and earning interest), residual income businness opportunities (internet marketing and referrals), and finally creating work like an artist, writer or inventor.

For each of those options presented in that article, there are tons of caveats that need to be discussed that cannot be reduced to simply saying: hey this is an option you might pursue for residual income and it's better than the traditional exchange your time for money method. It's not that simple. They all require an investment and certain degree of risk, in which any particular person who is not educated on any of those options stands to lose significant amounts of time and money.

In order to present such option, you have to take into account why most people prefer to trade their time for money. It could be a number of different reasons including: comfortability, established norms in society, lazyness, etc. But fundamentally, you have to explore the risks of both options and present them in a way where the average person can then decide if it matches his/her personality and needs (e.g. security and emotional stability, not having to stomach long periods of time without generating much money at all).

The truth is we only get to hear about those people who are successful with passive income opportunities when this argument is made, yet we have to investigate how many people actually fail and how viable this option is for someone who is not that open to risk as an entrepreneur might be. For every one of those success stories including Donald Trump and the scammer Kiyosaki, there are tons of others who don't make it who have a good level of skill. As an investor, you need to know the average expected return of an endeavor.

Case in point: if you know little about real estate and get into that market odds are you will stand to lose against others in the industry who have been at it for a long time and have built the necessary skills to thrive. This is especially dangerous for the type of work in industries where competition is intense and your income depends on fighting others for clients. Furthermore, you need a deep understanding of the market that only experience can provide and this is fundamental for success. This takes time, effort and in most cases considerable amounts of monetary investment.

I am not saying this to justify not getting into residual income business opportunities, rather having a clear view of the landscape and demystifying the whole fantasy about passive income as it is usually portrayed.


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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 4:53 pm 
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diego wrote:
GoldenBoy I read those two links you posted.

Like I stated in another thread I am a huge fan of therawness, and his article on the hustle mentality clearly explains the get rick quick mentality that sacrifices long term financial health for short term gains.

I have my reservations on the article posted on residual income. In theory, it actually makes sense and you can't really argue with the fact that the paradigm of exchanging time for money is limited as opposed to creating work that is timeless, in which you receive money for a significant period of time after its completed.

In other words residual income is what self-help and internet marketers refer to as passive income. The examples of passive income shown in that article are basically mainstream advice: real estate, capital markets (stock, bond, etc. markets), money market accounts (deposits and earning interest), residual income businness opportunities (internet marketing and referrals), and finally creating work like an artist, writer or inventor.

For each of those options presented in that article, there are tons of caveats that need to be discussed that cannot be reduced to simply saying: hey this is an option you might pursue for residual income and it's better than the traditional exchange your time for money method. It's not that simple. They all require an investment and certain degree of risk, in which any particular person who is not educated on any of those options stands to lose significant amounts of time and money.

In order to present such option, you have to take into account why most people prefer to trade their time for money. It could be a number of different reasons including: comfortability, established norms in society, lazyness, etc. But fundamentally, you have to explore the risks of both options and present them in a way where the average person can then decide if it matches his/her personality and needs (e.g. security and emotional stability, not having to stomach long periods of time without generating much money at all).

The truth is we only get to hear about those people who are successful with passive income opportunities when this argument is made, yet we have to investigate how many people actually fail and how viable this option is for someone who is not that open to risk as an entrepreneur might be. For every one of those success stories including Donald Trump and the scammer Kiyosaki, there are tons of others who don't make it who have a good level of skill. As an investor, you need to know the average expected return of an endeavor.

Case in point: if you know little about real estate and get into that market odds are you will stand to lose against others in the industry who have been at it for a long time and have built the necessary skills to thrive. This is especially dangerous for the type of work in industries where competition is intense and your income depends on fighting others for clients.

I am not saying this to justify not getting into residual income business opportunities, rather having a clear view of the landscape and demystifying the whole fantasy about passive income as it is usually portrayed.
Be sure I DON'T speak from experience on passive income and show you the link which made me gain millions.
I just remembered the article and thought it could be beneficial.

My (future) source of income :
1.5 ha of agricultural land in natural farming.

_________________
"The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."
Alvin Toffler


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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 4:56 pm 
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Quote:
Be sure I DON'T speak from experience on passive income and show you the link which made me gain millions.
I just remembered the article and thought it could be beneficial.

My (future) source of income :
1.5 ha of agricultural land in natural farming.
That's very interesting and I am curious to hear about your situation. Care to share how your experience has been with passive income and those in your niche or market?


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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 5:06 pm 
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diego wrote:
Quote:
Be sure I DON'T speak from experience on passive income and show you the link which made me gain millions.
I just remembered the article and thought it could be beneficial.

My (future) source of income :
1.5 ha of agricultural land in natural farming.
That's very interesting and I am curious to hear about your situation. Care to share how your experience has been with passive income and those in your niche or market?
NOOOO, I DON'T have millions :lol:

My mother actually invested in stock market, but only my sister gained money ...

I worked my ass off (while preparing my agricultural diploma) and saved it all to buy my land.

MY ONLY future income will be sellings the product of my land.

I NEVER invested in anything (and am not interested in investing), so NO passive income, NO millions.

But I saw both Morph and Resonance talk about passive income and remembered this link.
I then searched the most relevant thread to put it, and voilà.
Quote:
Be sure I DON'T speak from experience
Will be more precise and add a :lol: at the end next time ... :oops:

Sorry I can't be of more help :mrgreen:

_________________
"The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."
Alvin Toffler


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 Post subject: Re: Investments
PostPosted: Fri Jan 04, 2013 5:20 pm 
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zogler wrote:
Diego,

In order to invest, you have to save first. You can always borrow to invest, but this would not be prudent. If Orcam advocated saving over investing, it would not exist in the first place. Its goal is to educate and empower investors (not savers).

On the many myths of Warren Buffet:
http://pragcap.com/the-many-myths-of-warren-buffett

I endorse the trip on Wikipedia for Jesse Livermore, proposed by peregrinus, and that link too:
http://pragcap.com/the-best-of-jesse-livermore

Notice how his bad discipline and self-control cost him his entire fortune twice. That happens when you violate your trading rules.

In light of the new peregrinus's post:

Building a sufficient financial buffer zone is one of the most effective things a person can do to reduce his or her life stress. You can do this with a very simple philosophy. Make a habit to spend less than you earn.

If you don't have a few months worth savings in reserve, each time the boss looks a bit displeased, stress responses, such as anxiety and tension, can result. If you need a reliable vehicle to get to work, but cannot afford potentially expensive repair and maintenance bills, every strange noise your car makes can initiate a stress response.

Regardless of how much or little you can afford, start saving this month. After applying this simple philosophy, let compound interest work its magic: http://www.investopedia.com/university/ ... z2FxtSycqe
Zogler I enjoyed reading the post on Warren Buffett. I like how his success is demystified and what the author says is very accurate in my opinion. The average investor has very small odds of ever attaining the returns that Buffett has obtained. Not just because he is a savvy investor, but because he gets deals that the regular investor could only dream of.

However, keeping that in mind you can still make substantial returns from the markets even though you will never be like Warren Buffett.

The advice of spending less than you earn is also fundamental and you are spot on. Not that this is related to this post or thread, but Ramit Sethi argues that this type of advice is useless for the average person because it doesn't make them to actually do it. He proposes creating automated systems where you actually spend time and effort creating it only once as opposed to budgeting every single month and trying to keep track of daily expenses.

I wholeheartedly agree with you on saving as a first and having a buffer before investing.


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 Post subject: Re: Investments
PostPosted: Mon Jan 07, 2013 3:28 pm 
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foofatron wrote:

Great Point. Saving for emergencies I agree with, but not for the future.
If you save for a rainy day, through the Law of Intention,
you´ll get rainy days. Always concentrate on net worth, and
save to thrive & grow.

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 Post subject: Re: Investments
PostPosted: Wed Jan 23, 2013 8:31 am 
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diego wrote:
Quote:
Be sure I DON'T speak from experience on passive income and show you the link which made me gain millions.
I just remembered the article and thought it could be beneficial.

My (future) source of income :
1.5 ha of agricultural land in natural farming.
That's very interesting and I am curious to hear about your situation. Care to share how your experience has been with passive income and those in your niche or market?
Build Iphone apps :ugeek:

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"The heart is deep beyond all things, and it is the man. Even so, who can know him."


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 Post subject: Re: Investments
PostPosted: Wed Jan 23, 2013 10:21 am 
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Posts: 1735
Wow, ... I tought It only happened in tv series... :roll:
What a short sighted I was :P

[ img ]

Congratulations Morpheus!

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 Post subject: Re: Investments
PostPosted: Wed Jan 23, 2013 11:46 am 
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Haven't done it yet lol, but it's essentially the epitome of residual you don't even have to pay hosting fees to Apple they take 30% off the top and that's it.

Only problem is I cannot program at all lol...yet. 8-)

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"The heart is deep beyond all things, and it is the man. Even so, who can know him."


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 Post subject: Re: Investments
PostPosted: Wed Jan 23, 2013 12:23 pm 
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Oh it's a plan then.
I just read you had a alien ware system, that's a lotta sick bucks to pay for.

So I just assumed that was your income for paying this awesome toys.

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 Post subject: Re: Investments
PostPosted: Wed Feb 13, 2013 2:15 am 
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I've thought about that a few times. I know some C++ and I think I would like to make games for the OS. You have to have a Mac although. I don't have the money or time right now to go through with it. You don't need to know Object C either there is a script language you can use, you need a Mac still, tho.


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 Post subject: Re: Investments
PostPosted: Wed Feb 13, 2013 11:33 pm 
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foofatron wrote:
I've thought about that a few times. I know some C++ and I think I would like to make games for the OS. You have to have a Mac although. I don't have the money or time right now to go through with it. You don't need to know Object C either there is a script language you can use, you need a Mac still, tho.
Absolute piffle.

Look on your friendliest search engine and you will find plenty of ways to do it on other systems, without needing a Mac.

_________________
In building a statue, a sculptor doesn't keep adding clay to his subject.He keeps chiseling away at the inessentials until the truth of its creation is revealed without obstructions. Perfection is not when there is no more to add,but no more to take away.


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 Post subject: Re: Investments
PostPosted: Fri Feb 15, 2013 12:45 am 
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Huh I wonder why I never found anything. However it looks like you still need a Mac to get your app on the store.


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