Financial Literacy 101

Investing &
Investments

 

Everyone knows they should invest.  Few do so.  Fewer still do it well.  It’s one of the biggest, baddest topics on this site (and planet Earth).  It’s complicated but crucial.  So of course I decided it needs a page on this website.

Tier

What Is Investing?

Investing is the art and science of “making your money work for you.”  There are many investment frameworks you can use to put your dollars to work.  However, the basic concept is that you put money into an investing opportunity to get paid back more money over time.

How Successful Investing Works

Successful investing starts with education.

If you don’t understand the concepts, you’re just gambling.

That’s why I created this page:

To make sure I am not just gambling.

The first thing to do is understand the different types of investing.  Not investing vehicles or investing strategies—but investing goals.

From one angle…

There are three investing goals.

  1. Investing for Savings
  2. Investing for Cash Flow
  3. Investing for Value Appreciation

Now, this does leave out Investing in Yourself.  I would never discount that.  Compounding interest is a great.  But I’ll take compounding Character anyday.

However, the markets don’t wait while you become the best you.

So figure out why you are investing.  Then you can figure out how you should invest.

Once you zero in on the reasons you’re investing, you can start learning the Fundamentals and looking into Vehicles and Strategies.

 

For credit card newbies:

The first thing to understand is the Credit Card “Game.”

You don’t want to accrue credit card debt.  You want to accrue Credit Card Rewards.  Done right, you can earn cash back, travel rewards, and other perks without hurting your credit.

In fact, you can do this while enhancing your credit profile.

Playing the game right opens you up to better financial opportunities.

In order to do so, you need to learn about Credit itself.

Your Credit Score comes from your Credit Report.

Reports are compiled by the three major credit bureaus—Experian, TransUnion, and Equifax.  Then, FICO applies a propiertary formula to turn those reports into a 3-digit number, from 300-850.

Better cards require better scores.  Higher scores also lead to better terms for all types of credit lines.  Some employers check credit scores as well.

So learn the game.

Once you do, you’ll see that playing it requires some planning.

I like the tier systems from Ask Sebby and Credit Shifu.  They generally group cards by their annual fees.  I think that’s probably a good place to start for most people.

Educate yourself a little and it’s easy to take a more sophisticated look.

Then you can set goals like:

  1. Build Credit for Better Loan Terms.
  2. Rack Up on Credit Card Rewards.
  3. Maximize Credit Card Cashback.
  4. Gain Perks with Prestigious Cards.
  5. Churn Cards for Sign Up Bonuses.

To take this from knowledge to practical application requires some planning.

How I Play the Game

I’m still young.

So I invest like it.

I want my savings to multiply.  I want to build a cashflow empire.  And I want to make some solid long-term flips.

Basically, I want to do it all.

Yet I have a strict method for my madness.

I’m still in my early thirties.  But I feel like I got a late start but I’m going to live to 120.  Time is one of the biggest factors that influence investment payout.  For some types of investing it is number one.

That means diligent saving and maxing out things like my Roth IRA are at the top of the priority list.  I want to make sure I am getting the most of what I am earning now.

Meanwhile, I want to invest aggressively where I find good opportunities.  The plan is for my investing income to one day exceed my wages.

I fit everything inside my rules of Playing Markets.

Investing
Goals

This is the first step and the hardest thing to get your mind wrapped around.  For some it might actually be better to just get started.  But if you’re willing to put the time in, establishing your goals before you start is best.

Investing for Savings

looking to beat inflamation… and more if you can… make sure your money doesn’t lose value

Investing for Cashflow

repeatable, recurring income, hopefully predictable… this is where it can get into the realm of “passive” income

Investing for Appreciation

buy low and sell high… investing to “make money”… potentially long-term trading or more gambly style of trying to hit a home run

Understanding Yield

the numbers… how you make money and how you keep it… wth do all these acronyms mean?

Investing Accounts

where to put your money and what not, the details that save you $1000s (or $millions)

Fundamental Analysis

Technical Analysis

Risk Management

don’t lose your money mfer

Position Management

Investing
Fundamentals

Investing is one of those “textbook topics”—something you may need to take a look at a textbook to understand.  There is a lot that goes into investing at the highest level.  But all most of us need are the fundamentals.

Investing
Vehicles

There are so many ways you can put your money to work. Which should you choose?  Select the wrong vehicle and you might not get where you’re trying to go.  Learn the options so you can make an educated decision.

Currencies

Equities

Commodities

Collectibles

Businesses

Immature Markets

Active Investing

Passive Investing

Buy and Hold

Dollar Cost Averaging

Diversification

Investing
Strategies

Once you set a destination and choose a suitable route, you can then chart your course.  It’s a big map.  But learn it well and you might even find a shortcut.  You also need to protect against unforeseen obstacles on your journey.

My Progress

More than anyone else:

Gary is the reason I started creating hero profiles.

Now that I’ve started, I see that his profile may be less useful than my other heroes to other people.  But his will likely always remain the most important to me.

I fucking love this dude.  He changed my life.

More accurately, he teamed up with Nahko to save my life.

I’m not quite sure when I found him.  I featured him all the way back in one of Eventually, I want my own hedge fund.

  • My Knowledge – 25%
  • My Progress – 1%
  • My Motivation – 95%
  • My Interest – 85%

Videos Watched

Journey Started

Best Investing Videos

DailyVee Episode 101 was the first “Moticut” I ever used to start brainwashing myself.  Beyond that, I’ve listened to many a Gary Vee keynote, interview, and rant.

How to Get Started with the Credit Card Game

For investing newbies:

 

 

Best Travel Cards

Best Business Cards

Best Premium Cards

Similar Favorites

Playing Markets

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Business Cards

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Amex Business Gold

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My Top Three Money Mastery Teachers

I stand on the shoulders of giants.

As I chase after true money mastery, I’ve constantly got an eye out for perspectives.

These are the three who have made the biggest impact on me to date.

Mitch Skolnik

operation Director, Elegant Themes

Eduard Ungureanu

Tech Support, Elegant Themes

Andrel Nahaev

operation Director, Elegant Themes

Where the Credit Card Game Fits

For me, Money Mastery is basically one half of the

On the same level, I have Economics.  It’s the practical side whereas Economics is more about curiosity.  egories, already 4 or 5 tiers deep

It has many sub categories, already 4 or 5 tiers deep–and growing as more knowledge does.  Like it’s parent category, I break Money Mast into two big chunks… Playing Markets and Financial Literacy.

On the same level, I have Economics.  It’s the practical side whereas Economics is more about curiosity.

How I Think About Money Mastery

For me, Money Mastery is basically one half of the overall Money puzzle. 

On the same level, I have Economics.  It’s the practical side whereas Economics is more about curiosity. 

It has many sub categories, already 4 or 5 tiers deep–and growing as more knowledge does.  Like it’s parent category, I break Money Mastery into two big chunks… Playing Markets and Financial Literacy.

Here’s a quick look at those.

 

My Money Mastery Content

He’s a financial planner with online businesses.  Just the kind of guy I want to learn from.

YouTube knows I’m on a passive income kick so it also served me another YouTuber, Pat Flynn.

He’s another online guy.  I didn’t dive as deeply with him, but I definitely recommend him as a “make money online” teacher.

Here’s a couple videos I liked:

I also get down with Robert Kiyosaki.

I’ve read Rich Dad Poor Dad and loved it.  Then, Jeff Rose reminded me of him.  And YouTube served him in related videos.

I ended up watching all the way through this playlist (short, pitchy videos).

I’m current on this playlist as well.

Though it has flaws and they are still releasing content.  Still, I thought them worth embedding:

Books

  • richest man in babylon
  • money master the game
  • rich dad poor dad

ray dalio

some forex stuff

steve ballinger’s courses

crypto

Playing for Four Quarters

Playing for Four Quarters

I believe that everything is training for the next thing. At 30 years old, I am finally stepping into my own. I had a lot of bad habits to shed.  I also had a lot to learn about life.  I’m grateful that I “woke up” as early as I did. Now, I can conceptualize 10, 20,...

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My Month in Personal Growth – May 2018

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My Month in Personal Growth – February 2018

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My Two Cents

Money is one of my Tier 1 Topics.

That makes it an entrance to many rabbit holes.

These profiles are largely for me.  I use them to record and reference.  In the future, I may make them more meaningful to the outside observer.

No guarantees.  Let’s start small.

The Basis of Commerce

This is an odd way to put it.  But it’s the only phrase that captures the entire bucket.  Gary thinks like a Scorpio.

Plans to Destroy It

Many of my heroes talk about company culture.  Gary’s idea of a “Honey Empire” is one of the best.

A Game to Be Played

Most people know Gary as “that social media guy.”  Makes sense.  He’s one of—if not the—best at it on the planet.

Not the Root of Evil

Gary wants to buy the Jets.  Big dream, but he has a practical plan for it.  Luckily, he is documenting the journey.

For the time being, this site is mostly just a data dump.  Over time, it may become more useful to the outside observer.  Who knows?

Final CTA

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