Posts Tagged “Dollar”

I was recently reminded of a great concept that I learned about when I was a teenager. If a person were to take one dollar, invest the dollar in an asset and then sell the asset for two dollars, they will have taken the first step in a 20 month process of accumulating a million dollars. The only habit that would need to be created is the habit of doubling the amount in hand every month for 20 months. The final amount at the end of each month would be: Start - $1 Month 1 - $2 Month 2 - $4 Month 3 - $8 Month 4 - $16 Month 5 - $32 Month 6 - $64 Month 7 - $128 Month 8 - $256 Month 9 - $512 Month 10 - $1024 Month 11 - $2048 Month 12 - $4096 Month 13 - $8192 Month 14 - $16384 Month 15 - $32768 Month 16 - $65536 Month 17 - $131072 Month 18 - $262144 Month 19 - $524288 Month 20 - $1048576 Obviously the model is very simple and the idea is basic enough for anyone to grasp, however, I would like to expand on the underlying psychology of this concept. Let’s imagine that we wer …

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All in all, wealth is created everyday. The amount of wealth varies, but the fact is we are all creating wealth one dollar at a time. The hardest way to create wealth is to trade your hours for dollars and to live frugally so that you can have a couple hundred dollars left over at the end of the month. You will create some wealth in this way, but it will take a long time and you will have to go without many things in your life that could enhance it or make it better. Another way is to produce your own wealth. You can do this by providing a unique service in your area of expertise and therefore command a much higher amount of compensation. You may get a flat fee for the job, so it will not necessarily be hourly money you are collecting. This is an excellent way to increase your income which will allow you to put aside more money every month. An even better way is to find multiple ways to produce money. You can start your own business to make a larger amount of money and add to it by ma …

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