Learn How to Build Wealth Volume 1–Invest the Difference Wisely
There are very few secrets to building wealth.
- Have Goals
- Ensure Cash inflow is larger than cash outflow
- Invest the difference wisely
- Don’t make money the prize.
We have spent lots of time talking about goals and managing cash flow. Now we will talk about what to do with the extra money.
Most likely we have spent a lot of time finding ways to work smarter, so we can be more productive. The Rule of 72, discovered by Albert Einstein, is a simple formula that can be used to relate time and productivity of an asset. By understanding the Rule of 72 we can see how important time affects the value of assets over time.