Wealth Building Using the Rule of Thirds: Invest Your Money: One-third in Stocks and Bonds; One-third in Real Estate and Commodities; One-third in Liquid Assets by Jacob Nayman

Wealth Building Using the Rule of Thirds: Invest Your Money: One-third in Stocks and Bonds; One-third in Real Estate and Commodities; One-third in Liquid Assets by Jacob Nayman

Chapter 1
Wealth Building
Generating long-term income
from multiple sources

The process of building wealth concentrates on how to
invest your money in a way that will create an incomegenerating asset.
Wealth is not defined as your income level. If your yearly
income is high, but you spend it all, then you're just keeping
up a high standard of living - for now. Wealth is defined by
what you save, not what you spend.
How much money do we need?
In order to feel financially secure, most people reply that
they need $200,000 a year at least. If you take a couple in
their 30s who have two children, it certainly makes sense.
Assuming that the average life expectancy is 80 years, a
simple calculation shows that this couple will need an
aggregate amount of $10,000,000 in order to maintain a
reasonable standard of living over the next 50 years.
One practical way to generate additional income is to
manage our finances in an optimal manner. We can do this
by building a private investment portfolio..

Wealth Building Using the Rule of Thirds: Invest Your Money: One-third in Stocks and Bonds; One-third in Real Estate and Commodities; One-third in Liquid Assets by Jacob Nayman