However, these are still excellent strategies which would work in Australia too. Keep up the good work, because if anything your helping others activate their mind. Our mind is the weapon we have to be able to grow tremendous wealth.

If you only have a little to invest, go for the Vanguard 500 or Schwab 1000. If you can take more risk (and hold for longer), then look for a growth mid-cap or small-cap mutual fund. These have higher annual fees, but not much higher. Dividends should be less because growth stocks reinvest in the business instead of issuing dividends, but sometimes you have payments in capital gains because of stupid people churning their mutual fund accounts. There are some funds that strongly discourage this–maybe something to look into.

I’ve personally bought a few stocks that appealed to me, but I lost 2% right off the bat through broker fees. That sucks. I lose the advantages of dollar cost averaging because I’m trying to avoid transaction fees. Thus, index funds with an automatic investment plan make MUCH more sense at my asset level.

Yes, I do suggest writing about income issues. I have a small business with low income but very low maintenance and overhead. Over time, it adds up!

People should find ways to determine the top market rate for their labor. So many people take the rate they’re offered. I’m at a rate now where most employers walk away, but some don’t. Asking top rate can also help you find more perfect fits for your unique skills and experience. So I know my top market rate.

Finally, the right training (even self-training) can be so valuable. So can interest evaluations and labor market trend analysis.

It’s easier to focus on cutting costs than raising income. But missed income opportunities are the same as wasteful expenses. I try to stay conscious of both.

John

One thing I have always had an issue with is the buy and hold strategy when it comes to investing outside of retirement accounts in individual stocks. Your average investor doesn’t have alot of money to invest and less knowledge about stocks. If they invest 1000 dollars in your typical large cap stock, they are not going to have many shares and the stock will typically be well past any meaningful growth stage. The money will be stagnating for possibly years. I have tried this method and been very underwhelmed by my results.

I have had much better luck in buying lower cap, lower price stocks where I can control many more shares and the stocks ,while much more volatile, will provide a much better opportunity for profit. There is more risk, yet it beats the slow death of watching my 100 shares of IBM drift up and down 10 points over the course of 5 years.

I hope readers would aware that this site is http://www.iwillteachyoutoberich.com NOT http://www.iwillteachyoutoberichprettydamnquick.com

Keep up the good work Ramit.

You mean you aren’t satisfied with this site–which you get for free? You mean you think that my credentials aren’t up to par for motivating people to get started?

I’m ok if you don’t like the site. Nobody’s forcing you to read iwillteachyoutoberich.com, so if you’re “not convinced” I won’t be hurt.

Whats foolish is paying out all of your paycheck to people you don’t like. And Jared – if you can pay for it, then you’re not ready to own it. Plain and simple. And if you want CASH FLOW, then save up some CASH and pay for thngs in CASH (you’ll spend less by doing it that way also). I have no payments other than my house (and Dave doesn’t even get mad about that one, so do your research). You know what I can do? Anything I want. I have control over my income, something you can’t claim with car payments and small business loans and student loans and so an and so on.

You can take out loans for your business, but its just an unneccessary risk. Especially when buying equipment and other things that go down in value faster than you pay them off (take your car for example). Its a bad situation every single time.

Saying that debt is an investment is just about the dumbest thing I’ve ever heard. there are enough myths out there, quit trying to make your own.

If you need “solid rights or wrongs on borrowing and investing” then go pick up your bible. Proverbs 23:7 “the rich rules over the poor and the borrower is slave to the lender”. Your grandparents thought debt was evil, and they were right.

Now you guys can go on kidding yourselves about being ‘responsible’ and ’sophisticated’ and ’strategic’ with your debt. Statistics show otherwise. The savings rate in America is negetive (as opposed to Japan which was around 18% not so long ago). Debt owed on credit cards is somewhere around $600 Billion (ie – out of control). Studies conducted by fast food chains show that you’ll spend 12-18% more per transaction if you use your credit card – no surprise that they all started taking CCs a few years back, so go ahead and supersize it. Bankruptcy filing rates are higher now than during the great depression. Forclosures are out of control as is the lending industry in general – can you say 50-year mortgage? Stop kidding yourselves. You cannot go forward by taking steps backward. It just doesn’t work.