The old have gotten wealthier, while the young have become poorer. That’s the conclusion of “The Old Prosper Relative to the Young,” a recent report by economists and researchers at the Pew Research Center.
In documenting a rising age gap with regard to economic well-being, the authors compare households headed by adults over age 65 to households headed by adults younger than 35. They examine data over time–particularly from 1967, 1984, 2005, and 2009-2010. (The comparison between 2005 and 2009-2010 illustrates the impact of the Great Recession.)
Here are some of their conclusions:
• From 1984 to 2009, the median net worth of older households rose 42%. For younger households, it declined by 68%.
• The gap in wealth between older and younger households widened over time. In 1984, the median net worth of older households was $108,000 higher than that of younger households. But by 2009, the median net worth of older households was $166,832 higher than that of younger households, the “largest (gap) in the 25 years that the government has been collecting this data.” (All figures are expressed in 2010 dollars.)
In this speech, investor, businessman and author of the personal finance book series ‘Rich Dad Poor Dad’ Robert Kiyosaki discusses the number one skill an entrepreneur can have in today’s economy. He sees being able to raise steady cash flow as the most valuable and beneficial skill in business today.
Discussing the success of his own business, namely his book series and brand ‘Rich Dad Poor Dad,’ Robert Kiyosaki explains how to design a business that is capable of raising its money automatically, without any input from the entrepreneur behind a company or business. According to Robert Kiyosaki, sophisticated investors will only invest in well-designed businesses. Well-designed businesses will run on a model that boasts numerous sources of incomes and assets. It is necessary that a business have sources of income outside the entrepreneur who created the company in order to be successful and profitable.
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We all know that it is important to make sure that your child learns important financial lessons that can help him or her later in life. However, it can be difficult to figure out how to help your child relate to money in a meaningful way. After all, a five-year-old isn’t going to grasp the concept of interest. However, there ways to help your child relate to money in ways that are age appropriate, and it’s important that you begin teaching the value of money as soon as possible.
Many Children are Visual Learners
In many cases, children need to be able to see how something works. Many children are visual learners; those under the age of eight or nine might have an especially difficult time with abstract money concepts. Visual representations can help. A jar that allows children to see the way money grows can help them see (and experience the excitement of) the value of saving. My son still likes to see how money stacks up in his jar.
You can also make visualizations of goals. When my son was saving up for a specific toy, we made a chart, with squares representing each week of allowance (after church donations and savings were taken out, of course). At the end of the row of squares was a picture of the toy, cut from an advertisement. He loved coloring in the squares, and seeing how quickly he could get his new toy.
I have a new little passion. I invest small amounts in crowdfunding sites. Nothing major and no earth-shattering results so far. But it seems promising. I’ll give a summary of what I have found out so far.
What is Crowdfunding
It’s a way for the “crowd” to fund various projects where each contributes small amounts. As usual you can read more detailed definition on Wikipedia.
A large number of the current crowdfunding platforms that exist support various artistic projects – like new book or movie – and the backers get rewards in return. For example tickets for the movie, signed copies of the book etc. While this is good thing, it’s not really investing.
There are few types of crowdfunding sites that will be interesting for you as an investor:
Equity based – where you get equity, usually in a legal entity formed for all the backers of the given project or company
Profit based – where you “bet” on the success of a given project, usually by buying in bulk at discounted price, and make fixed profit when the product sells.
I could add “impact based” for investments you make solely for the purpose to make the world a better place. But this type works best when combined with the other two approaches.
What is your greatest asset? Most people think it is their house. They are wrong. Bank account? Wrong again. For the vast majority of people, the greatest asset they have is the ability to generate income. Think about that for a moment… How does the mortgage for the house get paid? How does that bank account get filled? How do you repay debt, fund retirement and investment accounts, or pay for food, shelter, clothing and other life essentials?Unless you are independently wealthy, you work to create this income.
Yes, there are people have reached the crossover point with their investment portfolio (the point at which their investments consistently earn more than they do at their day job). But many people who reach that point still need to work to maintain their current standard of living because they may have debts or other obligations to pay. They may also outlive their money if they quit working too soon.
A little about net worth
Your net worth has a different meaning depending on where you live, your stage of life, how you determine your net worth, the type of assets that comprise your net worth (income generating assets, retirement funds, half a million acres of barren wasteland in the desert), etc. Knowing your net worth can be good if used as a checkpoint, or a motivational tool, but net worth cannot calculate your financial future, nor does it measure your great financial asset – the ability to generate income.
Roll out of bed and up to your computer. There, that’s your commute.
Sound good to you?
Now that so many jobs only require an Internet connection and maybe a phone line, earning a real salary while working in your fuzzy slippers is not only possible, it’s common. Here are 10 well-paying work-at-home jobs you might want to check out.
Web Software Engineer
Designing and building computer applications can be done entirely from home with web access and a fast workstation. Many software companies operate entirely through telecommuting, which saves on office overhead and expands their employee pool globally.
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