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The Fastest Way to Grow Your Net Worth

Ever since I disclosed my net worth broke eight figures strange emails have been coming in. Another milestone was passed without fanfare. Past experience had me used to the lack of excitement financial milestones caused.

A theme among many emails revolved around my rate of return. I never really thought of it that way. It was just a thing that happened because I saved a large percentage of my income and invested the bulk of my excess money in index funds. One commenter said he was impressed because my rate of return over the last 20 years was 11% while the S&P rose only 8.5% per year on average. I don’t know if it’s true; I never broke the numbers down that way. All I care is that it grew to a lot.

What the emails and comments forget when they calculate my rate of return is that I added funds over the last 20 years. If I reached my million dollar goal when I was 32 and never dropped another dime in the kitty my internal rate of return would be impressive. Instead, I added excess funds every year. If I analyzed my real return including the additional invested fund my internal rate of return would be less impressive.

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Increase Your Success at Anything with Warren Buffett’s “20-Slot” Rule

The best way to learn is by studying the best. Experience has value as long as it also has a foundation in knowledge. Reinventing the wheel again and again is a fool’s errand and not conducive to personal development.

Studying the best takes many forms. Working for someone at the top of their game is the best way to learn, but the opportunities to do so are limited. Formalized education communicates facts without always presenting the best in your selected field. The number one way to learn from the masters is to study them through intense research of their work. The greatest minds are available like never before. YouTube videos of their speeches and books and news articles on their practices give us massive quantities of material to learn from.

Today we will focus on a simple story shared by Charlie Munger, Warren Buffett’s friend and right-hand man at Berkshire Hathaway.

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5 Things Rich People Do That You Don’t

The difference between wealthy people and non-wealthy people comes down to a small set of habits anyone can embrace themselves. There is no special trick or secret. Wealthy people do things the average person does not. Super wealthy people like Elon Musk, Bill Gates, and Steve Jobs share the same wealth-building habits with a bit of luck to give them a push. The great news is you can be rich, too! No promises on the super-rich thing, but you can be a millionaire if you choose.

There is an advantage for people like me working in accounting. I see people from all walks of life and their true level of wealth. Over time it becomes apparent how their habits reflect in the level of wealth and quality of lifestyle they have. We stand in awe and envy when we see people retiring at age 30 or 40, and rather than learn their habits, we seek to tear down their success. The only difference between people who retire early and those finding a comfortable retirement at 65 is how soon the wealth building habits are learned. Here are the five things I see rich clients do on a regular basis and non-wealthy clients frequently do not. Not only do the wealthy have these habits, they exercise them daily.

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