Consumption: Full Speed Ahead?

If part of your work involves educating others on how consumption can affect their ability to build and maintain wealth, looking for outside patterns of data and trends might be a way to bring an “ah-ha” moment to clients, children, friends, or family members. A string of articles in yesterday’s Wall Street Journal wove an interesting pattern for me, and the interpretation might prove educational for consumers and clients. First, this: Holiday Shoppers Were in[…]

Rigid Rules of Behavior

Can a disciplined approach help create wealth? Some still contend that it can only have a limited impact in most cases. However, in the case of becoming financially independent, the self-made millionaires highlighted in The Millionaire Next Door demonstrated the value of “rigid rules of behavior:” spending less than they earn, limiting the trading of investments, etc. Data Points’ research demonstrates the value of behavior and experiences in the prediction of net worth, regardless of one’s age,[…]

Trading on Anticipated Future Wealth: Homes & Cities

A recent article in The Boston Globe highlights the issues Bostonians are considering related to purchasing homes in affluent areas. The piece recites a financial-planning principle: “A bit of perspective: In many parts of the country, the rule of thumb is that housing costs should occupy a third of one’s income. Here, that standard frequently doesn’t apply.”  Because of rising real estate prices and a desire to keep up with the Joneses, many Boston families[…]

Did you buy an $11 million Xbox last year?

A recent post by our friends at the Motley Fool refers to story told by America’s most famous investor, Warren Buffett, where he explains that if someone had invested just $40 in Coca-Cola stock when it went public in 1919, it would now be worth more than $5 million. The Fool Team updated the math and concluded that factoring in recent performance and events, the 2014 total value of that $40 investment would be nearly[…]