The Position Paper 8/30/17
Welcome to The Position Paper! The Position Paper is my series featuring my quick take on a particular topic to help you manage your position. I will often feature one outside article as well that will allow you to dig in deeper if you desire. Read this while you drink your coffee in the morning and start your day off right!
Today’s Position: Financial Position
Featured Article: Rules For Riches by Wealthy Doc
I am a simple man, and I prefer to keep my life simple. Wealthy Doc does a great job in Rules for Riches espousing some simple tips that can lead to great results. The unfortunate reality is that many people don’t do the simple things to get the results they say they want. Do you want to win every free throw contest you enter? Practice them. Every day. Shoot hundreds per day. You’ll get really good at it. Guaranteed.
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The same simplicity exists in the financial world, despite how hard we try to make it. You want to accumulate a lot of money? Save it. Don’t blow it. Live a simple life. Don’t do dumb stuff. If everyone could pull that off, then we’d have a lot more wealthy people, physicians included.
In his article, Wealthy Doc outlines some of these simple items that can lead to great results. Educate yourself in an affordable, practical way so you can provide as much value as possible. Make career contingency plans so you always have options. Manage your personal life well by avoiding divorce, raising your kids in an economical way, and maintaining a simply lifestyle.
He, of course, also advises to save early and save often. Only then will you be able to execute a well defined plan of how to grow that money. Perfect asset allocation with five dollars is not going to be very impressive. Perfect asset allocation with five hundred thousand dollars will garner much better results.
The one observation I will add here is that his advice assumes a somewhat traditional career path involving employment. Entrepreneurship is the alternative, which comes with more inherent risk but also potential for higher reward. Last I checked, many of the really wealthy people I know own things, so I would add “Be The Boss” to his list (I had to say it).
Once you grasp these simple items, then you can progress to the higher level stuff. As momma always said,”You gotta walk before you can crawl.” Or something like that…
Have a great day!
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