The $495,000 Honda Accord 2017-11-11T20:22:56+00:00

One of the problems with formal education is that it destroys curiosity, but textbooks are extremely valuable.

Everything entails the cost that you do because some things are seemingly free (going to dinner with somebody else) – but everything we do has at least only time cost.

There’s lack of appreciation when it comes to opportunity cost- should you go to college, marry this person… what is the tangible and intangible cost of that decision?

One of the hedge fund managers makes 2 million/hour, so if he goes to see a movie, it costs him 4 million dollars- that’s expensive.

We have a brain that came from the time where opportunities were limited, nobody made a million dollars/hour, we’re in big trouble now because the world demands we understand in the moment and long-term opportunity cost (cost of capital that you could use for other things in the next 50 years).

Spending creates wealth, that’s the only thing that creates it.

It’s not what you spend, it’s what the value is. Sometimes the most expensive things you buy will be the best- buy the good tool, cheap tools are cheap for a reason.

The better you are at investing, the more expensive the movie tickets and shoes become for you!

The average person spends $33,000 in debt for their car. If you would take those $30,000 and invest in another opportunity maybe you would be better off.

A lawyer that represented Jeff from Amazon had a chance to buy $100,000 of shares, but he didn’t- you would also be wealthy with McDonald’s; the brothers cashed out and didn’t stay partners at McDonald’s (annually $100,000,000). The true cost is more than meets the eye.

The rule of 72- divide the interest rate and divide by 72 to get how long it will take to double the money.

The true value is different than people think- the rule of 15; multiply everything with 15, which will tell you the true cost.

RRD- rust, rot and depreciate

Knowledge is nothing, only knowledge that adjusts our instincts counts.

For example, fat doctors that smoke- you’re born alone, you die alone- use your knowledge, adjust instincts for yourself.

Know the things that are worth less than the price tag- the value of fast food is much less than you pay for it. You think you buy things cheap, but the health depreciates, or maybe kids suffer to make you something.

Whatever you buy from now on, think about the true cost- energy, time and money, what could you do instead?

Of the last 30 days, how many of those did you tap dance out of bed?

Pitbull- every day above ground is a good day.

Social measure- how many people would care and show up at your funeral, how many people would help you if you went bankrupt, how much money do you have- units of freedom.

“Vote with your checkbook.”- if you want to change the world fast, influence a million people to start spending money somewhere else.

Stop spending money, live for example and then get 100 other people to join you- a month after making Supersize me, McDonald’s disabled Supersize menus.

Money is a tool, and like any tool, it’s dangerous in the hands of fools. You will only create more money by spending money- that’s what banks do, they spend your money- you create wealth for them.

Even if you have money under your bed, it’s being spent by inflation.

You must have your rainy day reserve (3 buckets) – but deploy the rest.

Compare what you spend on other things you could buy. You’re always creating wealth, but often not for yourself.

“You can get this car for $100/month.”- well, what else can I get for $100/month?

$267,000 is not a good investment if you don’t know what you’re doing in college- that could have been worth 5-10 million because the more capital you have the more you can create it.

Make everything you put out be 10 times more valuable than you charge for.

If you can get your money back in 1-3 years you’re crazy, not to do it, anything more you may want to think about it.

150 friends, family, and associates is optimal to regulate relationships.

Rise above the mass of men who lead lives of quiet desperation- don’t keep up with the Johnsen family; if they have a car, that doesn’t mean you need it too.

What is an example of something that you bought that the law of 15 makes you realize was too expensive?

What percentage of your spending is on things that depreciate?

What is a change that you can make to have more financial freedom?

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