@dollarsanddata 1. Don't worry about returns early on in your investing career.
Your savings rate is MUCH more important in building long term wealth.
Your savings rate is MUCH more important in building long term wealth.
@dollarsanddata 2. Have a savings goal, but realize savings rates are rarely stable from year to year.
Save as much as you can whenever you can.
Save as much as you can whenever you can.
@dollarsanddata 3. Use the 2x rule when making a big purchase.
The rule says when you want to buy something, you need to invest that same amount in assets.
This will make you closely evaluate your purchase while keeping yourself invested.
The rule says when you want to buy something, you need to invest that same amount in assets.
This will make you closely evaluate your purchase while keeping yourself invested.
@dollarsanddata 4. Consider the ongoing costs of homeownership when deciding whether to rent or buy.
Taxes, maintenance, and insurance are significant sunk costs that can eat into your return.
Taxes, maintenance, and insurance are significant sunk costs that can eat into your return.
@dollarsanddata 5. The three reasons EVERYONE needs to invest:
1️⃣ Save for your future self
2️⃣ Preserve your money against inflation
3️⃣ Replace your human capital with financial capital
1️⃣ Save for your future self
2️⃣ Preserve your money against inflation
3️⃣ Replace your human capital with financial capital
@dollarsanddata 6. Buying the dip doesn't work.
Even when you know EXACTLY when the market bottom will be (spolier: you don't)
history shows that dollar cost averaging will give you superior returns over a 40 year period.
Even when you know EXACTLY when the market bottom will be (spolier: you don't)
history shows that dollar cost averaging will give you superior returns over a 40 year period.
@dollarsanddata 7. The crash is the time to buy.
If the stock markets crash and you believe they will eventually recover,
buy as much as you can because this is when the returns will be the greatest.
If the stock markets crash and you believe they will eventually recover,
buy as much as you can because this is when the returns will be the greatest.
@dollarsanddata This book is chock full of investing truths backed up by evidence.
A must read especially in today's volatile environment.
A must read especially in today's volatile environment.
@dollarsanddata Please RT the first tweet if you got some value from this thread and from the book.
Follow me @FSFmoney for weekly finance insights and money book recommendations.
Follow me @FSFmoney for weekly finance insights and money book recommendations.
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