Passive Income 101-The Three Rules

For a long time money scared me. 401ks, S&P 500, IRAs. What does any of that mean? You might as well have said, “Yeah I’ve got my flux capacitor in a C-3P0 run by my 808 and heartbreaks.” Because I didn’t understand money I stayed away from it.

However, over time I’ve come to see why its so important to understand how money works. I’ve also learned that in any arena you can go very far if you just follow the fundamentals. As long as you do the fundamentals well, they will carry you most of the way. The fundamental method of investing today is Index Funds. Or you can go crazy and invest in Index funds. I’ll get more into that later, but first let’s go deep into the three rules because the rules make the method make sense.

What most of us aren’t taught is how safe investing is. In fact if you only invested the day before every crash you’d still be doing really well. I’ll get more into this later.

 

Here’s a calculator about how much you really make an hour. When I learned about this it blew my mind. The funny thing is none of this is new. Back in the 50s-60s there was a movement that talked all about this. Your Money Or Your Life, which was a workshop then a bestselling book, is kinda of the book that started it all, at least for the modern era.

Those are the three rules: invest, save, avoid debt. Next I’ll be talking about what stocks, bonds, are and some of the basic rules of the stock market.

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Jordan Harris just passed his PhD defense and is waiting for conferral in august of 2017 (YAY). He is a Licensed Marriage and Family Therapist and a Licensed Professional Counselor. He has over 5 years of experience counseling individuals, couples, and families from a wide diversity of backgrounds. He sees clients both in his office and consults online. You can contact him at 318-238-0586 with him online or connect with him through email at jharris@cccofwm.com or follow him on twitter @changeencounter. Also, he is not your financial adviser and information provided should be used at your discretion.

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