Investing and Borrowing

The First Step in Building Wealth (Saving)

The Richest Man in Babylon: Book Review

1. Pay yourself first (at least 10%)

2. Recycle profits into new investments

3. Invest only with those who're experienced

4. Avoid overly risky investments

5. Create multiple streams of passive income

Saving versus Investing

Key Questions

What is the difference between saving and investing? (think risk versus return)
Each type of vehicle is very important in life. When do you need to use a savings vehicle and when do you need to use an investment vehicle?

Types of Investments

Key Questions

If you were looking for the highest possible return which investment vehicle would you choose?
If you were looking for the safest investment vehicle which one would you choose?
What is the difference between a mutual fund and an ETF? Why would you pick one over the other?

Borrowing Money

Types of Loans

Lower Interest Rates (2.5% - 16%)

Unsecured Loan from Bank or Credit Union

Overdraft

Line of Credit

Secured Loan from Bank or Credit Union

Higher Interest Rates (15% - 780%)

Credit Cards

Payday Loans

Credit Card Debt

Pay Day Loans

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