An Important Thing Rich People Know About Money That You Don’t
Growing up a poor kid on the south side of El Paso, I would watch a lot of TV. One day I heard of a billionaire Texas rancher who was running for governor. They were accusing him of not paying ANY taxes and he didn’t deny it. In fact, he admitted not pay any taxes but said it was due to great accounts not tax evasion. That was it! I knew right there that I had to study money. If a billionaire could get away with not paying taxes, then their must be a method to wealth. “People don’t get wealthy by accident”, I told myself. I began to read any book I could get my hands on about money. I’m not greedy. I’m just fascinated with knowledge. I didn’t like knowing that their was a “secret” to wealth and I didn’t know it. I eventually attended college and received a degree in business with a concentration on finance. What I learned was simple yet profound. Its called the the rule of 72. Many claim Albert Einstein came up with the incredibly simple formula.
72 divided by the interest your money is making=years it takes for your money to double.
You’re probably thinking to yourself “that’s it?”. Don’t let the simplicity of the formula fool you. The formula helps us all to appreciate that wealth is a formula.
First you have to save, then invest properly, and most of all, give it time. TV would have you believe that wealth is created instantly. Rarely is that true. All wealthy people know this and take advantage of it. More to come later!!