How Changing Your Spending Habits Can Make You Rich

How Changing Your Spending Habits Can Make You Rich

You don’t have to be a financial genius to get rich – simply change your spending habits. What are the most effective changes you can make to your spending habits? Changing your spending habits can be like changing the way you play chess Look at the way you play chess. Do you keep making the same mistakes on the chessboard? If so, it may be time to change your strategy. Maybe your usual strategy isn’t working because you’ve developed some bad playing habits. The way to improve your skill is to either practice more, or to try a different strategy/tactic. Similarly, if your current financial habits aren’t enabling you to meet your financial goals, try changing the way that you spend money. By budgeting wisely, you can save more. Being good at budgeting is not the ticket to wealth; however, without good stewardship of your money, which starts with careful spending, you’ll be hard-pressed to become a financial success. How? It’s not simple to alter the habits of a lifetime, especially if you are accustomed to a certain lifestyle or have learned bad financial ways. Changing your standard of living and how you handle money needs to be done with “baby steps,” carefully and gradually. Watch this 4-minute video for some easy-to-implement techniques for changing your habits. If you improve your spending habits, you can improve your financial life. If you enjoyed this video, subscribe to get more of my four-minute movies on The Douglas Goldstein Channel on YouTube.   Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of... Click for more
How to Stop Emotions from Interfering with Decision Making

How to Stop Emotions from Interfering with Decision Making

Letting emotions interfere with decision making is a common cause of mistakes… both on the chessboard and off. Why is it a problem when your emotions interfere with decision making? Swept away Let’s imagine the following scene: In a game of chess, your opponent moves his queen into a square that is exactly diagonal to your bishop. You didn’t expect this, and you are very excited at the thought of taking the queen. The rush of excitement at taking this important piece stops you from thinking straight –what you didn’t notice was that by so doing, you opened a pathway that threatens your king. Not only that, but your opponent’s knight was just waiting to take your bishop. What you thought was a brilliant move turned into a disaster: You lost a major piece and put your king in check! Since you didn’t take a critical moment to think, your emotions swept you away, taking control of your actions. As a result, you lost the game. The dangers of jumping in Chess player Charles Buxton warned of this when he said: “In life, as in chess, forethought wins.” The same concept applies to finance. If someone offers you a seemingly amazing financial opportunity, don’t let your emotions agree before you analyze the deal. Stop and think. What are the risks involved? Could you tolerate the loss if it turned south? A few moments of forethought and analysis could save you from a financial disaster. To help you remember not to let emotions interfere with decision making, print out this poster (and other chess posters) and hang it somewhere where... Click for more
When is the Right Time to Buy Stocks? – Rich As A King Episode 127

When is the Right Time to Buy Stocks? – Rich As A King Episode 127

When should you buy stocks? When they are riding high, or when they are at an all-time low? What does the expression, “Buy when there is blood in the streets” mean? How does it relate to investing? Listen to Susan Polgar’s explanation of when the best time is to strike at your opponent in chess, and learn a how to apply a chess strategy to investing. For more inspiration from the game of chess, get a free download of the Rich As A King poster book... Click for more
This Investment Strategy Can Increase Your Wealth

This Investment Strategy Can Increase Your Wealth

What’s an effective investment strategy for when interest rates are low? The problem with investing during periods of low interest rates is that your returns may not beat inflation and your money may lose its real value. One practical solution is to invest with a bond ladder. What is a bond? To understand why bond ladders are a frequently used investing strategy, you need to know how bonds work. A bond is a loan that you make to a corporation or government. Each loan has a set time period (term) and rate of interest. When the bond reaches its maturity date (the end of the set time period), you get back your original loan in addition to the final interest payment. What is a bond ladder? A bond ladder is a portfolio of individual bonds or CDs (certificates of deposit in a bank) that you buy to diversify your account. Each bond matures at a different date and has its own rate of interest. Buying bonds/CDs in this manner means that you don’t tie up all of your money in a single issue at one set interest rate. For example, you may buy a ladder of individual bonds that mature in one, two, three, four, and five years. If you have $100,000, you may decide to put $20,000 into each bond, which will then mature over consecutive years. Why this is helpful to lock in good interest rates If you invest the $100,000 mentioned above into a single bond with a rate of 1% for five years, you won’t benefit if an interest rate rise occurs during this time.... Click for more
The Trick You Need to Know to Deal with Market Drops – Rich As A King Episode 126

The Trick You Need to Know to Deal with Market Drops – Rich As A King Episode 126

What’s the best way to deal with a market drop? Is there a similarity between the unpredictable moves of the market and the unpredictable moves of a chess opponent? Listen to what that Susan Polgar did when she was faced with a chess game whose outcome was determined by drawing lots. What did Warren Buffet say when an interviewer asked him in 2009 how he felt about losing 40% of his lifetime capital in the 2008 crash? Both of these leaders share a similar trick that you could also use. Find out more on this financial podcast.... Click for more
Why Net Worth is One of the Most Important Numbers to Know

Why Net Worth is One of the Most Important Numbers to Know

Before you start investing, you need to know what your net worth is. But what is “net worth,” and how do you calculate it? Your net worth is the sum of the value of everything you own, including your home, car, jewelry, and investments, etc., minus debts, including loans, mortgage, or credit card debts. It’s important to have a financial focus Being aware of your net worth gives you a valuable financial focus. Very often people tend to concentrate on the here and now. Did you manage to make ends meet this month? Is your checking account balanced with your current budget? But this is a very short-sighted way of looking at things. It’s like concentrating on a single pawn during a game of chess without looking at the other pieces on the board. A great move in chess is not made in isolation. A move is only considered “good” if it takes into consideration the placement of the other pieces on the board. Look at the whole board When making investment decisions, you can’t just think about whether you cover your monthly expenses. You need to look at the whole picture: What are your goals? How much money do you need for a comfortable retirement? Are you saving money to meet your future needs and goals? What is your level of risk? To answer these questions, you have to know what you already have… your net worth. So if you have not calculated this figure yet, it’s time to do so.  Download our net worth calculator here. What are the other numbers you need to know? Want to... Click for more
How to Handle a Market Crash – Rich As A King Episode 125

How to Handle a Market Crash – Rich As A King Episode 125

Are you ready for the next market crash? While it is impossible to predict when the next market crash will come, there are certain steps that you can take to protect whenever the next economic downturn occurs. History has shown that markets respond to dramatic world events, such as wars, assassinations, and political scandals. The better prepared you are for unforeseen setbacks means they won’t take you by surprise.  Preparation can lessen their negative effect. Susan Polgar’s story of how she overcame a huge disadvantage when the International Chess Federation FIDE awarded female players (except her!) 100 points, shows how you shouldn’t give up … no matter how dire things look. Get information about our upcoming real-life finance course and send us your financial... Click for more