Back in the 1960s a study at Stanford University was completed with preschoolers. This study is now referred to as the “Marshmallow Test.” They presented the preschool children with two choices: ONE marshmallow they could eat immediately OR TWO marshmallows if they waited alone for 20 minutes Years after this study the research team…
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Last year, I read an article on Business Insider that indicated that 99.1% of Warren Buffett’s wealth came after his 50th birthday. I have thought about this several times since reading the article and decided to look into it a little further myself. According to a recent Google search, Buffett’s net worth is currently estimated…
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In Warren Buffett’s biography, The Snowball, I found an interesting story from when he was seventeen. He read about an idea of buying a used pinball machine and using the income generated by the first machine to buy additional used pinball machines. So Warren bought a used pinball machine for $25 and went into the local…
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On this site, I often highlight the magic of compound interest. Compounding occurs when your money makes more money for you. Your money goes to work to bring back more money for you and your family. Well, once you truly grasp the magical power of compounding, you’ll probably start to look for ways to maximize…
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Several years ago when my oldest daughter was 4 years old, I hired her for my business. I had created a program highlighting how to turn our children into millionaires and used her image in the program. I also used her picture in other marketing materials for the business. To compensate her for the use…
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This morning I was reading an interesting article on BusinessInsider.com about compound interest when saw this graph: (Click the picture to enlarge) This chart shows how much a person would have to save at various ages in order to accumulate $1,000,000 by the age of 65. Each monthly savings amount was calculated assuming you would…
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Right now, I’m reading a biography titled, “The Richest Woman in America.” It’s the fascinating story of Hetty Green who compounded the inheritance of her father’s estate into $100 million in 1912. In today’s dollars, this amounts to $2 billion. Here is an interesting quote from the book: “While Edward (Hetty’s husband) engaged in business…
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