The Marshmallow Test
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…
99.1% of Buffett’s Wealth Came After His 53rd Birthday
Last year, I read an article on Business Insider that indicated that 99% of 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 at…
Warren Buffett’s Pinball Machines
In Warren Buffett’s biography titled “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…
Triple Compounding
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…
A “Real” Case Study on Compounding
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…
How To Get Others To Save a Million Dollars For You
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…
“Eureka! Here’s The Goose That Lays The Golden Egg.”
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…