The Accelerated Saver Investor Pathway to Wealth

By Alexandre Lawrence

In the richest, most abundant era of human history, why are so many people, whether workers or professionals, living from paycheck to paycheck and not saving anything like enough for retirement?

Author Alexandre Lawrence says that it’s not one’s intelligence, family, skills, nor even how much money they make that predicts the quality of their financial life. It’s simply whether they learn to apply a few simple principles and practices.

THE ACCELERATED SAVER-INVESTOR PATHWAY TO WEALTH details in plain but eloquent English, how to become an hypo charged Saver-Investor: an individual who profits from any type of market, systematically saves and invests, harvests compound growth, and passively becomes a millionaire – sooner rather than later.

You’ll learn:
How and why the Saver-Investor model beats out every other established wealth generation system.

How to fundamentally make your money work so you can live off an asset-based (rather than employment-based) income.

How the wealthiest families on Earth cleverly use the money markets to generate abundant wealth and how to legally and ethically copy them.

How to master the mindset of successful wealth generation, the underestimated ingredient that condemns thousands of ambitious Americans to financial mediocrity or ruin.

The priceless insight of money theorists and wealth building gurus like, Samuel Glason, Darren Hardy, Suze Orman, Jack Canfield, Jack Bogle, Tony Robbins, David Bach, and JL Collings are carefully analyzed and crafted into a single, composite, earning, saving, spending and investing system composed of four money management strategies and four wealth building plans.

***This Is More Than A Book!!***
Included in these pages are extensive social media resources, numerous invaluable free book and article links, detailed Utube case studies and precise and practical action plans.

These pages go far beyond advice or theory.
Readers can put together their investment strategies in real time as they learn using this book’s numerous color charts, explanatory memes, and infographics.

Lawrence has a unique talent for making the complex simple as he distills, from past and present centuries, the most powerful investment advice in the world, into digestible, memorable, and actionable lessons.
Readers can expect to be among the upper 1% of financial literate investors and make predictable, snowballing returns year after year by employing the straightforward concepts of this book.

This book provides the day to day motivation and the life changing system - all you need is a job – a little money management discipline and a big personal wealth building ambition.

• Language: English
• Publisher: Alexandre Lawrence
• Release date: May 8, 2020
• ISBN: 9780463034620

Alexandre Lawrence

Bio: Alexandre Lawrence:From a highly talented Anglo sphere family, now spread all over the globe, Oxford University law masters graduate, counsel, journalist, essayist, and writer Alexandre Lawrence has an international professional background in writing, law, and entrepreneurial projects encompassing several decades.This has provided him with a comprehensive background to analyse and write on personal money management and wealth building systems.His diverse personal interests include family, architecture, politics, history, literature, agriculture, animals and plants, the environment and sport.Having published articles, political reports and essays in various international law journals and newspapers in the past his new book THE ACCELERATED SAVER INVESTOR PATHWAY TO WEALTH is his first book on personal finance.The book is written in an innovative new nonfiction book format - with colour coded text - colour charts - teaching aids - meme summaries of the chapter content and graphic explainer diagrams – so as to make the complicated world of money management and wealth building seem uncomplicated and enjoyable.The chapter contents, as set out below, provide a precise 4 plan, 4 strategy, blueprint to build sufficient wealth to provide an assets based independent income – for any efficient and motivated income earner regardless of job or position.Hoping you enjoy and learn from the book.Best Regards, Alexandre Lawrence. Author: The Accelerated Saver Investor Pathway to Wealth: A powerful, new, rapid wealth-building system open to all income groups. WEB: www.acceleratedsaverinvestor.com email: [e-mail] OF CHAPTERS:CONTENTS: CHAPTER [1]: MINDSET: Strategy 1: These eight money management and Personal Development motivation gurus can help us to adopt the best psychological and logistic preparation for the realization of our eight Masterplan goals – the implementation of the four strategies which will enable us to establish and fund the four investment Plans.CHAPTER [2]: MOTIVATION GURUS: Strategy 1: Meet four important motivation theoreticians.CHAPTER [3]: MONEY TECHNICIANS:Strategy 1: Meet four important money technicians.CHAPTER [4]: MASTERPLAN:Strategy 1: Drawing motivation from the personal development theoreticians and money technicians to form the Master Plan.CHAPTER [5]: PRIORITIZE:Strategy 2: Pay yourself first and automate your savings from your job or business income to finance each of the four investment funds you need to establish.CHAPTER [6]: ECONOMIZE:Strategy 3: You need to plan to reduce living expense spending by 10-20% - to fund your automatic 10-20% monthly savings to finance your essential money for life investment funds.CHAPTER [7]: GROW:Strategy 4: Increasing your monthly income will support your monthly personal budget – help you reach the ideal of a 20% saving rate – build your Independent Income & Retirement Fund rapidly, perhaps enable earlier retirement, and provide more money to support the other three investment plan funds.CHAPTER [8]: EMERGENCY FUND:PLAN 1: Everyone needs an emergency fund – for medical or travel emergencies - or major unexpected home repairs.CHAPTER [9]: OWN HOME FUND:PLAN 2: You don’t have real financial security unless you own your home – there is no security in paying rent in retirement.CHAPTER [10] SPECIAL PROJECTS FUND:PLAN 3: Saving for special projects can be fun - you can set up a personal investment wealth-building plan in property or shares, or both, or a special plan to fund travel, art or antique purchases - independent of your main and more strictly regulated Independent Income & Retirement Fund.CHAPTER [11]: INDEPENDENT INCOME & RETIREMENT FUND:PLAN 4: This is the most important of the four distinct investment funds you need to establish for your future money for life comfort and security - your Fund for an assets based Independent Income which will also support your retirement and will take most of the funding from the monthly savings.CHAPTER [12]: STOCKS:PLAN 4: Funding an Independent Income and Retirement plan through stocks: Why does Warren Buffet recommend INDEX FUNDS as the best investment for retirement plans?CHAPTER [13]: REAL ESTATE:PLAN 4: Your INDEPENDENT INCOME & RETIREMENT FUND can also be supported by real estate - if you need or want to substantially increase your savings rate – perhaps because you started late – or let your plan lapse – real estate can accelerate your Fund gains.CHAPTER [14]: FIRE:PLAN 4: Financial Independence, Retire Early: Why clock up five decades of labour when you can do it in less than two decades? You don’t have to cease work – but early retirement enables you to purchase your employment freedom – so you can pursue projects you really want to do and be your own boss.CHAPTER [15]: SUMMARY:

Book preview

THE ACCELERATED SAVER INVESTOR PATHWAY TO WEALTH

A powerful, new, rapid wealth-building system open to all income groups.

A precise, no-fail, four-strategy, four-investment plan blueprint - based on the best money management and wealth-building systems available today.

Smashwords Editions

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ALEXANDRE LAWRENCE

'How every job holder can systematically pursue the accelerated saver investor pathway to certain abundant wealth with innovative strategies on earning, saving, spending, investing and early Independent Income retirement.'

LEGAL NOTICES:

COPYRIGHT: The Copyright © 2020 by ALEXANDRE LAWRENCE. All rights reserved. The moral right of the author has been asserted. This book is designed to provide accurate and authoritative information about personal finances and wealth creation. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording or any other—except for brief quotations in printed reviews, without prior written permission of the author.

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DISCLAIMER: The ideas, concepts and everything else in this book are simply my opinion based on my experience and knowledge – but yours may be different.

While the book should provide answers to some of your issues and provide useful guidance, I don’t and can’t realistically know the full details of any reader’s personal position or requirements. Accordingly as the author, I make no representations as to accuracy, completeness, contemporaneity, suitability, or validity of any information in this book and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

All information is provided on an as-is basis.

You are solely responsible for your own choices.

No guarantees are provided.

This book examines in detail the books of 8 important authors whose works are collectively considered to be essential to understand in any serious money management and wealth building system.

While other personal finance authors might be tempted to pass on the ideas of these authors as their own dressed up in different words – or provide a vague attribution - when I have reviewed the works of other authors I have always directly acknowledged the source and if possible cited the exact words of the author whose ideas or systems I am reviewing and recommending.

Where possible I have also provided a direct link to enable the book´s purchase, if it is not available in a local library, which is often the case with international readers.

Although all leading booksellers offer an affiliate program to pay for recommendations that result in sales from their website I have not enrolled in any of these programs – nor have I been offered or obtained any remuneration for these book recommendations from the authors or their publishers or any other 3rd party.

Without exception all book or service recommendations made in this book have been made in good faith solely to help readers of this book advance their learning, and entirely free of any commercial motive or reward on the part of this author.

AUTHOR CONTACT: www.acceleratedsaverinvestor.com

ACKNOWLEDGEMENTS:

I want to thank everyone – colleagues, friends and family – who supported my new book.

In particular, I want to thank the following professionals whose services were an integral part of the project and ensured its professional finish:

BOOK ACTUARY: ekale_daniel of FIVERR - Mathematician, Actuarial and Financial Analyst – who laboriously checked and corrected all my calculations and financial projections: https://www.linkedin.com/in/ekale-daniel/

BOOK COVER DESIGNER: bookcovers_pro whose striking cover design reflected the mix of traditional and contemporary concepts underlying the book:

BOOK FORMATTER & INTERIOR DESIGN: istvanszaboifj, Professional book formatter, whose great book interior design converted a crude draft into a professional manuscript and marketable book: https://www.fiverr.com/istvanszaboifj

BOOK TRAILER: Oranjegirl @ https://www.fiverr.com/oranjegirl whose animated trailer exceeded my book advert expectations:

BOOK TRAILER: German Ferrero, www.germanferero.com, Videographer and Director, who produced an excellent BOOK CONTENTS information trailer.

BOOK WEBSITE DESIGNER: Dominic Braam of www.dominicbraam.com who on a tight budget created a fitting home base for the book:

CONTENT EDITOR: Wyn Charles of NSW who had a massive beneficial impact on the content and structure of the book:

COPY EDITOR & PROOFREADER: Steve Lane of https://www.fiverr.com/bookcaliber who ensured my book complied with current grammatical and USA style standards:

GRAPHIC DESIGNER: Wagoner Commercial Artist Rio who, on a tight timetable and budget, did all of the amazing graphics in the book:

Table of Contents

Acknowledgements

List of Chapters

Introduction

Chapter 1: Mindset

Chapter 2: Four Important Motivation and Money Theoreticians

Chapter 3: Four Important Money Management Technicians

Chapter 4: Masterplan

Chapter 5: Prioritize

Chapter 6: Economize

Chapter 7: Increase Your Income

Chapter 8: Emergency Fund

Chapter 9: Own Your Home

Chapter 10: Special Projects

Chapter 11: Independent Income & Retirement Fund

Chapter 12: Stocks

Chapter 13: Real Estate

Chapter 14: Fire

Chapter 15: Summary

LIST OF CHAPTERS:

CONTENTS: CHAPTER [1]: MINDSET: Strategy 1: These eight money management and Personal Development motivation gurus can help us to adopt the best psychological and logistic preparation for the realization of our eight Masterplan goals – the implementation of the four strategies which will enable us to establish and fund the four investment Plans.

CHAPTER [2]: MOTIVATION GURUS: Strategy 1: Meet four important motivation theoreticians.

CHAPTER [3]: MONEY TECHNICIANS:

Strategy 1: Meet four important money technicians.

CHAPTER [4]: MASTERPLAN:

Strategy 1: Drawing motivation from the personal development theoreticians and money technicians to form the Master Plan.

CHAPTER [5]: PRIORITIZE:

Strategy 2: Pay yourself first and automate your savings from your job or business income to finance each of the four investment funds you need to establish.

CHAPTER [6]: ECONOMIZE:

Strategy 3: You need to plan to reduce living expense spending by 10-20% - to fund your automatic 10-20% monthly savings to finance your essential money for life investment funds.

CHAPTER [7]: GROW:

Strategy 4: Increasing your monthly income will support your monthly personal budget – help you reach the ideal of a 20% saving rate – build your Independent Income & Retirement Fund rapidly, perhaps enable earlier retirement, and provide more money to support the other three investment plan funds.

CHAPTER [8]: EMERGENCY FUND:

PLAN 1: Everyone needs an emergency fund – for medical or travel emergencies - or major unexpected home repairs.

CHAPTER [9]: OWN HOME FUND:

PLAN 2: You don’t have real financial security unless you own your home – there is no security in paying rent in retirement.

CHAPTER [10] SPECIAL PROJECTS FUND:

PLAN 3: Saving for special projects can be fun - you can set up a personal investment wealth-building plan in property or shares, or both, or a special plan to fund travel, art or antique purchases - independent of your main and more strictly regulated Independent Income & Retirement Fund.

CHAPTER [11]: INDEPENDENT INCOME & RETIREMENT FUND:

PLAN 4: This is the most important of the four distinct investment funds you need to establish for your future money for life comfort and security - your Fund for an assets based Independent Income which will also support your retirement and will take most of the funding from the monthly savings.

CHAPTER [12]: STOCKS:

PLAN 4: Funding an Independent Income and Retirement plan through stocks: Why does Warren Buffet recommend INDEX FUNDS as the best investment for retirement plans?

CHAPTER [13]: REAL ESTATE:

PLAN 4: Your INDEPENDENT INCOME & RETIREMENT FUND can also be supported by real estate - if you need or want to substantially increase your savings rate – perhaps because you started late – or let your plan lapse – real estate can accelerate your Fund gains.

CHAPTER [14]: FIRE:

PLAN 4: Financial Independence, Retire Early: Why clock up five decades of labour when you can do it in less than two decades? You don’t have to cease work – but early retirement enables you to purchase your employment freedom – so you can pursue projects you really want to do and be your own boss.

CHAPTER [15]: SUMMARY:

INTRODUCTION:

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THE PURPOSE OF THIS BOOK:

There’s a monumental mass of personal finance data and advice published in old media print books, magazines, journals and newspapers and projected in new media digital technology channels like UTube videos, Instagram pages, Facebook and Twitter posts and various other social media sites – so much so – that as at the year 2020 there’s a risk of suffering from information overload and ending up more confused than enlightened.

This book has a dual purpose.

First - to refine and simplify this abundant, ‘managing your money’ and ‘wealth-building’ information - so that it’s easy to grasp in a single reading.

Second – drawing upon this information – to present to the readers the best money management and wealth-building system possible – in terms of ease, efficiency and outcomes.

The system presented is suitable for all American workers regardless of income bracket.

STRATEGIES AND PLANS:

The money management and wealth-building system is encapsulated in eight clearly defined goals consisting of four strategies and four precise plans - all directed by a Masterplan.

The plans are to establish four distinct investment funds – the four strategies are how these investment plans can best be implemented.

To refer to our tree diagram metaphor – the strategies are the roots that fertilize the branches containing the plans and the Masterplan is the central trunk uniting the roots and branches - so they function as a single system.

The overriding objective is to ensure this advice - can be utilized in your everyday money decisions on earning, spending, saving and investing.

In the first four chapters of the book – we will examine the importance of having the right mindset to achieve our eight goals and the need for a masterplan to implement them.

From Chapter 5 each strategy and each plan has its own separate chapter outlining what needs to be done and the reasons this is important – supported at the end of the chapter by a detailed, step by step, action plan.

GETTING BY IN THE U.S. IN 2020:

You have a job – you are paying the monthly bills – but every week is very tight, and in reality, you are living from paycheck to paycheck.

Though ambitious and you have hopes for better times - at present, you just see no way to achieve your aspirations for a future with an abundant income, secure assets, and a comfortable retirement.

Don’t be deterred by this. In 2020, most Americans – even some on $100,0000 a year are living from paycheck to paycheck – though most don’t really need to and with more efficient and logical spending and saving habits can quickly learn how to get off the treadmill of excessive spending and perpetual debt.

LEARNING TO SHAPE YOUR OWN FINANCIAL DESTINY:

This book is designed for all income groups but especially the average wage and salary earner who want to make a difference in their lives.

Its essential message is - that you can’t just sit back and let events shape you – you have to deliberately plan your life and your money usage and with a laser-like focus adopt a precise and detailed blueprint, a specific system, to ensure prudent and productive use of your monthly income and spending habits and a future life of sufficiency and security and possibly even abundance.

The first thing that’s important to understand in financial planning – is that small regular steps – more careful daily spending and more focused monthly saving - can – over decades of time - collectively create a massive financial impact – a million or indeed even a multimillion-dollar impact - on your prospects, your assets, and on your life.

With the right investment approach – such as an investment in Index Funds mirroring the S & P 500 Index or the total U.S. market and an automatic dividend or interest reinvestment policy - your retirement savings can over three decades be multiplied by 4+ times the amount you actually save from your wage, salary or business each month as compound growth works its magic and your savings grow to become an independent income-producing entity – eventually vastly outproducing your own monthly employment saving efforts.

With four decades of work - your prudently invested savings can multiply by a factor of 10+ times!

To fully utilize this, you need to understand vital and life-changing personal development concepts like compound action and basic financial concepts like compound growth and index shares.

Once you grasp and apply these concepts, boundless new options for financial success and security will open before you.

This book is essentially a master plan for financial independence that should enable you to retire comfortably, earlier than normal, perhaps, with a million dollars plus financial assets.

The masterplan will encompass four Investment Fund plans enabled by four implementation strategies about mindset, saving, spending and income.

This book sets out detailed options for living expense reduction and an array of plans to increase your income by starting, low cost, online jobs or businesses from home - a part-time online hustle to earn passive income while you sleep or are at your main job.

This book will show you how to start serious saving – how to minimize your daily living expenses and cut out waste or unnecessary expenses to free up money that can be better utilised in investment accounts and how to create new income that can supplement or even exceed your main salary or wage.

Most money experts recommend a 10%, 15% or 20% monthly income saving rate but there is now a new and powerful movement based on a dynamic but guaranteed ‘retire early’ concept – decades early – by adopting 30%-40% 50% 60% or 75% monthly saving rates.

So now, let’s see how all of this can be achieved and which of the many available options best suit your life and situation – so we can ensure you can pursue the most effective and efficient saver investor pathway to building certain, abundant, wealth.

CHAPTER CONTENT:

In the early chapters of this book, we will establish there are eight life-changing GOALS we can adopt, implement and achieve.

Our MASTERPLAN set out in Chapter 4 will direct all four strategies and monitor all four investment Fund plans:

These eight goals include the following.

FOUR STRATEGIES:

STRATEGY 1: Develop the right mindset: Chapters 1-3

STRATEGY 2: Adopt Mandatory Automated saving: Chapter 5

STRATEGY 3: Reduce living expenses: Chapter 6

STRATEGY 4: Increase income: Chapter 7

FOUR PLANS:

PLAN 1: Establish an Emergency Fund: Chapter 8

PLAN 2: Establish an Own Home Fund: Chapter 9

PLAN 3: Establish a Special Projects Fund: Chapter 10

PLAN 4: Establish an Independent Income & Retirement Fund: Chapters 11, 12, 13 and 14

All 15 chapters of this book are about why and how we adopt and implement the 8 goals set out above.

So now we turn to Chapter 1 MINDSET: Prepare your mindset:

When we say ‘mindset,’ we mean our mental makeup - what’s in our head - our psycho-logical ethos. To ‘prepare our mindset’ means to strengthen, improve or build-up our mindset - to adapt and expand our way of thinking.

In relation to the accelerated saver investor wealth-building system - ‘prepare your mindset’ means not just opening your mind to new ideas on earning, saving, spending and investing - but also to basic concepts about cause and effect and action - so you better understand crucial saver investor concepts like compound action, compound growth, and index investing.

CHAPTER 1:

Mindset

Strategy 1: Prepare Your Mindset:

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"We can all make powerful choices.

We can all take back control by not blaming chance, fate, or anyone else for our outcomes.

It’s within our ability to cause everything to change.

You will never change your life until you change something you do daily. The secret of your success is found in your daily routine":

Darren Hardy: The Compound Effect: Jumpstart Your Income, Your Life, Your Success: FREE download of entire book in pdf format in Chapter 4 Resources:

CHAPTER 1 INDEX:

IMAGINE:

So, What Exactly Are ‘U.S. Total Market Index Funds’?

Why Some Are Rich:

The Saver Investor Pathway to Wealth:

Anyone Can Be Rich - The Eight Gurus Show Us How:

Making Your Savings Work for You:

Let’s Do the Maths on the Saver investor Pathway:

SAVING 5% OF MONTHLY AVERAGE U.S. HOUSEHOLD INCOME:

SAVING 10% OF MONTHLY AVERAGE U.S HOUSEHOLD INCOME:

SAVING 15% OF MONTHLY AVERAGE U.S. HOUSEHOLD INCOME:

SAVING 20% OF MONTHLY AVERAGE U.S. HOUSEHOLD INCOME:

LET’S DIG A LITTLE DEEPER: AFTER 20,30,40 YEARS MOST OF OUR ‘SAVINGS’ ARE IN FACT INTEREST AND COMPOUND INTEREST:

Why Adopt an ‘Accelerated Saver investor’ System?

What Exactly Will We Learn from the Eight Gurus?

GEORGE CLASON: A defined portion of your monthly income - at least 10% - must remain permanently yours.

DARREN HARDY: Small actions like daily frugality and monthly saving ultimately create massive wealth.

JACK CANFIELD: You determine your habits – like work efficiency and fiscal discipline and your habits determine your success.

SUZIE ORMAN: Only by focusing on spending will you free money for saving.

DAVID BACH: To maximise, saving pay yourself first and automate all monthly savings and payment systems.

TONY ROBBINS: Learn the rules of investing so you can risk-proof your portfolio with massive diversification.

JACK BOGLE: Don’t risk playing the market or mutual funds - invest only in Index Funds

JL COLLINS: Be a DIY investor and establish a simple 1 or 2 U.S. all market Index Fund portfolio.

The Inspiration I Gained from these Eight Authors:

Chapter 1: Mindset: Resources: Strategy 1:

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IMAGINE:

img7.jpg Imagine if you had a fairy Godmother or Godfather! img8.png

Who could magically magnify the retirement savings you invest each month – who could wave a manual or electronic wand and after 13 years double your savings – after 20 years triple your savings – after 30 years boost your savings by 4.7 times and after 40 years of hard work and careful saving when retirement is just around the corner – magically multiply your savings by the power of 10.6 times!

So, your carefully accrued 40-year family retirement savings of $240,000 inflate to a cool $2.7 million dollars!

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Imagine!

Delusions of a demented dimwit?

Absolutely not!

Guess what?

You have a fairly godparent and it’s called Compound Interest.

Providing you invest your monthly retirement savings in safe, low fee, high earning, stocks like US total market Index Funds and automatically reinvest the money earned by these funds each year– your hard-earned savings will be beneficiaries of a multimillion-dollar boost! Total US market Index Funds average about 10% inclusive of dividends and increased stock values per annum.

And it’s not medieval magic – it’s just modern math!

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The topic of compound interest has intrigued man all throughout history. It is believed that Albert Einstein was once quoted in stating that compound interest was not only man’s greatest invention ever, but that it is the …most powerful force in the universe. According to Einstein, Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it."

From: Compound Interest – Is it the Greatest Invention Ever?

http://www.smartfamilyfinance.com/2015/02/compound-interest-the-greatest-invention-ever/

Another great American mind Benjamin Franklin described compound interest in this way:

Money makes money. And the money that money makes, makes money.

https://www.mymoneyblog.com/ben-franklin-compound-interest.html

This is one of the best basic explanations of compound interest around. With investments in stocks and Index Funds - compound interest means all dividends reinvested each year and all income earned from the dividends also reinvested.

Now we don’t need magic wands – nor do we need to be an Einstein to calculate how much compound interest can mathematically multiply our retirement funds – in the year 2020 we have minicomputers to do the job for us:

Compound interest calculator:

Use this calculator to see how compound interest works and how quickly it can grow your savings:

https://monevator.com/compound-interest-calculator/

But what we need to do is to find a way in which we can exploit this concept of compound interest to the maximum - so we can accelerate the pathway to wealth of a saver investor - who can be anyone with a job at any income level, whose prepared to embrace some new ideas on money management and implement a serious wealth-building system.

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See detailed Compound Interest sections in Chapters 11 and 12:

So, What Exactly Are ‘U.S. Total Market Index Funds’?

A total stock market index fund invests in a basket of stocks closely mirroring the stocks and performance of a wide stock market index like the Wilshire 5000 or the Russell 3000.

The S & P 500 Index includes 500 top companies in leading sectors of the U.S. economy, covering 75% of U.S. stocks - much less of the market than a total market Index Fund.

This Forbes report explains the main points of difference:

The S&P 500 index is considered a blend" fund. It's a combination of companies that are either growth or value. Ford would be an example of a value company, Apple a growth company.

In contrast, a total U.S. stock market fund captures all of the publicly traded companies, big and small. It invests 18% in mid-cap companies and 9% in small-cap, according to Morningstar. Its average company valuation is about $49 billion, a significant decrease from the $86 billion of the S&P 500. It's also a blend fund."

FROM: Total U.S. Stock Market Vs. The S&P 500 Index - An Investor's Guide: https://www.forbes.com/sites/robertberger/2017/06/01/total-u-s-stock-market-vs-the-sp-500-index-an-investors-guide/#7148209e2fd0

While the S & P 500 index fund invests in 500 of the top-performing U.S. companies, the Vanguard U.S. total market Index Fund VTSAX invests in over 3,200+ top and lower-tier U.S. publicly registered companies.

The main all market Index Funds use the CRSP INDEX which captures the entire US market and is essentially a list of 3,200-3,700+ public companies in the US.

It’s a merit list so non-performing companies are automatically removed from the index – only the fittest survive and the survivors include old tech titans like APPLE and newly registered companies with rocketing values like TELSA and GOOGLE and FACEBOOK, now the world’s two largest advertiser platforms and the all market index funds automatically capture a portion of all of these rising stock values.

The primary purpose of using a total stock market index fund is to gain access to the entire U.S. stock market in one low-cost fund. It’s a low cost, single purchase, investment in all the main public companies and sectors of the entire U.S. economy.

It’s also almost always a profitable investment and as we will see in CHAPTER 12 on STOCKS - U.S. total market index funds are now favoured for retirement plans and independent income investments funds by almost all independent experts.

Most U.S. total market funds average an annual return of at least 10% - the leading total US market fund VTSMX bettered this over the past 10 years:

VTSMX generated an average annual return of 11.96% from 2008 through 2018.

FROM: "Total Stock Market Index Funds: VTSMX and 3 More Like it":

https://www.thebalance.com/total-stock-market-index-funds-2466402

Vanguard’s other main U.S. total market fund VTSAX even bettered that - generating a mouth-watering 13.4% annual return over the past 10 years.

So that’s why U.S total market Index Funds are a vital cog in any serious wealth-building plan.

It’s only with funds generating seriously impressive, consistent, 10%+ annual returns like this – that our fairy godparent Compound Interest has the required algorithmic variable to be able to do it’s x 10.6 mathematical multiplication trick of turning a comparatively modest $240,000 retirement fund into a grand $2,700,000 Treasure trove - potentially providing a $108,000 annual tax-free income without depreciating its capital value.

And this $2.7m Independent Income & Retirement Fund is possible in any two-partner American household with both partners committed to an accelerated saving and investing system and each consistently putting away $250 a month.

Single households will need to save $500 a month to achieve a $2.7m fund – or by saving and investing $250 a month create a $1.350m fund providing a potential tax-free annual retirement income of $54,000.

Social security entitlements could add up to another $16,000 pa.

All this is dependent on the $250 or $500 being saved each month and invested according to a predetermined wealth-building system – the details of which will crystalize as we move through the chapters ahead.

Why Some Are Rich:

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Why is it that some people are rich, but most of us are not and struggle to build substantial wealth?

What do the rich do or know that the rest of us don’t?

Is there a secret or magic formula for acquiring and retaining wealth?

There are many pathways to wealth.

The fortunate inherit – a lucky few win the lottery and the highly skilled become the best in their field and reap our community honors and rewards accordingly.

According to the author of Rich Habits - The Daily Success Habits of Wealthy Individuals: Thomas Corley - a book in which the author rigorously documented the activities of 233 wealthy people (the report defined wealthy as having $160,000 in annual gross income and $3.2 million in net assets) - there are three well worn, hard grind, pathways to multimillionaire wealth:

‘The Corporate Climbers path:

Climbers work for a large corporation or entity and devote their time and energy to scaling the corporate ladder – not afraid to stand on a few heads on the way up - until they land a senior executive position — with a super fat salary package with abundant bonuses.

The Virtuosos path:

This group are the stars of their professions – often with advanced tertiary education (in law, medicine, or finance) and are paid a high premium for their specialist knowledge and expertise.

The Dreamers path:

Dreamers pursue a passion – a dream – such as starting their own business, developing a hot new start-up, inventing and bringing to market a great new product, becoming a movie star, acclaimed musician or an international best-selling author. Dreamers do what they do because they love it and their bank accounts reflect their passion.’

"Rich Habits - The Daily Success Habits of Wealthy Individuals: Thomas Corley:

The successful individuals in the above groups are often immensely wealthy – but none had a certain pathway to wealth – it was all hard grind – lots of sweat – sometimes fortunate timing and perhaps a dollop or two of good luck.

There is one certain pathway to wealth that any individual can take regardless of skill or occupation and regardless of assets or income, and this is not in any way dependent on family, luck, special skill, or good fortune.

This is the ‘saver – investor’ option – a pathway to certain, abundant, wealth – open to anyone with a job and income and an unshakeable commitment to build wealth!

The Saver Investor Pathway to Wealth:

This is a less exciting and less glamorous option than the various pathways above but unlike them, it has the twin virtues of egalitarianism (it’s open to all) and predictability (adopt the system and you will definitely be able to build substantial wealth).

This sixth pathway to wealth - the ‘Saver- Investor’ option – means regardless of occupation, individuals in this group, whether trade, business or professional, skilled, semi-skilled or unskilled – all must make systematic saving and investing part of their normal life and always be prepared to consider smart, new but safe, ways to grow their investment wealth.

Not only is it the easiest way to build wealth, but if you start early as an accelerated saver investor and understand the basic rules of stock investing – which are explained in Chapter 12 STOCKS of this book - it almost always guarantees abundant wealth.

In the Rich Habits study only 21% of the millionaires took the Saver investor’s path - most of the successful millionaires were ‘dreamers’.

The Saver investors in the Rich Habits study reached their first $1 million around their mid-to-late 30s and had accumulated an average net worth of $3.3 million by their mid-50s.

They also had four points in common:

Most had a middle-class income – but if not - lived a frugal life.

Regardless of income most had a ‘low cost of living’ lifestyle – abhorring status symbol, ‘keep up with the Jones’, consumer purchasing - preferring to save and invest rather than spend carelessly.

They saved 20% or more of their income.

They invested their savings early in life and continued to prudently do so for many years – thus successfully harvesting decades of compound growth.

No matter what their day job was this group made saving and investing part of their routine - they were frugal or very value focused on their spending – constantly exploring innovative ways to grow their wealth and all had substantial stock market holdings.

The Saver investor pathway to building wealth isn’t for everyone. It requires a clear, ultimate, vision - an overriding objective - consistent financial focus - fiscal discipline and an unshakeable commitment to prioritizing savings over all other expenditure.

If we don’t save - we can’t access the saver investor pathway to wealth – fortunately more young Americans are now saving more.

And although it’s a certain pathway to wealth open to everyone with a paying job - no matter how modest the remuneration – there are very few people in the U.S. actually doing this.

In general - saving rates in the US have consistently declined over the past decade:

The saving rate has been on a steady decline since hitting 6.3% in late 2015, as personal spending growth has outpaced a deceleration in after-tax income, said Ellen Zentner, chief U.S. economist at Morgan Stanley… In 2018 Households drew even more heavily on their savings to fund their purchases. The savings rate fell to 2.4%, the lowest level since 2005.

FROM: Consumer spending hits 6-year high as Americans cut savings to 12-year low

https://www.marketwatch.com/story/consumer-spending-hits-6-year-high-as-americans-cut-savings-to-12-year-low-2018-01-29

Why do so many of us American’s have such poor attitudes towards saving? Is it inadequate education – media confusion - information overload?

Or is there simply a lack of financial knowledge in the average American home where money management is most often taught - if it is taught at all.

Unfortunately, it’s not taught in American classrooms where basic financial literacy should and could easily be learned by pupils and students of all ages.

There is some hope on the horizon, however!

Young Americans are now proportionately saving more than older Americans:

‘Young people are saving more than previous generations, according to a study, flipping the historical trend that saw older savers put the most money aside towards retirement. This was the stunning finding of a global survey of more than 25,000 investors across 32 countries, by asset manager Schroders. The study revealed those aged between 18 and 37 – Generation Z and millennials, though the study groups them all as millennials – are saving nearly 16% of their annual income away for retirement, including employer contributions…

Apparently, seeing press coverage of the pensions crisis from a young age had an effect’:

FROM: Young people are saving more for retirement than Boomers and Generation X — and this is why

https://www.wsj.com/articles/americans-are-saving-more-and-that-isntnecessarily-good-11569153600

Comparing US savings rates with other countries is not encouraging however:

Austria had highest average amount of income saved, at nearly 22%. Investors in Switzerland came in second, stashing away 21% of their earnings on average. Savers in India, Belgium and Australia put around 19% of their salary towards retirement annually.

FROM: Young people are saving more for retirement than Boomers and Generation X — and this is why

https://www.wsj.com/articles/americans-are-saving-more-and-that-isntnecessarily-good-11569153600

Also troubling is that young Americans are not doing the most effective thing that will make them rich: Investing in stock markets!

According to a recent Gallup poll, only 37% of young Americans aged 35 and under said they owned stocks between 2017 and 2018, compared to the 61% of people over the age of 35 who owned stocks.

See: Young Americans Still Wary of Investing in Stocks

https://news.gallup.com/poll/233699/young-americans-wary-investing-stocks.aspx

The reason for this is that young Americans still regard stocks as high risk:

FROM: "A decade after stockholders lost trillions of dollars in the crash of 2008, younger Americans are still leery of investing their money in stocks."

https://news.gallup.com/poll/233699/young-americans-wary-investing-stocks.aspx

As well as systematically saving – we must also prudently invest – with index funds investing is no longer high risk, expensive, or complicated.

Now, fortunately, with Index Funds, investment risk can be spread across all the main companies and industry sectors of the entire U.S. economy.

By deploying new portfolio management techniques such as asset allocation and stocks rebalancing – market correction and market collapse risks can be diminished if not neutralized – but with the rise of Index Funds little market knowledge is now required if you buy good quality Index Funds in the first place which this book will show you how to do in Chapter 12 on STOCKS.

Opening a stock investment account gives you access to the biggest money-making machine in the history of mankind and you don’t have to be rich to do it. Many established Stocks account providers set low or zero entry deposit requirements for new clients who set up an automatic monthly transfer arrangement.

Although many people may be limited by circumstances, especially financial illiteracy, most will never get rich simply because they have poor money habits – spending extravagantly or wastefully – taking on too much debt - acquiescing in a paycheck to paycheck existence and never having any monthly funds allocated or left over for savings and investment.

At any age, it’s worthwhile to set aggressive investment goals but the earlier you invest, the more access you will have to compound growth – which over three decades at the current rate of S & P 5OO Index growth can seemingly magically multiply your carefully saved and prudently invested monthly savings by up to four times the amount you actually put aside each month and as much as ten times over four decades!

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See detailed Compound Interest sections in Chapters 11 and 12.

Anyone Can Be Rich - The Eight Gurus Show Us How:

In Chapter 1, we meet the eight important money management and motivation experts who can help us adopt the most suitable psychological and practical preparation for implementing our eight goals.

The objective is to extract the best principles and practices of these eight eminent authors – they each have their own towering strengths, and each has their own unique insights and perspectives into financial action and into money management generally - but like the strands of a rope, they are much more powerful in combination than apart.

Samuel Glason is the foundational strand – his book The Richest Man in Babylon – published almost 100 years ago – first advocated the preeminent importance in wealth-building of paying yourself first – and showing how a modest man in ancient Babylon city rose to become its richest by doing just this.

Alan Hardy provides a forensic strand - helping us to comprehend how funds once invested can grow exponentially – from small, seemingly insignificant, monthly deposits into vast multimillion-dollar funds.

Jack Canfield provides a vision strand - showing us how to apply focus and persistence to our daily habits and goals to motivate us to seriously act on and implement a wealth-building system.

A vital budgeting strand comes from Suze Orman – who compels us to question every detail of our daily expenses - so we can eliminate inefficient spending and material waste.

An important strand comes from David Bach - who reiterates Glasson’s traditional first principle of money management - pay yourself first – but also insists that it be automated to reduce any risk of delay or default.

Jack Bogle, and his contemporary disciples JL Collins and Tony Robbins, provide a strong and enduring investment strand – a protective layer of the rope shielding us from the crooks and con men of the US financial sector – showing us how to keep our investment money safe and how to give it the best opportunity to grow into a permanent income-producing entity – an independent money machine and our very own freedom fund for financial independence.

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To maximise wealth-building, both spending and saving must be systemized.

From these gurus you will learn that managing money is not complicated or only for the rich – it’s just smart, consistent, bit by bit, organization – that with modern tech can be reduced to monthly automated bank transfer payments - just like you pay your credit card – except that under this system you impose a payment line or queue on all those you have to pay each month – the bank for your credit card – the landlord for your rent – the loan company for your car – and you position them all in the payment queue – but each of them - AFTER - you have paid yourself FIRST!

In this way, a substantial lifetime fortune can be built even from a low-income wage – by any person - whether a waiter, a student with a part-time job, a nurse, teacher, or policeman - or a well-paid business, law or medical professional.

And if these small, regular savings are invested wisely – two to four decades savings can be multiplied by 2 or 10 times the total original amounts carefully saved and invested.

No one illustrates better the capacity of the little guy, to rise above the crowd and build a million-dollar fortune, than JL Collins the author of The Simple Path to Wealth:

Being independently wealthy is every bit as much about limiting needs as it is about how much money you have. It has less to do with how much you earn — high income earners go broke while low income earners get there — than what you value. Money can buy many things, none of which are more important than your financial independence. Here’s the simple formula: Spend less than you earn – invest the surplus – avoid debt Do simply this and you’ll wind up rich. Not just in money.

From: Can everyone really retire a millionaire? 2012

https://jlcollinsnh.com/2012/05/16/stocks-part-vii-can-everyone-really-retire-a-millionaire/#comments

Making Your Savings Work for You:

John Rockefeller knew a thing or two about how money works. He rose from relatively modest middle class means to build a fortune - in 2018 inflation-adjusted dollars - of US409 billion – 3 times the mega massive fortune of Jeff Bezos now the richest man in the world and the key to you also building a fortune is to understand what he meant when he said:

If you want to become really wealthy, you must have your money work for you. The amount you get paid for your personal effort is relatively small compared with the amount you can earn by having your money make money.

How do you make your money work for you?

Very simple – save and invest at least 10% of your income:

Wealth beyond your wildest dreams is possible if you follow the golden rule: Invest ten percent of all you make for long-term growth. If you follow that one simple guideline, someday you'll be a very rich man. (p. 32)

By saving ten percent of your pay now, you virtually guarantee yourself financial freedom later in life. Only a fool would say no to that. So, start now and don't stop! (p. 64)

Quotes above from Chilton on Investments: The Wealthy Barber.

FREE PDF download of entire book in Chapter 4.

Chilton’s famous personal finance classic - The Wealthy Barber – is a wealth-building parable centered on a finance group based in the Barber’s local neighbourhood.

The first lesson that the finance group learn about money from The Wealthy Barber is what Chilton calls the 10% solution.

The barber declared that he got rich by hoarding 10% of his income each year – investing it in shares and ALWAYS reinvesting the annual dividends.

There’s no doubt this works beyond the parable. The best way a low- or middle-income earner can predictably and systematically get rich is to consistently save a defined percentage every month – 10% is an ideal starting point. While 10% will ensure a retirement of comfort - a 15% or 20% savings rate will ensure a retirement of abundance saved from an average US household income – superabundance if saved from a high earner’s salary.

So, this then is the ‘saver investor’ pathway to riches and this easy, predictable, open to all, wealth-building system - is the best pathway available to us today.

Let’s Do The Maths on the Saver investor Pathway:

According to Sentier Research - the median household annual income in the United States in June 2018 was $62,175.

So how much can a person who consistently saves and invests 10% of this pre-tax figure expect to retire with after four decades work?

FROM: June 2018 Median Household Income:

https://seekingalpha.com/article/4193310-june-2018-median-household-income

SAVING 5% OF MONTHLY AVERAGE U.S. HOUSEHOLD INCOME:

Saving 5% of the 2018 USA average gross income ($259- a month) builds up to $1.4m after 4 decades work – start at 23 years and retire at 63 years:

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NOTE: Over 40 years, you SAVE $124,320- at $259- per month – the rest $1,325.768,12 - is all interest – mainly compound interest.

The important point regarding the above calculation is that over four decades compound interest (interest on interest or reinvested annual dividends) multiples your savings by more than 10+ times the total amount you actually save each month – you save $124,320.00, but this inflates up to $1.440,088.12 providing the annual interest and dividends are always reinvested, and this is what compound interest is all about.

At the normal pension