Most Important Concepts:

• The fees of mutual funds really damage the compounding effect.
• The market/index funds beat mutual funds 96% of the time.
• Whenever you make a mortgage payment, also pay off next month’s principal balance. That second payment is money you’ll never pay any interest on, and you’ll cut the total cost of your home by almost 50%.
• Most important is to minimize losses. If value drops by 50%, you need 100% returns just to make it back.

How I Can Use this Info:

Chapter Recap:

Section 1 - Welcome to the jungle: The journey begins with this first step

1.1 - It’s your money, it’s your life, take control

• You either master money, or money masters you.
• High Frequency Traders are able to identify your desire to buy a stock, buy it right in front of you, and then sell it to you at a micro-profit.
• Success leaves clues. People who succeed at the highest level are not lucky; they’re doing something differently than everyone else does.
• We all have something we want, but to get there, we have to go through a jungle filled with challenge.

1.2 - The 7 simple steps to financial freedom: Create an income for life

• Leaders anticipate what is coming, losers react when it comes.
• It’s not realistic to finance a 30-year retirement with 30 years of work.
• In 1950 there were 16.5 workers paying into the social security to support one person getting benefits. Now it’s 2.9 workers per recipient. Not sustainable.

1.3 - Tap the power: Make the most important financial decision of your life

• Trading your time for money is just about the worst trade you can make.
• You always find the best deals when there is maximum pessimism.