Start Up Blog

Top 10 financial hacks

Posted in entrepreneurship by Steve Sammartino on April 13, 2011

There is no point being a successful entrepreneur, or selling a startup if we have no idea how to handle the money we get. So here is my top 10 financial life hacks.

  1. Spend less than you earn, no matter what that amount is. The net result is happiness.
  2. Allocate cash to savings & investments before anything the day you get your profits, pay or dividends.
  3. Never go into debt for anything which does not appreciate in value.
  4. The real definition of an Asset: Anything that puts money in your pocket. The accounting definition of an asset is flawed.
  5. Do not trade stocks. Trading makes the broker and tax man rich and you poor.
  6. The greatest financial instrument is ‘compounding’. It only happens when we hold assets, not by trading them.
  7. If you can’t afford a consumer product in cash, you can’t afford it.
  8. There is no such thing as ‘financial engineering’. It was invented by Wall street to trick you.
  9. The best type of share investment is an Index Fund. They are investments in civilization. If that fails, we have bigger worries than our money.
  10. Invest more in education than entertainment & ‘things’ and you will outdo society financially.

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Wasting money

Posted in entrepreneurship by Steve Sammartino on July 5, 2010

As we embark on new projects we hope will be the one, a lot of money gets invested. Hard earned money we’ve saved from busting out a living on week days. The left over money after we’ve paid the mortgage and paid the bills. Sadly, much of it never returns.┬áIt’s easy to feel cheated when our projects don’t pay off.

But let’s for a few moments consider the alternatives:

A flat screen TV

Dinner at fancy restaurants

A better car

A new gadget for the kitchen

Other stuff which will eventually gather dust

…….

Turns out the money we lost in startup projects was never really wasted. In fact, it wasn’t lost at all. It’s the investment we have to make to get that elusive win. The alternatives are very poor substitutes with zero chance of a return. Which means we should never be afraid of investing in our projects. What we should really be afraid of is succumbing to pointless consumption.

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