All I can tell you is that in order to get rich you need to save and diversify assets. I don't know of any stupid little equation models that will magically make you a billionaire, I do know that you need to work, save, diversify, spend less than what you have and never go into debt. Beyond that it's anybody's game.

>>14

Never go into consumer debt. There are many kinds of debt, and debt that pays you is good debt.

For example, let's say you take out a million dollar loan to buy a self storage place somewhere near you. Well, that loan has a payment of 10k/mo for the next 20 years, but your self storage business has an income of 20k/mo leaving you +10k/mo at the end of the day. That debt is good debt because it's making you money.

Avoid consumer debt. Don't take out car payments, don't buy a house with a mortgage, and only spend on your credit cards what you can pay off at the end of the month.

If you avoid those three major things (car debt, house debt, and credit card debt) you'll already be light years ahead of most people.

>>28
Excellent point my friend. I consider that more of an investment than debt but this bring about another great point. Never mix business with pleasure! If I were to take out a million dollar loan I would never dip into that fund no matter what. Not for anything, not even for a "Sure Thing", because there is no such thing.

>>28
>don't buy a house with a mortgage
I don't quite agree with this. When you're paying into a mortgage you're building equity, and at one point you'll stop paying for your mortgage, and be able to sell it (probably at a higher price than you paid). When you pay rent that money's gone forever. Another bonus is that unlike rent, your mortgage won't (shouldn't) increase over the years.

I mean just think about it - if your rent is $1,000/mo, and you live in that place for 5 years, that's $60,000 that's never coming back. Now if you get a $100,000 house with a mortgage, that same $60,000 means that if you decide to sell, you only have to pay the bank $40,000 of the $100,000 you just made on the sale, and the rest is yours (obviously those numbers are an oversimplification, considering tax, interest, insurance, fees, etc. Either way it'll end up being a hell of a lot more than the deposit you may or may not get back from renting).

>>51

Okay, I'll admit that never is a strong word. However, a house is, like a car, a liability. Your equity is going to be spent on keeping it up, paying property taxes, and covering all of the other expenses associated with owning a house.

When you rent all that headache, and all that expense, is someone else's problem.

>>13

Look into the Black-Scholes pricing model. Its the basis for option pricing.