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For me, building wealth was not a matter of becoming rich, because I stopped short of what I would consider "Rich."  What I wanted was financial security, enough saved and invested so that I wound not HAVE to work.  It is a tremendous relief knowing that if you become unemployed that you can easily survive.  Or better yet, have the flexibility to pursue your dreams.

My dream, from the time I entered the Academy, was to retire by age 30, then devote my life to helping people.  It actually took until age 34, due to my last relationship at the time, and family obligations.


The Wealth Curve can be very steep in your favor, but it totally depends on you starting to save and invest as soon as possible, like when you are 16 years old or younger.  Saving $1 a week as a child is a great start.

Let us say that all you could afford to save and invest was $12.50 a week.  If you start a Saving's account and save at least $12.50 a week, at 4% interest (ie. GE Interest Plus account, etc), you would have $25,556 in 25 years.

But if you invest that $12.50 a week in a Mutual Fund (using an 8% annual return), with automatic reinvestment of dividends and capital gains, you would have $47,184 in 25 years.  In reality, I have been realizing average returns ranging from 12 to 18% in most funds, averaged over a 22 year period, including past recessions, but obviously the future can not be guaranteed. Over the long run, the bad times average out with the good times.

Then, if you could save $100 a month ($25 per week), at 8%, it would be $94,246 in 25 years. $200 per month at 8% would give you $188,493 in 25 years. If you push the years until retirement date, the number are amazingly high.

It is a steep curve but it is totally driven by how early you start. Almost everything I have is from my first 5 years of employment, AT MY LOWEST WAGE EVER. I saved every penny I could and lived like a monk for 5 years. I retired at age 34, but could have been sooner if not for boyfriends with VERY expensive tastes. LOL


Your best Savings and Invest plan is to stay out of CONSUMER DEBT. If you have $10,000 to either pay off your Consumer Debt, or Invest, the interest you pay to service your Consumer Debt will be much greater than you can earn by investing the money.  Pay off all Consumer Debt, and do not incur any new Consumer Debt.  Then invest from that point.

  • PAY-OFF ALL OF YOUR CREDIT CARDS. MAKE THIS YOUR NUMBER ONE PRIORITY.  This is your best Savings Plan.  Be a lender not a borrower.

  • NO Credit Card Debt. Always pay off your credit card in full every month.  If you can't do that, don't buy it.  NOTE: It is Ok to do a few big purchases (for which you already have the money) on credit to build you Line Of Credit for mortgage approval purposes, and for emergencies.

  • NEVER go into debt (no car loans, etc.) except for a reasonable mortgage, with at least 25% down, and not until you have been well employed for 5 to 10 years (depending on salary & amount already invested). Save the money to buy things like a new TV. If you cannot afford to buy something now, wait until you can afford to pay cash. Pay cash for a new car, unless an extremely low interest rate is offered.

  • Wait until you have a solid financial foundation before having children, fostering children, or adopting children.  Otherwise you could be prevented from ever having the resources to build the foundation.  The average cost for raising a child is currently (2010) around $13,000 to $14,000 per year ($1,083 to $1,167 per month), or $234,000 to $252,000 for 18 years (does NOT include college).  I was a Foster Parent for two children.

  • In the first five years, live like a monk, invest every penny possible. The sooner you start to seriously save and invest, the sooner you will be able to retire.  Use restraint in buying your toys and cars for five years, and save every penny you can.

  • Consider calculating a realistic amount of money you can afford to set aside and save each month. Invest first and live off the rest. Do this for at least the first 5 to 10 years, to establish your financial base.

  • Fully utilize any Employer Benefit Plans, such as 401k, 403b, stock matching, or KEOGH plans, contributing the Maximum allowed. If none are offered, start your own IRA (very easy to do).

  • Invest an additional amount of 15% of your after tax income, or higher (25% would be nice).

  • Seriously consider setting up an automatic monthly investment plan, which automatically takes a fixed amount of money from your checking account each month and invests it into an investment, such as a Mutual Fund. All of the major investment firms will do this (like American Funds, Vanguard, Franklin, etc).

  • Diversify your portfolio.

  • NEVER EVER deal in Futures, Options, Day Trading, and Real Estate Partnerships, unless you make a living out of it.

  • Don't OVER-manage your investments. Commissions will eat away at your profits. Choose your investments for the long-term.Investigate Dollar Cost Averaging1

  • Calculate a solid and realistic estimate of how much you will need to have invested, to generate enough income for you to continue living in the style you have grown accustomed to, after you retire. You would be surprised at how little a million dollars will take you (depending on where you want to live). You could end up needing a minimum of two million dollars, at time of retirement.

  • For a minimum of one year, keep track of every dollar you spend and what you spent it on. Know where your money is going. If you are shocked at finding out that you are spending $3,000 per year on coffee drinks, you can reduce it to something you can live with. Do this again at each major change of your life, like a new job or a major promotion, a move to a new city, after purchasing a house, etc. I have tracked every I have spent since age 13, starting in double-entry books, then going to software. By controlling the small stuff, I can afford the big stuff I want.

  • Make up a Budget. Prioritize what is most important to you. CONTROL how and where you spend your money. A lot of small wasteful items can add up to big bucks, very quickly.

  • Never consider your home as part of your investments. Never count on retiring off the sale of your home.

  • Keep an Emergency Fund, set aside from savings and investment. I recommend setting aside a minimum of 25% of one year's worth of take home salary, which you can build-up over a number of years. If you loose your job, this could keep you off the streets.  Many people are a few paycheck away from being homeless.

  • Once you have established your financial base, consider investing in Tax-Free Securities or Tax-Free Mutual Funds to keep your tax burden down. They earn less but are not taxed, and may keep you out of the next higher tax bracket.

  • Having a filthy rich partner does not get you off the hook. You should be responsible for your own basic savings, investments, and retirement. You will feel better about yourself and you will feel more secure. Divorce could leave you penniless otherwise.

  • Educate yourself on your investments. DO NOT TRUST OTHERS TO MAKE MONEY FOR YOU. Seek advice, but make your own decisions of what to buy and what to sell. If something looks like it is too good to be true, then the probability is very high that it IS too good to be true.

  • Do not Leverage your stock Investments. Do not Borrow money to invest. This is very high risk and you can loose everything.

  • Do not include Social Security or Medicaid benefits in your retirement calculations. If you actually do get something, it can be a bonus.

  • Some companies have retirement plans that are separate from their 401k or 403b plans. Do not rely on that plan's benefits. These retirement plans are not guaranteed, and can be reduced, raided, or discontinued. I worked for Exxon and they raided 1.1 Billion dollars from the Retirement Fund and shut it down. They gave us all a small Annuity. The same goes for company Health Care Plans for their retired workers. You cannot rely on such things.  Plan for enough retirement that will at least allow you to survive, if you loose the above-mentioned benefits.

1 Dollar Cost Averaging: An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving.

It's a strategy that's sometimes known as the constant-dollar plan. By investing a fixed amount at set intervals, the investor buys more shares when the security price is low and less when it is high, theoretically reducing the overall cost of the investment.</ol>

©Matthew Barry 2005, 2009, 2010, 2011, 2014

The "Fruit of the Vine" illustrates well the art of Wealth Building. This is advice gained from 40 years of Saving and Inventing in Equity, Fixed-Income, and Tax-Free Securities, Real Estate, Precious Metals, Currency, Money Markets, etc. I have experience in Accounting, Estate Planning, and Financial Planning. I have owned or partnered in Subchapter S Corporations, Limited Liability Partnerships, and have managed Trusts.

I was able to retire for life, on my own savings and investments, at the age of 34. I did not have any unusual windfalls. It was all from basic sound Saving and Investing principles.

I have broiled it all down into a form I hope will be understood by all, no matter your lack of experience or expertise in Financial Planning, Saving, and Investing.

I cannot stress enough the importance of starting immediately. The earlier you start, the more wealth you will accumulate for EARLY RETIREMENT. It is a curve you need to get under earlier, rather than later. Waiting 10 years before retiring is disaster.

If you are only 12 years old, start saving now. I put myself through school, and my savings at age 18 got me in the doors with the tools I needed. Scholarships, Grants and a small Loan did the rest.

I wish you all the best of luck in all of your endeavors.


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Patrickjkiley Featured By Owner Mar 22, 2010  Hobbyist General Artist
Alas, financial stability seems a very distant concept right now.
inspiredcreativity Featured By Owner Mar 24, 2010  Professional Digital Artist
Yes, my income has dropped by two-thirds. When I was planning for when I could retire (quit) for good, I was extremely conservative. So I am Ok, but living frugally.

When money is very, very tight, people tend to be surprised when we track expenses. I ask them log every single penny they spend. They typically find out the large amounts of money going to small unnecessary things. For example, US$1,300 a year on coffee drinks, $259 in unused phone service, Premium channels that are seldom watched (renting it online is cheaper).

The forst step is to find out exactly where every penny you spend goes, then managing that. All my life, I never buy anything I cannot afford to pay cash for, including cares and houses.

Allmost all I have today is based on my savings from my first 5 years of employed, at my lowest salary. I was a workaholic and lived like a monk. When at home on paid vacation, which was half the year (2 months at sea, 2 months at home), I worked in my own companies, and in trading precious metals and securities overseas, as well as managing investments. Frankly, most of those activities did not make me very large sums of money. There was a learning curve involved.

If you find yourself in credit card debt, the best thing you can do for the future is to focus on paying it off, or having it reorganized. Some people are investing and saving while carrying large credit card balances, but the interest they pay is more than they can earn from their investing. So it is better for them to invest by paying down consumer debt.

My philosophy is conservative, which is to plan for and assume a bad scenario (not necessarily the worst). Most people invest without considering the possibility of becoming disabled by accident, losing their job, etc. Invest advice from professionals is usually about leveraging yourself by borrowing against capital and reinvesting. This is extremely risky in my opinion. Yes it can make you lots of money, and it can also loose you everything. So I take a more conservative approach.

Using my same philosophy, instead of getting a 15 year fixed rate or ARM, I alway recommend buying a house or condo on a 30 year fixed mortgage, then pay the principle each month as if it were a 15 year mortgage. Then if you hit hard times, you can drop your payment down. If you had a 15 year mortgage, you can't drop down on the payment.
oldnewone Featured By Owner Jul 17, 2009
this is really helpful,thanks for posting it!!:nod:
inspiredcreativity Featured By Owner Jul 18, 2009  Professional Digital Artist
You are most welcome. If you have any questions about it, be sure to ask.
oldnewone Featured By Owner Jul 18, 2009
will do:)
imnickle Featured By Owner Feb 21, 2009
thanks so much for this!
inspiredcreativity Featured By Owner Feb 22, 2009  Professional Digital Artist
You are most welcome. I hope it is of some help.

If you can, now is the time to start saving, if only $25 a month, or $15. i know it is tight if you have no job and rely on the parents. Maybe they can help, say it is to help with college.
imnickle Featured By Owner Feb 22, 2009
I think they've already got a college fund started for me, but I'll try to start saving.
inspiredcreativity Featured By Owner Feb 22, 2009  Professional Digital Artist
Best of luck.
cganimation Featured By Owner Feb 17, 2009
inspiredcreativity Featured By Owner Feb 20, 2009  Professional Digital Artist
I could have sworn I answered this, I must be going looney-tunes.

Thank you for the compliment. I hope it serves you well.

Start this very week. Open a savings account and do whatever you can afford, $2.50 a week, its not too little.

Here is an example of the power of saving. If your parents had started a savings account the day you were born, earning 4% interest per year, putting $79 a month, when you turned 18, there would be $25,000 for college. If it was earning 8% in an investment, they would only need to pay in $52 per month to gibe $25,000. It can be done as a tax break for you parents if they had started a College Saving Plan.
Sandy33311 Featured By Owner Feb 16, 2009
This should be mandatory reading in every high school in America.
inspiredcreativity Featured By Owner Feb 17, 2009  Professional Digital Artist
Thanks. I should of done this a while back but just didn't think of it. The rules are so simple. I could have broiled it down to 1 rules, No Credit Card Debt and it would have been the best savings plan around. Darn, I should have said to PAY OFF CREDIT CARDS FIRST. Better edit it now.
Sandy33311 Featured By Owner Feb 17, 2009
Replying to me gave you an idea!!

Yes, the rules are simple. In view of that, you'd think people would learn or just have some common sense, wouldn't you? I don't believe in supporting Visa or Mastercard because I'm seen how their policies have ruined people's credit. (People who can't think for themselves or who have to live in the moment.)

I DO use Amer. Express, however. One has to have a card to buy over the Internet, for example. And it's good security in case my car breaks down or something. But, when you use AMEX, you pay the entire bill when the statement arrives. No interest. I own everything I have. "If you don't have the money to buy it, don't buy it" was/is my philosophy.

If your rules could be taught in high school, imagine how wealthy our country would be! We could eliminate thousands of programs that cost taxpayers so many billions of dollars each year. People would be so much happier, have pride in themselves and could sleep better at night, etc., etc. :hug:
inspiredcreativity Featured By Owner Feb 18, 2009  Professional Digital Artist
Thanks. Your healthy attitude toward credit is fairly rare, unfortunately.

The other thing I recommend to people is to track every penny they spend for at least a year. I have tracked every penny since I was 12 when my Grandfather started showing me about debit and credits and do double-entry bookkeeping. I did it all by hand until Quicken came along.

The idea is to make spending money an active CHOICE rather than an automatic operation. For example, many people will spend over $1,100 a year in coffee drinks. Some people go to the Cash Machine and take out money almost every day and have no idea where all the cash is going. They have telephone features or cable premium channels they never use. So the idea is not to necessarily deny yourself, but to control your spending to what you actively Choose you want. The result can save a few thousand dollars or more a year.

I don't understand why basic financial tools are not taught in High School, like personal budgeting, saving, investing, basic tax law, mortgages, etc. A single semester class could mean financial security for life the majority of kids, and keep many of them out of trouble. Especially when so many kids have credit Cards before 18 years old.

So I agree with you 100% about the need for this in High School.
Sandy33311 Featured By Owner Feb 18, 2009
It would be so, so, so fantastic if it were taught in high school. Imagine!

I used to do what you mention---I kept track of every penny when I first started earning money. It gives you an appreciation, as you point out, for how every cent counts. I don't and have never had an ATM. I'm not going to pay a bank to withdraw my own money! And, I'm very frugal with some things. For instance, I just got on the Internet 14 mos. ago. On other things, like clothing, well...I like nice clothes. My monthly telephone bill is $10 without taxes. They add another $10 in taxes which is maddening. I don't even have long distance, much less caller ID or anything else.

Here in Stockton, the people who are on Welfare have big screen TV's, cell phones galore, telephone and cable service with ALL the features, tons of video games and equipment, etc. And, when they pay their bills, they drive to the creditor to pay it in cash instead of mailing a check. What can I say? It's a shame.
inspiredcreativity Featured By Owner Feb 19, 2009  Professional Digital Artist
My first partner built up credit when he was with me. he would run up a debt, then I would pay it off and he would get another card. He ended up will over 50,000 line of credit, making minimum wage, which was way more than I had. When he spit, he ran every card to the Maximum and declared bankruptcy, then they did it with his partner's cards and had him declare bankruptcy. They spent some $80,000. His partner died of AIDS. He went on to quickly start getting credit again, like buying a TV on credit, then got a credit card after only 3 years (low limit). He eventually went through a second bankruptcy.

Basically, we all pay to support this kind of thing, but who is to blame? He is partly to blame, as he has no spending control. But what about these GREEDY Credit Card companies that keep giving credit to people who cannot afford one, and who keep rewarding being in debt with ever increasing credit limits.

You are I would not be considered good credit risks in their minds, because we have no history of paying credit card debt. That matter more than how much you make. I was making over $100,000, and had no other liabilities, plus a lot of investments and savings, and had trouble getting a card. I also had an American Express but got tired of paying the annual $50 fee (at that time). My boyfriend making minimum wage had a limit 25 times what I had.
Sandy33311 Featured By Owner Feb 19, 2009
Yes---the system is certainly whacked, as we can see from our current financial crisis. Pretty soon the good old USA will be owned by China! As you know, in this society, we help those who don't help themselves and we punish those who are responsible, in addition to making them pay for everyone else.
inspiredcreativity Featured By Owner Feb 19, 2009  Professional Digital Artist
The Fannie Mae and Freddie Mac plan nows includes principle pay-down of peoples mortgages, which is a crock. My taxpayer money is buying people's homes who made crappy decisions in the first place buying homes they could not afford. I thought they were going to be forgiving interest. Already there is talk about how easy it will be to scam qualification for one of these "Refinances" where the bank is given principle payments for the homes to be refinance.
(1 Reply)
JefferDoodle Featured By Owner Feb 16, 2009
All I can say is WOW

this is amazingly helpful!
I will talk to my parents and see if I can set up a savings account or something...

thank you very much Matthew :D
inspiredcreativity Featured By Owner Feb 17, 2009  Professional Digital Artist
Hi Andres,

Thanks. If you wish, when the time comes, if you note me how much you hope to put in per monty (like $5, or $25) by note for privacy, and your interest rate, I can send you some numbers on home much it will accumulate.

The interest rate is almost non existent in a savings account, but once it builds up a bit, you can put it into something making a little more interest, then eventually into a mutual fund, when there is enough for a minimum.

Also, you parents can set up an education trust very easily at the bank or other places I send you info on, which will give them a tax break. It sets money aside specifically for your college education. Ideally it would have been started when you were born, and build up. I am too tired now (been up almost 3 days now).

My partner was just helping put on a patch and I got a hard look at myself sideways an it is a bit horrifying. I felt sick seeing it and don't know why I have not noticed. I look like I came out of a death camp, like skin stretched out a rib cage jutting way out. I weight 128 lbs and am 6 foot tall. My weight was stable until two weeks ago when it took a another drop. Not easy to eat, especially when I keep forgetting. Oh well.
JefferDoodle Featured By Owner Feb 22, 2009
Thanks for the advice man!
I spoke to my sister, she works at a bank, and she told me that mutual fund accounts have a really bad interest rate at the moment, that if someone put in 1,000 dollars they would roughly get only $28 dollars in interest.... so i don't know but she said she could set up a savings account for me easily or a free checking account... so its cool ^^

I'm sorry about your weight... it must be horrible :/ maybe you should set your phone or something to an alarm that goes off when your supposed to eat...?
I hope that helps...

*cough* eat more *cough* lol
inspiredcreativity Featured By Owner Feb 22, 2009  Professional Digital Artist
Some mutual funds are doing very well, considering the environment. This is what you call a buying market where you buy value. This means that market values are actually lower than the book values of companies and fund (depending on the funds). I am actually carefully buying now,as I had a large block of liquid assets waiting for this kind of opportunity.

Like I said before, to get into a good fund or buy actual TF securities, you need to meet minimum starting balances, ranging from $500, $1000, $5000 and up. If you had a regular income, you can start a regular investment plan with only $50, with automatic monthly investment, but you don't qualify for that.

So, as I said before, you need to start with a savings account. Checking accounts are too tempting to spend the money, because it is so easy, so I don't recommend it for your saving plan.

Once you have built up enough money, you can put it into something like GE Interest Plus and earn around 3-4% at current rates. Then from there you may need it for college, if not, you can transfer into a mutual find. I can give you recommendations.


Remember, it is a fallacy that low current rates means a bad investment, since all rates a re currently bad, everywhere. Savings account rates are almost non-existent. The trick to success is to always look for VALUE, buy when it is low. As the economy recovers, some funds will take-off upwards, while some will not.

For now, just SAVE. LOL All the Best.
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