Tag Archives: wealth

Making Investments vs Creating a Job

Economic definitions:

Investment – an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.  to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

Job – a paid position of regular employment.  a piece of work, especially a specific task done as part of the routine of one’s occupation or for an agreed price. Everyone has goals in life – some will involve being financially secure.  If you are interested in building financial wealth, there are a few basic premises which need to be incorporated into your plans.

1) Your saved dollars must be put to work!

2) Break free from the bondage of financial slavery by changing your spending habits

3) Invest in yourself – education or your own business

4) Learn to manage the money you do have – more money will not necessarily fix your financial problems

5) Debt is a hard task master – avoid it!

6) Use your income from a paid job to make investments that will gain in value while you continue your paid job.  Later you can retire from your job and enjoy your investments.

Many, many economic experts have different ideas about how to invest, so it’s up to you to decide who or what you want to invest in.

David Rankin, Farmer, 1906

In a recent farm magazine, a young farmer was recognised in an article as one of  America’s (United States)  best.  Lo, and behold, he is from Tarkio, Missouri and the article made mention of David Rankin, Missouri Corn King, who died in 1910, but had amassed 30,000 acres, 12,000 head of cattle, and 25,000 hogs. It was reported that he raised a million bushels of corn in a single season, much of it from a 6,000 acre field.

David Rankin, Farmer: Modern Agricultural Methods Contrasted With Primitive Agricultural Methods By The Life History Of A Plain Farmer (1909)

So, i did a quick search online about Farmer Rankin and to my delight, discovered he wrote a small book about his life and how he managed his assets to obtain such wealth.  ALthough the writing is not fancy and sometimes seems disjointed, his simple outline is a great insight into basic business management.  Some of his early income would have been taxed at a 3%-5% rate, but that income tax was rescinded in 1872.  Full on income tax didn’t come about until 1913.

But the crux of his idea, is to invest in time saving modern implements and buy land.  For a time, he was paying 17%-18% interest on money he borrowed to buy land.  Granted, he had some good hits that were just plain lucky, but not always.

You can read his short book here for free online or it can be ordered for a modest amount on Amazon.