Black Diamond Socioeconomic Organization

First, you must have proper protection in the event of disability, health problems, or premature death.

You should reduce your liability and get out of debt.

You should set aside 3 to 6 months of your income to deal with sudden changes in your job or business or pay for unforeseen accidents or repairs.

And you should save and invest for the long run.

The X-Curve concept is a simple way to show the relationship between taking care of your responsibility and building wealth.

The true meaning behind the X-Curve is responsibility. If people are not responsible, the concept is of no benefit.

For the people who care for their family, if they die too soon, they’ll have enough insurance protection for their loved ones. And if they live too long, they have enough savings to take care of themselves in their later years.

The DIME method offers an easy formula to calculate your life insurance protection need.

One of the most important discoveries in finance is the rule of 72. Take 72 and divide it by the rate of return. The answer is the number of years it takes to double your money.

Capital gains held for  less than one year is a short-term gain and usually taxed at ordinary rates.  Tax now means that any earnings from these accounts must pay tax for that year. Tax later means that money deposited in an account is money that you have not yet paid income tax on. Tax advantaged means that you generally won’t pay tax when you withdraw money from your account.