Building wealth is a game that can be mastered by understanding a small number of key rules.
Time for a thread 👇🏽👇🏽
Time for a thread 👇🏽👇🏽
1/ There is a difference between being rich and being wealthy.
Being rich means that you can buy the things you need and want.
Being wealthy means you never have to worry about money.
Being rich means that you can buy the things you need and want.
Being wealthy means you never have to worry about money.
2/ The first goal of money is to become rich, but the goal that ultimately matters is becoming wealthy.
When you're wealthy, you can enjoy true freedom, help others, and solve any money problems.
Being rich means you can splurge. Being wealthy means you're free.
When you're wealthy, you can enjoy true freedom, help others, and solve any money problems.
Being rich means you can splurge. Being wealthy means you're free.
3/ The key to getting wealthy is to understand the game of money. Here are the rules:
- Spend less than you make
- Create multiple streams of income
- Invest, rather than save
- Be disciplined & patient
The rules are simple to explain, but hard to execute.
- Spend less than you make
- Create multiple streams of income
- Invest, rather than save
- Be disciplined & patient
The rules are simple to explain, but hard to execute.
4/ Rule #1 of Building Wealth: Spend less than you make
Too many people live outside their means. Every dollar you spend is one less dollar you can invest.
And spending more than you make will leave you in debt, which is incredibly hard to overcome.
Be frugal & stop consuming.
Too many people live outside their means. Every dollar you spend is one less dollar you can invest.
And spending more than you make will leave you in debt, which is incredibly hard to overcome.
Be frugal & stop consuming.
5/ Rule #2 of Building Wealth: Create Multiple Streams Of Income
The fewer streams of income you have, the more risk you're taking. Diversify your income so you never grow dependent on only one.
You want active income and passive income. Make money so you can grow money.
The fewer streams of income you have, the more risk you're taking. Diversify your income so you never grow dependent on only one.
You want active income and passive income. Make money so you can grow money.
6/ Rule #3 of Building Wealth: Invest, Rather Than Save
The financial system punishes savers and rewards investors. This is done by systemically devaluing the US dollar every year.
If you save, your money becomes less valuable. If you invest, your assets become more valuable.
The financial system punishes savers and rewards investors. This is done by systemically devaluing the US dollar every year.
If you save, your money becomes less valuable. If you invest, your assets become more valuable.
7/ Rule #4 of Building Wealth: Be Disciplined & Patient
Everyone wants to get rich quick, but few are willing to get rich for sure. This isn't rocket science.
Be unemotional & leverage compound interest. It can literally be life changing.
Do hard things to get an easy life.
Everyone wants to get rich quick, but few are willing to get rich for sure. This isn't rocket science.
Be unemotional & leverage compound interest. It can literally be life changing.
Do hard things to get an easy life.
8/ Most people fail to build a life of wealth because they either (a) don't understand the game of money or (b) they don't have the discipline to do the hard things necessary to win.
Anyone can do this if they educate themselves and put in the work.
Anyone can do this if they educate themselves and put in the work.
9/ Here is the math behind building wealth:
- Initial investment: $1,000
- Monthly investment: $500
- Annual investment return: 9%
- Time period: 35 years
Total value of capital upon retirement: $1,314,678.50
- Initial investment: $1,000
- Monthly investment: $500
- Annual investment return: 9%
- Time period: 35 years
Total value of capital upon retirement: $1,314,678.50
10/ The number one mistake that people make make is that they try to save their way out of financial troubles.
Saving is a fool's game. The system is devaluing your dollars, so you're losing even though you think you're winning.
Find a way to make more money, so you can invest.
Saving is a fool's game. The system is devaluing your dollars, so you're losing even though you think you're winning.
Find a way to make more money, so you can invest.
11/ Everyone starts life in a different position.
Some are wealthy & some are poor. Some are fortunate & others are not.
Education is the great equalizer. When you understand the game of money, you can do exactly what rich people do.
They don't save. They invest.
Some are wealthy & some are poor. Some are fortunate & others are not.
Education is the great equalizer. When you understand the game of money, you can do exactly what rich people do.
They don't save. They invest.
12/ Do these four things to build true wealth:
- Spend less than you make
- Create multiple streams of income
- Invest, rather than save
- Be disciplined & patient
There is no get rich quick scheme. Just a disciplined life of doing the right things consistently.
- Spend less than you make
- Create multiple streams of income
- Invest, rather than save
- Be disciplined & patient
There is no get rich quick scheme. Just a disciplined life of doing the right things consistently.
End/
If you learned something today and want to learn more about money, the economy, and building wealth, I write a daily letter to 50,000+ investors.
Subscribe here: pompletter.com
If you learned something today and want to learn more about money, the economy, and building wealth, I write a daily letter to 50,000+ investors.
Subscribe here: pompletter.com
