This is How Badass People Build Their 6-Figure Financial Empires
#1 — You earn different amounts of money in different places
I’m going to sleep when I get rich.
I want to have more money than my ancestors.
In one way or another everyone has had these ideas in mind.
And when we look back on our lives, even when we are young in the prime of life, there are always things we wish we had known before.
And that’s all right.
For example, I wish I had developed my alpha male skills further and done well with social engineering (for biz of course).
There are also lessons about money that if you learn faster than others, you will be a thousand light-years apart from people your age.
You earn different amounts of money in different places
This is very simple to understand.
For example, if you are just shoveling your surplus money into a savings account or time deposit, you are not giving that money the chance to bear fruit like an old tree.
With interest rates as low as they have been in recent years, they are unlikely to keep up with inflation, so those euros, dollars, or pounds lose purchasing power over time.
Consider the table below of returns on various investments over more than 400 years:
That way it is easier for you to get a better growth rate in a savings account than in lottery tickets, but that money will probably grow much faster if you put it into the stock market.
Get out of the herd
I have written many times about doing things that most are not willing to do. Hidden Knowledge.
However, if you have some time and patience, you can probably accumulate 6 figures without making sacrifices or needing luck.
If you are only 8 years away from retirement, it may be like grinding up Mount Everest to save a million dollars, but you can probably still improve your future financial security by saving aggressively and investing effectively.
If you have children or grandchildren, you can start teaching them how to invest early on, because they have an even better chance of making big bucks. Time is in their favor.
Being a badass investor is not like being a soldier in the US Army, it is very simple
So… Stock market and financial markets. This may seem complicated if, like me, as a 20-something, you don’t know much about investments. Or if you have not yet invested your first $100.
It can take a long time to have bulletproof investments, but there is a very good and easy way to invest in a cheap and broad index fund. Call it lazy investing.
Don’t despise index funds, as they tend to outperform most mutual funds run by financial professionals who make a fortune doing so. In 2019, the S&P 500 outperformed more than 90% of large-cap mutual funds over the past 15 years.
Best stocks are those that you expect to grow faster than Wall Street expects
If you knew me 3 years ago, you would say I sold my soul to the devil. I made many mistakes in investing.
One mistake was that I often neglected boring investments in favor of more exciting investments. I used to buy more exotic assets than companies that were more than 100 years old on the market.
But when I look at my portfolio now, many years later, while some boring companies did well for me, many uninteresting companies performed as well or even better.
It is very important to adopt this kind of money mindset if you want to save significant amounts of money.
These money and financial epiphanies of mine may not all be new to you, but consider at least improving your financial situation.