Wealth 101

Method From Decades Ago to Retire Early

"Money doesn't grow on trees..."

It's true, but that doesn't mean you can't grow your wealth. The usual savings account method is what most people are taught, but nowadays you can't get an interest rate above 1%... If you want to be truly financially free then it's going to take some sort of method to multiple you money on a greater scale.

Low-Interest Savings Account

A savings account is a place to store your money, where it can be kept safe and accessed easily. Banks offer interest on your savings, which is essentially the bank paying you for keeping your money with them. However, the interest rate on a savings account is usually quite low, often less than 1%. This means that even if you save a lot of money in a savings account, the amount of interest you earn will not be very significant, unless you happen to toss a million dollars in there. Additionally, the interest rate may not keep up with inflation, meaning that the value of your money may actually decrease over time. Inflation last year almost 10%! Meaning every dollar you had just sitting in your account is now only worth 90 cents or 91 cents in a saving account.

Wealth Building

Wealth building involves investing your money in assets that can increase in value over time. These assets can include stocks, real estate, businesses, or even a skill set so that you can offer services for more in return. When you invest in an asset, you are essentially buying a share of it, and when the value of that asset increases, your share will also increase in value. The goal of wealth building is to create a diversified portfolio of assets that can grow in value over time, providing you with long-term financial security. You don't have to get into stocks, but on average the market returns 8% every year. With a trained professional your money would keep it's value no problem.

Which is The Better Option

While a low-interest savings account may seem like a safe option, it does not offer the potential for significant long-term growth. Wealth building, on the other hand, can offer substantial returns over time, allowing you to build significant wealth. By investing in a diversified portfolio of assets, you can spread your risk and minimize the impact of any individual asset declining in value.

Wealth building is NOT just for the wealthy. Even small amounts of money can be invested in assets such as stocks or mutual funds, and investing in your own skills doesn't always cost an arm or leg either. With the power of compounding, even small investments can turn into significant wealth over the long term.

We all want that secret hack to long-term financial security. It's really just investing in assets that grow over time that keep the rich so rich. I encourage you to start thinking about wealth building early on, so that you can take advantage of the power of compounding and grow your wealth over time. The earlier you start the quicker you can retire!

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Stay above the money and keep your value,

G. Sidebottom

406 W 34th St. #711, Kansas City, Missouri 64111
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