A Hard Money Truth and How to Play it
You’ve heard of the Pareto Principle aka the 80/20 rule?
It states “ roughly 80% of consequences come from 20% of causes”.
Could be 70/30, 90/10 or even 95/5 in certain cases. The specifics don’t matter, it’s the concept we’re after.
And this concept, the 80/20 rule, is a universal law.
So, the hard money truth?
95% of people share 5% of the wealth while 5% hold 95% of it.
Not likely to change.
So, instead of complaining, you have to find the best ways to climb toward the top 20, 10, 5%.
Your next logical question is “how”?
There are only 2 steps.
Create positive cash flow
~ How did you create positive cash flow? ~
Skill building which increased earning potential. And cutting costs where possible. I created a cash flow sheet instead of a budget. What comes in, what goes out & how much we invest. That monthly snapshot tells me everything I need to know.
~ How did you buy assets? ~
I started with my company matched 401K and then opened my own Schwab account. And eventually real estate (Fundrise) and crypto (Gemini). The barriers to entry are lower than ever. Investopedia & NerdWallet are great resources.
That’s the basic gist of how I went from a low 4 figure net worth to a high 6 figure net worth.
You can do it too. Understanding this hard money truth was the first step.
CONTRIBUTED BY Cait Mack