A Hard Money Truth and How to Play it

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A Hard Money Truth and How to Play it

You’ve heard of the Pareto Principle aka the 80/20 rule?

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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
Buy assets
~ 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

Read More: Develop A Money Mindset That Creates A Rich Life

Read More: 10 Critical Life Lessons From The Richest Man In Babylon.

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