Are you an active or a passive investor? There are fundamental differences between them. One can generate outsized investment returns but put in more work, and the other often generates lower returns and has little ability to control this outcome. If you want to see which one you are and what it takes to change from one to the other, or better yet, utilize the best elements of both approaches, read on.
A vast majority of Americans have nothing saved for retirement. This is a tragedy of epic proportions, but people that DO have retirement savings in a 401(k) or an IRA are probably losing out on incredible potential investment returns and will be paying taxes where it isn’t necessary. If you don’t want to end up in either of these positions, read on.
Most Americans have little to no net worth. Many have enormous debt and live far beyond their income. The idea of saving is non-existent for this group. The U.S. savings rate has been dismal for decades. Savings is how you build capital, and capital is what you use to invest, buy cash-flowing assets, and invest in businesses.
Saving is the first step to creating a capital accumulation plan. Capital is the jet fuel you use for wealth building. Combine a capital accumulation plan with tax advantaged retirement accounts and alternative investments and you have just added plutonium to your wealth building efforts. Here is 4 step plan to begin building capital to create wealth.
Inflation is a hidden tax that devours wealth, and it is wholly preventable. Sadly, most people don’t know what inflation is and believe politicians when they say it is “greedy corporations” exploiting people. Ask yourself a simple question, where were all these “greedy corporations” 4 years ago before we had 41 year high inflation numbers? Understanding inflation is the first step in finding a way to minimize its impact on you.
One of the key points of my trifecta of a Money Outlaw lifestyle is entrepreneurship. I believe every person should be, first and foremost, an entrepreneur. The financial security, freedom, and wealth-building opportunities that come with owning your business are numerous. The easiest way to start entrepreneurship is freelancing. Here is my story and strategies I have used for the last 18 years.