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Creating a Snowball Effect
The standard way we think about earning money is through hourly pay and salary. At some point, you may have realized that you’ll never be able to live the life you truly want to live with these financial conditions.
You’ll always be trading your time for money. This can be a vicious cycle if unchecked for too long.
This is why executives get paid mostly in stock as this “equity” will make them rich. Assets are king because the growth can be endless while the salary amount is finite.
When you’re young, it seems hard to acquire assets that can grow and compound.
I believe even with very little money to your name, you should begin creating your snowball effect.
But first you need to understand on a high level what your money funnel should look like:
Trade your time -> 2. for US dollars -> 3. to invest in assets (stocks, real estate, crypto)
It’s a shame that most people are stuck trading their US dollars for their basic needs and can’t grow their wealth by having any leftover capital for assets.
The only way people can get out of the vicious cycle of trading time for dollars is by freeing up enough capital for assets. Because assets can grow without your time and energy. They work while you sleep.
As the saying goes, make your money work for you.
Deploying your capital into growth assets, ultimately allows you to free your time: assets grow your US dollars which in turn means you need to trade less time to have the same amount of money.
When I first graduated college and started having a salary, I kept all my money in cash that I was able to save. I truly had no idea where it should go if I wasn’t spending it, so it just sat there…utterly useless.
Fast forward 4 years later, and I’m laser focused on finding ways where I can deploy my capital to work for me.
I’ve managed now to move nearly all my capital into stocks and cryptocurrencies that I believe in including Tesla and Bitcoin.
These two assets have allowed my capital to grow which will in turn help me have more control over my time down the road when I choose to access that capital.
Over the course of 2021, I will plan to share some of my latest investments with you all as I look to transform my own life and build my snowball effect.
My goal is to continually make great investments that I can hold onto and allow my hard earned money to work for me. I invite you to join me on this exciting journey ahead!
If you enjoyed this message, one of my favorite articles on this topic is as follows: The Freakishly Strong Base