Real net worth isn’t taught…
The book Set For Life truly adjusted my mindset concerning true wealth. Retirement accounts are not true wealth. Why? I cannot access that money right now without incurring a monetary penalty.
True assets are brokerage positions, cash, real estate, and businesses.
True assets should be acquired steadily the ambitious aspiring early retiree, which is defined as a financially free person.
If you have 2 million in retirement accounts when you are 45 years old, you’re not financially free. You’re still a wage slave. Why? Those 401K assets are not easily accessible. It’s impossible to become financially free when a person’s entire net worth is tied up in a 401K and a primary home’s equity.
How crazy we’re all told growing up that saving all your money in a 401K and buying a primary residence to live in is THE way to spend money and create wealth! It’s hogwash!
Alas, to play devil’s advocate, instilling such a belief in every single young person keeps the common people docile their entire lives. A docile, dependable employee is the only way to build a business after all. Big corporations probably gained influence in the academic sector adjusting the topics and the type of education teachers provide their students. The sort of education that ensure’s year after year a ripe, robotronic group of people enter the salts mines, work for 40 years, then die with no money.
God forbid these same employees start putting their money to work for them and start building their own businesses in real estate and technology. For that would me no more employees!
Dear reader, going your own way, managing your own money, being self employed is the proper path! I understand self employment takes time to build, so while you’re figure that part out, maximize your income in a career that is performanced based.
Not a career that is hourly or salary, but merit based. This line of work provides the highest opportunities for income, professional growth, clients, and power.
The first 100K of real net worth is the hardest to acquire. After that, wealth generation starts to snowball. Your processes get better, your experience widens, your network grows, and your wealth grows larger and larger.
My favorite type of investing strategy to increase real net worth is house hacking. It works!
In my opinion every single young person not living in LA, NYC, or San Diego should be house hacking ASAP. Then repeat the house hacking process year after year, growing your empire by at least 1 property every year with owner occupancy financing.
Rinse and repeat this real estate investing strategy until you are financially free to do the next big thing.
Do NOT buy a luxury home. Do NOT buy a primary home to live in if early financial freedom is your goal. The math just doesn’t add up doing this.
House hack instead.