How the Rich Get Rich and You Can Too

The media loves to push a narrative of scarcity, making us feel powerless while the wealth stays with the 1%. But the truth is, the world is full of abundance.

Now look, we know wealth isn't the ultimate goal, but it's a powerful tool for enhancing life—for ourselves and others.

You might find yourself asking, "How do individuals actually amass their fortunes?" 

It's a question that piqued our curiosity, leading us to delve into some fascinating IRS data.

Surprisingly, the statistics reveal that a mere 8% of the wealthy accumulate their riches through traditional salaries and wages.

When you consider the challenge of climbing the financial ladder on a fixed income—meticulously saving a slice of each paycheck for retirement, all while wrestling with the relentless tide of inflation and unforeseen expenditures—it's clearer why so many Americans face the reality of living paycheck to paycheck and enduring financial struggles.

Now, let's dive into the wealth-building strategies of the affluent.

The rich have a knack for funneling their money into assets that not only generate income but also catalyze the accumulation of more cash.

This isn't just random luck; it's a strategic cycle that bolsters their wealth. They use the returns from their assets to snap up even more income-producing investments.

The contrast is stark when compared to the average Joe, who might inadvertently invest in liabilities. Picture swiping a credit card for that shiny new handbag or an impromptu getaway that's really out of reach financially.

These decisions lead to ongoing expenses that drain their wallets, perpetuating a need for more liabilities just to stay afloat. It's an all-too-common and harrowing financial merry-go-round. 

Without income-producing assets in your portfolio, breaking free from this cycle is tough, leaving many in a perpetual state of financial strain.

You might be wondering how to embark on the journey to financial empowerment. The initial move is crafting a vision for your life—pinpointing the essentials, the challenges you intend to conquer, and the aspirations you aim to achieve to build the life you desire--we call this a "go forward plan".

Aligning your daily habits with your ambitions is essential. If you want to be an entrepreneur, thinking you can work just an hour a day on your venture while spending the rest of your time playing video games is a mistake. Success requires mastering your time, energy, and finances. This often means saying no to distractions and keeping your focus on the goal.

Choosing your circle of influence is also vital. There's wisdom in the saying, "Show me your friends, and I'll show you your future." It's not about flaunting wealth; it's about surrounding yourself with people who will uplift, support, and foster your best interests.  

Following this, bolster your financial literacy. Understanding the mechanics of money is essential to earning it. Implementing self-discipline is key—position yourself to succeed by reframing your mindset from "I can't" to "I don't," empowering rather than limiting yourself.

Identify mentors who can illuminate the path to success and happiness. This is where working with a vetted Money Pickle Advisor can really help.

Lastly, embrace a mindset of abundance: give generously and open yourself to receiving, and through this cycle, you contribute to the well-being of others and enrich your own life.

Here's to seizing the week, making an impact, and discovering peace in your pursuits.

Cheers!

The Money Pickle Team