How to Build More Wealth With Less Money

3 Tricks Billionaires Use to Help Protect Wealth Through Shaky Markets

“If I hear bad news about the stock market one more time, I’m gonna be sick.”

We get it. Investors are rattled, costs keep rising, and the world keeps getting weirder.

So, who’s better at handling their money than the uber-rich?

Have 3 long-term investing tips UBS (Swiss bank) shared for shaky times:

1. Hold extra cash for expenses and buying cheap if markets fall.

2. Diversify outside stocks (Gold, real estate, etc.).

3. Hold a slice of wealth in alternatives that tend not to move with equities.

The catch? Most alternatives aren’t open to everyday investors

That’s why Masterworks exists: 70,000+ members invest in shares of something that’s appreciated more overall than the S&P 500 over 30 years without moving in lockstep with it.*

Contemporary and post war art by legends like Banksy, Basquiat, and more.

Sounds crazy, but it’s real. One way to help reclaim control this week:

Skip waitlist.

_{*Past performance is not indicative of future returns. Investing involves risk. Reg A disclosures: masterworks.com/cd}

The $23 Payment That Cost Me a Fortune

So there I was, long-haired, leather jacket wearing, twenty-something years old, standing in that music store with an $800 amp I couldn’t afford but totally “needed.” The salesman hit me with the magic words: “Just $23 a month.”

I signed. Of course I signed.

What I didn’t realize at the time wasn’t just that I’d pay way more than $800 for that amp. The real kick in the wallet? Every month I was making that payment, I was missing out on something way more powerful than distortion and reverb. I was missing out on compound growth.

See, that $23 monthly payment wasn’t just costing me interest. It was totally stealing my future.

The Math Nobody Shows You at the Store

Here’s what really gets me jacked up about the whole “low monthly payments” scam. It’s not just about all the interest you pay. That’s bad enough, right? Paying up to 50% more for something over time because you couldn’t wait? Yeah, thats a punch in the gut.

But here’s the part that’ll really make your head spin. Every dollar you’re sending to that finance company, credit card company, or bank is a dollar that could totally be working for you instead. And the earlier those dollars start working, the harder they work. Those dollars are actually worth more!

Let me break this down with some numbers that actually matter.

Why Starting Early Crushes Everything

I want you to meet two people. Let’s call them James and Kirk. IYKYK. Both of them are smart enough to invest. Awesome! Both of them choose solid, boring index funds that average about a 7% return. Both of them invest the same amount per year when they’re contributing.

But there’s one massive difference.

James starts at age 22. A young pup and fresh out of college. He’s barely making enough to cover rent, but somehow manages to scratch enough together to invest $5,000 a year. James does this for, let’s say, 10 years from age 22 to 32. That’s it. Then James stops completely. In that ten years has $50,000 total invested. He doesn’t add another dime. Just lets that money sit there and grow and compound.

By age 62, James will then have about $750,000!

Let that sink in. Fifty thousand dollars turned into three-quarters of a million! And, James stopped contributing at 32!

Kirk starts at age 32. Same age, and begins to invest when James stopped. Kirk invests $5,000 every single year from 32 to 62, or the year he retires. That’s 30 years of consistent investing. Kirk puts in $150,000 total! Are you following? That’s three times what James invested.

By age 62, Kirk has about $505,000.

Wait, what? Yeah, you see that correctly!

Kirk invested triple the money but ended up with almost $250,000 less. How is that even possible?

Time Beats Everything

This is the power of compound interest, and it’s why starting early is literally worth more than investing more later.

Those early dollars get more time to grow. And when your money earns returns, those returns start earning returns. Then those returns on returns start earning their own returns. It’s like the financial equivalent of a guitar feedback loop hahah! Instead of annoying your neighbors, you’re building wealth.

Here’s the brutal truth about my $23 monthly amp payment. If I had invested that $23 every month instead, starting at age 23, for just those four years it took me to pay off that stupid amp, I would have put away about $1,100.

Yeah, that’s not too impressive, right?

But if I’d left that money alone in a boring index fund averaging 7% return, by the time I hit 62, that $1,100 would be worth over $11,000. One financing decision. One amp. Ten times my money just sitting there growing. And that’s being kinda conservative.

What If You’re Not 22 Anymore?

Look, I get it. You’re reading this thinking, “Great, Chris. I’m 35. I missed the boat.”

Wrong. The second-best time to start is RIGHT NOW! Yes, those 22-year-olds have an advantage. But a 35-year-old who starts investing today will absolutely crush a 35-year-old who waits until 45. The math still works. Time still absolutely matters.

Here’s the thing, every month you’re making payments on stuff you financed, you’re choosing debt over wealth. You’re choosing to make those credit companies rich instead of making yourself financially free.

Read to the Full Article Here

Other Stories

Thanks again for following along! Keep those Horns Up, my friend 🤘 🤘 And please share this newsletter with those you think would find value!