You can truly control your fate now.
It used to be almost completely out of your hands.
The nature of danger has transformed radically in just a few centuries — we used to have these dangers to contend with daily:
natural illness
animal predation
access to clean water
lack of shelter
lack of food
Today we still contend with the “the natural world” - however modern medicine, agriculture, infrastructure – these have drastically reduced the risk of succumbing to illness, starvation, or exposure.
However, this doesn't mean risk has vanished. It's merely evolved.
The New Risks: Financial Insecurity, Volatility, and Stagnation
In our sophisticated society, the dangers we face are increasingly financial.
Financial insecurity: The inability to meet basic needs like housing, food, and healthcare.
Job loss or underemployment
Unexpected medical bills
Disability or loss of a breadwinner
Volatility: Sudden economic downturns, job losses, or unexpected expenses that can derail our plans.
Market crashes
Natural disasters
Inflation
Stagnation: The inability to grow our wealth or improve our standard of living over time.
Low wage growth
Rising cost of living
Limited opportunities for advancement
These are the modern-day predators we must learn to outsmart.
We can control our fate because we have solved for many of the problems of society, and what remains of risk we have externalized through clever means: money.
Money Rents Happiness and Buys Much Else
“You can’t buy happiness, but you can rent a jet ski.”
The idea that money cannot buy happiness is strange to me.
Happiness is an internal state driven by the light you shine on the world around you… some folks have horrible lived conditions but GREAT lives because of their mental resilience.
That being said, deploying money to change the conditions around you terraforms your environment — removing the elements that would cause most people unhappiness… and in so doing: money solves the happiness problem for most people, in most cases.
It may be more accurate to say “money rents things that people can use to feel happy”… but that’s a mouthful.
Let’s talk about what money does buy.
Money buys assets.
Money is used to build wealth engines.
Money adds power / reliability / efficiency to your existing wealth engines.
Money may not buy happiness directly, but it does provide the means to create a buffer against risks — it does so in three key ways:
Build assets
Owning property, stocks, or businesses generate income and appreciate over time, providing a safety net and potential for growth.
Real estate investments
Stock portfolio diversification
Building a business from the ground up
Invest in wealth engines
Creating multiple streams of income through entrepreneurship, real estate, or investments spreads risk across more surface area and increases our financial resilience.
Rental properties
Dividend-paying stocks
Creating intellectual property or digital products
Enhance existing systems
Upgrading our skills, investing in technology, or expanding our businesses can improve efficiency, productivity, and profitability.
Continuing education and certifications
Investing in automation or software
Expanding into new markets or demographics
Wealth Systems Decreases Risk
By being wise with your spending and focusing that energy toward the building of a powerful wealth system (a series of wealth engines efficiently networked together into your life) you are:
reducing risk in your life
increasing your surface area for success
Risk is everywhere and while it can be mitigated it can never be entirely eliminated.
Hedges (insurance, buying puts, etc..) come with costs and friction. Hiring lawyers to wrap you in paper is expensive, paying them to form a lawfare army to mount an acquisition defense or some other tactical move is orders of magnitude more expensive. Building a team of data engineers to create a competitive advantage for your companies is expensive, etc..
All of these steps actively de-risk your enterprises but they have CAPEX costs to start and OPEX to maintain.
In life as you build out infrastructure (buying homes, investing in multiple companies, joining investment partnerships, developing technology, etc..) that surface area comes with a broad spectrum of costs: simple costs to operate, one-time unanticipated costs, taxation / holdings expenses — the expenses multiply as the surface area grows.
It is vital to build wealth systems to capitalize this infrastructure as efficiently as possible.
Building a robust wealth system is akin to constructing a fortress against the uncertainties of life. It's about spreading your energy wide enough across different asset classes to reduce the impact of any single investment's failure.
Balancing stocks, investing, lending, and real estate. Investing in different industries and sectors.
Beyond what you do to build wealth, you need to evaluate how you are storing your wealth to avoid the toxic impact of inflation and other rapidly evolving risks — many are exploring Bitcoin’s role as a Store of Wealth + a Medium of Exchange, here’s an easy to read analysis of the topic:
While wealth provides a powerful shield against risk, it's important to acknowledge that it comes at a cost.
Initial Investment
Acquiring assets, starting businesses, or investing in education requires capital.
The size of the capital requirement depends on the scenario specifics, we all know the usual subjects:
Saving for a down payment on a property
Raising capital for a business venture
Paying for tuition or training programs
Ongoing Expenses
Maintaining properties, running businesses, or managing investments incurs ongoing costs - at a glance from own life:
Property taxes, insurance, and maintenance
Business operating costs, marketing, and payroll
Investment fees and taxes
Even if you run a tight shop that is properly capitalized there are always unforeseen risks and headwinds — taxes, economic downturns, or unforeseen events can erode wealth rapidly without warning. Changes in tax laws, market fluctuations, technological disruption, natural disasters and legal issues are all daily occurrences.
Building out wealth system infrastructure efficiently involves a combination of strategic planning, smart decision-making, and consistent execution.
Your Wealth System Design
Each of our wealth engines will be built different.
The way we assemble our wealth engines together to form integrated wealth systems will always be a unique process.
You need to start with your goals, and a real assessment of where you are.
What do you want to achieve with your wealth system? Financial security, early retirement, generational wealth? Defining your goals helps you prioritize your efforts and allocate resources effectively.
Not all wealth-building activities are created equal. Focus on those that offer the highest potential return on investment whether it's acquiring income-generating assets, starting a scalable business, or investing in your education and skills (while sharing that journey with a paying audience).
It's easy to get sidetracked by shiny objects or get-rich-quick schemes. Stay focused on your long-term goals and avoid chasing trends or fads.
Systems Are Your Friend
Leverage systems and the automation potential they provide wherever possible.
Set up automatic transfers to your savings and investment accounts, so you consistently contribute to your wealth system without relying on willpower or manual effort. A portion of our received dividend payments are automatically transferred to $BTC as an example. Another portion is automatically reinvested into the purchase of more shares.
Take advantage of financial apps, budgeting tools, and investment platforms that can automate tasks, track your progress, and provide insights to optimize your strategies. Just seeing the numbers grow is motivation to keep making the sacrifices required.
Focus on creating systems and processes that can grow and adapt as your wealth increases. This might involve hiring professionals, outsourcing tasks, or investing in technology to streamline operations.
Your time has immense value - never forget that.
The old advice is right:
Learn Hungrily → Read books, attend seminars, or take courses on personal finance, investing, and entrepreneurship to continuously expand your knowledge and refine your strategies.
Network with other successful individuals → Surround yourself with people who are already achieving what you aspire to. Their insights, experiences, and connections can be invaluable.
Stay informed about market trends → Stay on top of economic developments, market trends, and technological advancements that could impact your wealth system. See where they connect and influence each other. Be prepared to adapt your strategies as needed.
By implementing these strategies, you can build a wealth system that is efficient, scalable, and resilient, positioning you for long-term financial success.
Remember, building wealth is a marathon, not a sprint.
It requires patience, discipline, and a willingness to learn and adapt.
By focusing on the right strategies and continuously improving your approach, you can achieve your financial goals and create a lasting legacy for yourself and your loved ones.
👋 Thank you for reading Wealth Systems. I started this in November 2023 to share the systems, technology, and mindsets that I encountered on Wall Street.
💡The BIG IDEA is to enable the audience to learn while also gaining practical knowledge that can be applied toward the development and refinement of wealth building infrastructure.
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Thank you again!!!
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