You want to get wealthy.
What should you invest in at different phases of your financial journey?
Here’s how I would do it.
But first, some ground rules…
I’m assuming you’re starting early in your career without a ton.
And measuring things in US dollars.
There are 5 stages of investment.
I’ll go through each here broken down by net worth.
And what I’d do at each stage:
NET WORTH: $0-100k
You’re just starting out.
Probably with a job that pays OK.
Live beneath your means.
Save a ton: ~12 months living expenses in cash.
So, you can safely start a business in the next step.
NET WORTH: $100k-250k
OBJECTIVE: Cash Flow
The best investing ROI here is a business you start.
Pick one type with a proven model and little capital upfront.
Like an agency, brokerage, productized service, etc.
If needed, do as a side hustle until you can quit your job.
NET WORTH: $250k-1M
OBJECTIVE: Become Unemployable
Your goal now is to reinvest in your primary business.
Grow it. Be all-in.
Invest in joining a CEO peer group.
Reinvest in your business to grow as long as ROI is high.
Keep the rest in cash.
NET WORTH: $1M-10M
OBJECTIVE: Asymmetric Bets
Your business cash now flows well.
If it’s a services biz maybe can’t get bigger.
Invest where you can compound for long periods (20x+ returns) to hit the next level.
Things like product businesses or high variance RE.
NET WORTH: $10M+
OBJECTIVE: Be Antifragile
Some of those bets hit!
Your goal now is to be unkillable.
This means diversification:
· Buy cash flow real estate (directly or as LP)
· Own big %s of other businesses
· Public equities
If you want, do more asymmetric bets.
After 10+ years of work, you’ve made it!
Before I finish, there is something missing:
You MUST invest in personal growth in every stage.
Read a ton of books.
Listen to smart people.
Join groups where badasses gather – try to be the dumbest person in the room.
There are other ways to get wealthy.
Some may be faster or better.
But, this is how I’d do it if I started over today.
How would you do it? Reply below.
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