How The Rich Get Richer
How the rich get richer…
There are a few things that the wealthy do to continue to get wealthier… but one big thing they do is they own assets and do nothing.
Their money grows for them while they go out & focus on making more money. Look at this simple explanation…
If person A has $10,000 invested & gets a 10% return, their portfolio grows by $1,000.
If person B has $100,000 invested & gets a 10% return, their portfolio grows by $10,000.
If person C has $1,000,000 invested & gets a 10% return, their portfolio grows by $100,000.
If person D has $10,000,000 invested & gets a 10% return, their portfolio grows by $1,000,000.
Same percent return, wildly different dollar outcomes. Stay with me, I want to explain more…
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This is why I keep repeating the same message...
I always keep saying that the most powerful thing you can do for your investments is to keep on investing. That sounds super silly & elementary, but it is key. There is power in just adding bricks to your investments every week.
I add (at a minimum) $500 every single week to my long term portfolio. A few months ago I hit $300,000 invested…
Fast forward to present day, my investments are now worth over $325,000. All from just market returns.
This is exactly how the wealthy get wealthier…. buying & holding with large amounts of principal.
Imagine I had $3,000,000 in investments… that would mean my investments would have grown to $3,250,000… or a growth of $250,000 in just about 2 months.
So for me, rather than trying to get 5,000% returns with high risk options plays, I focus on getting more money invested. This is harder to do, because then you have to go out & increase your income, however, for me, it is the more safe & predictable way to getting wealthier every year.
Look at it like this…
Someone with a $10,000 portfolio would need to get a 500% return (and take on super high risk) to grow their portfolio by $50,000.
Someone with a $500,000 portfolio would need to only get a 10% return (the average return of the S&P 50) to grow their portfolio by $50,000.
So the rich get richer by making A TON of money (easier said than done, but possible), then taking on small amounts of risk every year & let it compound year over year over year over year.
Remember that M1 Portfolio I sold out of & sent to my options account? Well, I just made $1,960 this week on that money selling options. If you want to learn how, 5 people can get my $50 video course for just $35 (or 30% off). For $35 you can learn how to make $100s or even $1000s every single month on the stocks you already own. (Discount code already applied): https://decadeinvestor.gumroad.com/l/rauxb/newsletter
My Buys This Week:
I read a tweet by a Twitter friend of mine who trades stocks. He said to always take profits & buy long term holds with it. So… that is what I am going to start doing.
ETFs: VOO + SCHD +
Tweet of the Week:
The more you invest, the faster your money grows…
It took me 7 years to get my first $100,000 invested.
It took me 15 months after that to get over $200,000 invested.
& just 14 months after that to get over $300,000 invested.
& just 2 months after that to get to $320,000.
The first $100,000 is a b*tch, but you gotta do it.
— Decade Investor💸 (@DecadeInvestor)
Jul 12, 2023
Thank you so much for reading & I will see you next week! Until then, keep buying assets & stacking those dividends. 🙂
- Decade Investor