Most of our clients ask this question in their own unique way, and most of them usually have an answer they are expecting to hear: real estate, replacing themselves in the business so they can start another, or bringing on a financial partner so they can scale.
While those are methods and paths to wealth, they are not the ultimate answer. Before I offer the answer, I want to define what wealth is. Wealth is the ability to live and enjoy life without worrying if you can afford it. Below are my unfiltered recommendations for actual wealth creation.
1. Become Healthy
- Allows mental clarity: Running a business is naturally stressful; if your physical body is running effectively, it will be easier to think and make sound decisions.
- Makes networking easier: Healthy people attract more people professionally and personally. Healthy people command more respect from outsiders—vendors, bankers, and clients.
- Reduces medical expenses: Nobody is saying you have to run a marathon, bench press twice your body weight, or do Pilates five days a week. But aging is a part of life, and poor health speeds up all the worst aspects of aging.
Imagine becoming financially wealthy and having a stroke within a year or having to be pushed around in a wheelchair at 70 because you couldn't do 1 hour of exercise 3 days a week. What is the point!
If you're saying to yourself, "Well, I have a condition in my family," then shame on you because you already know you have a problem and are choosing to lean into the excuse. You sound like one of your employees who makes excuses all the time instead of changing their approach.
2. Start or Repair Your Family
Now I am touching a third rail here, but the unfiltered truth is what you signed up for when you opened this article, so here it is with no chaser. Having someone to share your success makes the whole process worth it. Divorce is a money killer; even if you “win” the court battle, you are giving up something and you are still paying lawyers.
When I speak with executives who want to grow their wealth, I ask, “If you can't find a single person on this earth to love you, then how do you plan to convince your employees to like you enough to get you to become wealthy?”
Do people change over time? Of course. But you’re a highly skilled executive who hires people and runs a successful company. Use your skills to find someone for you that you can stand.
I say all of this with the knowledge of knowing I only became successful once I found my girlfriend, who eventually became my wife. She helped me in ways an extra zero on a bank statement could never. Know this: when you become wealthy, you don’t have friends; you have people who want what you have. You'd better find someone who wants you, regardless of your financial abilities.
3. Learn How to Invest Your Own Money
If you make less than $1 million a year in salary, you should be doing your own investing. I tell anyone who will listen, “We have three political parties: the Democrats, the Republicans, and the Financial Party.”
You can learn the basics of investing in one week, and it will earn you more than 99% of what financial advisors could do for you. "But my guy is special," you might say. Here’s a little secret: Advisors invest in what you can do yourself, and just add a fee so they can eat. You run a whole business. You can do this.
"A mailman delivers letters every day, but that doesn't make him a better writer than you. He's just the one handing them out. A financial advisor is no different. They wear the title, know the lingo, and move through the system with confidence. But don't mistake proximity for expertise. They're employees trained to separate you from your money and collect a fee. Never let a title fool you out of your wealth."
I recommend you invest at least $10k in a year. You have it, I don’t want to hear it—that’s 5% or less of your salary. Never take the money out of the market; borrow against your portfolio. All the big firms will let you do this, and it’s tax-free.
The Hard Truth
You're probably wondering why I didn’t say pay your staff more, get better training, or get a consultant. The above three items are way more important and meaningful, and anyone who tells you otherwise is selling you something.
My recommendations are not easy, and you might have failed at one or more in the past, but by reading this, I know you have done hard things before. If you need help or have questions, I love speaking with people about this even more than helping them run their business.