Summary

The article outlines strategies for wealth accumulation in 2022, emphasizing the importance of personal initiative and specialized skills in an uncertain economic climate.

Abstract

The article "How to Get Wealthy in 2022" addresses the urgency of securing personal wealth amidst ongoing economic challenges such as the pandemic, inflation, and a widening rich-poor divide. It argues that traditional investment strategies like low-fee index funds are no longer sufficient, as they may not even outpace inflation. The author advocates for self-reliance and the acquisition of specialized skills, suggesting that individuals must actively manage their financial future. Key recommendations include setting personal goals, deciding on one's role in wealth creation (whether as a leader, active or passive investor), and joining a community for accountability and support. The article also references historical figures like Abraham Lincoln and Walt Disney to illustrate the importance of vision and perseverance in the face of criticism.

Opinions

The author believes that the conventional advice of saving in low-fee index funds is inadequate due to current inflation rates.
There is a strong emphasis on the need for individuals to take control of their financial destiny, rather than relying on government assistance or traditional financial advice.
The divide between the rich and poor is highlighted as a growing concern, necessitating proactive measures to ensure financial security.
The article suggests that wealth creation can be tailored to individual preferences and circumstances, with roles ranging from being a direct principal (leader) to being a passive investor.
The author values time and location freedom, suggesting that wealth should enable one to spend time with family and pursue personal passions, such as creating environments.
Criticism is seen as a potential sign of innovation or of challenging the status quo, and should not deter individuals from pursuing their financial goals.
Joining a community of like-minded individuals is recommended for accountability and to stay motivated in the pursuit of wealth.
Reading books from successful investors is encouraged as a way to learn from their experiences and strategies.

How to Get Wealthy in 2022

Let’s be honest. If getting wealthy were that easy, everyone would do it.

2022 is making it very clear that you can no longer wait to get wealthy.

The pandemic is not yet over, inflation is high and the weather is wonky. In some aspects this is a time of great uncertainty. On the other hand, it’s really just like any other time in history. The individual factors at play may be a little bit different.

Either way, the divide between the rich and poor is growing wider everyday. It’s imperative that you take whatever steps you can to secure a strong financial future for yourself and your family.

The traditional advice of saving for the long term in a low-fee index fund isn’t going to cut it. 6% is not even beating inflation these days.

So we have to take matters into our own hands and learn how to do it ourselves. It’s imperative that you take whatever steps you can to secure a strong financial future for yourself and your family. The divide between the rich and poor is growing wider everyday.

But how?

As Abraham Lincoln said, “If you give me size hours to cut down a tree, I’ll spend the first four sharpening the axe.”

It take practice dedication and learning a specialized skill in order to make it happen. As I mentioned in my last article, the government has no incentive to help you make more money. In fact, they have decided that it’s better for your primary role in society is to be a cog in someone else’s wheel.

Here’s my takeaway for what you can do to get wealthy in 2022

Set your own north star

It’s easy to seek out and try to follow the most advanced thinkers in an area. And it’s true that there is a lot of wisdom to be gained from others. But after a while, you have to synthesize the information for yourself.

No one can tell you what is a best fit for you, your goals and your personal situation. What you can do is study the people that have created a similar lifestyle to the one you want, and take notes on what you’d like to incorporate for yourself.

In my case, I want time and location freedom. The time to spend with my family as I wish, where I wish for as long as I wish. I also really like creating environments.

There was no rubric for Walt Disney. He also wanted to create environments but no one could see the vision he was creating so he was mocked and criticized. Being criticized happens along the way but that’s just a sign that you’re creating something new…or that you are, in fact, crazy.

2. Decide what role you want to play: direct principle (leader), investor (active participant), co-investor (passive participant) or sit on the sidelines

This is the most beautiful part about wealth creation. You can do it however you please! Being an investor is my favorite. It’s important to recognize that no matter how much money you have, it is finite. So anything you can do to increase your capital is a worthwhile endeavor to fuel more investments. This includes starting a business or providing a service for a fee. It doesn’t matter what it is as long as it generates income. Growing a business isn’t easy. It’s honestly more an exercise in personal growth than it is about the money you earn.

Selecting the role you want to play is critical. Why? Because it determines what actions you will take.

The first option to be the leader — in investing speak this is being the principle. You’re the person that makes it all happen. This means you would be the business owner or lead investing visionary. You’re the one that sets the pace and course for the future. Your biggest job is to create buy-in from others.

Next, you can be an active participant. When tech guys ask for a co-founder, this is what they are looking for. This person isn’t the visionary but they are a fast follower and happy to help implement an existing vision. There is a lot of power here because you can identify something great in its infancy and help bring that to fruition. Landlords fall into this category, for example. They are not creating a new business model, but they recognize that it works and proceed to implement. They actively participate as an investor although they aren’t creating new frontiers like the leader would be.

Finally there is the passive participant. This person does not have the time or interest to create new ideas or actively implement them but they can recognize good work happening and willingly support. This person is an early adopter for a brand or product. They love the idea of what the team is doing so much that they end of being a de-facto evangelist for the company. Similarly in the investing world, this person would participate in a larger fund. They are not leading the fund or pursuing a similar invetment strategy on their own, instead they are investing their money with a team and vision they support and want to help succeed (not to mention, share in any potential profit!)

3. Join a community of like minded people who will keep you accountable

As I mentioned above, you don’t get wealthy by following the status quo. You have to break out of your comfort zone and make your mark. There are lots of ways to do this from business ownership, to investing and supporting others doing activities that resonate with you.

Sometimes personal situations dictate what you can and cannot reasonably do on your own. In that situation it’s best to join in with others. The saying that “If you can’t beat ’em join ‘em”, rings true here.

One of the best ways to get started getting wealthy to read books from prolific investors. Success leaves clues. Here’s a free list of the 10 best books every (real estate) investor to read to win in today’s market.