entrepreneurs - FINANCIAL GOODNESS

Build Unlimited Wealth With Money’s Untold Truth

Unlimited Wealth: The Spirit Of Ecstasy. Photo credit: Unsplash and Anders Nord.

Updated April 13, 2024. Can you imagine life if you had a huge amount of money sitting in your bank account? $1 million dollars. $5 million dollars. $10 million dollars. $50 million dollars. $100 million dollars. Can you imagine if you were a billionaire? Names like Jeff Bezos, Elon Musk, Bill Gates, Mark Zuckerberg, Warren Buffett, Oprah Winfrey, and Sara Blakely come to mind. These names have achieved what many people would like to accomplish. The goal these people have achieved is to build unlimited wealth with money’s untold truth.

Then there is you. Perhaps you are working a job with the degree you have. There is a big possibility that you don’t have a lot of savings and that the world feels like it is ready to crumble from the high cost of living expenses you deal with every day because you feel you are not paid enough. Or maybe you are a student working hard to get a degree and you see already this scenario right in front of you when you look ahead. How is it that people build unlimited wealth with money’s untold truth?

Getting wealthy and rich seems like a far off dream. You ask yourself, how did it get this way? How did they do it? Am I really that unlucky? Is this really a rigged game I am playing?

Financial Literacy In School

The goal is to build unlimited wealth with money’s untold truth. But first we need to understand how many people have arrived at this mindset in the first place. For a moment, let’s look at the past. Let me ask you a question. Does anyone remember a class called Personal Finance 101? I sure don’t. It didn’t exist. What is more amazing is that it still does not exist today.

Why Isn’t Money And Finance Taught In School?

Financial journalist Dan Kadlec points out several reasons why finance is not taught in schools:

Only one in five teachers feel qualified to lead a personal finance class.
There isn’t a strong agreement as to which finance concepts would be taught.
Personal finance is not part of the ACT or SAT exams.

Education advocate Geoffrey Canada wants to help a greater number of kids to excel. He dares the education system to look at the data of our schools that have failed in teaching personal finance and asks why it looks very similar to the way it was 50 years ago.

It is hard to pinpoint the real reason that personal finance is not taught in schools. However, this is a topic for another blog. But suffice it to say that many people believe that financial education is the responsibility of the parents. Nevertheless, in a 2012 study, 80% of U.S. adults said that they could use help with financial questions.

The U.S. Average Bank Account Balance

The untold truth about money is for generations schools have denied the responsibility to teach personal finance to their students. The average bank account balance in 2019 was only $41,700 in a survey by the U.S. Federal Reserve.

It seems that the adults are not that savvy either with their personal finances. So why would we expect the younger generation to have more knowledge than their parents? Obviously, we shouldn’t. Instead, we should be asking the question of how to build unlimited wealth with money’s untold truth.

The Taboo Topic of Money’s Untold Truth

As children, we’re taught to never discuss our personal finances. Money is a private issue – a taboo topic. You don’t discuss your income, your investments, or your savings. Never talk about money. Sadly, this is a common view.

This is why kids know absolutely nothing about their parents’ financial situation. As a result, this leads to adults who know nothing about finances in general and that’s where most people stop.

Honestly, that’s where most people are right now. They’re struggling to make it, afraid to ask for help. When instead, the right solution is to build unlimited wealth with money’s untold truth.

Personal Finance Skills Are Essential

Finances are understandably one of the major causes of stress for adults. Everyone can relate to this stress; even the wealthiest people have felt financial pains at one time or another. Debt and/or a lack of savings can cause considerable hardship on a person’s life. And it doesn’t just cause daily stress. Financial problems can lead to divorce, poor health, depression, and bankruptcy.

Having personal financial skills is one of the most important things you can do to live a happy, healthy, and secure future. Your level of understanding around the fundamentals of budgeting, saving, debt, and investing will impact every part of your life and can mean the difference between poverty and prosperity. This sounds drastic, but without understanding money’s untold truth, this could be reality.

An Equation for Unlimited Wealth

However, what if I told you that you were wrong. What if there is a way to do it. What if I told you that there is actually an equation for wealth. How would you feel then?

What if I told you that you could hold onto your dreams of obtaining wealth and living the lifestyle you have always imagined where all the world is yours for the taking. Then using this equation you could make them into reality and build unlimited wealth with money’s untold truth.

Be Rid Of False Beliefs

However, there is a flip side to the coin that you have never looked at. Know that the equation for wealth is real. We are about to be entrepreneurs. Be prepared to change the way that you see money in your life.

Yet be warned, the struggles you will have to overcome are also real. Unfortunately, the truth is that many people will not make it to the other side and the unlimited wealth that awaits them.

The media and Hollywood have always depicted the wealthy as evil and corrupt. Undoubtedly they say that the more evil and corrupt a person is, the more money you make. The question is: is this the stereotype that you believe in? If we want to start building wealth we have to have the millionaire mindset and get mentally set to build unlimited wealth with money’s untold truth.

The First Challenge: Millionaire Mindset

The biggest problem that most of us face is not the lack of ideas or the knowledge. It is the lack of the will to follow through and the heart to never quit no matter how hard it gets. I am talking about how to build unlimited wealth with money’s untold truth. So, I call this the millionaire mindset – the absolute ability to do whatever it takes till you reach your goal.

99% Fail Rate

The fact of the matter is, everyone wants to make millions but 99% stop even before starting once they realize the amount of hard work, dedication, focus, and persistence that is needed to become the person you want to become. If you are one of the very few who always asks, “how do I become a millionaire?” and if you are ready to overcome whatever obstacles get in your way, 50% of the challenge has already been overcome.

Yes, I get it. You want to be a millionaire. Everyone does. But have you thought why 99% of people fail in doing whatever it takes to become one? Why is it that only some people have the ability to take massive action, put in the sleepless nights and never give up? What is the difference? It is not that they have special abilities or were gifted. So what is their secret?

Most Self-Made Millionaires know the answer to the holy grail – “The Why.” They are ready to build unlimited wealth with money’s untold truth no matter what. To achieve greatness, The Why has two key factors that you need to have in your mindset:

The ability to look at failure as a result and not as the end
How to overcome excuses

Make the Promise to Never Quit

If you will never quit, you will never fail. Think about it. No matter what the end result is, look at it and access your situation. Then overcome any obstacles in your way to achieving your goals to being a self-made millionaire. Do this and you will increase your odds of achieving to at least 80% or 90% of doing what is needed to build unlimited wealth with money’s untold truth. Wealth-X World Ultra Report

The world’s ultra wealthy population have a net worth of $30 million or more. If we look at the 8th edition of the Wealth-X World Ultra Wealth Report the ultra wealthy grew by 9.5% in 2019 to 290,720 individuals worldwide. What is even more significant is that more than half of the world’s richest people are self-made and the other studies back up this conclusion of being self-made. The big ones: Jeff Bezos, Elon Musk, Bill Gates, Mark Zuckerberg, Warren Buffett, Oprah Winfrey, and Sara Blakely are all self-made billionaires.

Your Wealth Equation Is All Wrong

What is it that these people know? The secret is: unfortunately your wealth equation is all wrong. The truth is that most people believe that money equals the salary from a job. Consequently, the sole purpose for an education is to get a job. You might ask, is there a problem with this equation?

If you are reading this blog, I assume that your goal is to make as much money as possible in as short a time as possible. Is this your goal?

Money = Salary from a job

Is this your goal? If so, this mentality is WRONG. Why? Unfortunately, this is not how money works and you will never build unlimited wealth with money’s untold truth by using this mindset.

One Precious Resource: Time

Similarly, we have one precious resource and as the minutes, hours, days go by, there is no way to get them back. That precious resource that I am talking about is time.

In a regular job, the amount of money you earn is dependent on the amount of time you put in. Let’s calculate how long it would take you to earn $1 million dollars. If you make $25 days an hour and work 40 hours a week, it would take you more than 19 years to have $1 million dollars.

However, we just calculated your $1 million without subtracting taxes, sick days, or vacations. The reality is that you would have to live your whole life before you would ever see $1 million dollars. On top of that, the realization that you would have to live extremely frugally and most of that precious resource called time would be gone forever.

Again, you ask yourself the question, how is it that there are self-made millionaires and billionaires that are still young and didn’t have to wait?

The Truth About Money and Wealth

Here is the answer that we have been searching for: stop chasing money. For this reason, stop chasing money and realize that we are all paid in proportion to our perceived value. In essence, our perceived value is a direct correlation of how to build unlimited wealth with money’s untold truth.

The perceived value is the market and consumers of the economy. Who is the market? The market is you, your family, your friends, your neighbors, and your country.

Think about a market that many people love. Take professional sports for instance. In the U.S. the big three sports are baseball, football, and basketball. If you look at the top professional players in the U.S. they are paid millions of dollars to perform a sport that they love anyway.

Why are they paid that much money? The answer is the market. The market determines it will pay them millions of dollars because people love to watch the best people in the world play and then they want to spend money on going to games and buying merchandise. The result is that the market has a high demand for professional sports.

Work Ethics And Hard Work For Wealth?

Understand it is NOT about work ethics and how hard a person works. For instance, take this example. Who works harder? A construction worker or your tax accountant? Most people would probably say the construction worker works harder.

However, your tax accountant is paid more because that person has the knowledge to help you save money on taxes. Overall, the market has a higher demand for your tax accountant. Like it or not, the construction worker is perceived by the market as someone who can be easily replaced. Again, to summarize, it is not about work ethics, it is all about the perceived value and nothing more.

Getting a great job is not the right equation to quickly make millions or billions of dollars. But, it is possible to build unlimited wealth with money’s untold truth. Ask yourself the question, what is it about self-made ultra wealthy people that the market sees as having a high perceived value?

How To Build Unlimited Wealth …

If you want money, then solve problems. Think about this principle of money and solving problems. If you ponder this thought even further, you will realize that this is the holy grail for making money. If someone thinks of an idea to solve a problem it will create money. In short, the bigger the problem, the larger the payout.

This is the equation for wealth. Solve problems and you will build unlimited wealth with money’s untold truth. You will achieve your dreams of wealth and living a lifestyle of luxury. This secret is the untold truth about money. The answer is really that simple: solve problems and build unlimited wealth with money’s untold truth.

Look at the self-made billionaires. All of these people have solved enormous problems. If the problem is a million dollar problem, then the solution will make you millions. If it is a billion dollar problem, then the solution to that problem will make you billions of dollars.

Analysis of Unlimited Wealth: Jeff Bezos

The richest man in the world (at the moment) is Jeff Bezos, founder of Amazon. Overall, Bezos is excellent at finding the biggest problem imaginable and solving that problem. For Bezos the problem was getting his products into the hands of customers. As a result of this Amazon was born.

Amazon’s prices are cheaper, the delivery cost lower, etc. Jeff Bezos found a billion dollar problem and he solved that problem. As we know, he makes billions and billions of dollars from solving an immense problem of selling his products. Jeff Bezos is enormously rich because he found a way to build unlimited wealth with money’s untold truth.

Stop Chasing Money and Look for Problems

The paradox is to stop chasing money. Money is not what you should be looking for. Instead you should be looking for problems and even more importantly solutions to those problems. Continue asking yourself about big unsolvable problems that you can actually solve and then build unlimited wealth with money’s untold truth. Once you have identified a problem and you have a good solution to that problem, then start a business.

Open your senses. What are people saying they do not like? Listen to the market, it is filled with problems. But most importantly, find a problem that is worth solving and then pursue it vigorously.

Scalable Solutions

Investors will tell you that they love to put money into startups that are scalable, and ready to scale. But what does that really mean? In general, and simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Ready to scale is when you have a proven product and a proven business model, about to expand to new geographies and markets. Your solution to your problem needs to affect a magnitude of people.

Most consulting services, like marketing, are not scalable, since they must be delivered by experts. However, a software product is a classic example of a scalable solution, since it costs real money to build the first copy, but unlimited additional copies can be quickly cloned for almost no incremental cost.

Infinite Scalability

That goal is to build unlimited wealth with money’s untold truth. A system that scales well will be able to maintain or even increase its level of performance or efficiency even as it is tested by larger and larger operational demands. Linear scalability is when the cost of the next user is the same as the cost of the previous user. This means your system doesn’t have bottlenecks.

This is what people usually mean when they say “infinite scalability”. When people talk about scalability, or a system being able to scale, they’re usually referring to a graph that looks something like this:

Infinite Scalability. Photo credit: Udi Dahan

To demonstrate, the red graph indicates a system that does not scale well, the green graph indicates one that does. For example, the Y axis is Cost, Expense, or Money. The X axis is usually the number of users (for instance, internet-type companies). Ultimately, scalability is a cost-function that will tell us how much it will cost to have the system support a certain number of users.

Millionaire Money Behaviors

Finally, I would like to share with you the millionaire behaviors that are directly from The Millionaire Fastlane by MJ DeMarco. The behaviors below are the thoughts and behaviors that you need to have to achieve the millionaire mindset.

I recommend that you say out loud and repeat these time, education, money, and life perceptions daily until they become your reality. If you find that these behaviors are not yours currently, that will change. Add this strategy to your daily routine to build unlimited wealth with money’s untold truth.

Time, Education, Money, And Life Perceptions

Time Perception: Time is the most important asset I have, far exceeding money.
Money Perception: Money is everywhere, and it’s extremely abundant. It is a reflection of how many lives I have touched and reflects the value I have created.
Primary Income Source: I earn money via my business systems and investments.
Primary Wealth Accelerator: I make something from nothing. I give birth to assets and make them valuable to the marketplace. On other occasions, I take existing assets and add value to them.
Wealth Perception: Build business systems for cash flow and asset valuation.
Strategy: The more I help, the richer I become in time, money, and personal fulfillment.
Responsibility and disciple: Life is what I make of it. My financial plan is entirely my responsibility and I choose how I react to my circumstances.
Life Perception: My dreams are worth pursuing no matter how crazy they are, and I understand that it will take money to make some of these dreams into reality.

The Reward Of Unlimited Wealth

Now you have your profitable business running successfully. You see and feel the profit that your business generates. However, now you face a choice. You can sell the business and make a beautiful profit. Alternatively, you can continue running the business and build unlimited wealth with money’s untold truth.

Perhaps you think that you could add even more value to your solution and then sell for a greater price. Maybe this business runs passively and you don’t have to do much to keep it running. It’s also possible that you love running your business and you see yourself going on to achieve even more things in the future.

Live Your Wealthy Dream Of Freedom

Money is just paper with a number on it that people equate to value. This was never about the money. Let’s face it, it is all about the freedom that you were looking for. Now you have the ability to do whatever you want, whenever you want.

This is the dream of freedom that you were seeking all along. I challenge you to do it and have the courage, the belief, and the strength to make this your reality! When you do this, you will have completely conquered how to build unlimited wealth with money’s untold truth because now you know the secret to having a lifestyle of richness.

2 Chronicles 31:21
And every work that he undertook in the service of the house of God and in accordance with the law and the commandments, seeking his God, he did with all his heart, and prospered.

Acklowledgements

This blog was heavily inspired by the incredible writings of MJ DeMarco and the superb YouTube video The Untold About Money: How to Build Wealth From Nothing by James Jani. This blog is a condensed summary on how to build unlimited wealth. Please bookmark this blog: Build Unlimited Wealth With Money’s Untold Truth. It is very difficult to cover in detail all the topics that this blog includes. Nevertheless, I look forward to talking about the other closely related topics in future blogs.

Last Updated on April 13, 2024 by Financial Goodness

Financial Goodness

George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge through education in the areas of personal finance, real estate, and investments. George has been an owner of a real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Consequently, as an entrepreneur, researcher, writer, and speaker he has sought the truth in everything he does, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.

How To Be A Millionaire By Retirement

Retire with a beautiful view. Photo credit: Unsplash. Thank you Alexandre Chambon @goodspleen

Updated April 13, 2024. Many of us dream of a beautiful house that is in a fantastic location, awesome vacations, and millions of dollars in the bank. Many people would like to become millionaires, but few know the steps it takes to reach this goal. Most self-made millionaires got there through hard work, disciplined saving habits, and investing wisely. If you want know how to be a millionaire by retirement, you are about to find out how to do it.

Most people would like to eventually retire and know that they have enough money to live comfortably in their retirement years. If you have already achieved the milestone of having accumulated $1 million dollars, congratulations! I invite you to continue reading this blog as a way to increase your wealth by focusing on developing multiple streams of income.

How Much Money For A Similar Lifestyle?

The big question that so many people have been asking is: how much money is needed to have the same lifestyle in retirement? If you try to research by looking online or talking to a retirement expert you will find that the answers vary widely.

Basically, this question of becoming a millionaire by retirement can be divided into two sub-categories. One: how much money is enough for retirement? Two: how to be a millionaire by retirement?

How Much Money Is Enough For Retirement

The 4% Rule

The widely accepted financial rule of 4% states that your savings should last for at least 30 years without exhausting their portfolio.

Many experts say that your retirement income should be around 80% of your pre-retirement salary. Suppose you make $100,000 a year at retirement. In this example, you would need at least $80,000 to have a comfortable lifestyle after you leave the workforce.

Of course, the $80,000 amount annually can be adjusted depending on your other sources of income, like Social Security, pensions, and other part-time employment. To have the $80,000 necessary, you would need a nest egg of about $2 million dollars. To calculate this using the 4% rule, simply take $80,000 and divide by 0.04. Also, keep in mind that this strategy assumes a 5% return on your investments.

If you are like many adults, you have probably thought of taking an early retirement at some time in your life. If you are thinking about an early retirement, is it possible to retire on $500,000? Let’s do the math. Using the widely accepted financial rule of 4%, the $500,000 will allow you to access $20,000 for 30 years.

If you have saved and invested your money wisely, the $500,000 would last you 30 years, assuming a 4% withdrawal strategy, for $20,000 a year. Say you live to be 85 years old if you are in good health. If you wait until age 55 this strategy could work.

Key Takeaways

If you retire on less than $1 million it could affect your quality of life.
Retiring abroad in a country outside the US in a country in South America may be more affordable in the long-term.
Retiring before you reach 55 years will hinder you from your prime earning years that could potentially increase your Social Security benefits.

Ways To Become A Millionaire By Retirement

Would you like to retire and have the lifestyle that you already have, but you don’t have enough money to make it happen? In my opinion, $20,000 or even $40,000 is really not enough money to live on comfortably even if you live in a South America country. For instance, our family has been living for more than eight years in Colombia, South America, and the value of $20k to $40k is more or less equivalent to $80 to $100k in where we used to live in Charlotte, NC. The $80k to $100k in Charlotte, NC will pay your bills, but many people won’t have the vacation lifestyle that many are dreaming of.

Who wants to have financial stress in retirement? As we all know, people are living longer in the last century than they ever did before and we need to plan for this to happen as well. If you want to have more sources of income, I have researched some of the best ways that you can increase your cash and have the kind of retirement that we all dream of.

Money Rules To Help You Reach $1 Million

If you are motivated, then follow these rules of how to be a millionaire by retirement:

Become financially savvy. Learn as much as you can about money. Read websites and books about saving money, investing, generating multiple streams of income. Every piece of information will help to guide on your quest to become a millionaire.
Live like you are poorer than you are. Be careful and frugal about things you buy on a daily basis. Be humble and don’t show off to your friends or on social media. Live in a modest house. Make your meals at home. That way when you do go out to a restaurant you can really enjoy it and also do so on a modest budget.
Build an emergency fund. Start by saving a month’s worth of expenses. Then build toward having three to six months. Just be conscious and do not use this money for vacations. This fund can only be used for emergencies.
Manage your debt. The less debt you have the quicker you’ll be able save and not have to pay off credit cards and other monthly debt bills. If you have credit cards, many of these have high interest rates. Pay off these credit cards as rapidly as possible. Certain kinds of debt like a home mortgage are necessary and can help you move ahead long-term. The key is to find a house that fits within through budget.
Save daily. Each week contribute to a savings account or a 401(k) account. Try to save at least 20% of your after tax income each year.

Extra Rules To Really Increase Wealth

Invest in real estate. Make inflation your friend, not your enemy. Research areas that you are strongly interested in retiring to. My family moved to Colombia, South America. The big cities of Medellin and Bogota are beautiful and they are an outstanding places to retire. You will find that the prices are, by US standards, very reasonable and I could go far as to say cheap if you live in a major city in the US. For example, if the value of a property goes up 3% in a year due to inflation, that’s a 15% ROI. In addition, if you are from the US, take advantage of the ways you can avoid US taxes.
Consider utilizing a conservative approach to value investing. If you think of the value stock market investors today, most likely you will think of Warren Buffett. Warren Buffett, chairman of Berkshire Hathaway, and Charlie Munger, vice chairman, are value investors that only invest in a handful of the best value stocks. Take an in-depth look at what many consider to be the best passive income investment stock: Berkshire Hathaway B shares (BRK.B). Warren Buffett and his team and his successors have purchased and are continuously investing in the best value stocks so that you don’t have to. On top of that, Berkshire Hathaway has an incredible record for the last 55 years of 20.3% annual compound interest! (link)
Earn more money. First try to maximize the money that you make in your day job. For instance, ask for a pay increase, work overtime, or consider switching jobs and finding a more lucrative position. Look for side hustles that you can do. This could be anything from driving for Uber or Lyft to selling things online.

Increase Your Wealth

If you are the type of person who realizes that just because you reach a certain age you really don’t want to retire. Maybe you have seen other people retire and watched them lose all their energy. If you are one of these people, chances are you said to yourself, I don’t ever want that to happen to me.

If this is the case, then probably you have an entrepreneurial spirit. Rather than watch your retirement wealth decrease, you see the opposite. You want to increase your wealth in retirement. At Financial Goodness, we are the same way. We are entrepreneurs at heart.

Owning your own business means that you directly reap the benefits of all the hard work that you have put in. When you work for someone else, working harder does not necessarily mean more money in your pocket. As a business owner, you also build equity in your business. You are calling the shots. Basically, you can work on the things that are important and add more to the bottom line and ignore everything else.

Finally, I would like to share with you the millionaire behaviors that are directly from The Millionaire Fastlane by MJ DeMarco. The ideas for starting a business that are listed below are the thoughts and behaviors that you need to have to achieve the millionaire mindset.

Ideas For Starting Your Our Business

Appliance Repair
Blogger
Coach
Computer Training
Consultant
Desktop Publisher
E-commerce or online seller
Editorial Services
Electronics Repair
Financial Planner
Freelance Graphic Designer
Home Inspector
Import / Export Specialist
Interior Decorator
Marketing Copywriter
Personal Concierge
Personal Trainer
Photographer
Real Estate Investor
Solar Energy Consultant
Website Developer
YouTube video maker

Updated December 3, 2023:

The good news is this: after the COVID-19 coronavirus, the U.S. estimates that people working for themselves will increase to around 40%. What even better is that many of these ideas you can do from the comfort your computer in your home!

The Bottom Line For Success

Many of the steps to becoming a millionaire are not overly difficult. However, they do take hard work, discipline, time, and perseverance. But, it’s the emotional side that prevents many people from reaching the millionaire mark. Perhaps the most important two factors are time and perseverance. Without these two, new ideas and new businesses will struggle and possibly fail.

Make the decision to focus on your goal of how to be a millionaire by retirement and write down your plan of action. With your plan of action of the key steps you will have the confidence needed because you know exactly how to be a millionaire by retirement.

Then put in the work and you will be surprised at how your net worth grows over time from your multiple streams of income. Through the hard work, discipline, and through your preseverance you will be grateful at the end result you and your family have achieved.

Last Updated on April 13, 2024 by Financial Goodness

Financial Goodness

Generate More Wealth in the Next Two Years

Generate More Wealth. Photo credit: Unsplash. Thank you @morganhousel

Updated April 13, 2024. If you are worried about the world economy, you are not alone. We have watched as businesses and workers have struggled with the new regulations imposed by the COVID-19 pandemic. However, I believe that the U.S. will generate more wealth in the next two years under President Joe Biden than in the previous decades combined.

As many know, we have just added more US debt to the economy than the debt of World War I and II together. With President Biden, you may be asking me why I would make such a bold statement on the future of the US and the world. For the most part, I believe that many factors are setting up nicely for you to generate more wealth in the next two years. Let’s take a look at those factors.

Biden Signs Stimulus

On Thursday, March 11, 2021, President Joe Biden signed the passage of the $1.9 trillion American Rescue Plan. As he signed he said that the bill and the IRS will begin sending out payments as soon as the next day – Friday, March 12, 2021.

All the markets in 2021 are going up. The Russell 2000 holds relative strength and is leading the indexes higher. Look at the other indexes in the stock market and in real estate. They are increasing rapidly because of inflation. But don’t be scared of rates yet. For this reason, I believe that this environment should be very favorable for stocks and other risk assets.

Rates Are Just Part of the Picture

If we examine the recent decline in the major indexes, we can see that the timing appears to coincide with a sharp increase in interest rates.

**U.S. 10 Year Treasury**. Photo credit: CNBC. https://www.cnbc.com/quotes/US10Y?qfsearchterm=

Updated June 22, 2022. On Wednesday, June 15, 2022 the Federal Reserve raised interest rates by 0.75%. This is the largest move the Fed has made since 1994. In the projections released after the meeting, the Fed expects to further raise interest rates to roughly 3.4% by the end of this year.

Watch Out For Volatility

However, numerous sources say it will not last. Berkshire Hathaway’s vice chairman Charlie Munger said on February 25, 2021, that the speculation in stocks will end badly. Furthermore, Morgan Stanley 2021 stock market outlook predicts that the market will see a lot more volatility in the second year of a new bull market that could be extremely unpleasant along the way.

US Printing Presses Doing Overtime

The US is constantly printing dollars with no end point target. In my opinion, ride it out for two years if possible. But be aware as long as the US money presses keep printing money everything will most likely rise. Likewise, if you feel you are missing out on a bull market and you want to get in, be careful and look at the technical analysis for each stock you invest in. Just remember that the market is most likely in a bubble in the long term it could be very unsustainable.

Everything I have just written above is true. But I understand your concerns if you are sceptical. If you pay attention to the news, they focus on negativity. Why do they focus on negativity? One simple reason: because it sells.

Entrepreneurs: Rocket Up

However, in my opinion, people in the world, particularly in the US, these entrepreneurs and businessmen are just getting started. These people are launching new businesses, inventing new technologies, solving real world problems, and creating cutting-edge medicines. Previous generations would be astonished at our life in the 21st century.

I would argue that middle class Americans today are far better off than the wealthiest people from 100 years ago. For example, the middle class today have air conditioning, the internet, and medical care available every day. Travel is available if needed. As a result, I would say that the innovations the world has gone in the last 100 years have been breathtaking, to say the least. To clarify, I believe individuals will generate more wealth in the next two years. So let’s learn what people are doing so that you can increase your wealth as well.

Big Increases In Life Expectancy

The increase in life expectancy is amazing. More than one billion people have been lifted out of poverty. Take a look at the chart below of the increase in life expectancy that has happened in the past 150 years.

The increase in life expectancy has created the one thing that man cannot control and that is time. The addition of more time in a person’s life will have a dramatic effect. As a consequence, life expectancy will continue to increase the work output for individuals and for businesses. As a direct result, these individuals will see the opportunity that is presenting itself and generate more wealth in the next two years.

I believe the key here is time. If we increase the precious amount of time we have on Earth by twenty years to thirty years or more the results will be amazing. I say this because time has always been a limiting factor to bring things to fruition with businesses and technology. Please take a look at the chart below. Do you agree?

World Life Expectancy. Source: Riley, Clio Infra 2015, and UN Population Division 2019. Photo credit: https://en.wikipedia.org/wiki/Life_expectancy#/media/File:Life_expectancy_by_world_region,_from_1770_to_2018.svg

Launching New Businesses

I believe that the U.S. will generate more wealth in the next two years. Let’s take a closer look at this exciting arena of launching new businesses, inventing new technologies, solving real world problems, and creating cutting-edge medicines.

Chart of Number of Business Establishments Less Than 1 Year Old in the U.S.:

Number of Business Establishments Less Than 1 Year Old in the U.S. 1994-2020. Photo credit: https://www.statista.com/statistics/235494/new-entrepreneurial-businesses-in-the-us/

Look at the number of new businesses happening now. In March 2020, there were 804,398 new businesses that were less than 1 year old. This is an increase from the March 2019 figure of 770,609.

Small Business Survival Rate

50% of small businesses survive 5 years or more, while only 25% make it to 15 years or more. 20% of new US businesses fail within their first two years, according to the US Bureau of Labor Statistics. 45% fail during the first five years. 29% of small businesses failed because they ran out of money, while 17% failed due to a lack of sound business model and poor product offering.

In general, the small business success rate depends on a number of factors. One of the most important factors is to be passionate about your business. Then set goals and plan ahead. But always keep your mind open to new ideas.

The most essential plan of action is to do these three things very rigorously: budget carefully, be disciplined, and focus on the needs of your customers. By realizing this awesome opportunity to generate wealth and doing these necessary steps, you increase the chances of taking your startup business and growing it into a $1 million+ company.

Technology And Innovations

We all know about the astounding growth of technology companies. Elon Musk is perhaps one of the great innovators of all time. In the last year, from 2020 to 2021, Tesla stock has risen more than seven times. Intuitive Surgical is another one. In 2004 Intuitive was $6 a share. Now it is more $700 a share in 2021. If you bought these stocks they are awesome gains to have in your portfolio.

But the secret is to find these technology companies when they are just getting started. If you look at the real builders meaning the innovators, the entrepreneurs you will find that innovation is accelerating faster every day. For example, when the microprocessor first came out in 1971 it could hold about 2,000 transistors. However, now in 2021, the microprocessor can have more than 39 billion!

Prediction: U.S. Will Generate Great Wealth

I believe that the U.S. will generate more wealth in the next two years under President Joe Biden than in the previous decades combined. If you are not sure where to look, I highly suggest real estate. Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate.

Also, if you haven’t read my blog on the How To Be A Millionaire By Retirement (and possibly work from home) check it out.

James 1:5 NLT

If you need wisdom, ask our generous God, and he will give it to you.

Last Updated on April 13, 2024 by Financial Goodness

Financial Goodness