“If you follow the crowd, you’ll never get further than the crowd.”
– Robert Kiyosaki
I’ve gotten a lot of money advice over the years.
Some of it has been great!
Other times… not so much.
I’m a firm believer that we can learn from just about any experience, especially our own mistakes.
What can we learn from all the bad money advice out there?
Today, I’m going to share the tips I wish I knew sooner.
Let’s get into it!
1. The “Common Sense” Advice That’s Actually Wrong
I was an investment advisor for a few years.
In my experience, a lot of money advice out there is terrible.
Much of that advice says you need to save your way to become wealthy.
That’s not good advice!
You can’t grow your wealth quickly enough if you’re a high earner.
But if you’re an Average Joe, you’ll never save your way to wealth.
What about inflation?
Things change at the drop of a hat.
Inflation right now can be anywhere from 3% to 6%. Depends who you ask!
Often, the Federal reserve can move interest rates.
But as a whole, saving during inflation doesn’t work.
Savings can absolutely be helpful for things like emergency funds.1
But savers get destroyed over time by inflation.
But if you want to grow wealth, you’ll have to do untraditional things.
2. Why the Middle-Class Playbook is a Trap
This saving mentality is a problem for the middle class.
People have so much in savings and are trying to save their way to wealth.
In reality, 77% of Americans are living paycheck to paycheck.2
If you’re living paycheck to paycheck, saving money will not grow your wealth overall.
People in finance say you have to get into suitable investments.
Nobody I know wants a suitable spouse or a suitable vacation.
We want something awesome!
This is where a lot of traditional finance falls short.
It’s bad advice to simply be a saver now.
If you have a lot of money already, you can try to maintain what you have.
With a higher net worth, some savings accounts can hedge inflation.
But if you’re not already wealthy, you need to take bigger shots.
You need to find opportunities with a higher upside of at least 5x or 10x.
3. The Advice I Follow Now
The advice that I follow now is investing in assets that produce passive income.
If I buy an asset, I go from cash to asset to cash flow.
I can’t just sit in cash.
I’m gonna lose that money for the reasons we talked about earlier.
In contrast, if I sit in an asset, the cash flow will allow me to grow my wealth over time.
It will also hedge inflation.
This gets even better if I can leverage other people’s money.
Investments I love 2025 are things that have cash flow.
Real estate really doesn’t have cash flow like it used to.
It’s very rare to find deals that have cash flow within real estate.
But you can find investments such as oil and gas to provide cash flow and tax benefits.
You can also find assets such as private businesses.
We bought a private business recently!
This kind of asset will both appreciate and give cash flow, which is great for us.
Now I want to hear from you!
What kinds of deals are you looking into?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
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Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.
Works Cited
1. M. Durgadevi and Dr. V. Darling Selvi. “TIMELY SAVINGS: AN AID OF EMERGENCY SOLUTION.” BSSS Journal of Management (2022). https://doi.org/10.51767/jm1310.
2. PayrollOrg. “Survey Reveals Majority of Americans Still Living Paycheck to Paycheck.” PR Newswire: press release distribution, targeting, monitoring and marketing, September 25, 2024. https://www.prnewswire.com/news-releases/survey-reveals-majority-of-americans-still-living-paycheck-to-paycheck-302257819.html.
