A Different Way to Think about Growing Wealth
Most people spend their lives trying to grow their wealth.
But few people stop to ask an important question:
Where is my money going?
Imagine a circle representing all the money you'll ever earn, save, spend, or transfer. Your circle may be larger than someone else's, and someone else's may be larger than yours. But one thing is true for all of us:
We all want our circle of wealth to grow.
Understanding how wealth works begins with recognizing that every dollar falls into one of three categories.
It's Not the Club. It's the Swing.
Consider golf.
Would you rather have the clubs used by the greatest golfer who ever lived…
Or the ability to swing like them?
Most people would choose the ability.
Because success isn't determined by the clubs.
It's determined by the swing.
Financial products are important. But products alone don't create financial success.
True financial success comes from having the right strategies and avoiding unnecessary wealth transfers.
It's not the club. It's the swing.
Plug the Holes in the Bucket
Many people try to increase wealth by earning more money or chasing higher investment returns.
But imagine trying to fill a bucket full of holes by pouring more water into it.
Wouldn't it make more sense to plug the holes first?
The same principle applies to money.
Before trying to increase the flow into your financial bucket, it often makes sense to identify and eliminate unnecessary leaks.
Even a small improvement in efficiency can have a profound impact over time.
Wisdom Before Products
Financial institutions are excellent at providing products.
But products are tools.
Wisdom is learning how to use those tools effectively.
Just as every game has strategies that lead to success, money has principles and strategies that can help families become more efficient and intentional with the resources entrusted to them.