Become more capable of risk over time.
Become more capable of risk over time. Because brains change. And this is how you build wealth.
If you don't have a lot of money, you are risking more when you lose your money. So you're at risk.
If your financial situation is unsafe, the act of securing it will teach you the fundamentals of how money works and it will inform all of your future decisions far more than chasing fast results and outsized returns.
Not only that, but your mind will shift away from fear and towards opportunity when you do this. And I want to be clear, this idea doesn’t apply just to investing. It’s a life concept that applies to many things. It could be dating, wheat farming, or surfing... there’s still a way to apply this principle.
If you use basic principles of saving and investing, or in life, the basic principles of any skill set, you can grow your wealth or skill to a point where you can experiment and take risks while learning. When those risks end up being errors you're still safe because you've set up the fundamental building blocks of wealth and skill that made you capable of that risk. And when those risks pay off, you're in an even better position that enables you to reach out farther into even more challenging areas.
Starting with basic investing and saving doesn't mean you have to stay there. Doing it just means you're capable of doing something more complex tomorrow.
A Pretty Flowchart
that’s far from comprehensive but communicates the idea.
At the core, this idea is about creating abundance and proving to your mind that abundance is real. Because when you have an abundance mindset you think differently.
I recommend thinking differently.