What is the best way to invest?
What are the best investments?
Where can you get the best returns?
We have been brainwashed to believe that finance is too hard and too boring, and we are told we don’t have the time to address it adequately.
The narrative is that investing is something we rely on Ivy League graduates with degrees who speak legalese. We are told that the best investing is beyond comprehension, and we should just hand over our money and trust the experts.
On the other hand, some “gurus” tell us that wealth is all about discipline.
About patience and a diversified portfolio.
Set it and forget it.
Invest early, often and always.
You are in it for the long haul.
Live within your means, reduce your expenses, and stay the course.
BUDGET.
You know the story.
Either way, if we don’t address our finances, we limit our wealth and invite loss.
I get it.
If we think we must know everything about money, finance, and investing…it is complicated and nearly impossible.
- Tax liens
- Collateralized debt obligations
- Derivatives
- Options
- Stocks
- Bonds
- Real estate (rentals, development, commercial, fix and flip, and the list goes on and on)
- Bridge financing/hard money lending
- Cryptocurrency
- AI
- ETFs/mutual funds
- Businesses
The good news is eighty percent of those things don’t require your attention, don’t belong in your plan, and therefore don’t even matter. They are distractions disguised as opportunities.
There are essentials to address, however.
Automating your savings.
Plug financial leaks (keep more of what you make without cutting back).
Storing your money in places that protect you from tax, financial predators, and inflation.
Discovering, developing, and focusing on your investor DNA.
Investing in yourself.
Building a fantastic financial team.
Mitigating risk.
Investor DNA is THE key to reducing risk and focusing on what matters most. Investor DNA will guide what to pay attention to and what to ignore.
Risk is in the investor, not the investment.
What investments align with your values, competencies, and interests?
Where do you pay attention and have unique knowledge?
The thought of not having the time to address this arena confiscates wealth, abdicates responsibility, and creates unnecessary risk.
But this is what we have been sold.
This is what so many people believe.
This is where the ignorance tax robs financial freedom.
The ignorance tax is buying into a faulty framework.
Lack of knowledge.
Believing in myths.
The ignorance tax might lead to overpaying actual income tax, interest, investment fees, or insurance costs. It might mean blind spots that confiscate wealth and destroy peace of mind.
The lack of awareness leaves us vulnerable to changing markets and financial surprises. It comes from too much information, jargon, and conflicting advice…which leads to inaction. It comes from institutions selling us something better for them than us.
It happens when we contribute to plans that have no benefits before 59.5 or defer tax rather than save tax, or when we reduce our lifestyle and sacrifice now for a potentially better future:
- No cash flow along the way.
- Not addressing non-performing fees.
- Not coordinating money choices.
- Not setting up a plan.
Putting away more money, taking more risk, or waiting longer doesn’t require financial intelligence or savvy. They require us to lower our lifestyle. To take money out of our business to fund something we know less about. To give up life today for the hope of a better future.
The accumulation model of retirement planning can work against financial freedom. Budgeting can work against making wise investment allocations.
Locking money away before building liquidity or having access to cash when great investments come along can have substantial opportunity costs.
Better questions lead to better frameworks and better answers. For example:
What would it take to have a better life now and in the future?
What happens when you feel great about your life, have amazing energy, and clarity in your financial life?
You are your greatest asset. Not a stock, bond, or piece of real estate. You. Your ability to deliver value.
Does your existing plan leave you in a place of confidence and clarity? Does it account for quality of life and investing in yourself?
What is the value of financial freedom?
Financial freedom is a place where money is no longer the primary reason or excuse we would do or not do something. It is still a consideration, but value is the primary focus. It is a state of mind, a state of being.
Instead of wealth accumulation and solely net worth focus, it becomes about financial freedom, financial independence, and cash flow.
You are financially independent when your assets create enough cash flow to cover your expenses. You have more choice, less stress, less pressure. That doesn’t mean it is time to retire (even though you can), it means you can swing for the fences in your vision, your dream.
Money, or our perspective around money, can deter dreams and diminish life. When money feels scarce, or becomes something to hoard, or defines what we can or cannot do, we limit our vision.
Miracles happen when we speak something into existence and commit to those words in a way that rallies other people to support our cause. This goes beyond projected net worth or goals for revenue. This is about impact, service, and value.
Who are you, and what value do you provide in the world?
How can you reach more people?
How can you more deeply impact those you serve?
How can you add the most value?
Does contributing to your retirement plan help or hurt that process of financial independence and financial freedom?
Is it an either/or?
Does funding your retirement plan accelerate your path to financial independence?
The context of financial independence is radically different than retirement. Financial independence is about acceleration, not accumulation. It is about having the essentials and foundation in place to sustain, to handle surprises, and have the freedom to build more assets with your income because your expenses are covered by cash flow from assets.
Financial independence is a massive advantage. In the times of my life, I have been financially independent, I can focus on my vision more easily. I dream bigger. And I can hire people to support results with more ease. A departure from long-haul, accumulation-based plans with no accountability or plan for cash flow.
From years of investing in a myriad of assets and asset classes, I learned the hard way.
Fortunately, my pain can be your gain. I created a checklist to act as a signpost and reminder for sustainable wealth.
To avoid myths, to create financial independence, and to create a framework to support financial freedom, here are my rules:
- No one individual is an expert in everything, no one wins alone.
- Everyone has a Soul Purpose.
- You are your greatest investment.
- It is about the investor, not the investment.
- Invest first (and always) in yourself.
- True wealth comes in five tracks: Financial, Soul Purpose, Mental, Physical, Social.
- Investments must cultivate the abundance mindset.
- Protection is the foundation and must precede production.
- Protection maximizes production, risk impedes production.
- Focus over diversification.
- Knowledge is required to invest (otherwise it is merely gambling).
- Investments that align with purpose allow for increased knowledge and control.
- The investor is accountable.
- Risk is minimized with personal management.
- Only invest where there is a value proposition (triple win).
- The purpose of investing is to create value (progress).
- An investment must benefit the investor now and in the future.
- Cash flow is superior to accumulation.
- Personal legacy begins today.
You can adopt these ideas, use what works for you, and even add your own. This has been essential for me to:
Know when to say NO.
When to consider something.
Determining timing.
Develop my plan.
Become a better investor.
This list has allowed me to recapture time (when you start saying no, word gets around), reduce risk, and commit to my plan and my way.
Without a plan, someone else will likely sell you theirs.
What are your investing rules?
What is your plan?
What mistakes can you avoid, what time can you get back, and what clarity can you create by establishing your checklist?
Hard work with the wrong philosophy limits productivity, hampers mindsets, feel likes force (heavy and exhausting), and rarely creates meaningful wealth.
Ignoring your finances doesn’t work either.
Do the work,
Identify myths,
Expand your vision,
Accelerate cash flow,
And create sustainable wealth.
Growing your money without growing your financial intelligence creates risk. Grow yourself. Increase your financial intelligence. Dedicate time daily or at least weekly to manage, monitor, and multiply your financial results.
Take responsibility.
Invest in yourself.
You’ve got this.
Garrett
