Getting rich in one lifetime is nearly impossible—yet this is the path our parents taught us as children. Here is the plan in a nutshell:
- Do well in middle school and high school by getting good grades
- Get accepted and finish college
- Enter the workforce and get a high-paying job
- Find a mate, have children, and buy a home
- Live in the same house for 50 years
- Everything works out perfectly because you worked hard and played by the rules
Please tell me if I am missing something. The problem with this typical scenario is that at no point did you exert any leverage.
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In fact, when you added more family members and a house, you decreased your chances of becoming wealthy from slim to none.
One timeline doesn’t work. The American dream costs $5 million, whether you believe so or not. To earn $5 million over a 30-year career, you would need to make $167,000/year.
In the single timeline above, you went from step to step while never having anything growing concurrently with you. Instead, if you could multiply yourself, your chances of becoming wealthy would be much greater.
For example, if you could find a spouse and buy a home while going to college, you would give yourself significantly more time. However, these things are only feasible with help from family.
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Time is vital to wealth. The most powerful force in the world is compounding. The central element of compounding is time. Therefore, we need to leverage time by multiplying ourselves into multiple concurrent timelines.
Since we cannot spin ourselves off into multiple versions of ourselves, we will need to find a way to recreate our mindsets to generate wealth.
The only way to give yourself more time is by having your ASSETS work alongside your physical body. Assets can do the heavy lifting in our lives and eventually provide all the wealth we need. However, assets also take time to grow.
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By focusing on collecting and growing assets instead of spending money, we can leverage multiple timelines to go along with our human life. This increases our chances of becoming wealthy significantly.
Let’s review some assets. Let’s look at some of the assets you can use to increase your wealth as you start a family, work your job, and raise kids.
The mindset timeline. The definitive timeline you will need to become wealthy is your mindset; however, most of the guidance we received growing up is worthless.
You will need to convert your mindset from that of a standard employee to that of a business entrepreneur. You do not have to start a business to have this mindset. However, you will need to add value to the world.
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Most people are consumers (people who take), but the path to wealth is through creation (those who provide). Once you understand this timeline, you will see multiple ways to become wealthy.
The living below your means timeline. Another great way to add a concurrent timeline is by living below your means.
As you climb the corporate ladder or become a consultant, you will earn more money. If you leave your standard of living the same, you essentially create another stream of income.
You can use this additional income to invest, start a business, or buy a rental property. Most people increase their lifestyle AHEAD of making more money—we call this lifestyle inflation.
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The primary residence timeline. Most people need to understand that their primary residence is not an asset. However, they can turn it into an asset if they remove the emotion from owning it.
As you are working a job and raising kids, your primary residence is increasing in value. If you live there for 30 years, you should have significant equity to exploit.
Most people cannot exploit home equity because of a lack of education, fear of the markets, or emotional attachment.
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If you use your home equity to move to a lower cost-of-living area (perhaps overseas), your primary residence can be over 70% of what you need for retirement.
The investing timeline. You can use the power of compounding to create a massive nest egg for retirement and to build generational wealth.
While you work and live below your means, you can add an investing timeline. Your dividend income will grow each and every year.
It’s amazing to start your work day with fresh dividends in your account. I can only imagine the wealth you can accumulate after 30 years of dividend investing.
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The business timeline. Creating a successful business takes time. To have a healthy long-term business, you will need word-of-mouth advertising.
Unless you create a product that everyone must have, achieving word-of-mouth advertising comes from years of having a good product, great customer interactions, and doing the right thing.
A successful business is a powerful asset to generate income and leave it to your family. Your business will create an additional timeline for your kids early in their lives.
The content creation timeline. Becoming an influential content creator can be the most lucrative of all the timelines; however, it requires the most effort.
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Not only do you need to work many hours at creating, but you become an asset. You become a one-person business, at least in the beginning.
Unlike a business, your customers want to see more of you. They want to receive email and social media responses from you—not your business.
After a few years, you can trade your business or job for a full-time content creation career. You can also leverage content creation in more low-key affairs like blogging, which works quietly in the background.
Conclusion. Most people want to go to work, be good citizens, and follow the rules. However, they also want to live a comfortable lifestyle.
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Unfortunately, the chances of getting ahead while living on one timeline are close to zero. Everyone can use the living below your means timeline to create fantastic cash flow.
The other timelines require additional effort and self-education, but the information is out there. It only requires the mindset to execute your plan day in and day out.
I leverage multiple timelines every day: YouTube, blogging, books, dividends, bonds, rental properties, living below my means, and rental rooms.
In five years, I will see the fruits of my labor and enjoy the passive income lifestyle. Which timelines appeal to you, and can you leverage them moving forward? Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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