You may have heard that only a select few - the so-called "elite" - can build significant wealth.
But is that really true?
Can an average person put themselves in a position to retire early and attain financial freedom?
In this article, we'll analyse some statistics on wealth distribution, clarify what true "wealth" means to you, look at the necessary attributes and skills required, and provide practical steps you can start taking today.
The key insight is that with the right mindset and consistent effort over time, sustainable wealth creation is possible for anyone.
The Stark Reality of Wealth Inequality
First, let's ground ourselves in some statistics on global wealth distribution. These numbers can be discouraging initially:
50% of the world's net wealth belongs to the top 1%
The top 10% of adults hold 85% of global wealth
Seeing how concentrated wealth is, you may wonder - why even bother trying? How could you possibly compete?
Defining True Wealth
This is where it's important to clarify what "wealth" really means for you.
Is your goal to have the highest net worth of all? For most people, that's not the right target.
A better North Star is attaining financial freedom - having enough assets to generate passive income that covers your desired lifestyle.
As an example, if you create investments delivering $100k or $150k in annual passive income, you've achieved that freedom.
Comparing yourself to billionaires is unnecessary.
Wealth, for you, is having a pool of assets providing more passive income than your annual expenses.
With that target defined, the question becomes: how do I get there?
Cultivating the Right Attributes
Historically, building wealth was mostly reserved for those born into privilege or who created massive companies.
But today's world provides more opportunities than ever to craft financial independence on your timeline.
To join that small group that creates sustainable wealth, grit and determination are critical.
Since you likely don't have an ultra-high income, you'll need to delay gratification at times to systematically build assets over years and decades.
This requires understanding yourself - resisting temptations to overspend, and continuing to educate yourself.
Wealth building involves wearing many hats - money manager, investor, banker, deal finder.
The sheer amount of skills to learn can be overwhelming. The key is to start simple and focus on high-impact fundamentals within your control.
As your experience grows over time, more advanced strategies come into play.
But don't let complexity deter you - the fundamentals are straightforward when properly focused on.
Practical Steps to Take Now
If starting today, where should you focus first? Mastering two core skills accelerates your wealth-building:
1. Managing Money Inflows and Outflows
Determine where your money comes from and where it goes every month. Do you have processes for allocating income to investments and other financial priorities?
Understanding historical spending patterns and creating a system for intentional allocation are foundational. Every dollar should have a purpose based on your goals.
2. Consistency and Attention
The frequency and consistency with which you engage in wealth-building activities are critical.
Set reminders to review investments, make new contributions, and increase your financial knowledge.
Despite good intentions, wealth activities often fall into the "not urgent" bucket and less gets done over time.
The antidote is giving your finances frequent attention - even daily or weekly sessions to maintain momentum.
Making progress across both skills establishes the infrastructure and habits necessary to accumulate assets.
Keep wealth building on the top of your mind by journaling regularly about your objectives, actions taken, mistakes made, and influences to cultivate or avoid. This reflection cements what you're learning and refines your path over time.
Final Words
With the right targets defined, attributes developed, and real-world steps taken - sustainable wealth creation is within your reach.
By playing the long game and taking consistent action, you can attain financial freedom faster than ever before.
Avoid getting overwhelmed by starting simple and staying focused on high-impact fundamentals within your control.