What does your wealth pyramid look like?

[AuricGoldfinger]

 

This is part of a forum and channel i follow. Interesting he has GOLD down as a solid foundation for the pyramid. The other videos on this channel are great and not just biased towards property.

[Derv]

Interesting video. Thanks for sharing. I like the no nonsense way he delivers the information.

[AuricGoldfinger]

He is on a lot of their videos, they all make for great watching, this particular video is something i am already implementing although looking to add to and improve. Personally i need to diversify more away from gold and property but my bottom 2 layers are solid

[vand]

Pyramid scheme.

Haha.

It's not bad, but imo it's not complete.

The bedrock of all wealth building must start with controlling how much you spend in relation to how much you earn, ie your savings rate.  This necessitates aligning your spending with your life values. Unfortunately most people never figure this one out yet, so they never have a chance of building any wealth.

Some people try to cheat or shortcut this with leverage, which usually blows up sooner or later.

Then you can start talking about where to put your money. I like his liking for real assets. Probably needs to consider bonds too. They are the biggest investible asset class, after all. Diversification is good. Managing risk is at least as important as chasing a return. And finally minimizing the taxes you pay is super important. 

There are plenty of millionaires in our society. You probably wouldn't recognise them any differently if you passed them in the street. Most of them drive Kias rather than Lamborghinis, built several streams of income and amassed their wealth slowly over time.

[AuricGoldfinger]

I agree its VERY basic but some people fail to grasp even these basic principles. I always cringe a bit when i see things laid out in a pyramid but i do think its got a good core message.

Most people are all fur coat and no knickers. Which is basically your flash car financed to the hilt as the fur coat, but only enough in the bank for half a tank of fuel - no knickers.

A million is enough to be comfortable if your smart with it but like you say I’d still be flying economy lol.