Why Most Investors Get Lost on Their Wealth-Building Journey

Why Building Wealth Is Not Rocket Science 

But first, let me say that building wealth is not rocket science.  

I always say it in my community because some people try to make it sound way more complicated than it needs to be.  

They use big words and fancy terms to confuse you and make you think certain investments are better than others. 

But here’s the thing: building wealth should be simple. But, of course, that doesn’t mean it’s always easy.  

Sometimes the simplest things can be hard because of our own personal struggles or issues. We might have emotional baggage that prevents us from taking action, or we might not know where to start. 

There are a lot of different approaches to building wealth, and it can be overwhelming to figure out which one is best for you.  

On top of that, we often get in our own way by letting our emotions or past experiences hold us back.  

The theory of building wealth is easy to understand, but putting it into practice can be a whole different story. 

Let me start by sharing some statistics highlighting why the topic we’re discussing today is so important.  

As someone who talks to many investors, I can tell you that many are struggling with their finances and feeling the pain of the current economic climate. 

A survey by Franklin Templeton on behalf of Harris Poll found that 79% of millennials are worried about how the soaring cost of living will affect their retirement.  

And that’s not all: 73% of all respondents said that inflation has threatened their retirement plans, while 63% of individuals aged 40 to 55 feel that the current economic environment has negatively impacted their retirement plans. 

But despite worries about student loans, health expenses, and inflation, the number one priority for most people is still achieving financial independence. 

Recently, there’s been a lot of talk about the “great resignation,”  a term used to describe the trend of people quitting their jobs in search of something better.  

But a new survey has found that many employees now want to stay with their current employer due to a desire for stability.  

In fact, 66% of employees said they want to stay with their current employer, with 89% saying they’re likely to stay for at least the next year. 

All of this is important because it gives us an idea of where people’s heads are regarding their finances.  

The great resignation may be turning back into a great return, and as investors, we need to consider what this means for our wealth-building journey. 

One of the things I believe very strongly in is that anyone can build wealth.  

Some people might feel like they’re starting at a disadvantage, but everyone can overcome those obstacles with the right mindset and guidance. 

In my experience coaching and supporting others, I’ve seen people who have had some tough experiences with money, but if they put in the effort to work through those issues, they can still achieve financial success. 

So today, I want to talk about some of the common challenges I see when building wealth. 

Then I want to share with you some important questions that you should ask yourself if you want to stay on track and avoid getting lost on the journey to financial freedom. 

So let’s actually get into it. 

Why Focusing Too Much on the Short Game Is Dangerous

Based on decades of observation, I often see that people focus too much on making money in the short term instead of playing the long game. 

Let me explain: the short game is about making money and living a good life today. It’s where most people spend their time, focusing on increasing their income immediately. 

But here’s the thing: just making more money won’t necessarily help you build long-term wealth.  

I heard this at a conference where my friend taught women how to succeed in their careers and make more money. 

When I spoke to them about wealth, I told them that even if they earned 10, 20, or 30% more from their salary, it probably wouldn’t change their overall financial situation much. 

I know it might sound strange, but the truth is that if you don’t have a plan for how to use that extra money wisely, you’ll likely just spend it without even realising it. 

Well, that’s what we call the “short game.”  

It’s necessary to play the short-term game, of course. But it’s also crucial to remember the “long game”—the bigger picture of caring for your future self and family. 

Think of it like a cherry in the middle—that’s the short game. The concerns and plans for the future, the legacy you want to leave behind – that’s the long game, the stuff around the outside.  

Sadly, not many people focus on this game as much as they should. 

Take white-collar professionals, like some doctors and dentists, for example. They often get caught up in playing the short game, trying to make as much money as possible to keep up with their neighbours and show off their status.  

But they don’t realise that making a high income isn’t enough to build true wealth in the long run; that’s why you must start thinking about your long game early on – even if you’re not making much money yet.  

If you don’t plan and invest in the future, you may find a very short runway later on, where your expectations for where you would fall short. 

So, to sum it all up, don’t forget about the long game! It’s the biggest factor in people getting lost on their wealth-building journey.

The Concept of Abdicating 

The second thing I want to really touch on now is the concept of abdicating. 

Sometimes people think they don’t know enough about building wealth, so they hand over their money to a financial advisor and say, “Here, you take care of it.” 

But the thing is, no one cares about your money as much as you do, and most financial advisors have a very narrow focus on what they will and won’t invest in, which can limit your results. 

Sure, you could earn a lot of money and hope the financial advisor gets you at least part of the way towards your goal.  

But I’ve seen that people who control their money decisions tend to have better results. 

When you give your money to someone else, you might not get the outcome you’re hoping for, and poor decision-making can happen.  

Sometimes, we get trapped in how other people think about building wealth. We might feel like we don’t know enough to make decisions ourselves, so we just listen to what others say we should do.  

For example, someone might say, “You should invest in bonds or the stock market,” and we just accept it without questioning it. 

But instead of giving up control, I believe educating ourselves and making our own decisions is vital.  

Of course, we should learn about the different investment options available to us, but we shouldn’t just blindly follow someone else’s advice without considering our own goals and risk tolerance. 

So before investing, we should ask ourselves: 

• Does this strategy make sense for me? 
• Does it align with my goals? 
• Is it the right level of risk for me?

We shouldn’t assume that someone else knows what’s best for us and give them complete control over our money for decades.  

It’s okay to work with others and ask for their help, but don’t give them all the control. That’s the main point I want to emphasise.

Do You Have a Clear Plan For Your Wealth Building? 

Another thing that people often struggle with when building wealth is not having a clear plan.  

Financial independence can be a bit of a vague concept, and if you don’t have a specific idea of what it means for you, how can you create a plan to get there?  

It’s like trying to take a trip without a destination in mind. Even if you’ve been successful in investing, chances are you’ve been a bit haphazard and opportunistic in your decision-making.  

Without a bigger plan that outlines things like the resources you’re going to allocate, the strategies you will use, and the timeline for achieving your goals, it can be tough to reach the financial freedom you’ve always wanted. 

I’ve talked to many people who, on paper, look like they’re doing well financially, but when you dig into it, they don’t have the kind of financial independence they were hoping for.  

It’s because they never took the time to define what that meant for them and develop a strategy to make it happen. 

So if you want to avoid getting lost on your journey to financial independence, think about what that means for you and create a plan that outlines the steps you need to take to get there.

How to Access High-Quality Investment Opportunities 

The next reason many people get lost in investing is that they don’t know how to find better-quality investment opportunities. 

They get stuck because they think there’s a limited pool of investment options available, and they feel like they have no choice but to stick to those options.  

But the truth is, if you want to achieve financial independence, you must be willing to explore other investment opportunities beyond the traditional ones. 

Now, everyone wants to get great returns on their investments, right? I mean, who doesn’t want to earn more money?  

But the thing is, you can’t expect to consistently achieve those great returns if you’re just following the crowd.  

To achieve those outsized returns, you need to think outside the box and explore other investment opportunities that others might overlook. 

To do this, you must surround yourself with the right people and be part of the right communities.  

You need to connect with individuals who think differently from the majority—the ones who are unicorns in their way of thinking. These people can help you discover new investment opportunities that others might not even be aware of. 

So, if you want to shortcut your way to financial freedom and independence, think differently and ask yourself, “What else?” continuously.  

Look for new investment opportunities, and don’t settle for the traditional ones; this is the secret sauce to getting those outsized returns you’ve been dreaming of. 

Personally, I always want to find the best investment opportunities before others in markets that are very competitive, so I can have an edge over them. 

In my case, I’ve found that investing in alternative real estate is a great way to achieve that edge.  

I’ve talked a lot about alternative investments before, so I don’t want to go into too much detail about that here. 

The point is you need to keep expanding your mind and looking for new opportunities to stay on track towards your financial independence goals.

The Importance of Having a Supportive Mentor 

The next biggest mistake I see people make when trying to build their wealth is not having good guides or mentors to support them along the way. 

Now, this is different from giving up control of your investments to someone else. I mean having someone who can give you advice and help you make better decisions. 

Based on my own experience, having mentors and guides has been crucial to my success in building wealth.  

Whenever I’ve had a breakthrough or made significant progress, it’s often because someone has given me valuable insights that opened up new possibilities. 

When I first learned about alternative investments, I didn’t know much and made some mistakes by working with the wrong people and doing the wrong deals. 

But those mistakes helped me see new options. As I kept exploring, I discovered more and more investment opportunities.  

Eventually, I found mentors who have taught me about protecting my capital, avoiding big mistakes, navigating economic turbulence, and building a lasting legacy. All of these things have helped me grow my wealth. 

Again, I want to emphasise that seeking mentors and guides is essential for your success.  

Some people may be experts in one area, like real estate investing, but they should still be open to learning and growing. 

You’re never done if you’re willing to be humble and keep learning. It’s a key factor for long-term success.

Key Questions for Financial Independence and Legacy Building 

To sum up what we’ve discussed today, I want to leave you with a few important questions you need to answer to achieve financial independence and build a legacy.

First, do you have a solid plan to generate income from your investments to sustain your lifestyle, or are you just selling off assets and running down your savings until you reach zero? 

Second, do you have a mentor or guide who can show you the best path to success and help you avoid costly mistakes? 

Third, can you access the right investment opportunities to help you achieve financial independence in the time frame you want? 

And lastly, are you educated about all your investment options? 

Answering these questions can help you find the right path to financial independence. It doesn’t have to be complicated or overwhelming. 

If you need help, feel free to reach out to me. But you can also sit down, reflect on these questions over a cup of tea, and write down your answers.  

Doing this can help you get back on track and move confidently towards your financial goals, regardless of any economic challenges.