This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Prioritize Building Capital, Not Income
What is capital?
Capital is anything that has the potential to work for you in the long run.
Real estate
Private equity
Investments of all sorts
I love how one woman phrased it: “It’s inevitable for 100 million dollars to turn into 110 million dollars”.
Turning $100 into $1000 can happen, but it will take time and work. Turning $100,000 into $110,000 is inevitable. Your money is working for you non-stop, which is why dynasties can last without an ending. Imagine allowing millions or billions of dollars to grow for centuries…the zeroes continue growing – even with elevated spending; your spending never catches up to the interest you’re earning around the clock.
The higher your capital, the easier your money works for you, which is why billionaires not only focus on inventing life-changing technology (i.e., Amazon) but investing in capital.
The more you invest, the higher your rewards will be.
How to increase your capital?
No, you don’t need to create the next Amazon, Twitter, or SpaceX. And the stock market is a great place to start, but it’s only the beginning.
Private equity, disrupting technology (e.g., cryptocurrency and blockchain), real estate, and business ventures (e.g., writing or other products you create for sale) are the way you can increase your capital.
Ben Le Fort has two excellent articles that discuss saving your first $100,000. It can seem to take forever, but once you get there, the next $100,000 happens in a matter of time. As you keep moving forward with financial milestones, you reach them quicker than the previous ones. Then, you’ll start to notice the interest you’re earning is enough to pay your expenses – the first taste of financial freedom after moving into a positive net worth status.
Saving $100,000 Is the Most Important Financial Milestone
Saving $100,000 Was Brutal. Saving $200,000 Was easy
Remember, income is nice; it’s also the starting point for building capital, but it is only step one. You will never cross the bridge to true wealth if you continually prioritize income. Once you transform your mindset to focus on building capital, you will also notice a transformation in your financial portfolio.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.