Creating Wealth Fast or Slow – Which One is the Scam?

If you want to create wealth and “creating wealth slowly” is your strategy, I have bad news for you. You’ll get better odds in Vegas and have less to lose. Vegas may take your money, but…

If you want to create wealth and “creating wealth slowly” is your strategy, I have bad news for you. You will get better odds in Vegas and have less to lose. Vegas may take your money, but “creating wealth slowly” can take your money AND your life.

Financial FreedomSeriously, are you going to tell me the guy that drives the peach Lambo around town and parks it in the garage of his ocean front mansion created his wealth investing in stocks, bonds and mutual funds? Or brown bagged his lunch to work every day, clipped coupons and refrained from the daily mocha frappuccino?

No. Right?

Then why do we accept frugality, investing in mutual funds, coupon clipping and eliminating your daily Starbucks from the “experts” as the path that leads to wealth and happiness?

Where’s the twenty-something guy that created wealth clipping coupons? Where’s the girl who created wealth in three years by setting aside 10% of her paycheck? Oh, and where’s that 27-year-old woman who retired after four years from maxing out her 401K?

Can you introduce me to any of these people?

Let me answer that for you… “No.”

No, because they don’t exist. These are stories of pure fiction.

However, the vast majority of the population embraces these ideas and strategies promoted by the “get rich slow” gurus for creating wealth. The plan in its entirety looks like this:

Go to school, get good grades, get a good job and work there for 50 some odd years, set aside 10% of your paycheck, clip coupons, max out your 401K, buy a house, cut up your credit cards and one day right around the age of 70 or so you will be blessed with financial freedom.

If you live super-frugally and that dollar-cost-averaging thing pans out, you might even arrive a decade earlier. Waiting until 60 to enjoy your financial freedom sounds fantastic, doesn’t it?

Not.

What should absolutely terrify you is, what if that mutual fund did not perform in the way your “financial planner” said it would?

[Yes, I put financial planner in quotes.]

What are your options at age 70? It’s not like you can go back and “do over.” At least Vegas may only rob you of your money and maybe a weekend. Creating wealth slowly will rob you of the best years of your life.

Not convinced?

Ask the 97% of today’s 65 year-olds that don’t have enough discretionary income to write a $600 check.

Considering today’s turbulent and volatile economy, it’s staggering that anyone still subscribes to these “creating wealth slowly” strategies. Face it, to create wealth slowly you must sacrifice your today and your dreams for an idea that doesn’t pay off, if it ever does, until the glory days of your life are behind you.

I’m gonna sum it up and give it to you straight. If your “do over,” or even your first time around for that matter, consists of creating wealth following a plan that consumes the best and most active years of your life without a guarantee, I’m terrified for you. But, if that is indeed your plan and you’re sticking to it, how can I blame you? It’s been ingrained in our psyche for generations, and what’s worse is that there’s a “respected” and growing crew of gurus advocating this plan. This crew is growing because they have a secret. They know what they teach will not create wealth, but selling it does.

More to come…