The Truth About Wealth: Smart Money Moves

Aspire Compass

Hey there,
Welcome to Edition #13 of Aspire Compass!

So, how do we get better at money management? The first step is a psychological shift. Many people grow up with the mindset that money is bad or that wealthy people are inherently corrupt. While it's true that some have gained wealth through unethical means, it's unfair to paint all successful individuals with the same brush. If we pass on the belief that "money is bad" to our children or younger generations, we risk setting them up for long-term financial struggles.

Understanding the "Tax the Rich" Debate

This topic often stirs strong emotions, especially in politics. In North America, for example, there is a constant debate about taxing the wealthy. Some argue that figures like Jeff Bezos should be taxed heavily, given that the top 10 wealthiest individuals hold as much wealth as the bottom 3.5 billion people combined. While this seems unfair on the surface, we must consider the broader economic impact.

Amazon, for instance, employs over half a million people. These employees earn wages that they use to buy goods, pay rent, and contribute to the economy. If we heavily tax business owners, they may respond by cutting jobs or relocating their businesses, ultimately hurting the workforce and the economy. It’s crucial to look beyond surface-level narratives and consider the ripple effects of such policies.

Shifting Your Mindset on Wealth

We often hear anecdotes like "Bill Gates wouldn’t pick up a $100 bill because he makes more in that time than the bill is worth." Instead of focusing on trivial details like that, we should be studying how he built his wealth—how he started coding in school, how he leveraged his skills to create value, and how he made strategic decisions. Learning from the habits of successful people is far more beneficial than resenting their success.

The Reality of Investing

A common question people ask is, "I have $1,000—where should I invest it?" The truth is, investing small amounts won’t make you wealthy overnight. A 10-11% annual return on $1,000 is just $100-$110 per year. While investing is essential, focusing solely on investments without increasing your active income is a flawed strategy.

Instead of chasing tiny investment gains, think about how to increase your earnings. If you can develop a high-income skill, work a job, or start a side business, you can eventually build enough capital to make meaningful investments.

Risk vs. Reward in Business

Let’s compare two businesses:

1. Selling cat food through a small Facebook page.

2. Investing $10 million to develop a real estate project.

At first glance, the real estate project seems riskier due to its higher investment requirement. However, with proper planning, it has a much higher chance of success than a small Facebook business. Sometimes, investing more money reduces actual risk because larger ventures often have better planning, infrastructure, and long-term sustainability.

Avoiding the Shiny Object Syndrome

Jumping from one trend to another—whether it's trading, YouTube, or the latest business craze—rarely leads to sustainable success. True success comes from mastering a skill, gaining experience, and leveraging both to build something meaningful. Passive income is great, but it only becomes truly viable once you have a stable active income to support it.

The Path to Financial Growth

1. Develop a skill. Learn something valuable that can generate income.

2. Gain experience. Work a job, freelance, or gain hands-on knowledge.

3. Build a business. Use your skills and experience to create something scalable.

Once you align these elements, financial success is no longer a distant dream—it becomes an achievable reality.

Stay focused, keep learning, and until next time—stay ambitious!

[Arif Hasan] 

Aspire Compass

 📌 Important Disclaimer:

This newsletter is for information and educational purposes only, the above are not financial advice. We are not associated with any of the listings from above (unless mentioned otherwise). Do your own due-diligence.