*If you missed Part 1 of this Picketty Project check it out here.*
To the six of you that got through Monday’s post, congratulations! Now for the stuff most of you actually want to learn about. (Who cares about the 1% – what can I do to make sure I don’t end up as a used-to-be-middle-class person?!)
To put things bluntly, if you screwed up the birth lottery and don’t have rich parents, then screwed up the marriage lottery and didn’t marry rich, then you’re at a substantial disadvantage if you want to rapidly increase your net worth. You can argue against this all you want, but the facts are pretty straightforward.
That being said, while the path to the upper part of the middle class might have gotten narrower and harder to navigate over the past few decades, there is still a trail to follow.
If You Can’t Beat ‘em Join ‘em
We know the game is slanted. We know that those who own stuff are going to see bigger cheques than those that work for cash going forward. So the easiest way to get ahead is simply to align your interests with the rich and super rich. The best way to do that is buying stocks – ASAP. We’ll let you in on how we choose to get exposure to stocks here, but the key thing is to become an owner of businesses (that’s what a stock is for those of you that are a little new to this stuff) as soon as life lets you. If that means cutting out a few luxuries or living in a slightly smaller house, you’ll make those sacrifices if you want to get cash flow from investments as opposed to only your job.Continue Reading