In the age of social media, everyone wants to be seen, and everyone wants you to buy into the illusion of their lives. Of course, we know nobody’s life is perfect, but you wouldn’t know that from social media.
Everyone’s driving nice cars, watching concerts of the most popular singers from the front row, living in big houses, and spending their days gaming in front of huge TVs.
Outsiders don’t realize that most of these people showing off all their “bling” on social media are not financially secure. Most are in debt up to their noses. For the highly paid doctors, lawyers, and execs or spouses or children of these professionals flaunting their money, all of these professionals are forever tied to their jobs. They will punch the clock well beyond the age they want to support this lifestyle.
There’s a difference between the financially insecure and the financially independent. The former group – the social media crowd – spends their money for show, for things everyone else can see and notice.
The financially independent spend their money to achieve things unseen – and not to impress their neighbors or the Internet. They’re out to impress no one. They’re less interested in impressing and more in providing for their loved ones, providing for worthy causes, and providing for a better future for themselves, their families, and the world around them.
I should clarify the title of this post. Not just any investing will provide the unseen; only the right kind of investing will provide the unseen. So, what’s the wrong kind of investing?
The wrong kind of investing is investing to go along with the crowds. Herd behavior has led to all previous stock market and investing bubbles, which will be the cause of future ones.
Unfortunately, the social media crowd buy things like cars and clothes to be seen, but they also invest to be seen. Hey, if everyone else is buying worthless Gamestop (GME) stock, I will too. You’re not cool unless you’re buying volatile crypto.
There’s a psychology to wealth that is eerily similar to basic human psychology. Those who are insecure personally spend a lot of money to compensate for those deficiencies. They spend money on plastic surgery, expensive clothes, and fancy cars. They want to be part of the crowd.
The financially insecure have no self-identity. They are incapable of evaluating their own investment decisions. They go along with what everyone else is doing.
Those who are comfortable within their own skin and are financially secure don’t care what others think. They don’t care what people think about the sensible car they drive or the modest house they live in. And when it comes to investing, they don’t care what everyone else is doing. They are not investing for what can be seen and shown off to the public; they are investing for things they value more – things unseen.
They invest in things like:
- Freedom from a time clock.
- Freedom to set their schedules.
- The ability to help others with their time and resources.
- Time with family.
- Time to enjoy hobbies, sports, and activities of their choice.
- The chance to explore the world.
Do you see a theme here? What’s most valuable to those I call wealthy (financially independent) is time – and buying back time can only be accomplished by investing the right way.
Buying back your time can only be accomplished when you can generate income outside your job. Working overtime is not buying back your time. You’re just continuing to trade time for money. However… if you work overtime to use that extra money to invest with the intent of buying back your time, then you’re on the right track.
Generating passive income streams is the only way you can break free of your job or a time clock. Working two jobs will not help you break free. It will take investing in the right assets that offer the following benefits:
- Consistent Cash Flow.
- Tangible Asset.
- Tax Benefits.
Consistent cash flow can be reinvested to create additional streams of passive income. Underlying appreciation from tangible assets builds long-term wealth insulated from inflation and recession. Finally, tax benefits allow you to keep more of what you earn for reinvestment back into the wealth machine.
The right kind of investing in boring tangible assets like commercial real estate and income-producing private businesses have all the elements for building, creating, and maintaining wealth.
Investing in these assets will provide the unseen – the things you can’t show off on social media, but that will bring you personal fulfillment and change your life and the lives of those around you.
Kyle Jones is a co-founder and Key Principal of TruePoint Capital, LLC. Kyle is responsible for the company’s strategic planning, investment decisions, asset management, and overseeing all aspects of the company’s financial activities, operations, and investor relations.
Kyle obtained a Bachelor of Science degree from Texas State University – San Marcos, where he also played Division 1 Baseball.