I Was Chasing the Wrong Number

Most people spend their entire lives chasing the wrong thing. They chase income. The higher salary, the better bonus, the next promotion. And while income matters, confusing it with wealth is one of the most expensive mistakes you can make.

The top 10% of US households own 70% of total American wealth. The bottom 50% own just 2.5%. In the UK the picture is almost identical. The top 10% own over 50% of national wealth whilst the bottom 50% own less than 5%. And the trend is only moving in one direction. The top 10% are accumulating a larger share every year whilst the bottom 90% own less and less.

If you don’t already own significant assets, it is getting harder and not easier to build them. This is the actual data behind the phrase the rich are getting richer and the poor are getting poorer. But what’s critical is that this is not a chart about income. This is not about who earns more. This is purely about wealth. Purely about assets. And that distinction is everything.

Wealth is not income. Income is money you receive over a specific time period. Your salary, your bonus, your self-employment earnings. It flows in and unless you do something deliberate with it, it flows straight back out. Wealth is different. Wealth is a stock. Everything you have accumulated. What you own. Wealth can grow over time depending on asset performance. It grows while you sleep. It can be passed down. Piketty wrote that wealth is so concentrated that a large segment of society is virtually unaware of its existence. I’d argue that’s because most people have spent their whole lives focused on income, never realising the two are entirely different games being played on entirely different boards.

What actually builds wealth is assets. Assets that store value. Assets that generate income. Property, equities, a business, your own IP. Your salary pays your bills. Your assets build your future. The people sitting in that top 10% don’t just earn more. They own more. And that ownership is what separates them. Not a job title, not a degree, not a postcode.

Converting income into assets is one way many people attempt to build wealth over time, including investing in property, investing in the financial markets and/or building a business. However, The longer you wait the harder the gap becomes to close because while you’re waiting, the people who already own assets are watching them compound.

If you’re interested in long-term investing, the platform you use can make a difference. MEXEM is authorised and regulated by the FCA and provides access to global markets through trading platforms powered by Interactive Brokers.

Whether you’re starting with a Stocks & Shares ISA or a general investment account, you can explore the platform here.

Investing involves risk. The value of investments can go down as well as up and you may get back less than you invest. Tax treatment depends on individual circumstances and may change. AD

This week’s episode is with Eche & Chika, the founders of Afropolitan. Eche talks about his grandfather being one of the richest men in the Igbo community, and how quickly that wealth disappeared once mismanagement and war got involved, which is part of why he’s so firm on protecting your name before your money: “the name will still get you into doors even when the money isn’t there.”

We also get into why money is really about legacy and connection rather than just the numbers in an account. Chika talks about why she walked away from over a decade in tech to build something of her own, and Eche discusses the framework he picked up from a book (which I did a whole video on for my members) that completely changed how he thought about leverage. If you’ve been feeling like your career doesn’t offer the same security your parents’ did, this one is worth listening to properly.

If you want to speak to a professional about your financial situation, you can book a free consultation with our team and we’ll match you with the right specialist. Whether it’s your investment portfolio, pension consolidation, or long term financial planning, it’s worth getting a proper review. Book Here.

Now might be the perfect time especially if you want higher leverage payment plans. Book Here.

This newsletter may contain affiliate links or sponsored content. If you choose to use them, I may receive a commission. Nothing shared should be taken as financial advice, always do your own research.