Money—How to Get It and Keep It
By Doug Casey, The Casey Report
Wealth is a multifaceted concept worth considering, even for those who already have it. The question is, what if an unforeseen event, whether it be a natural disaster or a government action, wipes away your financial stability? In the face of a potential economic downturn—what might be referred to as the Greater Depression—it’s crucial to evaluate your preparedness. You may already have an edge over your neighbors through investments in precious metals or a diversified portfolio, yet it’s wise to ensure you’re as prepared as you can be.
A practical approach can be summarized in four steps: Liquidate, Consolidate, Create, and Speculate.
Step 1: Liquidate
Most likely, you’ve accumulated more possessions than you need. Whether it’s in your garage, basement, or attic, clutter can drain your finances through storage fees and depreciating values. Moreover, having excessive belongings can weigh you down psychologically and limit your options for the future. It’s time to clear out the unneeded items.
They still hold market value today, whether you decide to sell to friends or through platforms like eBay. Keep in mind that a year from now, as economic conditions shift, this value could diminish substantially. Currently, buyers are still on the lookout for deals, but as the general standard of living declines, many will find themselves in financial distress and purging their belongings. Act now to liquidate all that you can do without—be it clothes, furniture, electronics, or vehicles. You’ll feel liberated and lighter, and the cash you generate will serve you well in the next steps of your financial journey.
Step 2: Consolidate
Once you’ve liquidated your unnecessary items, take a moment to assess your remaining assets. With less clutter, you can better appreciate the cash on hand and the true value of your knowledge, skills, and connections. What do you excel at? Who can you reach out to for support? Writing down these assets will help you maximize their potential.
If you find gaps in your skills or connections, don’t hesitate to seek improvements. Continuous learning and networking will only serve to strengthen your position in any future economic landscape.
Examine how you currently spend your time; there may be better opportunities for more profitable pursuits. Always strive for growth and adaptation, as stagnation is a recipe for decline.
Step 3: Create
The key to wealth lies in producing more than you consume and saving the surplus. Working for someone else can limit your potential for value creation, as you want to be the driving force behind your financial outcomes. Consider approaching your current job not just as employment but as a partnership or collaboration.
Explore local businesses and industries to identify services you could offer. The demand for improvement is universal, and if you think like an entrepreneur, you can seize lucrative opportunities in any market, including emerging economies.
As an example, consider traveling to countries in Africa where your skills and connections can make significant impacts. The potential for meaningful business ventures is enormous, and your unique perspective as an outsider could open doors. Investing your time and resources in these regions might yield exceptional returns.
Reflect on money’s diminishing returns—essentially, at some point, more wealth doesn’t equal more happiness. Focus on utilizing your wealth for freedom rather than simply accumulating it.
Step 4: Speculate
With capital now in your possession, the next step is to ensure it grows rather than stagnates in value. Remember, as the world continues to prosper, holding onto cash may lead to losses as its purchasing power declines.
Traditional advice on investing may not suffice in the face of rapid shifts in the economy. Many individuals will be tempted to chase quick gains, which could lead to disappointment. Instead, consider adopting a rational approach to speculation that allows you to profit amid inflation and market distortions.
What to Do if You’re Already Wealthy?
If you feel financially secure, the next question is, what now? Here are some considerations about wealth that you may find helpful amid fluctuating prices:
First, accept that wealth is inherently valuable. There’s no need for guilt about your financial status or ambition for more.
If you’ve succeeded in acquiring and effectively utilizing wealth, you likely possess qualities that deserve to be recognized. Productive individuals—those who contribute to society—tend to find their efforts rewarded with financial success. This is not to say that all wealthy individuals achieve their status through merits; however, generally, wealth reflects certain virtues, such as diligence and integrity.
Second, reflect on your intent with wealth. While it serves as a means of comfort and support for others, it’s crucial not to narrow your vision. As advances in medicine and technology continue to evolve, opportunities to enhance one’s life will grow, perhaps even allowing for significantly extended life spans.
Third, reconsider giving to charity. Traditional charitable contributions often do more harm than good. The entire structure surrounding charitable donations requires a fresh perspective to truly be beneficial.
Fourth, if you’re concerned about the future, take thoughtful measures regarding your estate. It’s not an automatic obligation to pass wealth along to your children unless they are deserving. Historical context shows that wealth can easily dissipate through uninformed succession.
Focus on passing your assets to those who can uphold and grow them. Remember that the impact of wealth is greater when its concentration allows for effective usage. Consider candidates who share your values and have demonstrated potential for responsible stewardship.
The Bottom Line
To achieve significant wealth, you must adopt a serious approach to money management. Master these fundamental principles and keep your focus clear. Avoid the distractions and misinformation prevalent in financial media. Live within your means, prioritize saving over spending, and invest wisely!
Sincerely,
Doug Casey
for Economic Prism
[Editor’s Note: For further insights into navigating currency crises and an understanding of market dynamics, consider Casey Research’s latest book, Going Global, which offers invaluable strategies for securing your financial future. Claim your copy right here. The article Money—How to Get It and Keep It was originally published at caseyresearch.com.]
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