I am probably NOT going to be among the popular viewpoints about creating wealth, because so many people are still preaching diversification.
Whether it is business coaches telling you to have multiple streams of income or investment gurus telling you to diversify your assets, the popular viewpoint still comes down to this old wives’ tale: don’t put all your eggs in one basket.
In my opinion, most people have exhausted attention and scattered energy from trying to do too many things at once.
I know I am not a machine! And neither are my clients. Having too many spinning plates means less devotion & energy for what matters.
We are already juggling our work, life & family. Trying to build wealth in multiple areas is challenging and ineffective.
I have watched people try to build wealth my whole life. I have watched business owners, investors and everyday people scramble to make more money. I have watched white men win this scramble often while women lose (just look at my article on why women need more wealth).
Many men could diversify their methods for building wealth because they didn’t manage their household, their kids, the care of others, the domestic duties, or many other roles that women are obligated to manage. In truth, they have never had to spin as many plates as women have.
For women who are already managing multiple roles, building wealth requires focus.
What has happened in your life when you were really focused?
In my experience, when we are sending all our energy in one direction (focusing), we create more. We have more fun. We have more balance. We manifest things more effortlessly.
I think it is so important to highlight the power of focus because one of the reasons why we are still praising diversification as a wealth-building strategy is because of a myth. So let’s bust that myth right now!
A lot of people teach the concept of passive income as a path to wealth. Now, if you were born into a wealthy family and you have intergenerational wealth, you might have a chance at making passive income. If someone handed you a bunch of assets, you might have a chance at making passive income.
But if you don’t have those things, the concept of passive income is a myth!
No new form of income is passive, not ever. Not in business, not in investing, not in building assets.
Argue with me if you must, but the people who are selling this concept are just trying to make money off of you. (They are not committed to ethical marketing!)
Yes, you can have leveraged business or investment models where you aren’t trading time for money, but none of it is truly passive.
It requires your energy.
It requires your time.
It requires your decision-making resources.
It requires your management.
It requires your knowledge.
It requires your capacity to hold it, especially when it falls apart (and it will).
You can’t sit on a beach drinking Mai Tai’s, no matter how great those Insta-success profiles look. (I could go on and on about this forever, but let’s get back to focus.)
It is easier to build wealth by focusing on one path!
Once that path is successful, stable and growing on its own, then you can shift to your next focus. In other words, when that path no longer needs your devoted attention, you can put your attention on something else to build your wealth.
Let’s take the example of business. Having a high-profit business is a great way to start building wealth. You are working to create money that leads to lots of profit that means you can save, invest and build your wealth consistently over time.
There is no easy way to build a high-profit business…it takes time and attention.
You can’t just delegate everything and sit on the beach. Delegation sucks up a huge amount of profit, and any business still requires your attention to make it work.
Business also changes over time. The market changes. The messaging you use has to change. You change!
So there is no set and forget. You have to keep putting energy into it, but it works.
Whatever you choose to focus on needs to have a few key criteria:
- You want to enjoy it! This is first on my list because building wealth takes time and consistent energy. If you hate it, it will be a constant slog and you will give up before you really create it.
- It needs to be stable. I know, nothing is really stable, but a good business, assets or savings can be more stable than other ways of investing.
- It needs to be building money consistently, even in small amounts. There are amazing apps these days that can automatically move small amounts of money into savings. This is a great way to start!
- It needs to be aligned with your values and feel good in your gut. If you try to create wealth in any way that is misaligned with your values, you won’t feel good about the money you are creating. This leads to self-sabotage and self-made glass ceilings!
- I think minimal energy drain is another criteria worth mentioning. What can you do that is either energizing or minimally draining?
If you already have multiple sources of income or wealth generation, choose one and go all in!
If you are just starting out, pick something that meets the criteria above. Spend time soul searching and discovering what you truly value. Get some support, but listen to your internal wisdom first and foremost.