37 Comments
User's avatar
Jim Teague's avatar

Your ladder from saving to investing to owning productive assets hits because it removes drama. I use a tiny rule, every raise gets split 50, 30, 20 into index funds, skill stack, and guilt free fun, so lifestyle creep never grabs the wheel. Curious where you place buy back attention costs like childcare or a cleaner, expense or wealth multiplier?

Darius Foroux's avatar

I'd call that a wealth multiplier if it buys back hours you reinvest into earning or skills, and an expense if it's just for comfort. Good split, Jim.

Alexander Brosda's avatar

This is where I agree most strongly: The signaling trap may be one of the most dangerous wealth killers because it feels like progress while quietly destroying the foundation. A lot of people (especially younger people) do not want wealth first. They want to be read as wealthy first. The car, the watch, the rentend Miami penthouse, the trips, the restaurants, the upgraded lifestyle. All of it can create the illusion of movement while the actual financial base remains fragile. That is where mindset matters so much! The market is not always the enemy. Income is not always the limitation. Very often, the damage comes from impatience, comparison, ego, and the inability to delay gratification long enough for money to become useful. Wealth requires a certain willingness to look less impressive than you could look today, so you can become much stronger than people realize tomorrow. That used to be not that complicated. Today, however, it is just very hard for people who need constant confirmation from the outside world, especially through social media.

Neema Amin's avatar

The gap between money and wealth is the one that actually changes how you think about everything else. A higher salary without that reframe just turns into a higher burn rate. Seen it too many times.

Anthony B's avatar

Neema is spot on. Without a mental reframe, a bigger income just funds a more expensive hamster wheel.

I actually escaped this trap by keeping the exact same monthly budget for decades.

Even today, I haven't changed it. Because I froze my burn rate, my asset portfolio now completely covers my entire lifestyle and then some—while the rest just keeps compounding in the background. The emotional stress is completely gone.

Darius Foroux's avatar

Freezing your burn rate while your income grows is one of the most underrated moves. Glad the stress is gone, Anthony.

Anthony B's avatar

Thank you, Darius.

That’s exactly why I only focus on what I can actually control:

my savings rate, money management, and asset allocation. Incomes fluctuate, but keeping my baseline expenses steady is what lets the compounding machine run on autopilot.

How do you handle your allocation when a new income stream hits?

Darius Foroux's avatar

Good question, Anthony. I let it sit for a few months first, then fold it into the same allocation once I know it’s steady, not one-off.

Esteban's avatar

Insightful, thanks for sharing !

I’m a consultant and it’s true that seeing nice watches all day is tempting.

To avoid unnecessary purchases I have two rules :

- 1 month rule : am I still that interested in the watch after one month ?

- easy replacement rule : if I lost this watch tomorrow (and I really liked it) am I able to afford a new one without harming my budget ?

Darius Foroux's avatar

Those two rules would kill most impulse buys. Simple and effective.

Jerald Mortos's avatar

your idea about make money from what you're genuinely good at are beautiful and profound, brother.

Darius Foroux's avatar

Thanks for the feedback man.

EverLeaf Finance's avatar

This is the key - when you know your "why" or your purpose, nothing else really matters. Money will naturally follow if you're working within your gift!

Investing Lawyer's avatar

Very well written.

I really like the raw talk, I do it myself aswell.

Darius Foroux's avatar

Thanks for reading!

Lexie Thompson's avatar

Subscribed!

Ken West's avatar

Delayed gratification gets even more powerful when we realize the goal isn’t simply to wait longer to enjoy our money.

It’s to use today’s money to build assets that can pay for tomorrow’s enjoyment.

Darius Foroux's avatar

Well said. Thanks for reading.

Ken West's avatar

9. Delayed gratification is the whole game

That’s gold!

Nidhi's avatar

Well explained, It's very thoughtful...

Tony Doesn’t Know's avatar

I’d love the contrarian way of thinking. When I was younger, I just thought I was odd. When I grew up I learned what a contrarian was.

F.R.O.G 🐸's avatar

For me I've broken it down into 5 key principles, executing these consistently has built a wealth generating fly wheel that feels almost unbelievable.

https://ukfinance.substack.com/p/the-fi-playbook-for-your-20s-how?utm_source=share&utm_medium=android&r=75jx9z

The Edge Forge's avatar

Point 5 is the one I keep coming back to. The portfolio you design in calm isn't the one you hold in panic. Same spreadsheet, different person. Every allocation is really two decisions: one made at your best, one made at 3am when something breaks. The gap between those two versions of you is the real risk profile, and most people never measure it because the test only arrives when they can least afford to fail it.

Darius Foroux's avatar

Well put. Most people only find out their real risk tolerance at 3am, when it's too late to plan for it.

Masha's avatar

People see the results.

They don’t notice the things below the surface.

the efforts, the hard work, and the consistency.

Mahmood Ali's avatar

Well written

Oluwatobi.'s avatar

Spot on

Aarti Sharma's avatar

Let’s grow together by supporting one another if you’re also new on Substack, feel free to subscribe and I’ll gladly do the same.