Section 1.1: The Snowball Effect in Investing

Real estate is a widely recognized avenue for wealth growth. However, investing in property can be quite expensive, particularly in today's market.

On one side, you might choose to save up for years, living paycheck to paycheck, until you have enough to invest in real estate. There’s nothing wrong with that approach. Alternatively, you could start with a smaller investment and continuously reinvest until you accumulate enough for a down payment on a property. This iterative growth, known as the snowball effect, has been my method for increasing my wealth and will remain my strategy moving forward.

Many of us don’t have the luxury of tens of thousands of dollars available for a down payment on a rental property. Earning that capital takes time, and life can throw unexpected challenges your way. This is where the concept of snowballing assets becomes advantageous.

Snowballing your capital from one investment to another creates a fast track to financial success.

Subsection 1.1.1: Understanding Different Levels of Assets

The method by which you snowball your assets largely depends on your current investment base. Here’s a simple breakdown of the various asset levels available for investment:

1. Yourself:

   The most critical investment is in yourself. Whether through education, courses, or experiences, investing in yourself is foundational and invaluable.

2. Small Business:

   After enhancing your skills, the next logical step is to channel that knowledge into launching a small business. This could involve utilizing the skills gained from your self-investment or starting side hustles, such as reselling, freelance writing, or day trading. Any endeavor that generates income and fosters growth qualifies.

3. Real Estate, Stocks, and Large Enterprises:

   Your earlier efforts in reselling have paid off, leading you to the world of significant investments like real estate, stocks, and large-scale businesses.

Section 1.2: The Importance of Separating Your Investments

By strategically rolling over my assets from one investment to another, I maintain a clear distinction between my investment funds and my everyday finances. This separation makes it easier to disregard this investment capital, in a positive way. Since the funds aren’t immediately accessible, it reduces the temptation to spend them. Until I’m prepared to cash out and enjoy the fruits of my investments, my goal is to keep my money in assets that continuously generate more wealth, cycling through one investment to the next.