Figure out ways to own strong, appreciating, assets.
If you don’t own any assets and you just earn your salary and save your money. You strive for a certain percentage raise per year. Well, so does your boss and bosses boss and so on. They make more than you, so as time goes on, their dollar value increases faster than yours and the gap grows in perpetuity.
Another thing you can do, and many may not want to hear this — and I hate to get political — but perhaps something would be to get involved with politics and embrace capitalism. True Capitalism, that is.
To make myself clear, we do NOT have proper capitalism today. If we had true capitalism, the banks would have been allowed to fail and go bankrupt in 2008 during the GFC. Yes, it would have hurt, but we would have come out the other side stronger, with smarter institutions (in my opinion). Iceland was the model to follow.
But with true capitalism and limited regulations, it would provide more opportunity for the little guys to start their own companies, create more competition, and bridge the gap.
[Gee, for a self-proclaimed independent, I sure sound Republican, huh? To be clear, Establishment Republicans today aren’t real Republicans. And we definitely need some regulations in place and some social services. But enough of that political jibjab.]
Business ownership is the ONLY way to close the gap. If you have more businesses, it’s more competition, each business makes a little less money, and the gap closes. And again, the way to create more businesses is to remove as many barriers as possible to start new businesses. Case in point, look at what Amazon AWS service has done for the software industry. Million-Dollar, even billion-dollar businesses have started with an Amazon account and a credit card.
And to be clear, buying shares or acquiring equity in a business is a form of business ownership. I’ll even posit here that real estate is a form of business (it’s an asset, anyway).