Should you focus on earning more or saving?
Should you focus on earning more or saving? Often the advice we get is not to take too much risk, although you cannot have substantial wealth if you focus on the saving part too much.
So where to go and what should you do?
Is it possible to get rich faster?
The only way to do this is to have your wealth concentrated in a single place. You have one shot at winning or losing. Hence why, Entrepreneurs often take risks. They invest their money, time, and every resource into their business.
But why do they do so? The answer is simple, they think someday when their company starts making a profit, it could lead to an enormous exit. They would gain much more from what they invested. Most wealthy businessmen like Jeff Bezos and Elon Musk have used risk concentration to build their empires.
Take calculated risks
Financial advisors always tell you to diversify your portfolio. It is indeed risky to put your money in one or two places. Entrepreneurs place a single bet because they think it would pay off someday. But for most of us, we would try diverting the risk, rather than thinking of exponential returns. In the end, no one wants to go to zero, and the concentration of assets might end up here.
Once you have made enough of your business, it is time to go for that diversification. It would certainly help you with calculated asset generation. Although, it is a slower way of making money it can be a learning period. You could sit and analyze where your wealth is increasing with a good return, and concentrate on that.
Well, it all comes down to your choices. You may own good wealth but you can protect it further by diversifying your earnings. If you believe in taking the risky path then go for it. Again it is all about what is wealth to you and your risk-taking appetite.