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“I’d like to live as a poor man with lots of money”
Pablo Picasso

When asked by the media, “What is the number one question individuals have about their personal finances?” The answer is, “How am I doing versus my peers?” This response is valid but it highlights the rampant “Fear of Missing Out” (FOMO). I want to encourage you to ask yourself a few other questions that may be more helpful:

Am I Building Wealth?

The most efficient ways to build wealth have been studied by scholars for years. Here are a few of the most common methods. Exchanging skilled labor for income – this is the most utilized. A game-changing technology or intellectual property – this is the hardest to develop. Investments

– few households have natural resources that they can sell so the focus always turns to this method. Surprisingly, less than 10% of the studies indicate that wealth is generated from the markets.

When the Fear of Missing Out causes the focus to turn to the acquisition, it becomes easy to miss one simple concept. No matter which wealth-building method best defines you, you have to deploy the financial disciple of living below your means. If you don’t have extra to invest then it becomes hard for your wealth to grow. Investments are a tool that help you grow your margin or build up assets to exchange or acquire other assets. This leads to the second question.

Am I Diversified?

Take a look at the investment recommendations from King Solomon and Warren Buffett, and you will see a pattern of acquiring other assets that have a propensity to generate more wealth.

Warren Buffett runs one of the largest companies in the country, so you may say that company is focused on owning the stocks of other firms. However, Buffett now owns more assets outside the stock market than inside and is one of the largest private investors in the world.

King Solomon is said to have been the richest man to ever live; he is also considered to be one of the wisest. His thoughts on diversification are quoted around 900 BC “Diversify your portion amongst seven or eight, for you do not know what disaster may come upon the land.” Have you looked at your portfolio to see if you have more than 1/8 (~12.5%) or 1/7 (~14.5%)? Most advisors recommend that their clients have 50% to 80% of their total portfolio in stocks and 15% to 50% in bonds.

We deploy an investment strategy based on helping clients acquire tangible assets that help them diversify beyond just the stock and bond market. We take the time that our clients don’t have to find other asset classes. We then research and complete our due-diligence process.

If you are looking for this type of counsel, Box Financial Advisors’ purpose is to help you make biblically wise financial decisions. Request a complimentary portfolio review or check out our other resources that may help you at www.boxfinancial.com.

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