Why accumulate wealth?

Money is often benchmarked against happiness, usually in a debate about whether it does or doesn’t bring it. This is a trap, and to dwell on it too long probably means you don’t understand either very well.

We all have the same amount of time at our disposal. Every rotation of the earth around it’s axis delivers exactly the same amount of time for every human to spend.

The amount of money we have is the biggest influence on how we allocate that available time each day. If you need to feed your family, or want to go on holiday, or indeed to fulfil any desire, you probably made a decision to allocate a good chunk of time to exchanging your labour for money each week.

The act of spending money earned on fulfilling desire is called consumption. People who consume more than they earn over a time period will accumulate debt. If you consume less than you earn over that time period, you are in a position to accumulate wealth.

It can take a long time, but in the end, capital scales way better than labour.

Time is actually our most important asset because it relentlessly depreciates before our eyes. Being fully in control of exactly how you choose to allocate time is the best way to utilise the asset.

Accumulating wealth is the easiest way toward gaining that control. You may not fully ever get there, but even gaining partial control of time is good for well being (for example, if you have sufficient wealth, you may be able to choose part time work, freeing up the remainder of your week to allocate as you please).

The ultimate goal of wealth building is to gain financial independence for yourself. At this point, your decisions about allocating time will fundamentally change. The way I allocate time now is completely different from when I was working.

It is possible, of course, to go even further. Once you have gained financial independence, you can continue to accumulate wealth to increase your power and influence within society.

I don’t know very much about that. My goal was only ever to invest to fund my future desired lifestyle.

Read more on this topic . . .


I am not your financial adviser.

The information in this post relates to my financial journey. It may or may not be relevant to your own. You need to make your own decisions on your own financial strategy.

Do not buy or sell anything based solely on what you read.