{"id":150713,"date":"2025-11-24T19:01:09","date_gmt":"2025-11-24T19:01:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/150713\/"},"modified":"2025-11-24T19:01:09","modified_gmt":"2025-11-24T19:01:09","slug":"5-brutal-truths-about-building-wealth","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/150713\/","title":{"rendered":"5 Brutal Truths About Building Wealth"},"content":{"rendered":"\n

Building wealth<\/a> isn\u2019t all sunshine and Instagram-worthy moments.\u00a0While everyone loves talking about side hustles, passive income and shiny financial freedom, the truth is a bit grittier.\u00a0There are no shortcuts, no magic formulas and, yes, some tough lessons along the way.<\/p>\n

Read More: The No. 1 Way Americans Become Millionaires Is Pretty Boring \u2014 and Easy To Do<\/a><\/p>\n

Check Out: 6 Subtly Genius Moves All Wealthy People Make With Their Money<\/a><\/p>\n

Here are some brutal truths about building wealth that will help you in the long run<\/a>.<\/p>\n

\u201cBuilding wealth is unfortunately about playing the long, slow game,\u201d explained Brett Horowitz, principal and wealth manager at Evensky & Katz \/ Foldes Financial Wealth Management<\/a>.<\/p>\n

He said most people know someone who struck it rich by buying Apple stock 30 years ago or Nvidia stock 10 years ago.\u00a0\u201cThe truth is that those investors had to sustain long time periods where they either lost money, or barely made money,\u201d he said.<\/p>\n

Both companies were mostly irrelevant at some point and investors who held those stocks were extremely fortunate, or proficient, but mostly fortunate, to have made so much money holding those stocks.\u00a0\u201cPicking individual stocks is often a recipe for failure and the best way to make money is through hard earned saving,\u201d he said.<\/p>\n

Learn More: 4 Secrets of the Truly Wealthy, According To Dave Ramsey<\/a><\/p>\n

While some may view trading<\/a> as a way to build wealth, it may not be a good option. According to Horowitz, the more often you trade, the worse you do.\u00a0\u201cOr as we say \u2018your portfolio is like a bar of soap, the more you play with it, the smaller it gets,’\u201d he said.<\/p>\n

He noted that overconfidence can explain high trading levels and the resulting poor performance of individual investors.\u00a0\u201cOur central message is that trading is hazardous to your wealth,\u201d\u00a0he said.<\/p>\n

Horowitz explained that trading typically involves fees and taxes, so the more you trade, the more these costs drag down the portfolio\u2019s return.<\/p>\n

\u201cIf you look back to some of the best times to invest money<\/a>, it was right in the midst of extraordinary volatility,\u201d said Horowitz. In other words, often the best times to invest are when the public is scared.<\/p>\n

\u201cImagine buying a house or two in 2009, buying stocks in the depths of COVID, or more recently, buying bitcoin when it dropped from 60,000 to 15,000,\u201d he said.<\/p>\n

He explained that he is not recommending investors take maximum risk and go all-in, but having a balanced portfolio with cash on hand for emergencies means that when there are great deals being offered for financial assets, a smart investor can take advantage of them.<\/p>\n

We sometimes think illogically, Horowitz noted. For example, we have no problem spending big money on a new purse or football tickets for the big game, but when the cable bill rises by $5, we can\u2019t complain fast enough.<\/p>\n

\u201cWe sometimes think emotionally,\u201d he said.\u00a0And that can hurt wealth.<\/p>\n

According to Horowitz, the most brutal truth is that most people are very bad when it comes to their finances<\/a>.\u00a0\u201cThey didn\u2019t study it in school, they are usually paying attention on a part-time basis over the weekend or at night after working all week, and they are not that interested in all the minutiae,\u201d he said.<\/p>\n

Investing, however, is one of the only areas where more knowledge does not lead to better results.<\/p>\n

\u201cBecause while we know what is happening today, and why, it tells us nothing about what is to happen tomorrow,\u201d he said. \u201cIndividuals should leave financial decisions to the professionals who are well versed on new legislation, financial strategies and coaching.\u201d<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 5 Brutal Truths About Building Wealth<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Building wealth isn\u2019t all sunshine and Instagram-worthy moments.\u00a0While everyone loves talking about side hustles, passive income and shiny…\n","protected":false},"author":2,"featured_media":150714,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[91954,1571,114,268,14239,85,62027,46,266,267,91955],"class_list":{"0":"post-150713","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-brett-horowitz","9":"tag-building-wealth","10":"tag-business","11":"tag-finance","12":"tag-financial-freedom","13":"tag-il","14":"tag-individual-investors","15":"tag-israel","16":"tag-personal-finance","17":"tag-personalfinance","18":"tag-wealth-manager"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/150713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=150713"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/150713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/150714"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=150713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=150713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=150713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}