Let’s have a real conversation. You work hard for your money. You save it, you invest it, you try to do the right thing. But then, life happens. The car needs replacing, the laptop dies, and the roof starts to hiss (not a pretty thing). It’s as if your wealth is constantly under attack by a silent force called… Consumption.
Meanwhile, you hear experts shouting, “Keep your money moving!” and “Make your cash flow!” It’s enough to make your head spin. So what is the truth? Should you keep your wealth in solid things, or keep it liquid and quick?
People, we need to find balance. It’s not about one being “good” and the other being “bad”. It’s about understanding the basic tug of war in your financial life: The speed of your money versus the impairment of your assets. If you do it right, you will build lasting and impactful wealth. Get it wrong, and you’ll feel like you’re running on a treadmill, going nowhere fast.
Part One: Understanding forces
First, speed. What is this? simply, It’s how quickly the dollar moves through your hands To create more value. It’s not about spending on lattes. It’s about to Strategic move.
- High-speed money It is capital in labor. It is the money that flows into a business that pays employees and produces a product. It is dividends from stocks that are reinvested. It is the rental income from the property that you use to pay off the principal on the mortgage. This money is alive, productive, and multiplying.
- the goal: To get your money back With friends. Its mission is to generate returns, opportunities and more capital.
Now, decay (depreciation). What is this? This is the silent killer of wealth. It is the inevitable decline in financial value Almost every physical thing you buy.
- Which SUV $45,000? It’s an asset worth $25,000 and the minute you take it out of stock, it’s heading toward zero.
- Which Fancy smartphone? It’s a paperweight in three years.
- until A roof over your head (The structure, not the ground) is slowly decomposing. Decay is a fact of physics and economics. The problem is not that things wear out, but that we often finance these deteriorating items with long-term debt, or mistakenly believe they are Investments. They are not. they Disguised expenses. (And on your balance sheet, accumulated expenses—aptly called “accumulated depreciation”—is a key number to understand. It’s important to remember It is not a current asset or a cash reserve, but a counter account Which tells the real story of the asset’s decline.)
Part Two: Serious Defect
Most people live in a state of terrible imbalance, suffocating their wealth.
Imbalance #1: Too much decay, not enough speed.
This is it “Asset rich, cash poor“A trap. Your net worth statement may look good because you have a house full of stuff, but your money is frozen inside assets that are sinking in value. Your cash flow is meager because every spare dollar is going toward paying off the car, the boat, the latest appliance. Your money has no velocity — it’s stuck in a sinking ship. You own a museum of deteriorating assets, not a wealth-building engine.”
Flaw #2: Speed without core.
The opposite is also fraught with risks. This is the hyperactive trader, the person who is chasing “the next big thing,” and is afraid to let go of money for a moment. While activity can be good, speed without a solid foundation, appreciation Assets are just spinning wheels. It’s stress. It’s short term. One bad bet can wipe out winnings Because there is no cornerstone. You need anchors in your financial life.
Part 3: Find your powerful balance
So, how do influential wealth builders really do it? They are good at dancing. They use each force to confront the other.
Rule #1: Fuel the Speed Engine with the Tax Shield of Decay.
This is where it gets smart. Let’s say you bought a rental property. The building is deteriorating (declining). The tax code allows you to deduct this theoretical impairment as an expense On paperoften resulting in a “loss” that protects your other income. This is money you didn’t have to send to the government. What do you do with this saved money? You’re not buying a low-value jet ski. You Increase your money speed-You reinvest it! Payment of the mortgage principal (build equity faster), save for the next property, or invest in high-quality dividend stocks. You can turn paper losses on decaying assets into real, high-speed fuel for growth.
Rule #2: Categorize each dollar according to its function.
You need both armies in your financial empire.
- “Army of Speed”: This is your money, your liquid investments and your business capital. Its function is work, opportunity and income.
- “Fortress Origins” (The Slow Estimators): This is your primary home (for stability, not get-rich-quick), perhaps land, or shares in a world-dominating company. These grow slowly but are resistant to rot.
- “Degraded Commitments” (name them what they are): Automotive, appliances, electronics and furniture. Budget for them like the expenses they are. Buy them consciously, use them often, and never Sacrificing Army of Speed money to over-inflate this category.
Rule #3: “Decay Awareness” spending filter.
Before any large purchase of a physical item, ask:
- “What is the realistic value of this item in 5 years?”
- “What high-speed opportunity am I giving up by locking this money here?”
- “Can I get 80% of the benefit for 50% of the price?” (Hello, used cars!) This doesn’t mean you live like a monk. This means you are buying with your eyes wide open. You choose decay where it brings you happiness or necessity, and diminish where it does not.
Bottom line?
Influential wealth is not built by chasing shiny and decaying things. It was built by consciously channeling flow Move your money towards assets that generate more flow, while strategically managing life’s necessary deterioration.
Stop allowing depreciation to happen to You. Start using your understanding of it to boost your money speed. Your wealth is not a static pile – it is a dynamic ecosystem. Care for streams that feed them, and support banks where erosion occurs.
Now, go look at the biggest purchase you made last year. Was it for speed or for decay? Your honest answer will tell you everything you need to know about your next step. You have the power to control.
