Equity Ownership and Consistent Saving Drive Wealth Creation

Key Quotes

"What do you think are the three most important steps to building wealth? Ownership. Like literally, equity ownership. You look at the most wealthy people in the world, and if you want to be wealthy, you need to be an owner. Be equity in something."

Sukhinder Singh Cassidy argues that equity ownership is the fundamental step toward wealth creation. Cassidy explains that being an owner, whether of a small business, a practice, or a larger company, is how wealthy individuals build their fortunes. This principle extends to personal assets like homes, which represent a significant source of wealth for many.

"Number two, you know this, everybody knows that, but we need to do it: saving. Saving early and compounding returns. A lot of people don't do that. Most people don't do that."

Cassidy identifies saving, particularly early and consistently, as the second crucial step in building wealth. He notes that while widely understood, this practice is not commonly followed, highlighting the power of compounding returns over time. Cassidy emphasizes that saving is not just about accumulating funds but also enables the ability to become an owner.

"First of all, financial literacy is so key. You don't have financial literacy, it's hard. It's hard, right? So I was lucky that my, I give my dad so much credit. My dad owned equities. He literally owned stocks. He would call his broker and buy them every day. So I saw stock ownership as a thing, right?"

Cassidy stresses the importance of financial literacy for anyone seeking to build wealth. He shares a personal anecdote about his father's stock ownership, which provided him with an early understanding of this concept. Cassidy believes that without financial literacy, navigating savings and ownership becomes significantly more challenging.

"Sure. I feel like a lot of people don't talk about it enough. No, I know. People, I mean, and I don't know, there's no shame in wealth creation, right? I mean, but I think there are two things. First of all, financial literacy is so key. You don't have financial literacy, it's hard. It's hard, right?"

Cassidy points out that discussions around wealth creation are often insufficient, suggesting there should be no shame associated with it. He reiterates that financial literacy is a foundational element, making the pursuit of wealth significantly more manageable for those who possess it. Cassidy implies that a lack of open conversation contributes to a lack of understanding and action.

"So I think that women are doing it more and more, but I think that platforms that can accelerate your knowledge or your management of your own money is key. The third thing you can do is we talked about, take a little risk. If you're too afraid to manage all your money, take 10% of it and say, I'm going to go, I'm going to manage this directly."

Cassidy suggests that platforms accelerating financial knowledge and management are vital, especially for women. He advises taking calculated risks, such as managing a small portion of one's money directly, as a way to build confidence and expertise. Cassidy believes this approach helps overcome fear and encourages active participation in wealth management.

"So I think if you want to create wealth, you need to understand what you're investing in. So I'd become an e-commerce investor in the last 10 years and a pretty good one. But that's because I was an e-commerce CEO. And so while I understood the business. And so I was practicing every day. I thought like, God, like I know enough about these numbers to know where our numbers look good or bad."

Cassidy emphasizes the necessity of understanding one's investments as a prerequisite for wealth creation. He uses his experience as an e-commerce CEO to illustrate this point, explaining how his deep knowledge of the business allowed him to make informed investment decisions. Cassidy highlights that this familiarity provides the pattern recognition needed for successful investing.