The Wisdom of Proverbs 13:11: Building Wealth Steadily and Wisely

Proverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

The Book of Proverbs offers valuable insights that resonate in our modern world. Among its timeless teachings is Proverbs 13:11, which cautions against the temptation of quick wealth and emphasizes the importance of patient accumulation. In today’s society, we are bombarded with numerous “get rich quick” schemes promising instant wealth. However, it is crucial to redirect our focus towards a more steady, disciplined, and patient approach to investing if we truly seek lasting prosperity. 

Here are 5 examples of common “get rich quick” schemes that we should generally avoid:

1. Buying lottery tickets: The dream of winning the lottery and becoming an overnight millionaire may seem appealing, but statistically speaking, the odds are overwhelmingly against us…like 1 in 176 million for Mega Millions as an example. Relying on luck alone is not a sustainable strategy for building wealth.

2. Day trading: When to buy low and sell high is the classic mistake day traders risk their money with everyday. Day trading involves making rapid trades in the stock market to capitalize on short-term price fluctuations. While some individuals may experience success, the majority find themselves losing money due to the unpredictable nature of the market. It is essential to approach stock market investments with a long-term diversified perspective and a well-researched strategy.

3. FOMO / Speculative Investing: Don’t get caught in the hype of the latest trending investment, whether it is a cryptocurrency a celebrity is endorsing, penny stocks, or a hot investment tip from your favorite media stock analyst. Placing your financial resources into a speculative investment or venture carries significant risk, as if you are rolling the dice. Often these speculative investments are driven by pump and dump schemes. Do your research first. Diversification is key to mitigating potential losses. By spreading investments across different assets or industries, you protect yourself from the impact of a single failure. You will find me always talking more about total market index funds rather than investing in the hottest trend on the news today. By the time it has reached the general audience like us, the investment has typically peaked already. 

4. Multi-level marketing: Also infamously known as Ponzi or pyramid schemes. Although some MLM opportunities can be legitimate, many operate on a model that relies heavily on recruitment rather than product sales. Success in this field is often rare, and individuals at the bottom of the pyramid tend to bear the brunt of financial losses, which often is the average person like us. It is crucial to thoroughly research any MLM opportunity before considering involvement.

5. Gambling/Daily Fantasy: Engaging in gambling activities, whether at a casino or through daily fantasy sports, can be addictive and lead to significant financial losses. The odds are stacked against the player, and the allure of quick wins can easily overshadow the long-term negative impact on personal finances. 

While these five examples shed light on prevalent “get rich” schemes, other trends possess the allure of quick fortune. Engaging in hustles like brick flipping sneakers, starting an ecommerce business, affiliate marketing, gaining subscribers for your channel, and flipping houses represent just a handful of numerous popular ideas for generating income. Nevertheless, it’s important to emphasize that these methods are legitimate, but demand education, time, expertise, hard work, relationship building, and, in some cases, access to capital. Thus, they don’t quite fit into the same category as the five above. However, I have unfortunately seen many people jump into these trendy hustles expecting to get rich quickly and fail to recognize that it takes work. It’s important to recognize that diving into these options won’t miraculously make you a millionaire overnight—I can attest to this from personal experience.

Building wealth takes time, patience, and a disciplined approach. It is crucial to avoid being swayed by the very small percentage of individuals who achieve rapid success, often highlighted and glorified by the media. Instead, let us embrace the wisdom of Proverbs 13:11 and focus on accumulating wealth little by little. By adopting a steady and disciplined investment strategy while living within your means, we increase our chances of long-term financial growth and stability.

-HC

Disclaimer: Investing in the stock market carries risks, and past performance is not indicative of future results. It’s always advisable to consult with a financial advisor or do thorough research before making any investment decisions.