It’s not about saving harder, It’s about owning more

In the last letter, we broke down how sitting on cash feels safe but in reality, it leads to compounded loss over time.

This week, let’s go a level deeper
If saving isn’t enough… how is wealth actually built?

The Core Principle: Wealth = Ownership

Most people confuse income with wealth.
But they’re not the same.

Income = What you earn
Wealth = What you own

The wealthy focus on building ownership in:

• Real estate (multifamily apartments, commercial properties)
• Businesses or private companies
• Funds, stocks, and alternative assets

Because ownership builds equity, appreciation, and recurring income even while you sleep.

Comparing the Saver vs. Owner

Let’s take two people with the same starting point: $50,000

Person A: The Saver

• Keeps their money in a high-yield savings account (2% APY)
• Over 10 years: grows to ~$61,000
• But with 4% inflation: they’re losing purchasing power every single year
• Their money “grows,” but not enough to outpace the rising cost of living

Person B: The Owner

• Invests $50K into a private multifamily deal (averaging 12–15% annual return)
• Over 10 years: grows to ~$155,000+
• Earns consistent cash flow, equity, and long-term appreciation and tax benefits.

Same capital. Different strategy. Drastically different outcome.

And that’s just comparing two options.

Now let’s look at the full spectrum:

Strategy	10-Year Value	How It Grows	Key Limitation
High-Yield Savings (2% APY)	~$61,000	Slow interest, no compounding from reinvestment	Inflation outpaces growth
Cash Held (No Interest)	$50,000	No growth	Purchasing power declines every year
Cash Held, Adjusted for 4% Inflation	~$33,000	Value erodes annually	Compounded loss over time
Real Estate Ownership (12–15% avg. return)	~$155,000+	Cash flow + equity + appreciation	Requires access to the right structure

Note: These are simplified projections to illustrate a larger truth, the biggest risk may not be doing the wrong thing… it’s doing nothing at all.

So, What Are Wealthy Doing That We’re Not?

✅ Investing in cash-flowing assets
✅ Prioritizing ownership over labor
✅ Reinvesting profits to compound growth
✅ Taking advantage of private deals with higher returns than public markets

And 70% of the ultra wealthy include real estate in their portfolios particularly multifamily housing because of its long-term stability and income potential.

Building wealth is about understanding the game; and playing it differently.

With the right education, the right access, and the right values…
You don’t need to compromise to grow.