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A Balanced Approach to Building Wealth


Almost everyone dreams of being wealthy. This status isn’t a bad goal by any means, but it is often a misunderstood status. Wealth is more than a high income. It’s best understood as the accumulation of assets or value. People mistake wealth for owning a lot of possessions or having the newest, latest gadgets, when in reality is it quite the opposite. Those who become wealthy spend significantly less than they earn, so that they can accumulate wealth.

Another way to look at it is to think of wealth like water pressure in a pipe. If you have the water valve completely open, you will not build up any water pressure. The same is true for wealth. Designating none of your earnings towards savings will get you no where towards your dream of wealth. The more you restrict water flow, the more water pressure you get. The same is true for building wealth. The more you save, the faster you accumulate assets.

If you are like me, once you realize this, you will start to wonder how fast you could accumulate wealth. In other words, how much can you reduce your spending so that you reach your goals faster. While it’s not necessarily a race against peers, the faster that you grow your net worth, the more freedom that you have in the future. My wife and I were able to save a significant portion of our income in the past year. We invested most of that and are excited to continue the trend as we both advance in our careers. Yet, part of me wonders if we might be going too far to the extreme.

Can You Accumulate Wealth Too Fast?

While many of you will laugh at this question, I can’t help but think of whether we are sacrificing too much just for the sake of growing my net worth. As much as I love the idea of early retirement and financial independence at an early age, there are more important things to life. After all, money isn’t everything. Here’s a list of things that I am not willing to lose for wealth:

  1. My marriage – Nothing is worth more to me than my best friend. I would be nowhere without her, so if it ever came down to choosing between her or money, the answer is easy.
  2. Family & Friends – Rarely are individuals faced with a life or death situation where they have to choose money or their relationships, but we make these decisions every day to a lesser degree. Do you go out partying with friends every night? If so, how much does that cost you? On the other end of the spectrum, do you avoid hanging out with friends because it is too expensive? I’m not willing to give up friendships altogether just because it is less expensive to do so, but I don’t hang out with people who fly to Europe for the weekend (yes, I know people who do this).
  3. My Sanity & Time – Last year I dedicated a lot of my time to growing my side business. Too much time. This year, I am approaching it much differently. Instead of killing myself and adding too much stress, I am now satisfied with a little less income so that I can enjoy life a little more. Anyone can work more hours for a little extra cash, but you have to ask yourself if it is worth it. The same is true with some forms of saving money. ‘Extreme couponers’ spend hours to save a few bucks. For me, my time is worth more than a few dollars.

How to Balance Building Wealth

Growing your net worth is an important focus in order to be financially successful. I am not advocating that you should ignore the goal of becoming wealthy, but I am saying that this much be accomplished within reason. Here are several steps that you can take to live a balanced life:

  1. Set realistic limits/goals – Determine how far you are willing to go in order to build wealth and then live within those boundaries.
  2. Be patient – If you are someone like me that wants to accomplish something within 1 year, remind yourself that these things take time.
  3. Live a little – By all means, save as much as you can, but don’t forget to live. The last thing you want to do is to sacrifice for two decades and then die an early death before you really lived.

Almost everything in life comes back to balance or moderation. Building your wealth as fast as possible is a noble goal, but don’t let it stop you from living the life that you want for yourself while accomplishing your goal.

This post was written by Corey, a staff writer from 20’s Finances.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. Excellent advice, thanks for the great article!

    • Thanks Tim. Are you working towards building wealth?

  2. Great advice. I love the inclusion of value on sanity and time. I know a couple of people who built fantastic side hustles, but it cost them so much time and sanity that it wouldn’t be worth the money.

    • Yeah, I know what you are talking about Alex. It’s important to pay attention to what you can and cannot accomplish.

  3. Thanks for this post. It is important to attempt to maintain a balance in life, because then stress will take over and insanity is not to far behind.

  4. Very few people get rich overnite. It usually takes a lot of effort and time to be wealthy. Thanks to time and getting used to wealth, you will probably hang onto it. It is up to each individual though. In my case, family always came first and I still succeeded at a fairly early age (38 y.o.).

    • Congrats! I think you’re a great example of balance then.

  5. Sometimes I get hyperfocused too and the other parts of life don’t get as much attention as they should. I’m glad you seem to have figured things out 🙂

  6. Excellent tips–I’m all about the balance in life. You have to be able to both work and play in order to maintain your well-being!

  7. Awesome tips. Patience and balance is certainly key. Thanks!

  8. This post is really well balanced. (Just kidding with you.) But really, a sound financial position is dependent on the tradeoffs you mention. Look at any projections on the amount one has to put in retirement plans and the more the contributions are front loaded and consistently made the larger the pot is at the end. So you have really hit on the essential issues here. Well done.

    • Thanks for reading Steven! Glad you enjoyed the article.

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