THE POWER OF FAST MONEY AND SLOW MONEY IN BUILDING WEALTH

Let’s talk about two critical concepts when it comes to building real, lasting wealth: fast money and slow money. Both are important pieces of the puzzle, but they play very different roles in your financial journey.

What Is Fast Money?

Fast money is exactly what it sounds like: cash that moves quickly. It’s money that pays you directly for your time or from investments that yield returns within a year or less.

This might be your salary, side hustles, private lending, or real estate deals that are short-term in nature. For me, fast money has come from things like private lending, short-term real estate flips, and even certain investments that pay out quickly.

Here’s why fast money is so important: it gives you capital to live and, more importantly, capital to invest. The quicker you can access capital, the quicker you can redeploy it into other opportunities. Think of fast money as the fuel that keeps your financial engine running.

But here’s the catch—fast money doesn’t typically build long-term wealth on its own. It’s great for liquidity and immediate cash flow, but without a bigger plan, you’ll find yourself chasing fast money forever, never really breaking free from the grind.

What Is Slow Money?

This is where slow money comes in.

Slow money refers to investments that take time to mature and pay off. These are your long-term plays—the assets that don’t generate immediate cash but appreciate over time. Examples include real estate appreciation, stock market growth, syndications, private equity, and venture capital investments.

In my own portfolio, slow money comes from things like real estate holdings that I plan to hold for years, syndications, and private equity deals that will take time to see the full returns. These investments don’t pay out in a year or less, but they build serious wealth over time.

The Key Difference

Fast money is necessary to cover your short-term needs and give you cash to work with today. Slow money is your ticket to financial freedom. It’s the kind of money that grows while you’re not paying attention, the investments that make you wealthy in the long run.

One without the other, though, can leave you feeling stuck. Relying too heavily on fast money means you’re always chasing the next dollar. On the flip side, if all you’re focused on is slow money, you could end up with your capital tied up for years without any liquidity to live or invest in new opportunities.

The Balance: Why You Need Both

The trick to building wealth is to find a balance between fast money and slow money. You need both to create a sustainable game plan.

For example, fast money could be a short-term investment or project that generates quick returns, which you can then invest into longer-term, slow-money assets. Over time, your fast money fuels your slow money, and your slow money builds the kind of wealth that doesn’t require your constant attention or effort.

What This Means for You

If you’re not already thinking about how to incorporate both fast and slow money into your financial strategy, now’s the time to start. Ask yourself:

How can I create more fast money opportunities to increase my liquidity?

Where can I invest in slow-money assets to build long-term wealth?

The best part? Once you get the balance right, you’ll find that your fast money supports your lifestyle, while your slow money quietly builds your wealth behind the scenes.

That’s it for this week. Remember, fast and slow both have a place in your financial game plan—find the balance that works for you and watch your wealth grow.

Best,

DK 💰