In another article, we discussed how to build wealth, and while we gave several reasons, it is still true that one option holds true over all others.
Starting a Business
The number one way to become independently wealthy is to start your own business. Why? Because once you build up a business enough, you can scale it exponentially, and passively. So if you are start a business and its doing well (maybe its almost profitable or maybe it is profitable!), you can start growing it and sell to more customers, without having to ship these items yourselves. This is the beauty of hiring other people and is the key differentiator.
The reason we call this independently wealthy is because you can be relaxing at your vacation home with your family, and making millions at the same time. Try doing that with any job or career? It’s impossible! This is the most significant difference that needs to be realized; a business can make you money, with no (or little) extra effort exerted on your part. So get started on your business today. It will be a long and difficult road to the top, and you’ll likely fail a lot, but it will all be worth it if you hold out to the end.
Got performance?
Now as stated, you can become wealthy by being a very high paid performer (singer, actor, pro football player etc.) However, as we discussed above, this income is not passive so you’ll need to keep working hard to make the dough. Lets say for example you are a very well paid investment banker earning $1 million per year. If you decide to stop and hit the beach, then there is no chance that you will keep making that money; in fact, your earnings will go to a big fat zero. However, if you have a business, you can both keep earning that income, and you also have the opportunity to sell! Sure, if you sell your income will go to zero, but if you sell for millions, you probably won’t mind!
What is independently wealthy?
That’s a great question, and its one that a lot of people have an issue answering. In my opinion it will be different to different people, but in general as of 2017, I think that independently wealthy is roughly $2-3 million in net worth. With that you are making about $50,000 passively (through investments) and although $50,000 cannot support a crazy lifestyle, it can allow any single person to live freely (ie. travel, spend time with friends and loved ones and do whatever you please. Some of you may think this is high and other may think it is low, and in general yes, if you want to live a very lavish lifestyle you’re probably looking at closer to $10 million. Regardless, you’ve got to start that business to get there, or be extremely talented; so begin, now!
Money or freedom?
As a fair warning; At a certain point, you should stop. Money is not everything, I used to think it was growing up, but in reality what is everything, is freedom. Freedom to do what you want, and yes of course this involves money, but after a certain point you have no more need for money (see above). So once you feel that you are free (you can live a lifestyle you enjoy, then you should stop.) Otherwise, it will probably cause more harm than good. You have been warned! Now get out there and start that business!
