A long time ago when I read the book rich dad poor dad I was exposed to the fact that the basic distinction between rich people and the poor and middle class are that rich people own businesses. We can make the concept more elaborate than that by adding in stocks and real estate and all that other fancy stuff but the gist of it is that businesses are the key to wealth.
This is important. It is important because a lot of people love floating the “90% of millionaires were created in real estate” meme. I think that meme is trash and it is creating a rush in real estate filled with noobs and know nothings that will create a boom and bust. Not good (Donald Trump voice).
Get the facts straight, 100% of the worlds millionaires got there through business. 100% of the people on the Forbes list are business owners. Real estate is business and most of that 90% on that list got the money to get rich in real estate from their business.
Here are a few ideas that, while they might seem obvious, are the reasons I believe are worth pursuing a business even if its in the off hours instead of putting all your faith in that 9-5, raises, bonuses and paid time off.
Unlimited Income: Unlimited income means that there are no ceilings. There are no salary caps. No raises no bonuses. You give yourself a raise and you give yourself a bonus. Nothing is therefore financially out of reach.
Many of us are limited to the income that we can generate on our job. This means that someone else determines the lifestyle you can live, where you can live, what you can drive, what you can wear, where your family can vacation and all of that.
In my opinion, income and wages are how certain classes of people keep the undesirables out of their neighborhoods and schools. What was once done by race is now done by wage. Guess who controls the wages? The people who want to dictate where you live. A way around this is to earn your own wage outside of their system. You do this by starting a business.
The unlimited income is so important to me because I plan to live big. I love frugality but I want the high life. I want the Rolls, I want the Rolex, I want the luxury home with a view. I realized that the 9-5 won’t ever get that for me. No matter how hard I work. The things I want just cost too much. The only way to reach that level of spending is with an unlimited income (or debt). Ill go with the unlimited income.
The unlimited income is shown when a 12 year old generates $10k from his shirt business in one month. Or when Chris from 17th Watches generates $16k in one month or 200k in a year. You can wait for those kind of wages but they likely will never come. A business makes wealth and the rapid accumulation of cash possible in ways that a job is not designed to.
Products don’t have a race: When I knew I wanted to be great at business I wanted to get around great business people. Specifically great black business people. I did something that most people wouldn’t understand for someone of my stature and took a job at a black owned restaurant. At this restaurant I learned the fundamentals of black business ownership and black generational wealth.
One thing that I learned while working with her is that the product transcends race. The majority of the big money spent at her store comes from Asians, Hispanics and white people. They just know the food is great they don’t care about the race of the owner.
I always tell people that Asian people don’t have Asian hunger. Hispanic people don’t need Hispanic shelter. These people have problems that need non race specific solutions. Business allows people to transfer wealth from one community to the next. By transferring wealth from one community to the next you close the wealth gap and you do it without begging the government for freebies because that won’t ever happen.
Pass that income to your kids: This is the most important thing to me. One of the BIGGEST down falls of the infatuation of the “good job” is that most people can’t even get their kids hired at their job. Another is that when they pass their kids can’t inherit that “good job”. You slave away for years and when you pass they hire someone else in 72 hours. They hired you for a task they could care less about you as a person even if they act like they care about you as a person.
A s a business owner every effort you put into your business is transferred to future generations. The property that you use your business to pay off lasts forever. Your kids benefit and their kids benefit. That property that your boss paid off with your labor benefits his kids. Being an employee is the equivalent of renting a home you are just renting income. A job is a temporary solution to a permanent problem.
When you can pass something to your kids THEY come in as the boss. They don’t need to work up the corporate ladder. They don’t have to play politics. They don’t need to compete. This is how the wealthy stay wealthy. They groom their son or daughter to step into their shoes as CEO. This is huge for their confidence and huge for the success of their marriage and their kids. All of these things are interrelated. When a man is forced to reduce himself to office politics and groveling at the feet of his boss, taking criticism and down talk he feels small. When he feels small he is less of a man for his family. Building a business not only benefits your kids financially but it gives them the opportunity of a great marriage and family. You are passing a legacy of a complete life not just the money.
Full exposure and experience: On your job they likely limit the things you are exposed to. I know at my job they do. They limit me to certain tasks in a certain department and that’s it.
In my business I am responsible, or was until we started hiring folks, for the bookkeeping, legal, finance, marketing, property management, construction management. Many of these things I sucked at but am now good at. These are things they would have let me manage when I turned 50 but not before. I don’t want until I’m 50 to get six figure experience. I want to do six figure work now so I hired myself to do six figure work.
See six figure and millionaire work pays millionaire money whether you do it for the job or do it for yourself. The problem with the 9-5 is that they think they get to decide when you do millionaire work and get millionaire pay. The Choose Yourself economy requires you to decide when you get millionaire pay.
Starting your own business will give you skills and expertise through struggle that they wont give you access to. This becomes a skills ceiling that then becomes an income ceiling. by starting your own business and getting your own clients you move past them.
The tax code was written for business owners: This year I plan to write off all my income in some form. I can do that because the tax code is written to help me do this. My accountant informed me that all the money we spend in rehab is an expense that can be written off. Additionally all the depreciation can be written off. We will also be writing off all the business travel for money spent flying to and from the city. This is money that I would have spent anyway but since we have a business we can match it to that income since it was business related.
If you don’t have a business you are likely paying too much in taxes. Not only are you paying too much in taxes you aren’t getting write offs for expenses like a cell phone, home office, travel, lodging, uniforms etc. This is why guys like Mitt Romney and Warren Buffet pay nothing in taxes. Not because they are cheaters but because they play the rules better than everyone else.
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Thanks for reading!
Be great, invest well,