Money! Becoming Filthy Rich!
You’ve heard it all before. But what is the truth about this topic?
Let’s start with the basics, different career paths that people choose, and why you should be an entrepreneur.
Money, What is it?
Money is a tool. You trade it in exchange for goods and services. Normally it comes in the form of paper. Most people work so they can have money.
The money is used to pay for a home (rent or mortgage), utilities, taxes, insurance, car payments, entertainment, and so on.
Why is having money a good thing?
If you have enough money:
- You can do anything and go wherever you want without too many obligations.
- You’ll have more time to spend with friends and family since you don’t have to work so much.
- In an emergency, money can save your life. (“the best medicine and care money can buy”)
If you do not have a lot of money:
- You will have to work for 40 hours a week at a low paying job just to survive. Or just live in the wilderness as a hermit.
- At most you’ll only get the weekends off. Actually, it’s five work days in exchange for two “free” days.
- If you do not have money and are uninsured, medical bills will burden you for a long time. In some third world places, hospitals won’t accept you if you don’t have any cash!
It’s a no-brainer. Having lots of money is much better than being poor.
So what are the plans that people choose to make money? Are they any good? Well…
Plan $1: No Financial Plan
- You do not manage your money at all.
- You spend money as if it will disappear if you don’t spend it.
- Your paycheck is never enough.
- You’re one paycheck away from being broke.
- Your credit cards are maxed out so that you have fancy toys and clothes that make you “feel” like a million bucks. Even though the debt FORCES you to work.
- You have no idea how you are going to maintain yourself a decade or two from now.
- You think the only way to get rich is the lottery.
THINGS WILL END UP HORRIBLY if you don’t manage your money at all and spend it frivolously. That is a guarantee. Avoid this at all cost.
Plan $2: The “Lemme Work For 4 Decades So I’ll Be RICH” Plan
You may have heard of it. It goes like this:
- Go to high school and get a part-time job.
- Go to college for a piece of paper and become $100k in debt.
- Spend 10 years working 80 hours a week to pay off the debt.
- Invest religiously in your 401(k) and live like a pauper..
- Lose all your savings in the next inevitable stock market crash.
- Continue working 80 hour weeks to dig yourself out of the hole.
- At age 50, have a mid-life crisis and buy a sports car and work a little bit less (60 hours).
- At age 65
a. Die of a heart attack while mowing your lawn.
b. Retire rich (with Alzheimer’s Disease).
c. Retire rich and “healthy” (at the retirement home with a chrome-rimmed and gold studded wheelchair).
- Die at some point in your 70’s or 80’s.
What? Don’t you just LOVE the plan that ALL your teachers, guidance councilors, family members, friends, and most mentors want to sell you?
Come on, all you have to do is AN FEW YEARS of “academia” AND JUST FOUR DECADES OF WORK so that you’ll be rich and without a care in the world!
Well, besides the fact that you will be old, wrinkly, in constant pain, unable to walk, and possibly wearing an adult diaper.
Here’s the plan:
“College” so that you’ll have a larger paycheck. Then, DECADES of work and stingy budgeting so that HOPEFULLY your bank account will have the number one followed by seven zeros.
As long as:
- The economy is good for 50 years straight.
- You don’t get laid off.
- The company you work at doesn’t become bankrupt.
- You get promoted.
- You are able bodied your entire life.
- You LIVE LONG ENOUGH TO ENJOY THE MONEY AT AGE 65!
Well ladies and gentlemen, this plan…
IS PURE BOLLUCKS!!!
Well, to be fair, it’s perfectly fine if you want to fulfill a noble life purpose through a career (e.g. scientists) or volunteer work (doctors without borders, etc.).
But most people are selfish and greedy and want money so they can live peacefully and comfortably (myself included).
And if you have cash, philanthropy is an option. So… is there a BETTER PLAN?
Plan $3: “Become Famous” Plan
- Become a famous musician
- Become a famous singer
- Become a famous athlete
- Become a famous actor/celebrity
If you honestly believe that you can become one of these things, go for it!
But, you should know that most people that are famous for something; they have been pushed into doing that something by their parents at a young age.
A DECADE OR TWO of training and practice later,they eventually reach a professional level where they are paid a lot of money for their skill.
Well, most of you probably don’t plan on doing any of these things…
Is there still a BETTER OPTION?
Plan $4: “Entrepreneurship” Plan
The basic idea is that you provide some value to society through a far-reaching and valuable product or service. And then you get a lot of money in return!
Here are some examples:
- A company whose website is used to buy and sell to others around the world (Ebay).
- A company who provides a sugary carbonated drink to people all over the world (Pepsi).
- A company that privately pioneered the computer age (Microsoft).
- A company that makes luxury cars for the super wealthy (Aston Martin/Rolls Royce/Bentley)
- The writer who wrote a novel about a teenage wizard, and BECAME RICHER THAN THE QUEEN OF ENGLAND. (J.K.Rowling)
- Any inventor that you see selling a fancy new gadget on the TV for 3 easy payments that does actually help people; the inventor sells hundreds of thousands of said product.
This is much more promising. But most people reading this are probably broke and without any connections.
You are probably wondering, how do I do this? Where do I start?
Here’s what it takes to become an entrepreneur:
Become a problem solver.
Practice this skill by helping a few people (without asking for anything in return).
Why? Because that’s the mindset you need if you want a successful business.
If you open a business ONLY to make money or ONLY because you love something, you will end up as one of the 90% of businesses that fail in the first five years!
You’re not just selling stuff,
you are solving people’s problems and then they give you money in exchange!
Loving your idea and wanting money aren’t enough by themselves!
Learn how to sell to people; preferably a lot of people.
You know, copywriting.
Be open to learning new things throughout your life as well.
Figure out what the hell people are willing to spend money on.
Just find something that improves people’s lives, saves them money or time, or helps them reach a goal. Or an improvement on an existing idea. Anything really.
But, be sure to test your idea!
Also, make sure that it is something that can reach a lot of people and it’s valuable to people.
Example One: You sell ten million fancy pens worldwide and make a 25¢ profit on each. That’s 2 1/2 million dollars! (reaches a lot of people, not that valuable individually)
Example Two: You are a high end car dealer that sells Rolls Royces, Aston Martins, Bentleys, and Bugattis. You sell to a few dozen people a year, but make a minimum $100,000 profit per sale!(reach very few people, but very valuable)
Example Three: You organize the construction of several high-end condominiums, golf courses, and other buildings. You become A BILLIONAIRE. I’m talking about Donald Trump, you personally might not like the guy… but you have to admit that he’s a damn good businessman! (Helps a lot of people and is very valuable)
HOLD ON THOUGH, THIS IS IMPORTANT:
If you are in a business deal that doesn’t seem like it will ever work, what you want to do is to get out as soon as you possibly can. And, until you’ve given the situation your “best shot”, you’ll never know whether you should keep struggling or not.
Once you are sure that people are willing to buy your product or service, sell it to people on a large scale. Simple enough…but answer these questions first:
- How many employees are you going to hire to help you out? What will they do? Or are you going solo?
- Do you have to hire a manufacturing company, distributors, or a customer service center?
- Are you going to run the business in an office? Your house? A small warehouse? Over the internet?
Figure it out.
Also, If you don’t have cash. Start small and re-invest the profits.
- Automate the business (hire a CEO, internet services, etc.).
- Sell it (for a lump sum).
- Sell something else if the market “matures” (there are no new customers to sell to).
Invest the money and have it make more money. (like housing, loans, bonds, index fund, another business, etc.)
Retire when you have enough money to live the life you want.
Or work on your passion project that helps a lot of people.
The whole idea is simple on paper, but it is lots of work. Get going, clocks ticking!
START WITH STEP ONE RIGHT NOW!
P.S My thanks to MJ DeMarco and everyone at https://www.thefastlaneforum.com for helping me find this information.