I’m convinced entrepreneurship is the only way you can create real wealth and NOT sacrifice the best years of your life.
No, I’m not saying entrepreneurship is easy. In fact, starting a business or building an income from nothing is extremely difficult.
Entrepreneurship is filled with a lot of false starts, failures, setbacks, and disappointment.
As Winston Churchill said, “Success is the ability to go from one failure to the next with no loss of enthusiasm.”
It takes discipline and effort to become a successful entrepreneur. But entrepreneurship is one of the few ways to build extreme wealth.
I’m not talking about a net worth a few hundred thousand dollars either. I’m talking about creating real wealth of becoming a multi-millionaire.
If you’re working for an employer, that type of wealth is nearly impossible unless you get some crazy, Facebook pre-IPO stock options.
Historically, most people achieve this type of massive wealth in three ways:
- Real Estate
Two of these three methods require you to stay in a job you statistically probably hate.
According to Forbes, “71% of people around the world aren’t engaged, don’t like, or hate their job.”
I was in the 71% and left a cushy 6-figure career in 2017 because I began to realize I was going to spend the best years of my life waiting. I didn’t want to wait for the stock market and real estate to finally “pay off.”
To me, it wasn’t worth the wait. I didn’t want to sacrifice the best years of my life working on someone else’s dream. Call me a millennial, impatient, or whatever.
But I’d rather spend my life building businesses and creating my own schedule than someone telling me I have to attend another pointless meeting. My goal was never to wait until I was 65 to pursue my bucket list, it was to be done by then.
Statistically, the average human life expectancy is about 79-years old. If you’re 30, that means you have 49 years to live. That’s 588 months left to live your dreams.
When I heard that I realized that now is the time to make each day count. Stop wasting any more time and make each day count.
Here’s how entrepreneurship can help you create massive wealth while living an epic life.
1. Real Estate
Real estate can help you get rich, no question about it — especially if you can take advantage of a down market like in 2009. Of the 2,208 billionaires in the world in 2018, there are 135 who are considered real estate tycoons.
But one problem…buying real estate is NOT a cheap investment for the average person.
Here’s how buying even a $200,000 house can drain your cash reserves.
The down payment is usually between 5–20%. Let say you put 10% down, that’s $20,000.
If you’re not paying 20% then add on PMI (property mortgage insurance) which is between .5–1% of the entire loan amount on an annual basis. And you would pay that for 7.3 years (88 payments).
And finally, to get the keys, you need to spend another 1–4% on closing costs.
As you can tell, it’s easy to spend $30,000+ just for a $200,000 house.
Plus, real estate also isn’t a short-term money play as it can take years or decades to actually pay off.
And the biggest downside to investing in real estate? It’s extremely difficult to access your cash.
Plus, if you buy and sell houses quickly, you often have to pay short-term gain capital taxes…assuming that you actually make money from the investment.
If you want financial freedom, real estate can help but it is NOT a great play to get out of a job you hate and actually make money.
2. The Stock Market
So real estate isn’t the best option, how about trying to become Jordan Belfort and make money on Wall St.?
According to Motley Fool, the stock market has historically earned around 9% returns the last 50 years. This is based on an average, boring, and safe S&P 500 index fund.
If you choose riskier investments you might be able to get 10–17% returns which are still really high. And unless you’re Ray Dalio or Warren Buffett, these are not typical and sustainable returns over the long run.
Plus, you have to wait decades for your investment to finally pay off. Just ask Warren Buffett who has earned 99% of his wealth OVER the age of 50.
When I first started investing I was 25 years old. It was that I point I realized that I have to wait 40 plus years before I can avoid taxes and cash out my gains from my retirement accounts.
I thought to myself…is this really how you create long-term wealth?
It’s also important to not forget that the stock market, like the housing market, can be extremely volatile.
If you invest at the wrong time, choose the wrong stocks or get scared and withdraw your money, you can lose it all. Just ask the people in 2008-2009 who cashed out at rock bottom prices.
Markets will always go up and down, it’s part of the inevitable risk of investing in the stock market. Not to mention, investing in companies leaves you helpless.
You can’t control if Amazon or Apple hits their earnings calls. You are at their mercy and ultimately don’t control your destiny.
But the biggest downside is that like real estate, you have to play the waiting game. It can take a long time to make enough money to retire from playing the stock market.
Plus, you’re still stuck working at a job that leaves you unfulfilled.
The last and best option to create real wealth and be able to enjoy your work is, of course, entrepreneurship.
“Most of the affluent in America are business owners, including self-employed professionals. 20% of the affluent households in America are headed by retirees. Of the remaining 80%, more than two-thirds are headed by self-employed owners of businesses.” — Millionaire Next Door
Don’t get me wrong, entrepreneurship is painstakingly difficult.
- According to Business Insider, 60% of restaurants close their doors in the first year and 80% go under in 5 years.
- 9 out of 10 startups fail.
- Much longer hours than a standard 9–5
- Doubts from friends and family
- Competitive markets
But the positive of course is that you get to work on something you love, work remotely if its an online business, and have no one telling you what to do.
As Thomas Stanley said in the Millionaire Next Door, “The most successful business owners we have interviewed have one thing in common. They all enjoy what they do. They all take pride in going it alone.”
You get to spend your days doing what YOU want to do. It’s not to say they will be easy but you are in control of your destiny.
You get to structure each day so you don’t end up like the 71% of people who are sitting at a job they hate.
What Will You Do?
I think it’s clear.
You should pursue entrepreneurship in some capacity so you can do what you love. It will let you control your destiny and take full responsibility for the outcome of your life.
Whether it’s starting a side hustle or going all in on an online business. It’s never been cheaper to start a business than it is today.
Yes, there will be plenty of highs and lows. Let me tell you from experience, in the beginning, there are more lows than most people can cope with.
But this quote always gets me through the tough days:
“Entrepreneurship is living a few years of your life like most people won’t so that you can spend the rest of your life most people can’t.”
And you can enjoy the 30–50 years where everyone else is waiting around for compound interest or real estate prices to increase.
Once you make it big with your business and have money saved, then you can take advantage of the other wealth building vehicles. This is when you can start investing in the stock market and real estate.
And don’t forget, you actually get to enjoy life between the ages of 25–65 instead of sitting in a cubicle that makes you miserable.
Make living your life and enjoying it your top priority. Don’t go through the motions waiting to enjoy yourself down the road.
Remember, the average human lives to be 79 years old. Life is too short to be working for someone else’s dream.
Which route will you choose?
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