Saving Money Is The Slow Path To Financial Freedom

Saving Money Is The Slow Path To Financial Freedom



Saving Money is​ the​ Slow Path To Financial Freedom
Getting a​ job and not spending all the​ money each month is​ the​ slowest,​ hardest,​ and least efficient way to​ build up a​ big pile of​ money .​
Saving money is​ a​ worthwhile net worth building activity,​ but it​ doesn’t offer much more than that unless your goal is​ only to​ have a​ little cash at​ the​ ever-increasing age of​ retirement .​
This is​ because wages are the​ most heavily taxed source of​ income .​
Income taxes (federal,​ state,​ and social security) choke off about 35% of​ this earned income before you ever see a​ dime .​
And second,​ your income is​ capped by the​ number of​ hours that you can physically work in​ a​ week; even if​ it​ pays well .​
Ownership is​ the​ financial goal that we​ all have; owning investments that will passively pay us interest and dividend checks .​
But there are two wildly different paths to​ get there .​
One path is​ very slow and slightly uncertain,​ and the​ other path is​ much quicker but more uncertain to​ accomplish.
The fastest and most efficient way to​ build a​ pile of​ money is​ through entrepreneurial activity .​
This way,​ you can get into a​ position of​ ownership without buying it,​ because you are creating it .​
You bypass the​ taxation tollbooth of​ wage-earners,​ and the​ limitations of​ your salary and time .​
The goal is​ to​ create your own piece of​ equity that gives you a​ source of​ income that you control .​
Now before you start rolling your eyes that this is​ too risky,​ too hard or​ you don’t know how to​ do it,​ let me give you some ideas to​ help reduce your hesitation.
Maybe it​ isn’t your money (borrowed),​ or​ your expertise (a partner’s),​ or​ skill (hired,​ outsourced); but if​ you lead the​ team you can create your own piece of​ the​ equity .​
You can start out on​ a​ tiny scale; I​ am acquainted with someone that earns over $100,​000 with a​ dog walking service .​
She has other people walk the​ dogs,​ so that she can focus on​ marketing and managing her walkers .​
Don’t you think that you could think of​ a​ dozen similar services that might be needed in​ your area?
It is​ mentally challenging to​ start an​ entrepreneurial activity,​ but more importantly,​ it​ takes money,​ knowledge and persistence .​
It takes knowledge because there is​ always going to​ be trial and error in​ refining your business model; and it​ takes money because you need enough money to​ find a​ successful business formula that pays for itself before you run out of​ money .​
It takes persistence because obstacles are natural when creating or​ maintaining any business activity.
There are zillions of​ areas to​ become entrepreneurial and build up equity,​ but here is​ another idea that nearly all communities offer; I​ bet that there are at​ least three successful residential home rehabbers working your community .​
Find them and convince one of​ them to​ help teach you in​ exchange for being a​ free assistant .​
And when you strike out on​ your own and need additional help,​ offer to​ give him or​ her a​ percentage of​ your profit.
I want to​ show you an​ example of​ entrepreneurial persistence,​ even though it​ uses real estate again .​
There is​ a​ giant mall being built at​ a​ nearby city .​
I​ was dropping off a​ friend that lived there and he said that it​ was a​ great story about obstacles .​
The city didn’t want a​ new mall to​ take business from the​ downtown strip,​ so the​ developer moved the​ project outside of​ the​ city limits .​
Then the​ state government said they couldn’t allow it​ without a​ larger highway exit,​ and they didn’t have enough money to​ make a​ highway exit .​
So the​ developer raised the​ money and built the​ highway exit himself .​
The point is​ that no matter how insurmountable an​ issue first appeared,​ the​ developer was undeterred from reaching his goal.
Developing a​ side business to​ ramp up your income is​ the​ most financial rewarding activity you can undertake .​
Imagine if​ you took half the​ effort you put into studying for school and put that into business building over four years – I’d suspect your results would be far greater than setting aside some of​ your paycheck each month.




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