The third step on the path to financial independence is learning how to generate INVESTMENT INCOME.
If you chose the entrepreneurial lifestyle then you already know how Investment Income works– you get paid through the efforts of others. That is the key to building wealth. It’s extremely difficult to be productive enough to generate sufficient income to become wealthy simply from your own efforts. This is how the free market works.
Forget about greed, entitlements or “fair share”. There is no better system for creating wealth than the free market. Societies that don’t use this method are less efficient at distributing wealth. Examples can be found throughout the history of man. In modern times you need look no further than the failed states of Cuba or North Korea. These are totalitarian regimes that claim to promote social justice but in reality enslave their people.
The free market creates a hierarchy which allows disciplined individuals to travel the path to financial independence. Start in an APPRENTICESHIP by learning marketable skills; create a BUSINESS MODEL that provides useful products and services; generate INVESTMENT INCOME and build wealth through thrift and provident living. This cycle enables people to raise themselves up from the lowest level of the economic ladder to the highest…in one generation. Remember the miracle of America– unskilled immigrants that become millionaires.
If you’re not an entrepreneur there is a slow lane along the path to wealth. You’ll have to be an extremely disciplined saver and amass significant capital. This capital must be put to work in fertile investments that involve some level of risk. Just like the entrepreneur, your investments will create Investment Income through the efforts of others.
There are many investment vehicles. We, at Investable Wealth LLC, believe the best investment tool is the United States stock market. To learn more about how we help our clients attain financial independence please see: About the FIRM.