I was recently reading through my LinkedIn feeds and I came across a post that really struck me as being the answer to the question I am asked by so many clients. How do I build lasting wealth? The post spoke about Shaquille O’Neal, who was recently awarded his doctorate in education by the way, and a statement he once made. “It’s not about how much money you make. The question is are you educated enough to keep it.”
Everyone, who has ever watched the game of basketball, knows about the incredible career Shaq had in the NBA. However, not everyone, including me, knows about how accomplished he is in his post career business investments. Not to steal the message of the post, but Shaq has made investments in over 200 franchises and 150 car washes along with several other establishments like Las Vegas night clubs. Obviously, we cannot all make the money Shaq has in our lifetime, but we can employ a similar strategy when it comes to building long term wealth.
It is a commonly accepted practice to set aside some of our income each year for retirement. Most will trust this nest egg to the money manager that oversees our 401K, and this is of course a solid strategy. Another way of appropriating these funds, is to invest it into a home that will become an asset to be cashed in when we exit the workforce. Imagine if we were to venture outside of the normally accepted investment paths and invest in something that will generate ongoing revenue and build wealth that can then again be reinvested.
A business, with a solid return on investment (ROI), is a machine that will generate cash as it grows. If that cash is reinvested in other businesses or the same business, for growth purposes, you will be on your way to building long term wealth and stepping off the hamster wheel of Corporate America. A business, even a small home-based business will generate cash while building an asset that can be cashed out in the future. We have all heard a story or two of a college student that took the money they would have spent on education and invested it in a business instead. If you haven’t you should check out a blog by Retire@21.com (https://retireat21.com/blog/the-most-successful-college-dropouts-in-history). Business is not for everyone for sure. It requires you take a risk and perhaps not spend as many hours watching your favorite Netflix series, but if you are even a little successful your life can change forever.
Traditional investment strategies like, 401Ks, IRAs and Real Estate, offer solid solutions to planning for retirement and should not be overlooked. Adding a business, that will generate ongoing cash flow to these more conventional investment strategies can truly build long term wealth for you and your family. Even it you only added one small home-based business to the mix the results could be dramatically different.
Most people think business ownership, while a good idea, is out of their reach. According to an article by businessnewsdaily.com/ – “According to the U.S. Small Business Administration, most microbusinesses cost around $3,000 to start, while most home-based franchises cost $2,000 to $5,000.” Start small and think long term when planning for your future. Explore what is possible and take a chance on yourself for your futures sake.
