Dare to Compare!
The rich do things differently. It’s a lesson every budding entrepreneur should learn as early as possible. But not only do the rich do things differently, social media might be the missing ingredient for millions of average American’s just like you. Before you pass this off as some type of hyperbole, keep reading to see for yourself why a 9 to 5 desk job…even a six figure one…won’t get you into the exclusive ranks of the rich. In fact, we dare you to compare your present position with the habits of the wealthy. We think you will be surprised to see how a few simple changes can dramatically enhance the bottom line in your business and bank account!
As a social media management firm we encounter a lot of hard working small business owners. Many have literally put everything on the line to pursue the American Dream; their career, house and endless hours of backbreaking labor. Is it all worth it? Sadly, statistics from the BBB show that 80% of small business start-ups go bust within 5 years. Another small percentage struggle along with just enough up’s and downs to make a living and replace their wages with the relative insecurity and stress of running their own business. Then there are the others..the small segment that hit it big. What do they have in common with other self-made millionaires (or billionaires)? Keep reading to find out and then see how your personal wealth building strategy measures up…and how social media might be the missing ingredient needed to propel your bank account to the next level.
What It Takes to Make a Fortune
It’s instructive to take a step back and find out exactly how the wealthy arrived at their enviable position; what does it take in today’s world to become a self-made multi-millionaire? According to the IRS, an organization that makes a point of keeping track of these types of facts very carefully, multi-millionaires do indeed do things differently than other people. Rather than spending year after year working for someone else, the majority opt for other types of money-making endeavors. But why? Well, it’s actually pretty simple…it is all but impossible to become wealthy while working for someone else.
Think about it for a moment. The business owner or investors have taken the risk and expect to reap the reward. Plus, the progressive nature of income taxation makes it more and more difficult to retain what is earned since taxes take an ever-increasing percentage. So, how do the wealthy make their money? Again, thanks to the IRS we know the number of persons in the United States that obtained great wealth and how they did it!
- 6.6% earned the majority of their wealth via Interest. It’s a nice enough way to earn wealth; passive income, plenty of free time and perhaps even some favorable tax treatment. Unfortunately, it’s also difficult. The least likely method of generating great wealth and subject to uncontrollable outside forces including economic conditions and changing legal or tax environment.
- 8.6% earned the majority of their wealth via wages and salary. It’s respectable. It’s slow. It’s not very likely. How do you measure up? Does the majority of your money come from a job? If so, it’s time to start searching for a better option….and the sooner the better!
- 13% earned the majority of their wealth from dividends. Ahh, tax benefits plus passive income make this an ultra attractive option but there is an element of risk as well as access. Unless you happen to hit it big by using options and/or margins, it requires a fairly significant sum to get started….or a very long winning streak. Losses can wipeout months or even years of prior profits. Perhaps most significant of all, only qualified investors are able to join the game during the earliest stages when the most profits are made.
- 19.9% earned the majority of their wealth from partnerships and corporations. In short, they built their own business and put others to work on their behalf. Owning your own business is only half the equation; leveraging the talents and tax benefits derived from outsourcing, using OPM to fund expansion (other people’s money) and limiting personal risk are essential elements to generating great wealth.
- 5.8% earned the majority of their wealth from Capital gains. Passive income, minimal risk. Exponential growth. Wow…what’s not to like? Yet this alone is somewhat deceptive since much of the Capital Gains, dividends and even earned income may also be associated with the establishment of a business. Clearly one thing is certain, it remains the number one method available to average persons to build wealth.