Understanding How Wealth Is Created

If you don’t own a piece of a business, you don’t have a path towards financial freedom.

The essence of understanding how wealth is created is a foundational knowledge of the differences and implications of ownership versus wage work.

Some of the main points are the following:

Without ownership, your inputs are very closely tied to your outputs.

Without ownership, when you’re sleeping, you’re not earning. When you’re retired, you’re not earning. When you’re on vacation, you’re not earning. And you can’t earn nonlinearly.

For me as I read this section I was nodding my head, I know this, I understand it. And the bit that stood out to me the most is earning nonlinearly.

When I think of my current position I am definitely still renting out my time for wages (well not at the moment as I’m employed). I have only ever worked for other people, never for myself.

In pharmacy they play this neat little trick where they call you an independent contractor so you don’t get paid holiday or sick pay essentially making you self employed all the while being an employee. In this case your outputs are directly tied to your inputs. This is what I need to avoid..

Luckily for me, about a year ago I read Ramit Sethi’s book “I will teach you to be rich“. It’s a great book with a terrible title (I believe the title is the result of A/B testing click through rates on google adwords back in the early 2000’s, the same way the 4 hour work week got its name). Since reading his book I have been slowing investing small sums of money into EFTs, mainly the S&P500 and NASDAQ.

So in theory I have a tiny bit of equity already. But how am I going to get more?

The most obvious answer is keep investing money into EFTs but the best way to get equity to start a company. Starting a company is something I have always wanted to do. I had a small taste of this with Tús Maith Journals.

Starting a business is hard, as I wrote that I know I should just start going for it, as I am now playing iterated games, I need to get my reps in…

What steps can I take right now to move towards being an owner?

Obviously I should continue investing in EFTs…

Can I increase my investments?

What other paths are there to getting equity?