The Only Way To Get Really Rich
The following is from an Article on Inc.
Want to be remarkably successful? Want to get really rich? (While there are many ways to feel “rich,” in this case we’re talking about monetary wealth.) Then check out this little gem of an investment opportunity.
It’s a simple investment. You only have to invest almost all of your money. On the upside, after a year you might earn 3 percent more. The downside? Any day you could lose it all, for reasons usually outside your control and that you will almost never see coming.
Would you make that investment? Of course not.
Yet millions of people do — every day they go to work for someone else.
Of course the analogy isn’t perfect. Until you’re laid off or fired you do earn a salary. But when you work for someone else, your upside is always capped — sure, you might occasionally get a raise, but in most cases 3 to 4 percent is the best you can expect.
Yet your downside is always unlimited because getting fired or laid off can make your income disappear overnight — and with it the considerable investments you’ve made in time, effort, dedication, and sacrifice.
Extremely limited upside. Unlimited downside.
That’s a terrible investment.
So if you hope to get really rich, working for someone else will never get you there. But don’t just take my word for it, the government agrees.
The IRS Statistics of Income Division, a place where fun surely goes to die, has published “400 Individual Tax Returns Reporting the Largest Adjusted Gross Incomes Each Year, 1992-2009,” or in non government-speak, “400 People Who Earned a Freaking Boatload of Money.”
In 2009, it took $77.4 million in adjusted gross income to crack the top 400. (That just barely got you in; the average income of everyone on the list was $202.4 million.)
Where it gets interesting is how the top 400 made their money:
I’ve spoken to hundreds of entrepreneurs, and each and every one does the same thing. When we talk about the financial side of being an entrepreneur — exit strategies, revenues, IPOs, cashing out — they’re interested but far from animated.
It happens every time.
The bootstrappers with infinite dreams and negligible revenues light up.
The successful entrepreneurs such as Joel Gascoigne, who helped expand Buffer from a personal project into a business with a talented team with real revenues, light up.
The hugely successful entrepreneurs such as Scott Dorsey, who helped steer ExactTarget out of a garage, into an IPO, and then into an acquisition by SalesForce.com, light up.
Every entrepreneur lights up when we talk about being an entrepreneur because they feelalive: free to chart their own courses, to make their own decisions, to make their own mistakes — to let the sky be the limit not just financially but also (and almost always more importantly) personally, too.
And in that way, regardless of financial return, they feel really rich. And they are really rich — regardless of income or wealth.
In return for less freedom, less control, and less fulfillment, every day you go to work for someone else your upside is always capped and your downside is always unlimited.
The downside for entrepreneurs is also unlimited — but in return, they enjoy the possibility of an unlimited financial upside and an unlimited personal upside.
Take a chance on yourself. Try to get really, really rich. Maybe you’ll only become really rich.
It’s the best investment you can make — because it means you’re investing in yourself.
Read the original article on Inc.