This post might rub some people the wrong way because I’ll briefly touch on politics and the way I think America works. Whether the way I think America works is right or wrong is a separate question that I’m not answering in this post. The question I’m trying to answer is “How do I set myself up to be financially successful.”
The logic is simple. In America, companies are legally able to contribute money to campaigns of political officials. Though it is denied, these politicians will put laws in place that allow these companies to earn more profit. But why would companies work so hard to manipulate laws in order to make more profit? Two answers come to my mind:
- If businesses don’t make a profit eventually they won’t exist anymore.
- The goal is to make the owners money.
When a company goes public they are allowing outsiders to buy a portion of the company. This allows that company to raise money (by selling off ownership) which they can use to expand even more. But this isn’t charity. The person buying a portion of the company expects to get a return on the investment (ROI) made. When businesses make shareholders happy they attract more shareholders which injects more money into the business. Hopefully, you see the cycle by now.
I’m not saying it’s right or wrong, but it’s reality. When you work for a public or even private company your job is to make the owners more money than you cost. It doesn’t necessarily mean that the folks that run these companies don’t care about you as a worker, but you need to understand that when the shit hits the fan you’re an expendable asset of the company. So please, go into this relationship with your eyes wide open. Understand that the companies loyalty to you is secondary to the owners. Be prepared to survive on your own.
So with this understanding, let’s answer the question, “How do I set myself up to be financially successful?”
In my opinion, the answer is to become an owner. Sure, you can try to change the system I just described above, but it’s a long shot.
There are 3 ways (that I know of) to become an owner:
- Start your own business.
- Buy the stock of publicly traded companies while working as an employee.
- Investing in real estate.
I have no experience with numbers 1 or 3, but I can definitely speak to number 2. Today, Kim and I are buying (aka investing) as much stock as we can through mutual funds. I listed some sample funds in the investing post a few months back. I showed how easy it is to become an owner of publicly traded companies.
What do you need to do to be financially successful by becoming an owner?
- Get out of debt and stay out of debt so you can free up your income.
- Use this income to buy mutual funds. In other words, become an owner.
- Do this until you become wealthy and have the choice of working or not.
This is it. This is how you get this system working for you instead of being a victim of it… become an owner to be financially successful!
If you’re not sure where to start with investing, read: Is Investing Really That Hard?
Feature Image: Unsplash