If you haven’t read the first part of this post, click here:
Of the 1%, that are financially free, it is sure they didn’t get there by mistake. Putting it into numbers, we can clearly say that if we round up the population of the USA to be 350 million people, then 1% = 3.5 million people. That means 3.5 million people in America generate enough passive income to take care of all their living expenses. The others are lost somewhere between that and poverty. I personally find this instructive; as an individual who wants to win at the business of life, I am curious. What did they do? Or what are they doing? I am of the persuasion that nothing just happens. As I said in the first part of this post yesterday, only weeds grow without wetting.
From further studies, it was determined that about 75% of that 1% who are financially free in America are entrepreneurs, 3% are CEO’s, etc. I won’t go into the other parts of the percentages, ill stick with this two because they apply to most of us. We all know what it takes to be entrepreneurs, and the only thing 99% of those who manage to make it into the university today want, is to get a job.
So the options to become financially free is to become the CEO of a multinational which comes from getting a job, or we can break out and become entrepreneurs. If only 3% of financially free people are CEO’s, which come from getting a job, it shows there is much more opportunity to become financially free by being an entrepreneur, since 75% are entrepreneurs. Question then is, with 95% of small businesses fail in their first year, while 90% of the remaining ones go bust in 5 years, what did the successful one do? How did they grow their business to the point where it didn’t need them anymore? What systems did they put in place to ensure the business could run independent of them? This the real deal that stares us in the face.
I have always opined that Nigerians are the most entrepreneurial group of people, making money is no big deal. But financial intelligence teaches that beyond making money what guarantees wealth is managing the money and multiplying it. Those are the two qualities that plague most people. Having a business that makes you financially free requires training, mentor-ship, learning, persistence, personal development. But what are the options to create a business that generates passive income?
We will continue on this study tomorrow…