Are you applying common financial advice to your life and business?
If you are an entrepreneur, you are already uncommon. If your household income was over $81,000 in 2019, you are earning more than 60% of American households.
Here is “common” financial advice that we hear preached to the masses over and over again:
- Buy term life insurance and invest the difference
- Tear up your credit card
- 15-year mortgage over a 30-year mortgage
- Pay cash for everything
- Max out your qualified retirement plan when possible
- Business is too risky, go to school then get a job and work for money
- Invest in stocks, bonds, and ETFs
- Save money
Common advice gives you common results.
Median household income in 2019 was $68,700. Depending on where you live and family size, this can be anywhere from an okay living to barely getting by. If you want more for your life and family, common advice will not get you there.
Dave Ramsey and Suze Orman are huge proponents of this common advice. They are in business to sell books and other info products. Since the majority of American households make less than $81,000/year, they are going to target that group because there are more people to sell their products to. That is why we hear so much from them.
What is uncommon advice then?
The common advice listed above is probably okay for the average American seeking an average life, but when you look at the elite in America, it’s not that they just do things differently than the average American, they do the exact opposite of what the average American does.
Instead of investing in other people’s businesses through stocks and bonds, the wealthy first invest in themselves and build their own. They do not just save money, they acquire money and immediately put it to work.
The prolific investor and entrepreneur Naval Ravikant says, “You're not going to get rich renting out your time. You must own equity – a piece of the business – to gain your financial freedom.” If your goal is to create real wealth then you must take the uncommon road.
How the elite build wealth:
- Focus on cashflow not net worth
- Buy cash flowing and appreciating assets
- Don’t trade time for money
- Know the tax code and use it to their advantage
- Use debt smartly to expand their means
- Leverage knowledge and skills from others
- Don’t just save money, but put it to work
- Prioritize their time
Implementing the Infinite Banking Concept through dividend paying whole life insurance should be the foundation of your financial ascendance.
You’re not just saving money here; you’re also putting it to work at the same time. When you have built a big enough “pool of money’ in your policy you can start buying assets and creating cash flow. The policy gives you financial tailwind while also providing death protection to your family.
The next time you hear financial advice, look at where it’s coming from and if that person aligns with your ideals and what you are striving for.