best residual income

Investing Vs. Business

Investing is one of the best residual income sources you can find today. But how does it differ from business or entrepreneurship?

 

Warren Buffett once stated…

“I’m a better investor because I’m a businessman, a better businessman because I’m an investor.”

best residual income

Investors and Entrepreneurs are essentially looking for the same thing.  They just go about it a little bit differently. While the investor is intent on acquiring an already profitable venture, the entrepreneur seeks to create their own.  However, there are some scenarios where the line becomes blurred.

  • For example, franchisees invest in an already developed business model, and yet they’re responsible for ensuring the business runs profitably.
  • Real Estate Investors often have to become very entrepreneurial in order to find the leads, and the deals that are worthwhile investments. Hedge Fund managers are in the business of investing for others.

 

But here is where I’ll draw a distinction.

Investors look to buy $1.00 for $.50 cents.

Entrepreneurs look to turn $1.00 into $2.00.

 

Which one should you master?

Either one can make you rich. But the wealthiest tycoons of both past and present have mastered and combined both skill sets.

Different people have very different goals.  Some are totally happy working for 45 years, and retiring with a decent nest egg.  Other people can’t stand their job, and want to live life on their terms. That’s why they are looking for the best residual income available. And still others might be in a situation where their retirement years are around the corner, and they desperately need a strategy that can help them catch up to where they need to be.

 

The more ambitious your goals, the more you may need to combine business income strategies in with your investing.  The formula the rich use is as follows:

  1. Security Building Phase- Long Term Investments, paying down consumer debt, putting personal assets in trusts, and getting proper liability coverage.
  2. Capital Growth Phase- Start or acquire a profitable business that creates profits far in excess of the average salary.
  3. Asset Expansion Phase- Funnel your lucrative profits into other passive investments such as rental income, interest, dividends, and capital gains from stocks.
  4. Leverage Stage- As you begin to gain proficiency in your investment and business skills, it becomes more lucrative to start leveraging other people’s money to multiply your wealth.

Capital Growth is the most important key to becoming wealthy incredibly quacking.  There’s a big difference between having $500.00 a month to invest vs. $50,000.00.

 

So even though Investing and Business are 2 different hats to wear, the key to truly building the type of your wealth that lasts for generations is to amplify one with the other.  That’s what allows you to attain heavy-weight status in one life time. Also, either method can be the best residual income source for anybody. But mastering both is wise.

Still have questions about how to maximize your wealth?  Take a look at our curriculum containing free up front strategies which can start making you money as soon as tomorrow.

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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