Once you’ve put your financial house in order and are maximizing the efficiency of your existing resources, it’s time to start increasing your entrepreneurial income. The purpose of this
increased income isn’t to upgrade your lifestyle—at least, not just yet. The purpose is to have discretionary funds with which to invest in independent income-generating opportunities.
Entrepreneurialism is the only fiscal element to provide you with wealth, cash flow, and tax advantages and set you up for life. Tax laws also favor the entrepreneur and punish the poor. The employee income, savings, 401(k)s of the poor and middle-class are taxed disproportionately.
So you need to increase your active income to free up cash for investments
You’ve got a solid foundation to build from. You’re out of debt, or at least well on your way. You’ve recovered cash you were losing to the IRS, poor investments, poorly structured insurance, and interest. You’re able to save more money.
Now, the goal is to increase your active income. This seems counterintuitive, since I’ve said that the whole goal of the 5 Day Weekend lifestyle is to build independent income.
But you’re only going to do this initially so you can create discretionary funds with which to invest. It’s not true that it takes money to make money, as you’ll learn in a coming blog post. But it does take money for most investments. The more you have to invest, the faster you can build your 5 Day Weekend lifestyle.
At this stage, I’m not talking about working longer hours at your job or asking for a raise (although that certainly wouldn’t hurt). I’m talking about building entrepreneurial income on the side in ways that give you greater leverage and more opportunity than you can get at your job.
This is a safe approach to entering the waters of entrepreneurship. You’re not going to do anything that jeopardizes your finances or family. You’re not going to immediately quit your job and hope and pray something works out. You’re going to experiment with stuff on the side with minimal investment. You’ll stop and learn from what doesn’t work and build what does work.
I continue to explore this in my next post.
In the meantime, I’d love to hear your thoughts on where you are in building entrepreneurial income. If you’re not yet an entrepreneur, have you considered how you’re going to become one? Thank you for sharing.
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]