The point of a business is to make its owner rich.
If it doesn’t, it’s not a very good business.
Yes definitions of “rich” will vary. But the point remains.
The thing is, getting rich does not equal making more money.
And I have the perfect illustration to prove it:
In highschool I took a personal finance class. My teacher, Mr. Evans, broke the class into 5 groups that were effectively “families”. Each family was given a “salary” and then asked to make a series of choices.
Buy a car or rent? Used or new? Apartment or house?
So and and so forth.
The interesting thing was that each family was given a different salary. So on the low end you earned 32K… and the highest was like 200. And of course everything in between.
But by the end of the semester the turntables had turned.
All the highest earning families ended up on the bottom of the wealth ladder. And the lowest earners ended at the top.
Because the top earners bought new cars and houses and started each month with a laundry list of expenses.
But the lowest earners scrimped and saved and were able to buy assets.
Which is obviously a lot easier when it's just a thought experiment and you don't have to live in a crappy apartment and skip on vacations.
The point of all this?
The point is, in the marketing world most people are solely focused on making more money. Growing their business. Increasing bottom line.
But that’s not how you get rich.
You get rich by creating more assets than expenses.
Too many expenses and not enough assets is why so many marketing gurus are flat broke.
In fact, from what I’ve heard, Gary Halbert was broke his entire life. Even though his “Coat Of Arms Letter” alone made enough for him to retire, his children to retire, and even his grandkids to retire. (In other words, his kids and grandkids would’ve never had to work at all.)
So yes, it’s possible to make hundreds of millions and still be flat broke.
On the other hand, if you have good money sense, and you create assets before expenses, then increasing your revenue will accelerate your wealth.
It’s just simple math.
And really, this is all just food for thought. Obviously I’m not a financial planner. So talk to one before making any important financial decisions (duh).
In other news, go here: