I have written in the past about the one sign you will be rich. And over 1 million people read that post. In it, I was careful to define “rich” as achieving what you dreamed you wanted. That means I defined rich as an abundance of anything that is most important to you.
I do believe that being rich is about sustaining happiness and following your own journey. It is about becoming your best self and doing more of what you love. I tell our team at Aha! that every day.
This post is a bit different though. It is about what it takes to be financially independent. Financial independence comes when you generate enough wealth to live comfortably without having to work again. You might choose to work for other purposes — to volunteer, coach, or teach for no pay — but you no longer need income to pay your living expenses.
A lot of people think about being financially independent. 52% of people say having the financial freedom to do volunteer work or donate to charity is a very important priority. And more than 65% of Americans say they wish they had more time to do what they love. The thing is, money is a tool. And the wealthier you are, the more you can afford to invest in yourself and others.
We all have different goals, but I think you will agree that most people want to gain material wealth. But few who do think deeply about how they will make it happen. So, do you know the one sign that you will be financially wealthy?
The one sign is that you “own it.”
“Owning it” means possessing a unique asset that is in demand and will significantly increase in value over time. Here are a few examples:
Do you dream of being your own boss? Starting your own company is not for the faint of heart. If you are successful, your business will not only build a solid foundation of wealth, but could someday generate a substantial amount of money as it grows or is acquired. If you are not in a position to start your own business there are other options. There are plenty of companies that offer stock or equity to employees as a part of an incentive program. Owning a small part of a company is better than owning nothing at all.
Owning real estate has historically paid off. As a property owner you have the freedom to rent, renovate, or sell your property on your own terms. Depending on your strategy, you can generate income and yield over the short term, increase value long term, and gain tax advantages by deducting the cost of ownership.
My mom often complains that NBA players are overpaid, but I disagree. They have a unique skill that people pay lots of money to watch. That skill increases the value of their team and keeps countless others in business as well, from stadium managers to ticket venders. The same can be said for cardiac surgeons who are highly trained, scarce, and in the business of saving people’s lives. If you possess a difficult to obtain skill, think of it as your key currency.
Now, some people are born with trust funds and other easy paths. In their case, the one asset they own is money. And owning money is an obvious path to making more of it.
For most of us though, we must study and work hard to gain financial wealth. It does not come easy or overnight. And if we do make it, we were likely blessed by good fortune and others helping us along the way.
I believe that “owning it” is the surefire sign that you will gain financial wealth. You must have possession of something special that will increase in value over time to become rich.
Do you agree that you must “own it” to gain financial wealth?