Are you interested in growing your wealth?
And I don’t mean just money, but I mean really thinking about the impact that money is going to have and what it can allow you to do.
Greater freedom and flexibility allows you to spend a lot more time with your loved ones and serving your community — or doing whatever it is that is meaningful to you.
That’s what real wealth is all about and real freedom is all about. So if you think about what is the best way to create real wealth and real freedom, let’s actually break down what the options are to you. I think a lot of consultants misunderstand the true options that are available to them and there are ways for you to create wealth much faster.
Slow Investing — Banks & Stocks
So let’s look here at a situation where a lot of people will put money into their bank. They’ll keep it there. They feel that it’s safe there and they’re stocking away for some rainy day.
Let’s say you put $10,000 into your bank account. And of course, you can multiply these numbers by significantly more if I’m just gonna use this to keep the example very simple. Let’s say here that you have your high-interest savings account in your bank and that gives you 2.5% percent interest. That means in 12 months you’ll have earned about $250 from the $10,000 that you’ve kept in the bank.
Not a very good return on your investment, right? Not very exciting to me, making $250 from that money.
Hopefully, you don’t have that much money just sitting in the bank. Maybe you’ve put it into something like stocks and you have money it the equity markets. Historically, if you’re investing $10,000 and historically the markets produce around 9.8% return on our investment or interest on an annual basis.
I’m sure you can find a lot of other examples and give me specifics that will over the last X number of years — but historically this is what they provide. And in fact, I would argue that most investors would be quite happy with a 9.8% return on their investment if it’s done in a way that keeps the risk low and provides overall, stability for the long-term.
If you did that, you have $980 in interest that you have earned from your $10K investment.
Is that great? It’s not that exciting, right?
Even if you double this amount you wouldn’t be making that much. It might seem like a nice number and you definitely want to have some money generating 90% for you — because that’s a good number.
Investing in Your Own Business
Let’s really talk about wealth — and let’s say as a consultant, you invest $10,000 into your own business within a 12 month period.
In 12 months, if you invested $10,000 into your consulting business to help you to grow it, to improve it, how many more clients do you think that you could land?
- One client within 12 months?
- Two clients within 12 months?
- Three clients within 12 months?
Let’s say your average project is $10,000 and you land three new clients within 12 months.
That would generate $30,000 for you. And that means that you’re actually getting a 300% return on your investment. And this may be significantly higher.
And this is just based on $10,000 client. But if your client is worth $25,000, $50,000, or $100,000 dollars for you, you’d be into the thousands of percents return on your investment.
So when you’re stocking away that money for your retirement, or you’re thinking about security, your family, and taking care of all them — which of these is going to actually get you where you want to go faster? Which is actually going to help you get there faster?
What’s interesting is that people often see their business as being risky. Making this kind of investment is one that they get worried about. But why?
This is the only one that you can actually control. You have no control over what happens to the rest. With your bank, the interest rates might change. The stock market could take a big dip and go down 20%, 30%. Who knows what’s going to happen there — and it takes a lot longer to get your money back up to even where it was when you started.
But with your business, you have 100 percent control.
It doesn’t mean every day’s going to go smoothly. It doesn’t mean that you’re gonna be super happy and you know, bringing in new clients every single day or every single month. But as you work through it, you’ll get to that place where you have a full pipeline of business where you’re able to earn not just $30,000 within 12 months, but an extra $300,000 for an extra million dollars or whatever that number is.
You have the ability to earn as much as you want in your business.
You don’t have that option with any other investment. So when you really consider the stability, my belief in my observation is that your business is actually probably the most stable long-term investment that you can make because you are the one that is in control of it.
No one else controls what happens within your business except you.
So if you’re thinking about wealth creation for you, for your family, for your legacy, would you prefer to getting 2.5% interest, 9.8% interest, 300 percent interest or more?
Your business is, most likely, the best place where you can make an investment.