What if the real reason you’re struggling financially has nothing to do with your income and everything to do with your lack of intentional ownership?
Like it or not, this country is designed to protect and reward owners. Ownership determines tax codes, voting rights, and development. Tax laws don’t just favor the rich; they favor ownership. The more you own, the more breaks you get. It’s not luck or coincidence that Warren Buffett pays a lower tax rate than his secretary. The reason comes down to how his income is earned. His secretary earns ordinary income taxed at a higher rate; Buffett earns most of his income from investment profits, which are taxed at a significantly lower rate (for everyone). On a macro level, this seems unfair, but Mr. Buffett has pursued ownership intentionally his entire life.
Ownership is the Catalyst for All Wealth Building
If you want to be rich or simply remove yourself from the struggle and stress of maintaining the basics- a nice, safe place to live, healthy food, quality clothing, and healthcare- you had better make intentional ownership of income-producing assets a priority in your life. Here are a few examples:
- Stocks
- Bonds
- Real Estate
- Products (books, apps)
- Web-based businesses
- Brick and mortar businesses
Some of these assets you will need to build from scratch (books, apps, and websites), and others you can buy (stocks, bonds, real estate). All these assets have one thing in common: they work around the clock to make money on your behalf. The best part is that once you own enough of these income-producing assets, you will no longer need to spend all your time making money or worrying about money. You get to spend each day exactly the way you imagine it.
I own the following collection of assets:
- Stocks
- Bonds
- Index funds
- REITs (Real Estate Investment Trusts — a way to invest in real estate without owning property directly)
- CDs and HYSAs (Certificates of Deposit and High-Yield Savings Accounts — both offer higher interest rates than a standard savings account)
Every month, I earn ever-increasing dividends from my stocks, index funds, and REITs, and interest from my bonds, CDs, and HYSAs. I started with a single share of stock and built from there over the years. This was the primary path of ownership I chose, and it has led to a life of financial peace and options I have yet to exercise but look forward to.
Feedback Loop
Another benefit of equity ownership is the compounding effect that takes hold. I no longer work hard to accumulate shares the way I did early on.
At the start, I would work hard to save and purchase a share of stock. However, once I reached an accumulation tipping point, the dividends I received were large enough to purchase full shares through a DRIP (Dividend Reinvestment Plan), which automatically uses your dividend payments to buy more shares without any extra work on your part. These additional shares meant the next dividend payment would be even larger. It is the ultimate financial feedback loop. Wealth grows continuously while you sleep.
Own with Intention
If I had one life lesson to pass on, it would be this: you must be an owner to win this game of life. Own with intention. Own assets that produce income for you. Keep buying assets until you are free to spend your days the way you imagine them.
This week, open a brokerage account, buy one share of something that pays you, and become an owner. That’s how it starts.
You can listen to The Cash Flow Coach every week on Sirius XM’s Women’s Empowerment Network.
