Since I’m taking the month of July off I thought I’d give everyone a sneak preview of the upcoming book Dirt Rich 2 The Next Plot - How to scale your land business over the next 4 issues. Here is the end of Chapter 2 after we left off discussing Solo Economic Dependency:
Being Rich vs. Being Wealthy
Imagine I could wave a magic wand and grant you one wish. But here’s the catch. I only grant two wishes. I can either double your net worth or give you eight more hours every day for the rest of your life.
Which would you choose?
To some, immediately doubling your net worth is tempting. You could do more land deals. You could buy your dream house or take that trip around the world you’ve always wanted to take. Or maybe you could have enough money in the bank to retire.
But what about time? What would eight additional hours do for you every day? What could you do with that time? Could you spend more time with your family? Could you cut down to working two or three days per week? Could you get back in shape or improve your golf game?
What problem would you rather solve, not having enough time or not having enough money? To me, time is the easy choice.
We have countless ways to solve money problems. Money problems are easy to solve. You could make more, spend less, or do both.
But time is our most valuable and finite resource. You can’t make more time as you can with money. We all have the same 24 hours in the day and need to sleep during a big chunk of that. And we all have only a very, very short time to spend on this little blue marble circling the sun.
If you make a lot of money but have to keep working to continue to earn that money, you have solved your money problem but not your time problem. That’s the reality with many doctors, lawyers, investment bankers, consultants, and C-Suite executives. They make a lot of money but if they stop working, the money stops coming in.
Would you want to trade places with those people? Would you want their stress? You might like their house, their car, and those luxury vacations they can take. But they have no control over their lives. They sit in traffic or stuff themselves into crowded trains or buses to and from work every day. By the time they get home, they’re physically and mentally exhausted from all the demands of the day.
Does that sound like freedom to you? Does it sound like a fulfilling life? What good is all the income they make if they don’t have any time or freedom to enjoy it?
It doesn’t matter what you do. If your income stops coming in if you stop working, you are not truly free.
Solo economic dependency impacts anyone with a job, even the highest-paid athletes in the world. That’s why we hear so many stories of athletes going broke after they stop playing. They make millions of dollars for a very short period of time. If they don’t find other sources of income after their playing career ends, they will eventually go broke.
NBA great Shaquille O'Neal recognized this during his career. When talking about his time with the Los Angeles Lakers, he recognized that he was rich while Lakers owner Jerry Buss was wealthy. Shaq had to show up every day for practice and games to earn his income. And when he got too old to compete in the NBA, his paychecks would stop.
Jerry Buss didn’t have to be on the court, or anywhere else for that matter. His earning potential also didn’t have the same shelf life as an NBA playing career. Other people ran his business and made him money.
Since retiring from the NBA in 2011, Shaq built a business empire to continue to grow his income and net worth. According to reports, Shaq now makes more passive income from his business ventures than he made as a player in the NBA. His portfolio included more than 150 Five Guys restaurants, 17 Auntie Annie’s pretzels shops, 9 Papa John’s pizza franchises, a Krispy Kreme donut franchise, and more.
Shaq became rich playing basketball but became wealthy by owning businesses. He now serves as a commentator for NBA games, not because he has to but because he wants to.
By building and investing in businesses, Shaq solved both his time and his money problems. His businesses generate more passive income than he made playing in the NBA. And he has the time to do whatever he wants because he doesn’t have to show up anywhere to make that money.
That’s the secret to becoming wealthy. You might not need 200 restaurants to cover your desired lifestyle. But to become wealthy you need to solve both your time and money problems. That means you have enough passive income to cover your desired lifestyle without having to work to keep your income coming in. Only then will you be truly wealthy.