Revealed - Why Do 93% of Millionaires Own A Business

You are right. They use their business to create passive income and they use mainly investing and their business for leveraging.

yep... business makes money... then you can take that money and invest it, that way your money works for you!

Standard rich dad poor dad stuff

Absolutely agree....I currently buy established websites which are earning and then improve them to increase the earnings..............and then KEEP THEM! Earnings are building very nicely!

I agree Phil. The great advantage of online businesses is that so much can be automated. Breaking the link between hours worked for pay is the key I think, and most offline businesses are bloody hard work!

Some interesting statistics here, owning your own business is indeed the ultimate wealth creator, which I guess is why we are slaves to our own. Let's face facts we all wish to be wealthy, but the ones who take the consistent action make it.

Sadly the ones who do not take action, will always fall by the wayside, and find someone else to blame for their inaction, I am glad to be a warrior.

Where does this "statistic" come from, Nathan?

(These days, in a huge number of countries/states, a high proportion of millionaires are actually lottery-winners. There are hundreds/thousands being produced, every week.)

93% of millionaires don't own a business. The overwhelming majority of millionaires are older people who have simply worked long and hard at their jobs, and lived below their means.

If you said 93% of people with a net worth of 5 million or more are or were some type of business owner or investor, you'd be a lot closer I think ...

It actually amazes me the ROI you can get with marketing. When you look at what your average ROI is of someone who really knows what there doing with IM and then think about the ROI my Grandpa gets in the stock market, I don't even waste my time with that stuff. He thinks I'm the crazy one. I guess the stock is more of a long term thing but I'll just stick to this stuff for now. It seems to be working just fine.

I've been thinking about this stuff a lot here lately -- not in terms of actual numbers but the idea of it. The first thing that usually pops into my head is celebrity, though. Even though you can be a working actor and make a few million, it's the ones who start their own production companies or whatever and those that create opportunities for themselves that make the big money. I've also noticed they all have another thing in common: they all have multiple streams of income.

Joey

I think the numbers you have there are a bit off... but I understand the idea. It's true for sure.

Now another interesting statistic would be, how many people go broke from owning their business? LOL.

I think this is more inspirational than accurately factual.

I get the idea. Thanks for posting.

IMO stock market should get minus because there's risk involved. You can lose money in stock market.

interesting points here - at least with our own business, we can be our own boss!

The only time you'll completely fail is when you give up. This business is all about trying, failing, getting back up and trying again.

Don't let statistics get in the way of building a great business. Focus on yourself and don't worry about how much money others are making.

There are always those better AND more worse off than you.

Sorry to be a stickler for details but if we're going to teach young
(or old) newbies how to be competent business owners it's important
that they understand the terminology correctly.

The revenue that results from marketing and advertising is not ROI
because those items are not investment. They are expense. Thus,
the revenue produced is just that, revenue. From that number we
subtract the expense of advertising and the cost of goods sold to arrive
at gross profit before taxes.

From that we subtract whatever fixed and variable expenses we incur
in the day to day operation of the business... we then subtract taxes paid
to arrive at net profit after taxes.

That's the only number we can use to determine Return On Investment (ROI).

Just sayin'...

Also, another thing to consider is that not all businesses fit the description of "passive cash producing assets." Look at a carpet cleaner. He goes into homes with his equipment, sprays the solution on the carpet, sucks it up, and takes his fee. Then he will go on the the next project and repeat. He may earn the equivalent of $35/hr., but he is still limited by his time that he spends. He has to sleep, eat, relax, so in effect, if he doesn't work, he doesn't earn. Now, if he were to hire employees, he would make less, but would increase his capacity to earn. Then he could expand to new locations, etc.

I loved the Cash Flow Game. Kiyosaki is the reason that I realized that I would probably never get to where I needed to be in life unless I owned my own business.

I've always liked Kiyosaki. It is impossible to argue the mathematics and statistics behind his advice. Owning a business is absolutely the best way to create wealth for oneself. Create systems that make money for you - remove yourself from the clock. Who doesn't want to spend more time with their friends and family?

Great advice - however, I would be careful in recommending that any individual practice Kiyosaki's "method's" too closely. Kiyosaki's business is to sell self-help guides to all of us. He is obviously going to make us think that his next book/seminar/etc is the "ticket" to wealth. His advice is awesome, but our "ticket" is hard work and intelligence. I think after someone reads "Rich Dad, Poor Dad", they will have more than enough perspective to pursue a life of wealth creation.

We can all do it - we are all taking ACTION. This is THE most important catalyst in becoming successful in business.

Happy Holidays all.