Rich Habits Podcast – 16: Becoming Really, Really Rich

Intro

In this episode of the Rich Habits Podcast, the hosts discuss strategies for becoming really, really rich. They explore various wealth-building opportunities, including buying cash-flowing businesses, investing in real estate, inventing products or technologies, and maximizing stock compensation. Listeners will gain valuable insights into these strategies and learn how to make the most of their financial endeavors.

Main Takeaways

Opportunities in Buying Cash-Flowing Businesses

• Many baby boomers own small, cash-flowing businesses that they are looking to sell as they retire.
• Their children, who are mostly millennials, are not interested in buying these businesses.
• This presents an opportunity for those who want to build real wealth by owning cash-flowing businesses.
• Websites like bizbuysell.com and loopnet.com offer listings of businesses for sale.
• Buyers can negotiate seller financing with the baby boomer sellers to make the deal more feasible.

Maximizing Profits through Modernizing Small Businesses

• Many successful small businesses lack modern technology and marketing practices.
• Adding modern strategies to a profitable business can significantly increase profits.
• Buying an established business with owner financing and implementing modern strategies can be a great wealth-building strategy.
• This strategy allows buyers to avoid the work of building a business from scratch.
• Optimizing an existing business with technology will make it more profitable and worth more in the future.

Real Estate as a Wealth-Building Strategy

• Real estate should be a part of everyone’s wealth-building strategy.
• There are several ways to get into real estate, such as fix and flips, short-term rentals, rental arbitrage, and the birth strategy.
• It’s important to choose a strategy that aligns with your personal outcome and to have a mindset shift that you can do it.
• Real estate is a proven strategy for making money.
• Use the Burr method (Buy, Rehab, Rent, Refinance, Repeat) to maximize profits in real estate.

Inventing Products or Technologies

• Inventing a product or technology can make millions in a short amount of time.
• Think about how you can solve a problem for others in a scalable and profitable way.
• Real estate can build wealth over time, but inventions can make millions in months.
• Niche products and services that make life easier or improve existing services are a good opportunity for invention.

Maximizing Stock Compensation

• RSUs (restricted stock units) are additional compensation given to employees in the form of stock.
• Dividends from RSUs can be automatically reinvested, but it’s important to consider the longevity of the company before holding onto the stock long term.
• RSUs can vest at a higher cost than their current value, so it’s important to evaluate whether it’s worth holding onto them or selling them.
• Companies give RSUs to retain employees and ensure performance milestones are met.
• It’s important to evaluate the opportunity cost of holding RSUs, especially if you don’t believe in the longevity of the company.

Summary

Opportunities in Buying Cash-Flowing Businesses

Many baby boomers own small, cash-flowing businesses that they are looking to sell as they retire. However, their children, who are mostly millennials, are not interested in buying these businesses. This presents an opportunity for those who want to build real wealth by owning cash-flowing businesses. Websites like bizbuysell.com and loopnet.com offer listings of businesses for sale. Buyers can negotiate seller financing with the baby boomer sellers to make the deal more feasible.

Maximizing Profits through Modernizing Small Businesses

Many successful small businesses lack modern technology and marketing practices. Adding modern strategies to a profitable business can significantly increase profits. Buying an established business with owner financing and implementing modern strategies can be a great wealth-building strategy. This strategy allows buyers to avoid the work of building a business from scratch. Optimizing an existing business with technology will make it more profitable and worth more in the future.

Real Estate as a Wealth-Building Strategy

Real estate should be a part of everyone’s wealth-building strategy. There are several ways to get into real estate, such as fix and flips, short-term rentals, rental arbitrage, and the birth strategy. It’s important to choose a strategy that aligns with your personal outcome and to have a mindset shift that you can do it. Real estate is a proven strategy for making money. Use the Burr method (Buy, Rehab, Rent, Refinance, Repeat) to maximize profits in real estate.

Inventing Products or Technologies

Inventing a product or technology can make millions in a short amount of time. Think about how you can solve a problem for others in a scalable and profitable way. Real estate can build wealth over time, but inventions can make millions in months. Niche products and services that make life easier or improve existing services are a good opportunity for invention.

Maximizing Stock Compensation

RSUs (restricted stock units) are additional compensation given to employees in the form of stock. Dividends from RSUs can be automatically reinvested, but it’s important to consider the longevity of the company before holding onto the stock long term. RSUs can vest at a higher cost than their current value, so it’s important to evaluate whether it’s worth holding onto them or selling them. Companies give RSUs to retain employees and ensure performance milestones are met. It’s important to evaluate the opportunity cost of holding RSUs, especially if you don’t believe in the longevity of the company.

Conclusion

Whether it’s buying cash-flowing businesses, investing in real estate, inventing products or technologies, or maximizing stock compensation, there are various strategies for becoming really, really rich. By exploring these opportunities and implementing the right strategies, listeners can take significant steps towards building their wealth and achieving financial success. The Rich Habits Podcast is dedicated to providing actionable intel on wealth-building strategies and habits, and the hosts are committed to being a valuable resource for their listeners.