Risk? You can’t afford NOT to do this
If you are in the early stages of building a business online, one of the last things on your mind is the idea of saving and investing.
Let’s face it – most of us starting out online have limited budgets and we struggle to make an income and when we do chances are we spend the money or put it back into the business to make it grow.
When I started out about a decade ago, having a small budget was one of the reasons why I was slow to get going.
But I had a niggling thought in the back of mind that grew over time – shouldn’t I be looking for ways to save and invest?
KIYOSAKI AND CARDONE
Now if I am losing you and you are thinking – “investing? I am having enough trouble building an income to be thinking of investing …” please bear with me.
We need to change our mindset to begin to become an investor.
If you want to build a business online and build wealth, you need to build your “investing muscle”.
As I have mentioned before, millionaire author Robert Kiyosaki stresses the importance of becoming an entrepreneur and becoming an investor – making assets work for you.
Millionaire Grant Cardone backs this up and sets a high bar – he suggests people save 40% of their income with the idea of putting this into assets. That’s right – 40%.
STARTING OUT ONLINE
Now I used to be focused on the profit and loss part of the equation. You build a business online and try to make a good profit and aim for a good income if possible.
If you are starting out online, chances are this is your focus – make a profit and make good money.
Simple.
This will seem enough of a challenge without delving into the murky world of investment and asset accumulation. Where do you start? Do you even have a chance of starting if you only have a relatively small amount of income that you could invest?
Good points.
MEDIUM TO LONG-TERM GAME
If you are in the early stages of building a business online then the idea of asset accumulation and investment will either not be on your “to-do” list or down at the bottom.
But there are good reasons to start taking steps to put the bricks in place – a foundation – to both protect your business and build and protect your wealth.
As both Kiyosaki and Cardone say, the aim should be to build an asset base that will provide you with security and an income – an income that in time could even surpass what you earn from your business. This will take time, of course, and takes discipline to put aside a percentage of your income to build your asset base.
This is a medium to long-term game. But if you can start to build an asset base it will help provide a foundation for your overall business – gives you security when your business goes through the normal ups and downs – and provides you with security for when the world’s financial system takes a dive, which it will do soon. We saw the effects of the economic crash in 2008. The next crash looks set to be worse.
WHERE YOU NEED TO BE
Given we are living in a more uncertain world with another financial crash on the horizon, your efforts to build an online business – as a side income or a full-time income – will put you in a stronger position than relying on a job.
But building an asset base will help you sure up your financial position and personal wealth, which will help you weather the ups and downs of normal business and the ups and downs of the world’s financial system.
This might sound all high-flown stuff – but what building an online business and building an asset base mean for you and me is a level of security and freedom.
QUESTION OF RISK
All asset accumulation has an element of risk attached to it. And typically this is one of the key factors that hold people back.
But there is also another reason why most people do not build a substantial portfolio of assets – they do not know what to buy and they think that apart from mutual funds handled by a middleman, they will have difficulty getting started.
Luckily, we are seeing more options available to the general public, even if they only have limited funds at their disposal.
DISCLAIMER – I am not a financial advisor. It is important to do your own due diligence and research.
What is clear from economic experts such as Lynette Zang and Mike Maloney is that precious metals – primarily gold and silver – and cryptocurrencies are potential asset options. Grant Cardone might talk about saving enough money to buy property to rent out but for most of us, buying property is a bridge too far.
I would prefer to keep this discussion of the need for assets generalized, but it is hard to ignore an option that combines gold and cryptocurrency with an easy access point (see HERE).
GET ON THE LADDER
Wherever you are at on your online journey, it makes sense to seriously consider including an asset accumulation strategy in your overall online business plan.
You can’t afford NOT to consider this.
STARTER PLAN
1. Begin to buy assets
2. Develop a short, medium and long-term plan
3. Decide on a suitable percentage of your disposable income to invest
It is hard not to stress this enough. A focus purely on profit and loss will not insulate you from the ups and downs of the world’s financial system and the inevitable uncertainties involved in building a business online.
Stay tuned as we take a deeper look at this more holistic approach to running an online business.