Entrepreneurs don’t just think about earning money. They also think about keeping the money they earn.
Two categories will help you peek inside the entrepreneurs' mind:
Assets.
Liabilities.
Assets can turn to liabilities, and liabilities can turn to assets over time.
Assets are everything that helps you make money, increase influence, increase market share, and retain customers.
Your website is an asset. Stocks, investment property, and good-paying customers are an asset too. Conversely, your overdraft fees, corporate taxes, credit card loans, long-term debt, and everything that can rock your ship sideways are liabilities.
Entrepreneurs handle multiple businesses simultaneously.
I run a publication, digital agency, build startups, invest in water supply systems, and build web tools.
Keeping tabs on assets and liabilities is what ultimately makes me money. I’m working hard to increase the asset column and control the liability column. Every major decision has to go through an asset/liability test.
If I start piling more liabilities than assets, it’s time to re-think the business and take on less risk. If I start piling up good assets, then it’s time to get a credit line and take more risk.
You can make money from many sources when you have a sound asset column.
Earn money from clients.
Earn money from a webshop.
Earn money from royalties on your content.
Earn money from stocks and financial portfolios.
Earn money from web property (monetizing website visitors)
Earn money from VC investments.
Earn money from an investment property (rent, house sales, etc.)
Earn money from ads, copywriting, and marketing.
I don’t earn a lot of money in one particular category, but I make a decent amount from many sources.
I’m mostly a digital entrepreneur.
I’m earning $5,000/month from the internet by selling my services, monetizing web visitors, earning royalties on my content, and publishing stories. Investing some of that money can earn me an additional few hundred bucks a month, which adds up over the years. I’m diversifying the money in stocks that earn dividends and then re-invest dividends to buy more stocks.
Stocks are my safe zone, a contingency fund of sorts.
I’m running a SaaS tool to help podcasts reach more people and charge visitors for its use. I’m also running 2 Minute Madness, a publication. The original $5,000/month grows to $10,000 in assets over a few months + monthly retainer of $5,000. In a few months, that $10,000 grows to $15,000 in assets.
You can build a 6-figure business portfolio focusing on assets and liabilities in the next two years.
However, I don’t pay myself half the money I earn because I invest that money in the future.
The first step is registering a company.