“How would I start out as an entrepreneur in my 20s?”
What do you invest in and when?
The answer depends on the stage of your journey.
(Spoiler: “Diversify” isn’t until the end.)
The 5 stages of investing in yourself: 🧵
What do you invest in and when?
The answer depends on the stage of your journey.
(Spoiler: “Diversify” isn’t until the end.)
The 5 stages of investing in yourself: 🧵
I’ll assume you’re starting early in your career without a ton.
I’ll go through each here broken down by net worth.
And what I’d do at each stage.
(Everything in US dollars.)
I’ll go through each here broken down by net worth.
And what I’d do at each stage.
(Everything in US dollars.)
NET WORTH: $0-100k
OBJECTIVE: Optionality
You’re just starting out.
Probably with a job that pays OK.
Live beneath your means.
Save a ton: ~12 months living expenses in cash.
So you can safely start a business in the next step.
OBJECTIVE: Optionality
You’re just starting out.
Probably with a job that pays OK.
Live beneath your means.
Save a ton: ~12 months living expenses in cash.
So you can safely start a business in the next step.
NET WORTH: $100k-250k
OBJECTIVE: Cash Flow
The best investing ROI here is a business you start.
Pick one type with a proven model and little capital upfront.
Like an agency, brokerage, productized service, etc.
If needed, do as a side hustle until you can quit your job.
OBJECTIVE: Cash Flow
The best investing ROI here is a business you start.
Pick one type with a proven model and little capital upfront.
Like an agency, brokerage, productized service, etc.
If needed, do as a side hustle until you can quit your job.
NET WORTH: $250k-1M
OBJECTIVE: Become Unemployable
Your goal now is to reinvest in your primary business.
Grow it. Be all-in.
Invest in joining a CEO peer group.
Reinvest in your business to grow as long as ROI is high.
Keep the rest in cash.
OBJECTIVE: Become Unemployable
Your goal now is to reinvest in your primary business.
Grow it. Be all-in.
Invest in joining a CEO peer group.
Reinvest in your business to grow as long as ROI is high.
Keep the rest in cash.
NET WORTH: $1M-10M
OBJECTIVE: Asymmetric Bets
Your business cash now flows well.
If it’s a services biz, maybe you’ve hit a ceiling.
Invest where you can compound for long periods (20x+ returns) to hit the next level.
Things like product businesses or high variance RE.
OBJECTIVE: Asymmetric Bets
Your business cash now flows well.
If it’s a services biz, maybe you’ve hit a ceiling.
Invest where you can compound for long periods (20x+ returns) to hit the next level.
Things like product businesses or high variance RE.
NET WORTH: $10M+
OBJECTIVE: Be Antifragile
Some of those bets hit!
Your goal now is to be unkillable.
This means diversification:
- Buy cash flow real estate (directly or as LP)
- Own big %s of other businesses
- Public equities
If you want, do more asymmetric bets.
OBJECTIVE: Be Antifragile
Some of those bets hit!
Your goal now is to be unkillable.
This means diversification:
- Buy cash flow real estate (directly or as LP)
- Own big %s of other businesses
- Public equities
If you want, do more asymmetric bets.
After 10+ years of work, you’ve made it!
Before I finish, there is something missing:
You MUST invest in personal growth in every stage.
Learn.
Read a ton of books.
Listen to smart people.
Join groups where badasses gather – try to be the dumbest person in the room.
Before I finish, there is something missing:
You MUST invest in personal growth in every stage.
Learn.
Read a ton of books.
Listen to smart people.
Join groups where badasses gather – try to be the dumbest person in the room.
You can get rich by selling your time and saving.
You get wealthy owning things that appreciate in value.
This is a path to the latter.
And exactly how I’d do it if I started over today.
How would you do it?
You get wealthy owning things that appreciate in value.
This is a path to the latter.
And exactly how I’d do it if I started over today.
How would you do it?
I’m on a mission to create a million healthy business owners in the next decade.
Will you help? Give this a
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To spread the word! I appreciate it.
Michael
Will you help? Give this a
- like
- share
- comment
To spread the word! I appreciate it.
Michael
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