Why Income Alone Won't Make You Rich, But Your Business Can
When you start a business, you are likely thinking of one goal, and that's to create an income. But income alone does not create wealth. You can create true wealth when you stop looking at your business as a job that brings you income and start looking at it as an asset that grows in value, generates long-term returns, and can create generational wealth for you.
When you view your business as an asset, your mindset shifts. You start to think of ways your business can build wealth for you that goes beyond working to get paid. You are building an asset that provides equity, scalability, and value beyond your day-to-day involvement. The mindset shift changes how you make business decisions, from pricing and profitability to branding and leadership. And it's the key to moving from self-employed to being a business owner that builds wealth, not just income.
Why Building Wealth Through a Business is Powerful
Business ownership gives you leverage that a 9-to-5 job never can. As an employee your income is capped by a salary or hourly rate. As a business owner, there's no ceiling. That means that all your efforts, creativity, and strategy directly impact how much you can earn. You control your pricing, your growth strategy, and the opportunities that you create.
Profits from your business can be reinvested into the business to grow the value of the business. Every dollar you put back into your business, whether through marketing, hiring, or improving operations, has the potential to multiply your returns. This business growth builds equity, and equity is where the wealth is.
Because your business is an asset, one of the most powerful moves you can make to build wealth is to sell or exit your business. This can create a life-changing financial event. When you add in the tax benefits that come with business ownership like deductions and income-splitting strategies, it's clear why entrepreneurship is one of the most effective paths to building long-term wealth.
Common Mistakes that Keep a Business from Becoming an Asset
If you want to build wealth from your business, it's essential that you avoid these common mistakes:
It's tempting to spend the cash in your business but those are profits that can be reinvested back into your business for growth. By spending profits you are holding back business growth and reducing future value.
Building a true asset that can provide you a saleable business requires that you build your business so that it can run without you. This will increase the value of your business exponentially.
Without a clear growth plan, solid financial management, and exit strategy, your business remains just a job rather than a wealth-building asset.
The bottom line is that building wealth through your business isn't about working harder. You can create an asset that provides lasting value. When you treat your business as an asset, every decision you make will focus on profitability and add to equity. With the right strategy and mindset, your business can become not just a source of income, but a powerful wealth-building tool.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Lean Hog Futures Are Heating Back Up. Can They Rally Here?
October lean hog futures (HEV25) present a buying opportunity on more price strength. See on the daily bar chart for October lean hog futures that bulls are working to restart a price uptrend after posting price gains the past two trading sessions. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture, as the red MACD line has just crossed above the blue trigger line. More News from Barchart Coffee Prices Rally on Below-Average Rainfall in Brazil Below-Average Rain in Brazil Supports Coffee Prices Is the Corn Market Undervalued? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Fundamentally, the record-setting bull runs in cattle markets (LEV25) (GFQ25) that have pushed beef prices significantly higher are bullish for the hog futures market, too. Elevated beef prices at the meat counter likely mean better substitution demand for pork from thrifty consumers. A move in October lean hog futures prices above chart resistance $91.975 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $103.00 or above. Technical support, for which to place a protective sell stop just below, is located $86.00. IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
4 minutes ago
- Yahoo
This AI Stock Has Nearly Tripled in the Last Year
Symbotic (SYM) set a new 52-week high in morning trading on Aug. 5. The stock is showing strong technical momentum with a 100% 'Buy' signal via Barchart. Shares are up more than 170% over the past 52 weeks. Wall Street sentiment is bullish, with multiple 'Strong Buy' ratings and a consensus price target well above current levels. Today's Featured Stock Valued at $33.35 billion, Symbotic (SYM) is an automation technology company reimagining the supply chain with its end-to-end, artificial intelligence-powered robotic and software platform. What I'm Watching I found today's Chart of the Day by using Barchart's powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker 'buy' signal. I then used Barchart's Flipcharts feature to review the charts for consistent price appreciation. More News from Barchart Dear Nvidia Stock Fans, Mark Your Calendars for August 27 Options Traders Expected Palantir Stock's Tamest Earnings Reaction in a Year. Did They Get It Right? Tesla Gains on Elon Musk's New Pay Package. Is TSLA Stock a Buy? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! SYM checks those boxes. Since the Trend Seeker signaled a buy on May 8, the stock has gained 136.3%. SYM Price vs. Daily Moving Averages: Barchart Technical Indicators for Symbotic Editor's Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report. These technical indicators form the Barchart Opinion on a particular stock. Symbotic shares hit a new 52-week high on Aug. 5, touching $62.61 in intraday trading. Symbotic has a Weighted Alpha of +213.61. Symbotic has a 100% 'Buy' opinion from Barchart. The stock has gained 172.36% over the past year. SYM has its Trend Seeker 'Buy' signal intact. Symbotic is trading above its 20-, 50-, and 100-day moving averages. The stock made 10 new highs and gained 30.53% in the last month. Relative Strength Index (RSI) is at 72.76%. There's a technical support level around $53.16. Don't Forget the Fundamentals $33.35 billion market capitalization. Revenue is projected to grow 20.96% this year and another 31.43% next year. Earnings are estimated to increase 132.24% next year. Analyst and Investor Sentiment on Symbotic I don't buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it's hard to make money swimming against the tide. It looks like Wall Street analysts are bullish on SYM, and so are most major advisory sites. The Wall Street analysts tracked by Barchart have issued 7 'Strong Buy,' 1 'Moderate Buy,' 9 'Hold,' and 1 'Sell' opinion on the stock. Value Line gives the company its above-average rating with a price target of $74. CFRA's Market Scope rates the stock a 'Strong Buy.' Morningstar thinks the stock is fairly valued. 12,520 investors monitor the stock on Seeking Alpha, which rates the stock a 'Hold.' The Bottom Line on Symbotic Stock Symbotic currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit increases in revenue and earnings. That said, I caution that SYM is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies. Today's Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here. Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance. On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 minutes ago
- Yahoo
Countries push for last-minute deals as Thursday tariff deadline looms; Trump claims 'people love the tariffs'
A dizzying array of trade crosscurrents continued Tuesday with a push for last-minute deals, lingering fuzziness on previously announced trade commitments, and indications that a deal to delay tariffs on China is "close." It all comes as global importers brace for a first deadline coming Thursday morning, when Donald Trump promises to implement a central plank of his trade agenda in the form of a tiered approach to "reciprocal" tariffs from 10% to 50%. The president has repeatedly said he's full-speed ahead on his plans and that no delays are likely — even teasing on CNBC Tuesday morning that he probably won't run for president again but that he'd like to, in part because, in his view, "people love the tariffs." (Trump is, of course, barred by the Constitution from running for a third term, but he's often floated the idea.) Some countries clearly aren't big fans at the moment and find themselves on the outside looking in — particularly Switzerland and India. Those two nations face notably divergent situations right now, with the Swiss president announcing she is flying to Washington, D.C., today to try to find last-minute concessions to avert a 39% tariff on goods from her nation. India, meanwhile, has seen its chances of a deal dwindle, with top aides for Indian Prime Minister Narendra Modi also reportedly traveling this week — but to Moscow. Trump downplayed the chances of major concessions with Switzerland during his call with CNBC Tuesday morning and added regarding India that "we settled on 25% [tariffs], but I think I am going to raise that very substantially over the next 24 hours." Trump also weighed in Tuesday morning on talks with China. Markets are closely watching for any signs of an agreement to delay a tariff snapback scheduled for Aug. 12, with Trump saying, "We're getting very close to a deal." The president also added that new sector-specific tariffs on semiconductors and pharmaceuticals are likely and that at least those pharmaceutical tariffs could be announced "within the next week or so." Read more: What Trump's tariffs mean for the economy and your wallet New details for some nations — and a focus on India and Switzerland Meanwhile, there is also some new clarity on some technical details around how the new tariff landscape will likely work beginning at 12:01 a.m. ET on Thursday. US customs officials this week offered additional technical guidance in a new document about how it'll handle some tariff exemptions. The news there may give some select importers a short-term breather. But with a full tally, according to Bloomberg Economics, the average US tariff rate is now expected to rise to 15.2% if duties go forward as planned. That's a jump from current rates of 13.3% and another jump from the 2.3% duties seen in 2024 before Trump took office. That overall landscape set to be in effect Thursday will cover nearly every country on the globe. It also comes after Trump and his team set "bespoke" rates largely based on the trade deficit, with many of America's top trading partners seeing a key new standard of 15% tariff, while others will see higher rates. Read more: 5 ways to tariff-proof your finances Countries from the European Union to South Korea to Japan also struck deals at that 15% rate, but open questions remain. Japan's top trade negotiator is also reportedly due in Washington, D.C., this week for talks to ensure that a plan proceeds to cut auto tariffs to 15%. Likewise, talks with the EU continue as negotiators there are reportedly still pushing for exemptions, such as on wine and spirits. Other Asian countries have struck deals in the 19%-20% range. Trade Representative Jamieson Greer recently said on CBS that the published rates included many agreements, "some of these deals are announced, some are not," with other nations simply being dictated tariffs based on the level of the trade deficit. Switzerland is one nation for which the US has dictated tariffs. Its delegation will be in Washington on Tuesday, set to push for lower rates. But on Tuesday morning, Trump suggested that it would be an uphill climb and that a recent call with the country didn't go well because "they essentially pay no tariffs," even as talks are clearly set to continue there. Meanwhile, any immediate offramp with India appears unlikely because of that nation's connections with Russia and Russian oil. A note Tuesday from Capital Economics suggested that India could, in theory, offer concessions to diversify its energy sources, "but we doubt that India would make a wholehearted effort to wean itself off Russian oil [as it could upset relations and] it would not play well to be seen caving to Trump's demands." At the same time, reports from Bloomberg and the Times of India revealed that two top aides to Indian Prime Minister Narendra Modi are traveling not to the US but to Russia in the coming days and weeks, even amid Trump's ever-escalating threats. Trump on Tuesday morning suggested talks are on ice for now and will be complicated when they resume, adding that "the sticking point with India is that tariffs are too high." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
