You’re playing a rigged game. So it’s on you to learn the way it’s rigged, then use that in your favor.
Capitalism is the living, breathing system inside which we all live. And money is its blood.
The organism only survives when blood circulates to all of its organs. If it ever stops circulating, that part of the body dies.
This is why capitalism wants you to be your own business. Even if you have a 9-to-5 job that pays well and you’re happy there. You should still operate as your own business.
Let’s say you work as a data entry clerk but babysit on saturdays, you should have your own babysitting corporation. You’ll be able to keep a lot more of your money, which you can re-invest in other people’s businesses that also keep money circulating fast.
You see, all the rules are written to favor business owners. It’s nothing new. Business owners influence lawmakers. They’ve done so forever.
So every law written gives the advantage to business owners. And they hurt the individual worker, so we have to change our game to fit this rulebook.
It’s like the NBA. In 1996 when Allen Iverson entered the league, he brought with him a lethal crossover dribble. Google “Allen Iverson Michael Jordan” and you’ll see what I mean. Iverson made Jordan look foolish with one play, but Jordan was the NBA’s golden child. All the rules were written to benefit Jordan.
After this moment referees were told to blow the whistle against Iverson every time he used the crossover. From then on it was considered an illegal ball carry.
Meanwhile, Jordan had a move where he would take a long first step before even dribbling the ball. It was more of a carry than Iverson’s dribble, but the NBA never called it. That was Jordan’s advantage.
In a way, capitalism also protects business owners who keep money flowing, LIKE the NBA did with Jordan.
Now let’s take a step back for a second: in my book Rich Instinct I said that the lower and middle classes spend most of their money, so isn’t this also a form of circulating money? Why are businesses still favored?
If you dig into how banking works, you’ll know it creates money out of thin air. One dollar deposited in a bank really puts three or four dollars into the economy. It’s called Fractional Reserve Banking, look it up.
Well, a consumer buys a product and they keep money flowing, but businesses move money in and out of banks at a way faster pace. With larger amounts at each turn. For this reason, capitalism always favors businesses.
Businesses—even single-person businesses—multiply money. So all the rules tilt in that direction.
In today’s world we hear “side hustle” this and “side hustle” that. I know it’s played out. But the economy is now on steroids. If you wanna have a decent shot at keeping up, you have to get creative. Or your hard-earned cash will get swallowed up by the system.
This means: go out and form your LLC, S-Corp, or C-Corp etc.
Anything that generates money outside of your 9to5 should be structured as your corporation hiring your personal services.
And save your receipts. If you bought my book *hint hint* that counts as a business expense towards career development and training. You’re learning how money works.
There are countless ways to play the tax code in a safe, legal way. I won’t bore you with that here. You can learn all that through the University of Youtube.
The point here is that lawmakers have hidden easter eggs inside the game that is our economy. They did it this way so they can save face with voters, but also let their family in on the secret locations. It’s like in Super Mario World where the Donut Plains Ghost House has a hidden exit to the Top Secret Area. There you get all the free power ups you want.
It’s not evil. It’s just reality.
Capitalism has to have a way to reward those who are willing to work just a liiiitle bit harder than the rest. If you’re currently in possession of an easter egg, I’m not mad. Kudos to you.
We’re living in the Idea Economy. Because humans were given this big brain, so in order to keep it running we have to fill it with ideas. The idea of a better life is what helps us get out of bed in the morning. If not for us, at least for our children. Progress is an idea. Love is an idea. Hope is also an idea.
So to make money in this Idea Economy, we have to become really good at attaching everything we do to a specific idea. If you can’t do this, you’re not creating as much value as you could be.
You’re not separating the wheat from the chaff. And to use another cliche, you’re throwing out the baby with the bathwater.
Those who know you know exactly what they can count on you for. They say “Michael is great at fixing bicycles.” or “Sally is great at party decorations.” So Michael could easily find more ways to create value around the idea of fixing things. And Sally can become the advisor on all things decoration for her town. Even if she doesn’t charge, extra money will soon find its way into her hands… One way or another.
Money is an idea, so it always hangs with other ideas.
When you become an idea person soon the idea of wealth becomes your reality.
Reality is dominated by ideas. So you must interact with it in its native language…
The past five minutes have been me trying to find the right words to represent the idea that everyone should be their own business.
With the right words, the right ideas click into place.
Your business is the idea of you. It’s an idea you own, that the economy will then use as an avenue to pay you.
So you see, no idea, no way for money to reach you.
Inside your 9-to-5 job you also represent an idea: your job title IS an idea. But since you don’t own that system that is your employer, most of the value you create stays within that system. All you get out is your paycheck—which is already 40% smaller because Uncle Sam took a chunk for himself.
But when you also have a separate system outside of your job that you own: you now have your own little island to rent out when the opportunity presents itself. You are the mayor of this little island, so you will reap its benefits.
One day there will be a ship sailing close to your little island, and it’ll need to dock in your port for relief, or just for its passengers to sight-see. The captain of this ship will gladly pay you to use your island. And you can even sell some refreshments to its passengers at a nice markup.
You will still have to pay some taxes from this, but now you’re in a position to play the tax writeoff game. You can get back some of the money you invested buying your island years ago, when no one wanted it. And that money is now going towards buying another little island for yourself.
This is what a business does to your finances. It creates a virtual island that you can rent out down the line. This is literally what real estate does.
It’s another form of owning a business. A form of owning your own little island in the sun.
Think back to Super Mario World and the easter eggs put there by the game designers. I’ve seen where some of these Easter eggs were put, and I’m sharing this with you because this is the idea MY business was founded on.
Go out and get that easter egg.
But you can only do this after you’ve made yourself into an idea. An idea is like your own little island.
If you buy it, they will come.
