Why you should become an owner

The path to financial independence lies in becoming an owner. The richest people in the world all own valuable things. These things could be tangible, like businesses and real estate, or intangible, like ideas, influence, and brands.

Warren Buffett famously said that if you don't find a way to make money while you sleep, then you will work hard until the day you die. Ownership of valuable assets allows us to move from earning wages to earning profits. Profits in the form of dividends, interest, and royalties are the real path to wealth. Unlike your salary, which is capped, there is no upper limit to profits. You will never earn more than your boss in your company while you are still employed. However, when you own equity in a business, the potential to earn significant income is limitless.

Transitioning to an ownership mindset is not easy. Many of us have been trained to go to school, get a job, stay quiet and humble, and collect a paycheck until we retire. This mindset, while safe, cannot enable us to build real wealth. To create lasting financial independence, we must become creators and owners.

There are many paths to ownership. You can start a side hustle on weekends that could eventually grow into a large-scale business. You can invest in someone else's business while still employed. Buying shares in a listed company is another option, with thousands of stocks to choose from, accessible right from your phone. You can also acquire passive assets like unit trusts and treasury bonds, which are ideal for busy professionals who lack the time to manage side ventures. Another path is building your personal brand through your career or creating intellectual property, such as books, online content, inventions, or patents.

The key is to own assets that generate cash and increase in value over time. At some point, your ownership reaches a critical mass where the income from your investments is more than enough to sustain your lifestyle without needing a job. This is the ultimate point of financial independence, where you are free to pursue what truly fulfills you without the constraints of traditional employment.

In conclusion, ownership is the real key to financial independence. Unlike a job, where you can be easily replaced or fired, the ownership of an asset is far more secure and enduring. I encourage everyone to explore ways to own more valuable things and take the first step toward creating lasting wealth.