30/10/2024
There is a nearly universal consensus that five primary pathways to wealth exist:
1. Owning businesses
2. Becoming a skilled investor
3. Inheritance
4. Securing a high-paying job
5. Leveraging your gifts and talents in the entertainment industry
The entertainment sector encompasses a diverse range of performing arts, including musical theater, comedy, film, and music, as well as streaming services, gaming, and sports.
What makes this topic particularly intriguing is that these five avenues do not directly lead to wealth; rather, they serve as mechanisms to achieve it. For example, securing a job with a monthly salary of N10 million can still result in financial instability by retirement if one has a tendency to overspend.
Similarly, profits from entrepreneurial ventures will not lead to wealth unless there is a strong understanding of reinvestment and financial management. There are numerous business owners who struggle financially despite their ventures' apparent success.
In your 20s and 30s, it is crucial to grasp the concept of "Money from Money" (MFM), as it is this principle that contributes to lasting wealth. If you acquire your first property, resist the temptation to consume the rental income. Instead, use the rent generated from your first rental property as equity to finance a second property.
When your business achieves its first N1 million in profit or even N10 million, avoid the impulse to spend it all. Remember, the true contribution to your wealth over the next five to ten years will stem from how effectively you generate "Money from Profit" (MFP).