The Road to Six Figures Challenge Week 12

Welcome to The Road to Six Figures Challenge Week 12!

The Six Figures Challenge is a challenge created by entrepreneur, TraVal Shanklin, to document his journey of earning six figures from scratch through business ownership.

Taking Risks

This past weekend I was just thinking about what separates those who have wealth and those who never attain wealth. I know a ton of factors play a role in risk-taking. I also believe that any person can at the least improve their current situation 2x. One of the separators I was thinking about was risk taking. Many people never take the risk of building a business, investing in stocks, or just increasing their savings rate.

I truly believe that everyone should have more than one income. For example, if you have a job and suddenly you get fired, you have to scramble to find another job. Some people are even forced to take out loans to cover basic expenses. On the other hand, having a second stream of income like freelancing on the side can at the least give you more time to figure out what you want to do.

The problem is that there are so many households living paycheck to paycheck that there isn’t enough money to pour into building that second stream. Utilizing time can potentially replace the lack of money, but you’re talking about an incredible amount of time.

A Business vs. A Job

The average person views risk in a different perspective than those of the wealthy. Risk to the average person is starting a business, while risk to the average wealthy individual is a job. This is why the average person, not understanding how to build wealth, continues to struggle while the wealthy gets wealthier.

Building wealth is only possible through the ownership of assets. A job in itself is not an asset, a business is. You can’t sell a job, but you sure can sell a business. With a job, you can get fired at any time which is why it is important to have more than one stream of income. Jobs do have their place which should be to give the individual income for a short period of time to invest in his business interests.