Which Business would be tailored for our future wealth management?

[lillo9546]

I know one for sure: being creative. So, writing, drawing, singing and playing music, dancing, surfing, cooking.. in short, whatever here is synonymous with freedom, and for man is the right one, the one that elevates the mind!

Now, it would be possible to pursue a creative goal, after "making sure" of being able to pay our cost of living, and to do so through creative work, It's hard: I'm sorry to say that making money through creative work isn't for everyone!



Therefore: which businesses could be combined with the ERE lifestyle, aimed at the achievement of financial independence, to the satisfaction of man's primary/essential needs, and which, once we financial independece is achieved, we would still have had to do to manage our assets?


Businesses I can think of:
- Raw materials and food industry
- Real Estate.
- Finance.

The last 2 seem interesting.
Since in any business that generates extra earnings there is a need to know how to invest them, unless this is part of the activities we love to do, I would not take the first one into consideration.
Just to give You an example, I see so many business in my city, mainly restaurant, making more than 1M € a year in revenue. This could translate in 200k or more profit a year, but there is one thing for sure: You have to manage that profit to make sure it will generate more profit, without the need of working on your job.
So basically your are generating money, but you do not know what to do with them for your future. (apart the fact of spending them on pricy and luxury trips on fabolous and heavenly destinations)
The majority of this business are owned by a single family, and knowing them, I can reassure you that of all business owners, 20% of them really like what they are doing.
The rest, is making money to spend them on surrogated human needs such as expensive clothes, cars, travels, experiences.
Anyway, it's hard to say if this 20% minority really know what to do when is not working. It's hard to tell if they have learnt about human psicology like ERE friends here. They don't know what to do with their life if they are not running their business. And they are there for 14 hours a day.


Given this: Why not directly make a company that deals with those elements that we should have to deal with in the future? So investments of our savings.
In this case, at the moment, most of the investments in our world happen in a few ways: there are consumers who invest their money in exchange of entertainment, while other consumers, friends of ERE, invest to get more money off it.


So why not make a company now that takes care of what we should take care of in the future, which is managing our money? Correct me if I'm wrong, but the main investments are made in finance or real estate. Is it therefore wrong to think of starting a construction company, perhaps at the beginning doing small renovations, and then moving on to the construction of houses and subsequently condos, etc etc?
In this way, capital gains are reinvested exponentially into the business aimed at satisfying a primary human need: shelter. Those capital gains could also be invested in index funds or apartments to rent out.

The key point is: having a shelter, a plate of pasta, clothes and a bathroom remain basic human needs, so why not set up a company aimed at achieving them? Why pay a mortgage to a bank and pay 5 times for the construction of our house done by a third party company, when we are the company that builds it instead, and spend less, and we know what we are doing?

I believe that pure financial investments, on the other hand, go to satisfy a secondary need, namely that of knowing where to put the capital gains, which is why I don't put it in first place together with Real estate.

After this, if we really hate to do real estate, we could donate our business to a family member, friend or sell to a buyer.
Our COL would be payed with our gains invested in the market or real estate, and We can concentrate on our creative work.
Point is we still have to manage our assets

[Riggerjack]

Why pay a mortgage to a bank and pay 5 times for the construction of our house done by a third party company, when we are the company that builds it instead, and spend less, and we know what we are doing?

You seem focused on businesses with high failure rates.

I would point out that construction savings of DIY are far from automatic, and there is a leap from starting a construction company, and "we know what we are doing".

Most existing companies have jumped to some form of "we know what we are doing", but there is a survival bias in the sampling. If you factor in all the ways a business fails, and you will have a better understanding of this gap, and how hazardous it is.

But I like where your head is at. There are lots of good paths from this trailhead.

[Jean]

choosing a career in construction is probably a good idea. I'de choose electrician, because it suffers a heavy shortage now.