Inflation is a silent yet pervasive force that erodes your purchasing power over time. According to the US Census Bureau, the median household income went from $42,409 in 2000 to $67,521 in 2020 (59% increase). During the same 20-year time span:

  • The cost of a new car rose from $21,850 to $37,185 (70% increase).
  • The cost of in-state college tuition rose from $8,653 to $21,370 (146% increase).
  • The average annual cost of healthcare rose from $4,790 to $11,582 (142% increase).

This stark contrast between wage growth and living costs underscores a troubling reality. Even if you diligently work towards a raise or career advancement, the relentless march of inflation can nullify these gains and hinder your ability to save and invest for the future. Imagine working hard for an entire year to earn a 5% wage increase. If the cost of goods rises 6% in that same year, you essentially become poorer despite earning more money. This is the harsh reality of inflation.

Inflation is akin to running on a treadmill that’s constantly accelerating; no matter how fast you run, keeping pace becomes increasingly challenging.

The implications of inflation are profound for anyone relying solely on traditional employment for wealth creation. Without substantial wage increases or alternate income sources, maintaining, let alone improving, your standard of living becomes a daunting task. As an employee, you’re left relying on the goodwill of your employer to offset inflation. Do you trust your employer to prioritize your financial wellbeing? Would it even be fair to expect them to do so?

Employee Fulfillment

“There’s been a real shift in the way people look at their career thanks to the pandemic and the ‘great resignation’. I don’t hear as many people saying ‘I want more money’ or “I want to climb the corporate ladder’. Now it’s ‘I want to feel more connected to my work’, and ‘I want to be excited about what I’m doing’.”
-Emil Liou, Career Happiness Coach

A 2022 study by Gartner, Inc showed that only 32% of American employees feel their compensation is fair. In addition to feeling underpaid, many employees are disengaged and unhappy in their professional lives. In Gallup’s 2022 State of the Global Workplace report, 60% of workers reported being emotionally detached at work and 19% reported being miserable. The number 1 reported cause of dissatisfaction was “unfair treatment at work”, including mistreatment by coworkers, inconsistent compensation, corporate policies, and favoritism. Unmanageable workloads, unclear communication from managers, lack of manager support, and unreasonable time pressure were also reported. 

Over time, working in a heavily controlled environment can also stunt your ability to think for yourself. Many employees have become so deeply conditioned to focus on what’s in front of them, follow the plan, and do what they’re told, that they become incapable or unwilling to control their own wealth creation.

Employees are far less likely to manage their own investment portfolio or systematically audit their spending habits than entrepreneurs or business owners.

All things considered, the life of an employee can slowly take a toll on your financial wherewithal and overall psyche. If you feel undervalued and underpaid by your employer, it can be very difficult to fully devote yourself to the cause. Many professionals are initially comfortable following the corporate plan, only to become increasingly unhappy as their careers evolve. This is why so many people in the middle or end of their careers are eager to break free from the corporate shackles, in favor of money-making opportunities that they have more control over. 


“Self-employed people make up less than 20 percent of the workers in America but account for two-thirds of the millionaires.”
-Thomas Stanley, The Millionaire Next Door

Being a business owner means you’re in the business of you. Nobody will ever care as much about your time, money, and future as you do. For many, it’s the first time in their professional lives that every action they take is for the betterment of their own lives. As the captain of your own ship, every decision you make has a direct bearing on your destiny. This newfound sense of purpose often leads to more creativity and a deeper commitment to your work. The fruits of your labor are yours to enjoy, providing a unique sense of satisfaction and accomplishment.

When your business plays a key role in your overall wellbeing, the lines between your personal life start to blur. Rather than work-life balance, most entrepreneurs subscribe to work-life integration. With your personal and professional life in harmony, the discipline necessary to run a successful business often permeates into other areas of your life. 

Business ownership forces you to develop a strong sense of financial acuity, which in turn makes you more prone to adopt a personal wealth management plan that is deliberate and strategic.

This is important because the minute you become a business owner, wealth generation changes from a game of checkers into a game of chess. Wealth generation is no longer as simple as collecting a paycheck and contributing to a company retirement plan. The financial intricacies of leveraging taxes, depreciating gains, and making business expenses work in your favor become the cornerstone of your wealth building efforts. The best entrepreneurs use their personal net worth as their scorecard and become obsessed with growing their assets by playing the game.