‘If you want to make money be a capitalist’. It is that simple. My father told me that and he will be 92 this year and remembers The Great Depression and his parents fled communist and feudalism. He has some wisdom. I am getting a PhD in economics. I will give you specific examples of what I see.
Capitalism by definition is involves being an owner of a creation process.
If you are in another economic system you need to be something else, for example under socialism perhaps a better strategy would be working for a government agency and move up the ranks through longevity with the organization and merit and politics. If you were in a feudal system better would be to rub elbows with the feudal lords and aristocracy.
However, as long as we have the system of capitalism, good or bad, you need to sit on top of a process. You need to take ownership in something. If you are a worker the capitalist will always pay your market value based on perceived value for the process. With issues like mass migration of people and the AI revolution this becomes challenging. In fact I would say working in corporate America is not an optimal situation. However, the entrepreneur takes risks and brings ideas into action. This results in profit.
This is not a debate of Adam Smith versus Karl Marx. We can leave the gloves at the door. While we are all saving the world by creating a utopia society we envision, lets also having some spending money in our pocket. Here is how in a market based economy.
After School program that makes 40k a month
A friend of mine was unemployed. He got fired from his last job. He started an ‘after school program’ for the elementary school system in my county. It took him two years to have 400 students. He charges $90 a month. He has some additional income so he earns 40k a month in gross revenue. His expenses are about 10k a month. For teaching in after-school 1 hour a night and employing a few extra teachers he nets 30k a month. That is, $360,000 a year. In the summer he does summer camps. After all taxes and expenses it is over 1/4 a million a year. I know this because I work for him. I just got back from working for him moments ago.
CEOs and Presidents of small companies do not make that. He does it by teaching elementary kids an hour in the evening Monday through Friday. Do you know how hard you have to work to do that? How many years in the corporate world would equal what he makes in one year.
He said he could expand but he has a house on the beach and everything he wants. It is all about fun.
Other ideas to make money
Most of the people I know that are making millions started something because they were fired from their job and living in the parent’s basement.
- I know a lawn care guy that makes 200k
- I know an HVAC guy that makes 200k
- I know a website owner that makes 3. I know this for a fact, as I use to work with him. He makes 3 million Euro a year with his site.
- I know another broke person that nine months latter makes 20k a month on his website. His friend makes 250k a month.
- I know a YouTube person that makes 1.2 million a year.
- I know a DJ that clears a few hundred thousand.
- A friend of mine creates custom guestbook and makes a very respectable amount, more than her husband at a corporate job.
- A few backyard farmers I know make 100k in their backyard.
- I know a person who was so poor all they could eat is popcorn and cheese so they started a popcorn and potato chip company worth a few hundred million dollars.
- I think my brother is worth about 100 million. He did it overnight with his own company.
I know these people personally or as acquaintances and have verification that they make this.
What about being a professional?
I do not know? What do you mean, like what, being a lawyer? That is so boring. The AI revolution creates the contracts, and the proliferation of law schools make lawyers and many other professions just another cube job.
Do you know see my point? Own a process. Think of something because by definition our system is based on property rights and ownership.
What kinds of Capital are there?
Capital is a tool or something used in the production or creation process. It is not money. You do not need money to make money. What you need is imagination. I tell my students better than memorizing is play and day dream. Forget test scores. Play and spend your day in your imagination.
- Physical capital – Nice if you have it, but not needed.
- Financial capital – great if you have it, but not required.
- Intellectual capital – The highest level, this is brains, imagination, handwork intellectually. This will pay you the most. Think Apple, Google, Facebook, Microsoft, Harry Potter, How to train your Dragon, Taylor Swift (is she still relevant?) These mostly involves pen and paper or some idea. But you can shot lower and fly beneath the radar. It will give you a better life, like the examples I listed above.
Thinking is the hardest work there is, that is why so few people do it.
Why do I not do it? I do. I am working on programs. I have this website, I am getting a PhD in Economics as it would be easier to market a book with a degree, if I so desired. But you have to own something. The best capital is your grey matter is worth more than all the money in the world. You just need to brainstorms ideas and not give up.
I play chess and 40% of my wins are when I think I will lose, but do not give up. I do not want to pump you up and then leave you frustrated, as I am not a life coach or a motivational huckster I mean speaker. I just want you to make the connection between, play and capitalism. Play is not recreation, strictly speaking. Imagination and capitalism.
OK what about t-shirts and affiliates? I do not recommend selling affiliates etc. These are not your creations. You are only working for others. They are not imaginative.
Create something yourself. Be patient with yourself. Try to ask yourself what you like to image or play when you were a child. That is a good start. If it takes years, let it take years. I mean it, it often takes years and many ideas before something clicks. Focus on what you really love. Do not watch how to make money videos on ‘how to make money online’ as those people are not using their brains, just recycling ideas. Trust me I have had websites for fifteen years.
Make Adam Smith and Karl Marx both be proud as they were both classical economists who had a labor theory of value. That is real value is created in work. In this case, the work under capitalism is creativity.
If you want to know more about the economic theory that supports this read a book by Robert P. Murphy, PhD
I am getting a PhD in economics and writing myself so I think I have some credibility and do not need to flex. If you have questions or ideas you want to bounce off me you can write me. I can give you some hints on how to bring this to fruition. I will not take your ideas as I have my own ideas I am trying to bring to completion and I am more an intellect than a cigar and port style capitalist.