By John the CEO
As a follow up to the “Wage Slave” article, this article will expand on the idea of rethinking your view of bank accounts
As noted, we have been taught from school days to simply give our money to other larger investors to flip our checking and savings account money, yet we don’t get any of the investment profits. Society “taught” us that us that it is safer to deposit our wage slave earnings into bank accounts so that we don’t get robbed, yet those same banks rob us of the investment profits they make on our deposits. Does that really make cents?
So when hip hop entrepreneur Dame Dash mentioned bank accounts is for suckers and that his money is out there on the streets, flippin’ for him, what exactly does that mean?
Here’s an example. Let’s say you are working for a big company making 50k a year, and after payroll taes and core expenses, your disposable income is about 2,000 a month. You decide you want to be an entrepreneur, selling cleverly worded T-Shirts. Each shirt costs $20 to make, so you decide tp buy 100, which is $2,000, all of your disposable income. You promote on social media and your own website and word of mouth on the street. Within a month, your shirts go viral and you sell all of them at $30 each. This means you made a profit of $10 per shirt, or $1,000. Do you put that in a bank account so that the bank flips it and gives you nothing, or do you instead use that $1,000 to buy 50 more shirts in addition to 100 (150 shirts now)? With 150 shirts on the streets flippin’, your cost is $3000, but the total revenue is $4,500, which means you now have $1,500 in profits. That’s a 50% return on your $3,000 cost. If you had put that $3,000 into a bank account, your money would not make $1,500 ever in life.
This is what Dame Dash means by having his money on the streets flippin’. The choice is yours. With this approach, you can keep your day job yet have a precise transition plan for profiting from your disposable income. Nonetheless, this approach is not for every situation, so you have to know what your disposable income is first before you take any entrepreneurial risks.