Your profession is not as significant in wealth creation as your business
Business and profession are different things. Your profession is whatever you do, as your day job pays your bills, buys groceries, and generally covers your cost of living. On the other hand, investing your time and money into a business will grow your assets.
It is nearly impossible to build wealth just with your profession, as it only covers necessary expenses in most cases. To create wealth, you must build a business while you work at your job.
⚡️You need cash flow, people, and personal time to star your own business.
The profession of a chef is cooking. It pays the bills but will likely not make them rich in the long run. They invest in real estate and invest whatever extra cash they earn each month into acquiring income-producing assets. In the same vein, tire salesman invests their leftover income into stock trading.
These two instances show that professions cater to monthly bills. But by committing extra income to businesses, they are growing their businesses and increasing wealth. Your work will initially fund your business; wait to quit your day job until your business shows sustainable growth. At this point, your asset, not your profession, becomes your primary source of income. And that is financial independence.
Sound knowledge of taxes is also crucial.
The rich deeply understand taxes, and they handle them differently than the poor and midle class. Wealthy people focus all their corporate activities on their assets. This way, they can hire professional accountants and lawyers, which help them reduce taxes and protect them from lawsuits.
⚡️An employee pays taxes first and then lives on what’s left of their salary until the next paycheck. A corporation spends all its profit and then pays taxes from what is left.
You can learn how to cut down your taxes, too. To do that, you need to educate yourself on how the tax system works. The more you spend, the less there is left to tax. Thus, you can minimize how much is taken from you.