Thread by @LifeMoneyTips

<thread> One of the best, unknown books on generating wealth is "7 Years To 7 Figures" amazon.com/Seven-Years-Fi…

Here's a summary of why:

1. The author, Michael Masterson, is a well-known writer on financial topics and...most importantly...he's already really rich!

He knows what he's talking about

2. The formula presented is straightforward
- increase skills
- increase income
- turn it into equity, i.e. wealth
- invest well

3. The first step is actually the most important. You want to boost your skills, but in something marketable-- something that directly generates P&L.

That usually means something sales-related, or that generates cost savings, or that's a key product element.

4. It means focusing on skills that are closer to revenue / P&L generation, because that's what drives your compensation-- if you are good at making money, then there's no effective ceiling on compensation.

This means using your strengths to pivot to a more lucrative area

5. The next step is focusing on generating more wealth. That means staying focused on being a driver of business.

For some, this is a different mindset. You have to focus like a laser on what the market and customers want; and avoid perfectionism or snobbery about the product.

6. As an example, if you write well, then you can become a copywriter, focused on writing copy that sells.

It may not be high art, but if you drive sales, then you can strike a great deal for yourself.

Masterson's advice is to spend a couple years upskilling and building income

7. After you've increased income and become a P&L contributor, then you try to get equity (or equity linked) compensation
You can do this a few ways:
- Ask your existing company for equity
- Move to a new one, and get equity
- Start your own business
- Get a P&L-linked contract

8. You want a large share of the value that you create, not just your salary. Equity means:
- If you hire employees, then you get a % of THEIR value
- If you sell the business, you get a tidy sum
- Better tax treatment
- A guaranteed % of the profits

9. If you have equity or performance-linked pay, and you deliver, then you should be able to make 6 figures per year.

Owners of small businesses like tutors, plumbers, electricians, IT specialists can ALL make that kind of money.

Avoid lifestyle inflation and you'll be ok

10. A few years at 6 figures/year and you will have cash to invest. Even more if you sell the business.

Masterson talks about how to invest in real estate and other assets to create wealth over time-- not just clipping coupons from bonds, but making >10%/year on your investment

11. A simple calculation shows that if you're earning six figures, investing 10s of 000s per year and earning 10%+ / year returns, you will hit 7 figures net worth quickly.

Maybe not 7 years, but if it's 10 years, do you care?

12. Several friends of mine have followed exactly this playbook and it's worked as advertised.

One was a humanities PhD who started a tutoring business.

He hustled hard and now makes $225,000 per year from the business. He's on track to hit 7 figure net worth after 6 years.

13. Bottom line:
if you want to make 7 figures and aren't sure how to get there, Masterson's book is a good playbook.

Try it out!