Welcome to Module 1, Lesson 1: Understanding the Ecenomic Landscape You’re In Today.

Before I get into this, let me just tell you that this 1st lesson is going to be the toughest lesson of this first Module to grasp. I’m going to be unpacking a lot here for you, and many of the concepts I’m going to discuss will come as a complete shock to you, and to most everyday Americans. So, with that said, let’s delve into the intricate details of the economic landscape that we’re navigating in today’s marketplace. The world around us is in a constant state of flux, presenting both challenges and opportunities that demand our attention. This has led to many experiencing hardship and strife in the workforce. However, if you understand the situation, and how to navigate these perilous waters, there’s a clear path to opportunity ahead.

In recent years, the cost of living has exhibited a persistent upward trend, creating a ripple effect that touches every aspect of our lives. Consider this: expenses for housing, education, healthcare, and even daily essentials such as groceries and gasoline are steadily on the rise (and have been for years). As an individual working your job every day, more likely than not your income is set at a fairly fixed rate however. So what do you do to get the extra cash you need as this happens?

You start looking for overtime and picking up extra shifts because you’re feeling the weight of these escalating costs, and you’re not getting the relief you need, even with extra work. It’s a crushing problem which has left many good, hard-working people just like you and I living paycheck to paycheck, or worse, on the street because it completely overwhelmed them. You may not realize this but to live the exact same lifestyle you did last year; this year you would need to earn an additional $10,000 than you did last year. Take a second and ask yourself if your employer made that happen for you. Chances are good that they didn’t. On the other hand, they have more than likely gotten more work out of you in your effort to keep up with the inflation rate. 

As a new business owner, you get to change the rules in your favor, but you are in newly uncharted waters. These waters can afford you the opportunity to earn more as you need to as trends in the marketplace continue to shift around you. This puts you in a stronger position of power, instead of being powerless. You can now earn as you need to, without worry, but it is essential to recognize the dynamics at play if you are going to succeed. Let’s explore some key trends that underscore the challenges faced by so many:

Cost of Living Trends:

Over the past decade, the cost of living has consistently risen, outpacing income growth for many. Housing costs, in particular, have seen a sharp increase, making it more challenging for individuals to secure affordable and stable living arrangements. To give you an example, the current value of $1.00 today is only worth $0.57 compared to it’s value just 10 years ago. That means if you had a job paying you $50,000/yr in 2003, you would need to earn $86,057.50 in 2023 just to maintain the same standard of living that you did back then. For a brief period in 2009 the purchasing value of a buck actually rose, but that, sadly, was short lived and the overall buying power has been a fairly stable decline over the past decade. 

By these standards, hopefully you can see why I personally don’t put a lot of stock in someone who merely makes $100K per year. As you browse the internet and listen to this get rich quick scheme and that, you will hear a lot of people talk about how rich they are, making $100,000 per year. But when you truly understand money and the economic landscape, you realize what they are actually earning, in terms of buying power, in only equivalent to $58,139. Sure, earning $58K a year in real value spending is decent, one certainly isn’t getting rich off that, or probably even having much, if any, disposable income to speak of even. What one needs to earn in today’s marketplace is not less than $172K/yr in order to have any significant buying power. So you should set your goals, and your plans, based on our recommended $200K as you go through this course. 

Declining Purchase Power:

Inflation is a compounding problem, and business economists understand this, so while incomes may have increased a bit to maintain the appearance of support for the worker (marginally at best), the purchasing power of those incomes has taken a steady decline due to the faster rise in the cost of goods and services. In other words, your employer might have given you $1 extra per hour, but the costs of everything you need multiplied by 3x to 8x depending on the year, leaving you still short 1.72x less for the costs needed compared to the additional income you’re earning. It’s not a great place to be, and it’s not sustainable. This results in individuals feeling the squeeze, struggling to maintain the same standard of living despite earning more. Business owners understand this and use it to their advantage, getting you to work more so that you can keep up with the cost of living while ultimately paying you less for that work, even with overtime pay. 

Taxes:

On top of this, which has probably just blown your mind, there is the issue of taxation. As an employee, roughly 28% of your income (on the average) is claimed by the Federal Government. An additional 5.25% (on average) is claimed by the State in the form of Sales Tax, and if your State also has an income tax rate of it’s own you could also be paying them another 5% (on the average). When you add that up, you are looking at a whopping 38.25% or $0.38 of every $1.00 you earn going to the Government. This is just the average. If you are like most employees out there, you have an HR guru out there in the company you work for telling you to give a bit more that you must so that you can ensure you don’t have to give the government any more, and write them a check at the end of the year. Most people do that. The Government isn’t allowed to keep that additional money so when you file your tax return, which explains what you actually owed the Government, you end up with a refund of the surplus amount. This makes everyone feel great and feel like they just got a big bonus. This is not the case, however. 

The truth of the matter is that you gave the Government an interest-free loan for the year. They used your unearned money to earn themselves 12-40% more than its real value, and then gave you back the money you lent them without 1 penny in interest. Meanwhile, you struggled to get by just a little bit more than you should have had to all year long. They don’t even send you a thank you card. 

On the other hand, however, business owners don’t get taken for rides like this by the Government. You might be wondering why. The answer is simple. The law was written in our favor because we wrote the laws. As an employee, you will never have access to the money, time, and resources needed to get laws written or changed to adequately represent you and your interests. Big Corporate greed saw to that more than 200 years ago. Business Owners and Corporations, on the other hand, have all the time, money, and resources they need to lobby (bribe) lawmakers to do whatever they need to ensure they keep things in their favor. As a result, businesses and business owners have a myriad of tax advantages afforded to us. For example, depending on the business model, we may be exempt from paying sales tax. We may also be exempt from paying income tax on anything that didn’t work out and we took a loss on. Additionally, we get to deduct our expense accounts each year from the tax calculations as well. The list goes on and on, but the bottom line is this. As an employee, you must give the Government roughly 38% of your income earned each year because the laws are not there to protect your interests. As a business owner, however, you’ll only owe them 3% on average (maybe less). This is because the laws are there to protect our interests as business owners.

So, what does that mean to you. Here is what it means. Just by making the choice to become a business owner today, you have just increased your annual income by 34%, and you haven’t even had to create a single product or sell a single thing to do it. So, if you make $50K per year before taxes, you’ll now keep the lion’s share of that instead of giving it to Uncle Sam. See there, this course is already making you money, and we haven’t even gotten warmed up yet.     

Shifts in Employment Structures:

Traditional working structures are undergoing significant changes, with the gig economy and remote work becoming increasingly prevalent. Job security is no longer a given, and individuals are finding themselves navigating a landscape where adaptability and versatility are prized assets in favor over stability and loyalty as in days gone by.

As we explore these economic shifts, it’s crucial to recognize that these challenges also bring opportunities to earn more and in a greater number of ways. All you need is the right formula. The need for adaptability has never been more apparent, and understanding these economic dynamics positions you to make informed decisions and strategic moves.

So, fear not, because this course is designed to empower you with the knowledge and tools needed to navigate this evolving economic landscape successfully. By understanding the challenges ahead of you, you are better equipped to carve out a path that leads to financial success.

In the next segment:

We’ll delve into the importance of adaptation and the mindset shifts required to thrive in this dynamic environment. Stay tuned as we unravel the keys to success on your journey from $0 to Hero in 90 Days.

As we wrap up this lesson, reflect on your strengths and consider how they can become valuable assets in the digital marketplace. This course is not just theoretical; it’s a practical guide to turning information into income.

Activity and Discussion within the Online Community Group Page:

Now, let’s bring our community together. On the online community group page, share your thoughts about the current economic situation you find yourself in and how you think business ownership might help you change your circumstances. Let’s create a space for open dialogue and support for one another.

As fellow participants, help one another by asking and answering questions. Encourage each other to discuss thoughts on business ownership, fears, ideas, and everything in between. Our community is here for you.