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Increase Your Earning Power: 2 Ways Successful Professionals Can Leverage Capital to Build Wealth
While landing a new job or getting promoted can be great ways to earn more, the best way to truly grow your earning power is by letting your money work for you. As it turns out, individuals with an annual income of $200,000+ generally make more money from their investments and business interests than their salary and wages1. This might include establishing a passive income stream, or perhaps acquiring a business.
With many people living longer than in generations past, and some even retiring early, it's important to think beyond typical retirement savings strategies to maintain your preferred lifestyle in the future. Very few professionals—even in the highest income brackets—have enough personal capital to cover upfront investment in high-potential opportunities without impacting their lifestyle choices and retirement savings.
That's why having access to capital and working with financial partners like BHG Money can be key to generating the kind of earning power you've always aspired to have. Here's a look at two smart ways successful professionals can leverage capital to increase their earning power and help fund the lifestyle of their dreams.
1. Generate passive income.
Passive income refers to money that's earned regularly outside of typical employment, with little or no effort over time. In order for your passive income idea to work as intended—allowing you to "make money while you sleep"—it should be practical, achievable, and generally require minimal to no effort. Auto-generating income is the ultimate goal for individuals with an investor mindset.
Passive income options that require leveraging capital upfront can eventually generate more impactful cash flow at scale. Opportunities include acquiring assets that earn income passively over time (i.e., property for short-term rentals) and investing in low-risk business opportunities in exchange for ownership interest, among others.
Working with a financial partner like BHG can often be the easiest way to secure the capital you need. BHG offers large loan amounts up to $500,0002,3, fixed rates, and extended terms (up to 12 years)2, resulting in affordable monthly payments.
More so, BHG is a lender that supports your goal of developing passive income and will give you maximum flexibility as you get your projects up and running. For example, if you are in the process of building a real estate portfolio or gradually constructing a multi-tenant property, BHG can fund you at multiple stages as you pay back your original loan.
2. Acquire an existing, profitable business.
Small-business ownership allows for greater opportunities to build significant, generational wealth in a way that working for someone else cannot. Acquiring an existing business is the most optimal and immediate way to build wealth as an entrepreneur.
Such businesses are fully operational with revenue streams that may take years to establish if starting from scratch. By acquiring a business, you are purchasing an existing blueprint that includes an operational location, marketing and sales processes, staffing, an established customer base, and vendor relationships, among many other important factors. There is often less risk for failure when purchasing an existing business since the business model has already proven successful.
The cost of acquiring existing businesses varies greatly, depending on many factors such as physical assets owned, debts and liabilities, industry and position within, customer base, individual business characteristics, and more.
That's where BHG comes in. They offer unique business loan options that support successful professionals who are looking to purchase/invest in new ventures. While most lenders look for the cash flow and financial projections of the business as factors in extending credit, the company prioritizes the credit and earning power of the professional. For example, if you are a doctor looking to establish a new medical practice or a CPA looking to become a partner in your existing firm, BHG will consider your financial position to extend credit. This allows individuals who may not have previous business experience to leverage business capital to fund their next venture.
Whether you're looking to generate passive income or acquire an existing business, you'll likely need access to capital to get started. Whichever avenue you explore, you'll be on your way to generating wealth that will help you accomplish your long-term financial goals.
Click here to learn more about BHG and how they can help you achieve financial freedom.
2 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Finance amount may vary depending on the applicant's state of residence.
3 BHG Money business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.
For California Residents: BHG Money loans made or arranged pursuant to a California Financing Law license - Number 603G493.