I didn´t go to university. I started a business and became rich.

There might be very rare examples, for which this statement indeed is true. These are the ones, you frequently find in the newspapers or in social media. But I strongly believe that for most people this is the wrong approach.

Safety Net

Doing business naturally involves taking a lot of risks, because there are so many exogen factors that you just cannot control.

A recent example is the Corona-Crisis, that came out of nowhere like a black swarm and forced so many businesses into bankruptcy. In my case, I still pay interest without getting any rent for an unfinished apartment, I bought years ago from a real estate group that does not exist anymore. But I survived, because I did built my safety net over years. Hence, what matters is that things often do not go as planned and hence you need a strong safety net.

For me this is not just a high amount of security reserves in your bank account, but the ability to always create a lot of money, independent of any circumstances. In my case, I own many appartments, which not only generate a stable cash flow, but I can always use them as a deposit to apply for a loan. Furthermore and even more important, I have a very strong academic record and I am a very well-connected expert with a sound reputation in my field of expertise. Therefore, if everything goes south, I am very confident that I can always find a highly paid job either in the consulting business or in academia.

More Risks

Another benefit of a strong safety net is that it encourages you to take even more risks, because you know that if you fail, you will fall softly. Or from a different perspective, I can argue that to be successful in business or in life in general, you need to take risks and for that you need a safety net. So, do not take any shortcuts in life. Finish your education and built your therotic foundation first, before you want to do big business.

As stronger your Safety Net, as more Risks you can take.