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Today I’m going to share with you an incredible secret that the rich know, and they hope you don’t find out. Once you know this incredibly important secret, I’ll probably be in a whole heap of trouble, but I want you to know.
I’m going to show you why Equity is so much better than your salary. Today, I’ll show you why building wealth through ownership, not just hours worked can mean a huge difference in your life’s stability, and ultimately your happiness.
Today we’re diving deep into a topic that could absolutely change the trajectory of your life if you really get it, internalize it and put it into action.
Today, I was looking at LinkedIn and there was a conversation about the importance of salary. Now, I agree, you need income, and a salary is how most of us are taught to create it. As a matter of fact, generally, it’s the only way most of us are taught.
We go to school, then college and then get out into life and all we’re taught is about how to go to work for someone else, create an income from a salary, invest it in a 401k and hopefully retire someday.
Many people think the only way to get an income is through a salary. If you need an income right now due to a lay-off or maybe just getting started, that’s fine and maybe that’s all you want, which is okay too. But if you want true financial freedom like we teach at LifeByDesign360 Insider Academy and Community there’s a better way.
Like I said, I’m going to share with you a monumental secret. Here it is: Equity is better than a salary.
I know that sounds like a big statement. But today, I’m going to break it down and show you exactly why equity — in real estate, in stocks, private equity, bonds to an extent — especially equity that creates income like rent and qualified dividends, is superior in almost every way to depending solely on a salary.
And keep reading because I’m going to share with you the most powerful way to create equity for yourself starting right now, today.
The Fragile Nature of a Salary
Let’s start with the obvious. A salary is simple. You go to work, you trade your time and your skills, and every two weeks — boom — you get a paycheck. For most people, that’s their entire financial life. That’s what we’re taught to aim for: get a job, get a good salary, and you’re set.
But let’s be real — how stable is that paycheck? How many people do you know who’ve been laid off? Maybe it happened to you. Maybe you were working hard, hitting all your targets, and one day you get called into a Zoom meeting with HR, and suddenly — poof — your income is gone. Just like that.
And here’s the worst part: it doesn’t even have to be about performance. The company could get acquired. They could downsize. They could restructure. They could decide to replace your department with AI.
A salary is one stream of income. And it’s one that’s completely controlled by someone else. You can be the best employee in the world — and still be disposable. And when that salary disappears? It hits hard. Financially, emotionally, mentally. Stress, anxiety, self-doubt, identity crisis. It’s not just money you lose — it’s security. It’s peace of mind.
What Equity Actually Is.
Equity is ownership. When you own equity in something — whether it’s a house, a rental property, a stock, a business — you’re not just working for money anymore. Your money is working for you. That’s a phrase you’ve probably heard a lot: “make your money work for you.” But what does that mean?
It means that instead of trading time for income, you’re creating or owning an asset that generates income without you having to clock in and out.
Let’s go through some examples:
Real estate equity — you own a rental property. Every month, the rent comes in. The mortgage gets paid down. The property may appreciate. Over time, you build wealth from cash flow and capital gains. That’s passive income and long-term growth.
Stock equity — you own shares in a company. If that company pays dividends, you’re getting paid just for holding the stock. And if it’s a qualified dividend, you get a tax break. Plus, the value of the stock can go up, growing your net worth.
Private equity — maybe you’re an investor in a startup or a private business. If that business grows and generates profit, you benefit. Your equity could 10x or more over time.
Even bond ownership, especially convertible bonds or preferred shares, gives you income through interest or dividends while still allowing capital appreciation.
These are income-generating assets. They don’t fire you. They don’t get tired. They don’t go on strike. They just sit there, quietly printing money — and appreciating in value.
Multiple Streams vs. One Stream
Now here’s where it gets really interesting. A job gives you one income stream. Equity? Equity gives you as many streams as you want to create.
Let’s say you own:
A duplex that brings in $2,000/month in cash flow
A stock portfolio that pays $300/month in dividends
A piece of an online business that nets you $500, 5,000 or maybe even $50,000/month
That’s three streams of income, totally separate from your job. If you lose your job, you’re not at zero. You’re still bringing in $2,800/month, probably more than enough to buy time, reduce stress, and plan your next move.
Now, imagine if you scale that over 5–10 years. What if you had 7- or 8-income streams from different assets? That’s real financial freedom. That’s wealth that builds on top of itself. Equity can scale. A salary? There’s always a ceiling. You can ask for a raise, sure. You can move companies. But your time is still limited. You’re still trading hours. And you still only have 24 hours in a day. But with equity, your assets don’t sleep.
Qualified Dividends and Tax Efficiency
Let’s nerd out for a second on taxes. When you earn a salary, that’s W-2 income. It’s taxed at your marginal income tax rate — which could be 22%, 32%, 35%, even higher depending on where you live. But when you earn qualified dividends from stock ownership? That’s typically taxed at just 15%, or 0% if you’re in a lower income bracket.
And if you hold the asset long enough and sell it? You get long-term capital gains rates, which are also lower than ordinary income tax. So not only is equity giving you income — it’s more tax-efficient than your salary. That’s more money in your pocket, more money to reinvest, and faster compounding.
Psychological Shifts — From Worker to Owner
Here’s something people don’t talk about enough: the mindset shift that comes from owning equity. When you stop thinking like a worker and start thinking like an owner, everything changes.
You stop asking: “How can I make more money per hour?” And you start asking: “How can I create or buy something that pays me forever?” That’s a powerful shift. You start looking at real estate not as a place to live, but as an income-producing machine. You look at stocks not as just numbers on a screen, but as pieces of businesses you co-own. You start valuing time — because now, time is something you’re buying back with every asset you acquire. And you start seeing wealth not as a salary goal — but as freedom, as optionality, as leverage.
The Compounding Effect
This is where equity blows salary out of the water. Salary doesn’t compound. Did you make $80K this year? Great. Next year maybe $82,500 if you’re lucky. But that’s linear growth. Equity compounds. Rent increases year over year. Dividends get reinvested. Assets appreciate. Leverage, maybe or maybe not through financing accelerates growth. Always be careful about leverage. Suddenly, 5 years in, your net worth is growing exponentially. Wealth builds on itself. It’s the snowball effect. At a certain point, your equity-generated income can completely replace your salary. And then some. That’s when you reach financial independence. That’s when you can choose to work — not because you have to, but because you want to.
Let me be super clear: I’m not saying quit your job tomorrow. Jobs can be a great source of capital, experience, and connections. But your salary should fund your freedom, not be your only plan. Use that salary to buy equity. Buy income-producing assets. Buy stock. Buy real estate. Invest in your own business or other businesses. Own something. Ultimately, ownership is where freedom lives. A salary is limited. Equity is unlimited.
The Power of Ownership Through Subscription & Membership Businesses
Now let me take this one step further — because there’s another powerful way to build equity and income at the same time: starting your own business, especially one built on a subscription or membership model.
Why is this model so powerful?
Because when you create a membership or subscription-based business — whether it’s a newsletter, an online community, a coaching program, a software tool, or even a box-of-the-month physical product — you’re not just selling a product. You’re creating recurring revenue.
That’s predictable, scalable, and sellable income.
Every month, your members are paying you — and that income becomes an asset in itself. Because if you build a base of, let’s say, 500 customers paying you $30/month, that’s $15,000 a month. That’s $180K a year. And if that business runs smoothly without requiring all of your time? Guess what? You’ve just built equity in your own business.
And here’s the kicker: businesses with recurring revenue are incredibly valuable. They can be sold at high multiples — sometimes 3x, 5x, even 10x annual revenue — because the income is predictable. So not only are you creating cash flow every month — you’re also growing the value of the asset itself.
And once you’ve built one? You can repeat the model. You can launch another brand… another membership… another vertical. And now you’ve got multiple businesses — multiple income streams — each one growing your wealth and building a financial fortress around you and your family.
This is how real, generational wealth is built. Not just through one job. Not just through one income source. But through ownership, through systems, through stacking assets that print cash flow — and can eventually be passed down, sold, or scaled.
And here’s the beautiful part: when your financial life is stable, when you’re not stressed about rent or layoffs or recessions — you’re happier. You’re freer. You can breathe.
And from that place? You become more generous. More benevolent. You can give freely, support causes you care about, help your family, invest in your community. It’s not just about making money. It’s about building a life of impact, stability, and freedom.
A salary ends when you stop working. Equity continues long after you’re gone — and can even be passed on to your kids. This isn’t about getting rich overnight. It’s about slowly, steadily shifting your life from labor to leverage, from time-for-money… to wealth that grows even when you don’t lift a finger.
So yeah — equity comes in many forms. Stocks. Real estate. Private equity. Dividends. Rental income. But also? Your own business. Your own brand. Your own system that keeps giving, long after you’ve built it. Ownership is the endgame. Subscription-based business? That’s one of the smartest ways to get there.
If you’ve been laid off or in between jobs or just unsatisfied with the job you’ve got, be sure to go to lifebydesign 360.com and get on our mailing list. Each week you’ll get important updates on new podcasts that can help you get the job you want now, create a side hack and an income that you can never get fired from and get on the fastest path to retirement success and financial freedom.
And be sure to look out for openings in our LifeByDesign360 Insider Academy and Community. There you’ll find all the coaches, the courses, the resources and an amazing community of people going through what you’re going through, who are utilizing the tools for maximum success.
Imagine blowing past your concerns and fears having access to everything you need to get the job, building an income you can never be fired from and creating the wealth for retirement so you can enjoy stress-free great times with your family and friends that life is really all about.
That’s exactly what you’ll find at LifeByDesign60 Insider Academy and Community
