How To Build Wealth From Scratch

An acquaintance of mine serviced vending machines near campus as a part-time job in college. At some point, he purchased and acquired actual ownership of seven of the vending machines that he previously serviced. I admired his energetic and scrappy approach to getting his hands on a cash-generating asset.

Entering 2018, the average vending machine earned a monthly net profit of $111. With seven machines, the typical profit would be somewhere near $777 per month. If he is wise, he would have incorporated his ownership via a single member limited liability company, and then regularly extract the profits into some type of tax-protective vehicle so that the money could compound tax-free (and if he reached a point where he could stomach the up-front expense of a few thousand dollars in legal fees, he could actually use cash in a vehicle like a Roth IRA to purchase the vending machines themselves Read the rest of this article!