Phil Risher breaks down how much money you actually need to do whatever you want every day. Most business owners don't understand valuations and reinvest blindly. He calls the point where you stop trading time for money 'independence escape velocity'.
Do whatever you want every day and not have anybody tell you what to do. How much money do you need for that? Are you going to be able to retire? And when? Once you start asking those questions and then really getting serious about it. Most people do not have a base understanding of how to actual valuations work. The fact that we're waking up and just grinding and making shit up and putting stuff back, you know, reinvesting back in the company, having no idea whether that's going to provide a return of time, cash flow, or wealth, is insane. And the reason I have those three I call it the independence escape velocity, where you can get out of your operations and you can run your company from the boardroom, because that's where real optionality happens, where you can be a capital allocator instead of just having a job.
