Be an Owner, Not a Consumer, to Achieve Financial Freedom


Very recently, I was reading a book on finances, and the author gave an excellent piece of advice. He said, “Be an owner, not a consumer.”

Already, I’m sure you have ideas in your mind what that might mean. The phrase sounds like good, solid advice, especially in a book on finances.

The author mentioned this within the context of achieving financial freedom, and went on to write that the only way to do this is through a shift of the mindset.

See, the average mindset in this country has shifted to being a consumer instead of an owner. Most people (even subconsciously) seem to believe that wealth is built by possessing more things. This is the consumer mindset pushed by nearly every media outlet.

But the true path to wealth (and “wealth” takes many forms) doesn’t usually take that direction.

To illustrate my point, here are several ways that being an owner differs from being a consumer.


Traditional advice says that you should be smarter about your purchases, and I wholeheartedly agree. Some people, though, take that to mean that you should never buy a nice car or nice clothes. I don’t particularly agree.

I believe that it’s your mindset that makes all the difference. If you look at a seemingly extravagant purchase through the eyes of an owner, you’ll see a long-term investment. On the other hand, a consumer sees short-term gain, trendiness, and disposability.

A great example of this comes from two of my colleagues, both of whom own Porsche 911s. One leases his and upgrades to the new version every three years. He talks quite a bit about how expensive his monthly payments are and he picks up extra shifts to help pay for his expenses.

The other has had his Porsche for over 15 years, and he paid for in cash. He takes care of it, exchanges parts out that need repair, and takes it out to the track. He truly enjoys the car, and it shows. He talks about it like it’s his baby, and in a way, it probably is. He’s not too extravagant otherwise and has set himself up very well financially. How could anyone fault him for that purchase?


Every time you use an app on your phone, go to a restaurant, or watch / observe any sort of advertising, you’re a consumer. Someone out there is always benefiting from your behavior. But imagine, if you will, that the tables were turned, and you were the one who benefits from consumer behavior. What would that look like?

From a business standpoint, the shift from consumer to owner is simple. If you have a passion, why not consider building a business around it?

The perfect example of this is George Clooney and his Tequila brand, Casamigos. He and his friend Randy Gerber found themselves in Mexico frequently, and they both shared a love of tequila. And so, in 2013, they decided to start their own brand. Just four years later, they sold Casamigos for $1 billion.

A consumer may have been content to amass a collection of exotic tequila to impress their friends. But as owners, Clooney and Gerber not only get to consume as much tequila as they want, but they also benefit from having other consumers buy and enjoy their drink.

Of course, not all of us have the fortune or time to simply start a major brand. However, on a small scale, there are many physicians doing the exact same thing.

Here are some quick examples of physicians who have started businesses out of their own passions: AthletesRX, L3O Soaps, Lactalite, and so many more…

Real Estate

Here’s what real estate looks like to the average consumer. They want to live in the nicest, trendiest locations, and will pay a large amount of rent to live there. They don’t often consider the long term or the growth of asset. That’s why rental units (whether apartments or houses) just don’t get the same level of upkeep as an owned home.

Real estate owners, on the other hand, exhibit a certain pride that comes across loud and clear. Whether you’re a landlord or simply own your own home, ownership leads to improvement. You might change fixtures to match your tastes. You might repaint. You care about the landscaping. As an owner, you’re able to benefit from tax breaks and market appreciation.

Owners of real estate investment properties even do better as they have tax benefits, appreciation, monthly cash flow and also benefit from having someone else pay off that asset while it (hopefully) appreciates.


To a consumer, debt is an instrument of immediate gratification. Why wait until you have the money when you can have it now? And thus begins the trip down the slippery slope of credit card debt. This is, unfortunately, the situation for many Americans.

But when you see debt as a tool to gain more assets, which creates passive income, you have successfully become an owner. To the owner, using debt wisely leads to wealth and financial freedom.

Net Worth

Owners tend to find themselves in the position of growing their net worth. They focus on adding assets and saving. Real estate, investments, and other ventures steadily add to the owner’s net worth.

Unfortunately, consumers find their net worth being drained by items that they’ll only use for a short time and then discard. Again, the focus on short-term satisfaction can keep them from building and growing any meaningful assets.


In the end, owners find themselves in positions of growing wealth and progressing on the path to financial freedom. Consumers find themselves stagnating at best, regressing at worst.

If your goal is ultimately financial freedom, take some time to focus on that mindset shift. Always be looking at the long-term. Ask yourself how a purchase will benefit you years down the road. To put it simply, make sure that you’re acting as an owner, not a consumer.


  1. Love it!
    Buy assets. Yes, that is it! I would rather own stock in a casino than waste my money gambling in one!
    I had not heard that story about George Clooney. It reminds me of Bono getting rich from shares in Facebook.

    • It’s all about making the most of the opportunities put in front of us. Having some guts and going for it. We may not be invited to participate in the IPO of Facebook, but I feel we all have opportunities if we’re looking for them.

  2. Great example done with tequila! I’m a big fan of Cindy Crawford. I remember reading about Rande launching the brand along with his new restaurant with Clooney when I was a teenager. Talk about ownership & partnership! There’s a Casa Amigo commerical of Cindy Crawford making out with Clooney’s wife hahaha.

    And Cindy has her own beauty line as well. I don’t think the vast majority of models handle fame and money as level headed and successfully as Cindy did.

    Excellent post!

  3. For this reason, I’d rather spend money on a rental property than a primary home. We’re currently renting, and I’m not sure whether home ownership or rental property ownership will come first. Maybe we could just purchase a 4-plex and rent out the other 3 units and get the best of both worlds…

    • That’s something that’s referred to as House Hacking in the Biggerpockets world and I think it’s a great idea if it makes sense for your family. When I talk to new young grads, that’s actually something I absolutely recommend to them.