I am having a hard time seeing “starting a business” lumped into the same category as consumables. A car is guaranteed to go down in value. The money spent on a vacation will be completely gone when it’s completed. A shopping spree has little to no redeeming financial value. These expenditures are simply not on the same moral plane as a business startup, where there exists a non-zero probability that more money might come out than goes in.
It’s smart to start a business that you feel passionate about because you will need that energy and enthusiasm to sustain you during the inevitable bad times associated with fear, uncertainty, and doubt. I have started two businesses and I can assure you that the vast majority of the time, very little fun is involved.
I started a real estate investment business about 20 years ago. Yes, a business that I had to ledger on 1040 Schedule E. I didn’t love it in the way the video suggests; it was a calculated move to take advantage of the powerful leverage that debt provides. I’m happy it worked out, but I never enjoyed the stress of owning and managing rental property. And if it hadn’t worked out, I’m certain I would have grown to despise real estate.
My current startup is in the tech area where invention and innovation are being applied to an area where I have professional expertise. I believe in the technology and hope it will be successful, but I also realize it’s statistically more likely to fail. I’m working long hours, the overwhelming majority of which have nothing to do with the interesting or fun technical issues. These hours are spent on the necessary evils that must be addressed to give the business a chance of gaining some traction. Ask anyone besides an attorney if the lengthy patent process is fun.
Getting into debt to pursue some sort of hobby belongs in the third category. But putting a startup in there is a not correct.