How do wealthy people make money? Money is being made by investors and entrepreneurs. Unless you live in corporate America (or UK) and is the CEO of a large multinational company, you are probably earning the same amount as most of your peers with regular jobs. Anywhere from $40 000 to $100 000 per year. That’s an ok sum, but it’s not enough to be set for life, or to guarantee a comfortable life for your children’s children. In order to break free from the corrupted system we all live in, you must learn what the people on top know and how they exploit the system. Unless we all are able to exploit the system, then how can we call the system fair?
The rich don’t work for money. Between 1993 and 2010, over 50 percent of the increase in the national income in the United States went to the wealthiest one percent. Since then, things have only gotten worse. Economists at the University of California found that 95 percent of the income gains between the years 2009 and 2012 also went to the wealthiest one percent.
The lesson: The increase in income are going to entrepreneurs and investors, not to employees — not to the people who work for money.
From the book “Rich Dad Poor Dad“
The 0.1% top earners got so much power that they will do everything, and currently is, to secure their wealth and keep increasing it. Workers are not rewarded any longer, workers are looked at as a necessary evil. The shareholders want a flexible labour market where they can easily hire and fire people to increase the company’s value. Since the principle of shareholder value maximization was introduced in the 1980s, the focus on short term profitability for shareholders has exploded. This has led to job insecurity, not only because it became easier to sack employees, but the businesses became short sighted and focused on bringing the highest returns year-on-year. This has caused many western businesses to fail by not investing in people, research and development, and to have a long term vision and strategy. Power corrupts, the more power people and businesses get, the more they focus on short term growth and maintaining the power.
Your company doesn’t care about you
You are easily replaceable. You should not have any loyalty to your employer. None at all. If you get a better offer somewhere else, or even better, you are able to start your own company: DO IT. Don’t think about your current employer. They truly don’t give a shit. Wait? I like my boss, he/she is kind to me. Well, that’s your boss’ job! Don’t be fooled. The real rulers are the board and the shareholders, and they DON’T GIVE A DAMN. They are interested in profits, not in you. And if you are not rewarded based on profits you bring the company, why should you work there at all?
So many people I know are STUCK in their jobs. They cannot see themselves working for someone else, or to start anything on their own. Truly limited by their own mind. Educated to believe that a good life is a life where you work for the same company and do the same thing over and over again. I’m telling you, wake up! You are stuck. You need a reality check. Do you have a contingency plan? What happens if you get fired or if the company that you work for files for bankruptcy? My guess is no. Now is the time to create one.
So how can I make money?
What are you good at? Can you start a business on your own and try to expand? Can you change your job to a better paying one? Always focus on generating more income, and to not spend your proceeds. Use your salary to buy assets, whether it is stocks, index funds, to lend out money through a peer-to-peer lending service like Prosper, or to buy real estate to rent out for a yearly return above the inflationary level. Do not spend money on unnecessary items, like a new car, a bigger house, or a diamond ring. You do not need it, nor do your family! You need to watch your capital grow, not shrink.
Either become an entrepreneur, or start investing in low risk assets!