The Myth of Wealth & Business or HOW to build wealth as an EMPLOYEE…
Let me ask you a quick question…
Have you ever heard your peers say something like this…” my friend, if you want to make a lot of money, then you absolutely have to get into business for yourself”
…does this sound familiar? Oh, it does… Well, let me tell you a little truth today my fellow wealth builder. This is a pack of good ol’ fashion rubbish, nonsense, a pile of poop,
a COMPLETE myth!
How do I know? I’ll tell you… A time not so long ago, a couple of years ago, I knew a young man who thought something along these lines. This young man loved money and all the wonderful things that came with it. So what did he do? In his search, he wrote off all forms of opportunity related to employment, NET RESULT? A compounding loss of a minimum of R50K per month for an entire year, Ouch!
If you’ve fallen into this trap, never again. And if you haven’t, don’t!
You see, many of us have been guilty of this thought process at some point in our lives, I know I know I have too… MANY times actually, and usually much to my own detriment (but more on that on another day). We think that the only way to make a lot of money is to get into business for ourselves.
Yes, it’s true that a many of the super-rich are self-employed, BUT… Plenty of millionaires, multimillionaires, and even a couple of Billionaires (yes billionaires) have acquired their wealth as employees. So who are these individuals?
They are an elite group of individuals who have been able to simultaneously build their equity and income at the same time. These are the highly paid, executives, directors and CEOs who are given lucrative share options and other tasty financial benefits. BUT, there are also many others who have built massive fortunes by simply…
Working they up &
CLIMBING the corporate ladder!
In this mini-essay (and a few more that will follow), I ’ll show you how you can be a member of this larger group, and build your own fortune.
Quick Side Note: I read somewhere, that until you get to the R950 000 range, you are likely to make more money as an employee than as a business owner. How about that? SO consider this the next time you’re about to take an impromptu leap into the world of entrepreneurship.
Consider another thing for a while… If you can save R50K for a year for a period of a 35-year career, then you’ll retire a millionaire, thanks mainly to a little something we like to call
So, what is Compound Interest? I’m glad you asked, let me explain… Compound interest is interest calculated on the initial principal (or initial amount invested by YOU) and also on the accumulated interest of previous periods of the initial deposit. So basically, it is “interest on interest” and will make your money grow at a faster rate than you could ever imagine.
Let’s play around with a few examples:
Example 1: You Invest R500 p/m for 20 years
What does it become? R603 358
…for 25 years?
R1 150 955
… and for 30 years?
R2 116 109
Not bad eh? That’s the power of compound interest! My advice to you, use it!
Ok, now that we understand compounding, let’s get back to the point at hand… Building Wealth as an EMPLOYEE!
As I was saying, until you get to the R950K range, chances are that you’ll earn more as an employee. I read somewhere that there is a higher percentage of entrepreneurs in the less than R285,000 income range.
…andin the R285 000 – R450 000 bracket, there are more employees than entrepreneurs. The same is true for people who make between R450 000 and R550 000, MORE of them are employees.
ON THE OTHER HAND, above the R950 000 mark, there is a higher percentage of self-employed (entrepreneurs) than there are regular employees. But don’t despair, despite this statistic, you can still get rich from a regular employee payday. Picture this: If you can invest R50,000 a year for a full career of 35 years, you’ll retire a millionaire, R33 163 251 to be exact — thanks to compound interest. If you can invest R150,000 a year, which you eventually can, then you ’ll be worth between R99 489 753 and R100 000 000 when you retire!! Imagine that…
But now begs the Question:
How do you get to INVEST this
Money that will get you to that R100 Million mark? There’s a simple answer to this my friend, earn more, a lot more if possible? But you won’t achieve this simply by working harder. Yes, your salary might increase a little, but that increase will be so gradual that you’ll probably eat it up with your standard of living as it rises. This will occur in a subtle way, so subtle that you won’t even notice.
What you need to do instead is take substantial leaps in your earnings! And how exactly do you achieve these leaps..? Not by a harder worker, nope not this. So what then? You get to earn substantial leaps in your earnings by…
doing MORE VALUABLE WORK! and by this, I mean work that is valuable to the business that employs your services.
Let’s dive a little deeper into this thing of VALUE… Who is a valuable employee?
“A valuable employee is someone who contributes to the bottom line of a business.”
Let me tell you a little secret, that’s not often spoken of… Every single business in the world has twos divisions, not three, not four but TWO!
DIVISION 1: The division that makes money; and
DIVISION 2: The division that acts as a support structure for Division 1.
Here’s the secret… If you want to make serious money as an employee, place yourself in division 1!
Let me explain…
All businesses need various skills, services and talents. But what they need most, and what they most value, are those that stimulate sales, increase customer retention, boost customer spending, and bring in a bigger profit. Basically, all the jobs that generate money: the marketing jobs, the selling jobs, and the merchandising jobs all fall into this category. You can cut corners here and there to save money when things get tough, but you can’t get rid of your salespeople or things will get a lot tougher. Trust me, I know this from personal experience… both from the employer and employee end.
People who generate sales are everything to a business, Everything! As long as these individuals are around… everything keeps moving, and everyone’s jobs are safe, the business is safe. Sales is the golden path of the business and in order for you to take the leap into huge earnings, you need to place yourself on this golden path. Once you figure this out, once you help your boss make money, you’re on your way… BIG MONEY, and with big money comes the opportunity to invest bigger.
LESSON: Put yourself in a position to figure out how your business stimulates sales a.k.a. THE GOLDEN PATH, figure out how your business increases customer retention a.k.a. THE GOLDEN PATH, figure out how your business boosts customer retention a.k.a. THE GOLDEN PATH, figure out how your business brings in bigger profits a.k.a. THE GOLDEN PATH…
Do you get my point?
Not yet, okay try this… Work with intelligence and get into the cash stream of the business A.K.A. THE GOLDEN PATH. Once you do this, then someone will notice, and once someone notices, then you’ll be well positioned to earn big money… And all you need to do to keep it coming in is…
WORK HARDER THAN EVERYONE ELSE!
So, let’s recap with a couple of questions that you need to ask yourself…
Question 1: Are you able to invest R50K to R150K a year? Or even more, perhaps 15% of your earnings?
Question 2: If not, do you find yourself in DIVISION 1 of your business or DIVISION 2?
Question 3: If you’re in DIVISION 2, Do you have a skill or idea that you could take to DIVISION 1?
P.S. Next time I’ll let you know about how you can get into this cash stream a.k.a. DIVISION 1 of the business and become absolutely invaluable to your employer…