Why You Can't Get Rich Working For Someone Else

This only furthers the thing many of us have
always known — you can't get rich working for
someone else. Here's why:
Time is more valuable than money.
At the end of the day, it's not all about money.
Money comes in and out of our lives. If we spend
it, we can always get it back somehow.
Time, on the other hand, is a one-time deal. We
never get it back. When you're working for
someone else, your time is being decided for you.
Your salary is also dependent on time. If you're
done with your work at 2 p.m., you can't leave
because it will affect your pay. Or, if you're on
salary, you may find yourself working way more
than 40 hours.
This leaves you with very little leverage to live
your life or make tons of cash, because the power
is in the company's hands. They decide when you
work. They decide what you work on. They
approve your vacation time. They decide whether
or not you get a pay raise.
When you work for yourself , however, there is no
red tape. You can just increase your rates when
you need a pay raise. You decide when you work,
and you can decide who you work with.
It's not all about saving for a rainy day.
Regardless of whether you work for yourself or
someone else, are you putting your money to the
best use?
Saving a portion of your paycheck is great, and we
should always have some money put away in the
bank. You know what's better, though? Investing.
According to Bankrate.com , the highest return
you'll see on your money is 1.05% from a GE
Capital Retail Bank CD. The minimum deposit on
that is $25,000. Don't have that lying around?
Then you're looking at less than 1%.
Here's the math. To make an extra $100 a week off
of interest, you would need a) $100,000 in the
bank and b) a 5% interest rate (good luck finding
that). Essentially, the bank is making more money
off you than you are off them.
The moral of the story is that investing will give
you a greater return than just putting away a
percentage of your paycheck. You can invest in
your own business, paper assets, property,
network marketing and so much more. The
possibilities are endless and the bar of entry is
lower than ever, thanks to things like the Internet.
There are countless resources to get you started,
including books, blogs and interviews from Ramit
Sethi , Robert Kayasaki, Warren Buffet, and the list
goes on.
Working for someone else = building someone
else's assets.
Assets are what build wealth. These are the things
that put money in your pocket every month. Assets
include your own business, investments, passive
income, intellectual property you sell, etc.
Is a paycheck an asset? No. Here's why: Your
money is going out the door on expenses while
you build someone else's asset — their company.
If you had your own company, you'd still have
expenses, but the ability to grow your company to
the point that it keeps making more income will
outweigh those expenses. Like I mentioned earlier,
if you're working for someone else, the glass
ceiling is decided for you.
You can also sell your company later if you
choose. You can't sell your job.
At the end of the day…
If you're looking for the kind of freedom GenY is
craving, you may need to move away from the
typical success formula. The good news is that it's
easier than ever to build your own assets thanks
to the Internet. Countless Millennials have invested
in side hustles and turned them into full-blown
businesses.
Are you going to be one of them?