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Tuesday, October 15, 2013

Why Employment Does Not Make Anyone Rich


People from all walks of life always desire for the best things in life. Regardless of their socio-economic status, educational achievement, gender, or age, people always want to have the best.

Having the best things in life requires financial capability. Although money is not the most important thing in the world, it affects the most important things in the world. Although money cannot buy EVERYTHING, people cannot buy anything without money.

Thus, people engage in employment in order to obtain financial capability. However, has anyone really succeeded in getting rich through employment?
Here are the reasons why employment cannot make anyone rich.

1.     Employment means no work no pay. Employees get to be paid for the number of hours they render. If they do not work, they do not get paid. The moment they get to be absent, their pay slip decreases in value.

2.    Employees make their employers get rich. Employers know that their efforts multiply through the efforts of other people. This is what is called leverage. Thus, employers duplicate themselves by hiring others to do the work for them. Employees, on the other hand, cannot duplicate themselves as they are the ones performing the duties and responsibilities that should be that of their employers.

3.    Employment is active income, not residual income. Employees never get rich because employment is equal to active income. People get rich when they have residual income. Residual income means earning without actively participating in the actions that make the money.

4.     Employment means fixed earnings. An employee in the Philippines would earn an average of P10,000 ($200) per month. In a year, he would earn P120,000 pesos. In forty years, he would earn P4.8 million pesos. Now, the true rich can afford to buy cars worth P1.8 million pesos. Now, if an employee only earns P4.8 million pesos in his lifetime, can he afford to buy these things that provide him luxury and convenience? The answer is no.

5.    Employment encourages being in debt. Since employees have fixed salaries, then that means they have to make everything be within their budget. Their expenses should not exceed their income. However, the truth is that most employees have expenses that exceed their income. If that happens, they find solution by applying loans. The bad thing is there is a constant cycle of waiting for the monthly pay with other people already owning their salary. This makes it an unbreakable cycle and the person is forever in debt.

Employment in itself is not a bad thing. However, the harsh reality is that employment can never make anyone rich. If you are currently employed and you want to find solution to your money problems, get in contact with me.

To Your Financial Success!





Lornajane Altura

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lornajanealtura@gmail.com

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