15 May Why you shouldn’t depend on your job for wealth
Most of us depend on our jobs to pay the bills.
I know that sounds like a “duh” statement, but let’s just get it out there. We depend on our jobs to put money in our pocket. If the job disappears, so does the money. I call that type of earning (the kind of earning that I depended on for many years) “One-Time Cash”.
One-Time Cash is what most people earn in their daily jobs. They work one hour and get one hour’s pay. They work forty hours a week and get paid for forty hours a week. If someone asks you how much you are making at your job, and you answer $18 per hour, you are working (and living) in the One-Time Cash world.
But here’s the problem: One-Time Cash is the slow lane of wealth creation.
Unless you are a highly specialized, highly sought-after expert—like a neurosurgeon or an attorney who specializes in a difficult area of the law—who can demand rates of hundreds, even thousands of dollars per hour, you are stuck. Even for these high-income earners (and certainly for you, too), your income has a clear limit. The most you technically can charge is twenty-four hours a day.
Once you give the value for that work (the hour, the project, the contract), you get paid for it, and you are out. There is no residual. You work forty hours a week, and you get a week’s pay. You don’t show up the next week; you don’t get paid. That is what One-Time Cash is all about. There is one product or service delivered, and one payment is made.
The majority of the world’s wealthy don’t make money from their jobs. Warren Buffet takes a $100,000 salary, and in his day Steve Jobs only accepted a $1 annual salary! But both those men made money from their investments, which is where I think the true secret to wealth creation lay.