Businesses operate on profit and they want to maximize their profits. The formula for making a profit is:
Revenue - Expenses = Profit.
The problem is, when we work for a business, where does our salary fall in this equation? We are an expense. It's a revenue to us and our balance sheet, but it is an expense to the business and their balance sheet. So, if they can get away with paying us less, they would get to keep more profit.
When your boss says, "We need to do more with less," that just means they want to get more out of you and pay you less money.
So, what kind of system are you in?
As an employee, we are never paid what we are worth. Never. You cannot be paid what you are worth. It's impossible, because, let's say you sell $100,000 worth of widgets for Company X and they pay you $100,000. If we look at the formula for profit, $100,000 - $100,000 = $0. Company X would get to keep $0 in profit. So, there would be no reason to have you in the first place.
The way business really works is, if I, as an employee, bring in $100,000 worth of revenue every year, they might pay me $30,000 or $40,000 so that they can override me and profit off me with $60,000 or $70,000.
Now, if you compound that, 40, 50, 60 hours a week for 20, 30, 40 years of your life, it's no wonder that at age 65, 95% of people are failing. It's not that people are not working hard, it's that they are working hard in the wrong system. If the idea of having a job, of working for someone else, trading your time for money, were such a great opportunity, then why would people need 2 and 3 and sometimes 4 of them in a given household, not to live lavishly, but to just make ends meet.
If you find yourself in the wrong system, don't worry, there is still time to do something about it. But first, you must realize that your 9-5 is only going to make you a living. It is what you do during the hours of 5-9 that you can make a fortune. So, if you can find an opportunity where you can earn what you earn now, but control your time YOU WIN! If you can earn 5, 10, even 20 times what you earn now AND control your time YOU REALLY WIN!
So, get a plan in place, work your plan, get yourself in a position where you are no longer trading time for money and then and only then will you be getting paid your true worth. And at this point you will be able to ride out to the sunset on your own terms - you will be able to start spending all of your time and money on the things and people you love the most.
David Vogelsang makes weekly posts to his blog titled Spreading Financial Confidence... One Post at a Time. For more great articles like this, please visit our website.
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