Certainly, you've heard the following:
"You can't get wealthy working for someone else, so go into business for yourself."
You often hear that statement at forums led by savvy business people, and as you look around you're compelled to nod and agree with the others in the audience.
I would caution my dear readers to take that statement and analyze it very carefully and understand how mislead this statement can become. Oftentimes this statement is "supported" by the logic that since the person who writes your check is "more wealthy than you are," then you cannot make any money working for a business or Corporation. Young professionals who enter high-stress, high-paying jobs like investment banking do quite well and can amass a large amount of capital in a very short period of time (that is, if you're in a rush to make a lot of money).
I wonder how they reconcile this with the fact that the people who work for them who also desire to be rich. Using this logic, few would work for anyone--after all, most people want to be wealthy, right? That being said, I do realize their point. In many cases there are instances where working for yourself is more rewarding than working for someone else, especially if you have a skill that would make you successful as a sole proprietorship.
However, because there are many ways to become wealthy, I suggest you do what works for you! If you are working in a public corporation, chances are the company offers revenue-sharing programs, dividends, and offer 401(k) programs in which the company will match your contributions up to a certain percentage or dollar amount. In the end (given that the company is relatively stable, low-turnover workforce) you can end up being quite wealth at a young age, given that you invest your money in a proper way.
So its very possible to retire while "working for someone else," it's just highly-dependent on your industry and what you consider "wealthy," which can mean different things to different people. So if you hear that statement, remember to ask yourself if you have a "job" or a "career." And if you can swing it, you can always supplement your income with a job on the side!
See you next week.
"You can't get wealthy working for someone else, so go into business for yourself."
You often hear that statement at forums led by savvy business people, and as you look around you're compelled to nod and agree with the others in the audience.
I would caution my dear readers to take that statement and analyze it very carefully and understand how mislead this statement can become. Oftentimes this statement is "supported" by the logic that since the person who writes your check is "more wealthy than you are," then you cannot make any money working for a business or Corporation. Young professionals who enter high-stress, high-paying jobs like investment banking do quite well and can amass a large amount of capital in a very short period of time (that is, if you're in a rush to make a lot of money).
I wonder how they reconcile this with the fact that the people who work for them who also desire to be rich. Using this logic, few would work for anyone--after all, most people want to be wealthy, right? That being said, I do realize their point. In many cases there are instances where working for yourself is more rewarding than working for someone else, especially if you have a skill that would make you successful as a sole proprietorship.
However, because there are many ways to become wealthy, I suggest you do what works for you! If you are working in a public corporation, chances are the company offers revenue-sharing programs, dividends, and offer 401(k) programs in which the company will match your contributions up to a certain percentage or dollar amount. In the end (given that the company is relatively stable, low-turnover workforce) you can end up being quite wealth at a young age, given that you invest your money in a proper way.
So its very possible to retire while "working for someone else," it's just highly-dependent on your industry and what you consider "wealthy," which can mean different things to different people. So if you hear that statement, remember to ask yourself if you have a "job" or a "career." And if you can swing it, you can always supplement your income with a job on the side!
See you next week.
Posts
No comments:
Post a Comment