Its How Much Value You Create

Category: Finance, Personal Finance.

For most of us, our primary source of income comes from active income. So if you work for a day, you get paid for a day.

Active income is income you earn through working, through spending your time. You work for an hour. You work for a month. You get paid for an hour. You get paid for a month. The reason is very simple because there s always a limited amount of time you have.

Now, you can never be wealthy through active income. Even if you are a lawyer and you are a very good lawyer and you charge, let s say hundred bucks an hour. You have a limited amount of time so you can never be wealthy through active income. But still, how many hours do you have in a day? Having active income also means one thing. So in other words, you literally sell your time for money.

At the moment you stop working, your money stops so again, there s no leverage, there s no scalability. So, what makes a person earn more than another person? Why? For example, why a doctor earns so much more than a receptionist. Why does one insurance agent make 20K a month whereas one insurance agent makes 2K a month? Some people say it s because of education, age, experience.

Why? No, it s not all those things. Its how much value you create. The one thing that matters is value. Why does a doctor earn so much more than a receptionist? A doctor can save your life.

That s because a doctor can create so much more value. A doctor can make you feel well. One insurance agent adds so much more value by being a problem solver to someone s life. But a receptionist can only, make coffee for, take down notes you, and only do certain things of lesser value. The other insurance agent can only tell you what to buy. So focus on things which create more value.

That s why they create more value. If you think about it, there are only two ways to create value for your company. By doing that, the company will make more profits. Number 1 is to increase sales, number 2 is to help the company to reduce costs. Ask yourself this question. Not out of the kindness of his heart.

What will make your boss want to double your salary? But the only way to double your salary is for you to double your value to the company. So increase value, increase time. Simple as that. How much income you earn is a reflection of how much value you create for people. So if you want to increase your income, you must increase your value, and it can mean the value you create for your clients, or how much you are worth to the business that employs you.

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