Wages System Vs Profits System

Couple look at profits from their business

What makes some people financially successful vs other people that aren't? It Boils down to those who get into a profit system rather than a wage system. The late great Jim Rohn, one of the wisest men who has ever spoken to audiences around the world said, “profits are better than wages.Note this post may contain affiliate links. Please read our disclosure for more info.

Profits Vs Wages

The difference between the two can be summed up, as profits are ownership, while wages are trading time for money. Profits can grow and are limitless. You can make more profit which in return makes more money. On the other hand when you are trading time for money. You definitely might be able to make a pretty good wage but here are the facts as soon as you stop trading time for money, your money stops.

It all begins when you are a teenager, flipping burgers or whatever for a very small minimum wage. From there you move up the ladder and experience a wage increase depending upon experience, education, and longevity.

Let's think for a minute did anyone in your workplace get rich? With more student debt to get the degree and working more overtime on their plate, I wouldn't call that rich. In fact, no one is truly getting rich in the wage system, well maybe a few groups.

"Wages make you a living, which is fine, Profits make you a fortune, which is super fine."- Jim Rohn"

One, in particular, is a Pro athlete getting rich in the system is about the only group to get rich in the wage system. You've got a guy who's a professional baseball player, he throws on average 50 miles per hour curve ball; A footballer who can throw a 65-yard pass. Or some who is phenomenal with the fade away and dunks, any which way. You can get rich in the wage system for the fast majority of people.

Profits Vs Wages

Another group that thinks they are getting rich in the wage system would be corporate executives of large companies and they don't make a lot of money in the wage portion of their income. They might make six figures plus although it may sounds, like a lot of money, it's not ownership. In fact, when you look at the people that make a lot of money, a good portion of their wealth comes from things in which they could show in the profit portion of the contract, not the wage portion of the contract.

That's why somebody might make $400K as the wage portion but because of the shareholder state that they have with the company, they are given stock options were they actually own stock in the company. That's where they might make 10 million 30 million $50 million something like that. You see rich are people who are in the profit system rather than the wage system. Pro athletes, corporate executives are such a small percentage that they are statistically insignificant and the outlines in the problem with the wage system.


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