Today, I would like to talk about something that we are very passionate about – why you should work for profits and not for wages !
Key point: Profits are BETTER than wages. Once we understood this we became financially independent. Why were we never not taught this in school!?
At about 30 years old, we realized that we were working harder and harder at our 9-5 jobs and not actually getting anywhere. Debt was piling up, we couldn’t afford a house or to live in a nice location and we never got to spend time with each other. Life was basically miserable.
In fact it was so bad that for the first time in my life I ended up taking antidepressants. Honestly, looking back I am very glad that I got so down about our financial struggles.
Because most people are not uncomfortable enough to actually take the action required to live the life of their dreams.
Most people are comfortably uncomfortable!
We started just trying to side hustle to make extra money every month to make ends meet. In the beginning, we only made $100-$200 extra every month but this was enough to make us realize that it is possible to make a full-time living working for profits not wages!
Fast forward a few years and with a lot of work we are now living life on OUR terms! We are building wealth, live wherever we wish and are the happiest we have ever been.
Read on if you want to learn exactly why you should work for profits and not for wages !
Disclosure: Please note that some of the links on this page are affiliate links. This means that we may earn a commission, at no cost to you, if you decide to make a purchase after clicking through the link. Please understand that we have experienced all of these companies, and we recommend them because they are helpful and useful, not because of the small commissions that we receive if you decide to buy something through our links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
5 Reasons To Work for PROFITS Not Wages
1. Freedom. Lets face it – working a 9-5 job ties you down and essentially makes you a modern-day slave. This is a horrible way to live your life! About 90% of employees are just working a job they hate in order to ‘get by’ every month.
Giving up 5 days of your week for the 2 days at the weekend is a horrible deal by any measurement system! By working for profits you can often (depending on the type of business) work from anywhere you wish! This is true freedom! Since becoming online entrepreneurs, we have lived in several states and we plan on testing a few more out before we settle down.
2. Leverage. When you are an employee you are basically directly exchanging your time for money. When you own a business there is MUCH more potential upside. From a business owner’s perspective, there is potential for exponential growth. Leveraging other people’s time and efforts can free up your own time up to start more and more income streams that compound over time!
3. Recurring Income. As an entrepreneur you get paid over and over again, long after you have done the work. This is not the case if you work for a wage at a typical 9-5 job. Working for a wage is limited but working for profits is not. It is much easier to make 25% more per year from profits than to try to get a boss to give you even a 5% raise.
Another good example is this blog post that you are reading right now. This blog post took us about 1 hour to write but it will likely (hopefully!) be on the internet forever, attracting readers to this blog. We did this work once but, will continue to reap the revenue that visitors create just by reading this page (mainly advertising revenue).+
If you would like to start a website or blog then please take a look at our simple step-by-step tutorial for starting a blog in less than 15 minutes!
4. Tax Benefits for Entrepreneurs. The tax system in the USA is set up to help entrepreneurs. Why? Well the tax system in the USA is set up such that as an employee the government gets paid first. Yup it sucks. The average employee has to work for the first 3 months of the year for FREE thanks to the 33% tax taken from your yearly salary!
Being self-employed has some awesome tax benefits – you pay yourself first then your taxes last! Before we pay a single penny of income tax we deduct any expenses occurred while conducting our businesses. This is how we paid only 14% in federal tax on a decent 6-figure income last year.
The tax benefits are yet another reason why you should work for profits and not for wages.
5. Wages will make you a living, profits will make you a fortune. Nobody is going to pay you $100k per month as an employee. I don’t care how great you are – it just isn’t going to happen! But it is possible to make $100K per month with very low startup costs if you start a successful blog online!
Check out exactly how Michelle Schroeder-Gardner makes $150K+ a month blogging about financial tips! This is possible because of leverage and exponential growth!
Unfortunately, as an employee you will never be paid what you are worth – you literally can’t be or the business will not make money.
Conclusions – Why You Should Work For Profits and Not Wages
We hope that this short post has helped to explain our thinking about why you should work for profits and not for wages. If you are an employee, it is important that you realize that we are not suggesting that you immediately quit your job and try to make it as an entrepreneur!
If you are still working a 9-5 job (and hate it!) then it is relatively simple to start a side hustle business to make some extra money. As your business grows and your savings increase, you will be in a much better position to take the leap into full-time entrepreneurship without risking homelessness!
Here are a few articles to help get you started with a side hustle that has the potential to turn into your business and replace your income from your regular job!
Good luck !
Russell and Maleah