Salaries and Worths

One of the biggest blunders we can commit is to think that we can spend salaries like our profit. Before you think of that, its necessary to ask yourself how you got paid a legitimate salary or wage. You got paid when a business  got sufficient patronage to yield a profit. And You got paid from the profit. That salary you got is not statutory. It is not a fundamental human right. It is a reward or a proof of likelihood that your presence and input will one day pay off. 

One major thing you must keep in mind is that the owner of the business did not give you his principal. He only shared the gains with you. A business has no continuity if it distributes its principal as salaries. Principal sum is designed to sweat out interests declared typically as salaries and profits. 

The employers mindset is the leaders mindset. At the point of transfer of salaries to you the employee, the ball is in your court to make it a principal or interest as well. The wisest young people are those that find anyway to earn other income that frees up more salaries to serve as principal. Principals are the tools by which more sustainable revenue can be earned. 

The exact monies we should spend is the interest that yields from our salaries which has
been converted to principal. Your interest value is the value of the safest FG approved investment in your country like treasury bills and bonds. Whatever comes from the interests on that TB is your sustainable wealth. This is when you are eating the very fruit of your labour. The interest on your accumulated salary is the fruit of your labour. Your salary is not the fruit of your labour. It is the tree.

You may not instantly become rich like the Lakers or Clippers players of the NBA but you are on your way to wealth accummulation.