|
Why You Aren’t Rich
Part One
What Ratios? Vs. Ratios!
Copyright Findawish.com
11-15-02
My Pledge |
Sources
More articles
I have to admit, I wrote this article on the 9th but I didn't want to
publish it for fear someone would steal my ideas...then I remembered that
about 10 people actually read my articles so here it is.
Introduction:
Before reading this article
and definitely before sending an email, read the sources and pledge
sections.
OK so I don’t promise to make you rich if you read
this article and if you really think about my points you already know
them. I’m going to write them down anyway because most of the articles I
have read about making money have stupid points; yet millions of people
are still like me, not rich. Maybe if I keep telling myself to actually
follow these points some day I’ll make it into the millionaire club
and beyond…some day.
Let’s start out with a point I made in another
article about why most
celebrities don’t make "too much money". All of us work for someone,
if we are actually working anyway, but that is another article in itself.
Most of us work for a single employer or maybe two employers. Then there
are people that are “on their own” and work for people or businesses in
general. These people are normally called the “self-employed”. I have
found myself working for a single employer many times and like most of you
I absolutely hated it. Here’s a few reason why you should take a serious
look at your current employer and maybe even your current profession.
Check out our Flash Presentations Here
To figure out how much you are missing out on figure
that you make $10 an hour, your employer’s expense to employ you is $30 an
hour and your employer charges their customers $100 an hour for your
services. Your employer’s expenses include your share of the building you
are in, the electricity, the secretarial, legal, accounting and other
expenses your employer incurs. I use these numbers for simple math; your
employer makes $70 an hour off of your services. Obviously your employer
is getting rich faster than you are …yet you are doing the work. Some
employers give bonuses but these bonuses rarely include 100% of the profit
after a certain point…yet you are doing the work.
Your employer, in this case, is a celebrity. Your
employer can draw the attention of more people than you can and,
therefore, may deserve the $70 an hour they are making off of you. If you
are a computer repair specialist you would be hard pressed to average the
$10-$30-$100 ratio on your own. Wouldn’t you?
Join the Disney Movie Club and get 3 FREE MOVIES!
Well actually…probably not. At the $10-$30-$100
ratio for your employer you are making about $20,040 a year. Who said you
had to maintain that same ratio once you go out on your own? After
re-reading my articles I know I didn’t say that. Now that you are working
for yourself, your ratio doesn’t have the same middle man. You were the
$10 and that is part of the $30 expense. You are now the $30 in a
$30-$100 ratio. Think about it for a minute. Yep, I’m right. Now you
are pocketing $70 an hour instead of $10. You have to work just 1/7th
of the time you normally had to work in order to make $20,040 a year.
Instead of having to find work for 2,040 hours a year you can afford live
the same lifestyle and work for just 292 hours (about 2 months) a year.
You don’t have to draw such a large crowd any more! Congratulations, you
are now a celebrity. You can now either find your niche and stick with it
until it fizzles away or work more than 292 hours and use your new found
wealth to develop your status and enter new fields.
Click here for
Free Online Games
Sounds simple doesn’t it. Yes and no. Some
professions don’t have the same ratios. If you bag groceries, for
example, it is not too likely that you will be able to find the 292 hours
at $100 an hour to make bagging groceries on your own worth while. I
doubt you’ll find even one hour at $100 an hour. If your profession
doesn’t have the right ratios you’ll need to find a profession that does
have the right ratios.
Post
your item in the classifieds for $10 including color picture, full
write-up, posted for as long as your item is for sale. Items under $100
free, vehicles under $1,000 free.
Another set of problems with the ratios are that just
because your employer charges $100 an hour that doesn’t mean you will be
able to and just because your employer’s expenses are $30 an hour that
doesn’t mean your expenses will be $30 an hour. Some law firms, for
example, are able to charge large sums of money an hour because of their
name alone. Maybe you can only charge $70 an hour.
Don’t let this discourage you without thinking about
it. Charging $70 an hour, your ratio is still $30-$70 and you only have
to work ¼ of the time or about 501 hours to make the same $20,040 a year.
What you do with that other ¾ of your time may make the difference.
If you are a professional printer your employer had
to invest a lot into a printing machine and is able to do that by
distributing the entire cost of the machine over many employees for as
long as it takes to pay off the machine. Your employer then may have $20
an hour spread out over 10 employees that each make $100 an hour for the
employer. On your own your expenses would be $200 an hour and you could
only charge $100 an hour.
Don’t let this necessarily discourage you either.
Assuming you can find a way to buy or lease a printing machine, figure
that your expenses are $200 an hour but you can charge $100 an hour. You
only have to have 2 employees plus yourself to start making money again.
Your ratio would look something like $220-$300. Expenses would be $220
because you have to pay your 2 employees at least as much as you were
paid. You are making $80 an hour. Making $80 an hour means that at most
you only have to break even for 1,790 hours and make $80 an hour for 250
hours to make your original $20,040. Remember that during that year you
are employing 2 people that are making $20,040 a year. At least you can
take comfort that when your employees start working the ratios they will
see that they are only making as much as you are and not strike out on
their own.
There is so much more to think about before you go
out on your own. Legal issues are usually enough to scare the “celebrity”
out of most people. People are sue happy and eventually you will
encounter some legal issues. Hopefully I’ll be able to tell you how to
deal with legal issues soon without having to experience any more myself
but for now I just say do the right thing every time, be careful who you
work for and what you promise, swallow the fear and jump off the cliff.
It may take a while but eventually you’ll adapt and learn how to fly. If
you don’t adapt and end up hitting the ground, pick yourself up and work
for someone else until you find a new ratio. Most self-made millionaires
failed multiple times before they made it big.
I didn’t say this would be easy and I definitely
didn’t promise that you would be able to sleep every night and/or not have
to worry about money ever again. You’ll have to sacrifice and you
will have hard times (if you don’t at least tell me the ratios you found,
I told you about the ratios in the first place remember?). It would be
smart to think about all of this before you start affecting an entire
family. If I have said it once I will say it another thousand times, when
you are on your own, you are on your own and no one is to blame but
yourself. You will rarely find someone that will be there to bail your
business out when you fail. Nothing this good is easy though and just
imagine if you could cut your work time down by just 1/8 of the total time
you spend working now. What would you do with that month off? Your
answer will probably tell you if you are ready to become a celebrity or
not.
Sources
I may be stupid but so are you. Stupidity is not in the eye of the
beholder. Stupidity is believing that you are not stupid like the rest of
us. And yes, I am doing something about it. I am posting my
opinions for public comment which evokes public thought. Things may
get worse through this "public thought process" but at least they are
changing.
My Pledge
As you may notice in the many articles to come, I absolutely can not
stand people that have an opinion about something they know very little
about or didn't take the time to research before giving their opinion. I
pledge that I will not write a single article about a subject that I don't
know enough about to see several sides of the issue. If you think I am
missing something,
I'd love to be the first to know about it.
Introduction |
My Pledge | Sources
More articles |
