Profits are better than wages.

“Profits are better than wages. Wages will make you a living, profits can make you a fortune.” – Jim Rohn.

There is nothing wrong with working for wages. In fact billions of people around the world work for wages. In a capitalistic society the reward equation is skewed towards profit maximization. The person who owns and deploys capital obtains more profits than the wage earners he employs. As part of his profit generating engine, the capital owner employs wage earners. Naturally the capital owner will try to pay as little wages as possible to be able to maximize his profits. So a wage earner by design will never earn more than someone making profits within the same enterprise.

It is difficult to earn wages from two or more employers at the same time. By definition wages are given in exchange for time rendered and as far as we know man cannot be in two or more places at the same time. Wages earners are easily dismissed and replaced by the capital owners. Millions have learnt the hard way the futility of relying solely on employment for their livelihood.

There is no upper limit to the amount of profits you can earn. You can be a shareholder in hundred’s of businesses and earn continuous dividends. Your businesses can create all sorts of new services and products from thin air. You can earn interest on your capital indefinitely. 

To become a profit earner you have to divorce your time from the wage earning equation. As long as you are trading time for money there is a natural limit to your wages. You have to trade your time to build businesses which earn profit. Start even while still in employment. Use the time after 5.00PM and weekends to build your side hustle. This way you start to slowly convert your wages into profits.