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Salaried class! Working for money?
It is serious misconception that one has to
work hard to earn money as salary. For more money, harder and longer
you have to work. It is like taking water in a bucket. How many
buckets one can carry? When you become old, you won’t be fit enough
carry the buckets. If one gets more salary, it is like having a
bigger bucket. That’s all. Nevertheless you cannot carry more water
after a limit because time and energy available to you is limited.
Pipeline Income:
Better way of fetching water is to build a
pipeline. In the beginning one has to work to design, build the
pipeline. That is it. Water continues to flow for ever. Okay, what
is the pipeline for money? INVESTMENTS. The yield is profit /
dividend.
Wealth creation:
When
an investment gives yield or profit, the profit can be again
re-invested. When this is done in longer period like 5 to 10 or 20
years, the value of the investment will be incredibly big. This is
called ‘compounding’. (See also The power of compounding) |