It seems a lot of people spend their years working to climb the ladder of success. As children, we were told that if we climbed the ladder, achieved a higher position and earned a C-suite title, then we would have lots of money, nice homes and cars, and can live in the lap of luxury.
That Was a Lie
Truth is, we work hard for someone else, climb the ladder, and then realize our most precious commodity – our time – has been taken from us. The money we worked hard for doesn’t buy assets, it buys liabilities like cars, houses and vacations. Then we hope and wish our retirement accounts have enough in them to last throughout our lifetime.
As Robert Kiyosaki stated “It’s fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money…That’s the fear of studying to learn a profession or trade and then working for money. Most people become a slave to money…and then get angry at their boss.”
It’s not the big title, or how high you rise in corporate America. It’s about working toward the title of investor that people should aim to achieve.
Salary vs. Dividends
Let’s take a look at a couple of world-famous CEOs vs one of the most successful investors, Warren Buffet.
- Apple CEO Tim Cook made $99 million in 2021
Warren Buffet invests in Apple and collected $800 million in dividends in 2021 - Coke CEO James Quincey made $18 million in 2021
Warren Buffet invests in Coke and collected $169 million in dividends in 2021
Now, by no means is a $99 million salary something to sneeze at, and certainly Tim Cook has enough to live off of for several millennials. But let’s take a look at their job description.
They Both Make Good Money, What’s the Difference?
The CEO
- Works long hours
- Maximizes profitability of the business for shareholders
- Makes the tough, top-level managerial decisions
- Serves as company liaison between stakeholders, government and public
- Develops strategies to keep company growing and relevant
The Investor
- Sends money out to works the long hours for him/her
- Acquires cash-flowing assets
- Ensures portfolio is profitable
- Has a wealth-building mindset instead of a bottom-line, profit-building mindset
Conclusion
Working for money is not a wealth-building strategy. Even though there is nothing wrong with being a CEO or president of a company – in fact, they are needed to help run successful businesses that provide for consumers and build our economy – but while working those hours and earning the money, be sure to put that money to work by buying assets that pay you each month. Then you control your future, your time and ultimately your life.
To learn how note investing can help you build wealth, check out this free webinar and learn more on the Note Investing 101 page. Then reach out at info@pierharbor.lmc10.com for further information.
