What Do You Think It Takes To Earn A Million Dollars?
February 26th, 2008 Filed under: Uncategorized — Small Home Business AuthorDid you know that the vast majority of “wage earners” will earn less than that their entire working lives?
Better than 95% of working people, right here in the U.S.! Lets do the math…
The U.S. gross median income today is around $35,000 per year,
The average person has a working life of around 50 years (age 17-67).
I will take a high average of $30,000 for each of those 50 years…
1.5 million dollars gross…
After income tax, property tax, sales tax, and every other tax-
That leaves us with about one million cash for a lifetime of work.
Please understand that this is a simplistic evaluation for the sake of argument, this dose not include variables such as bank interest, stocks, bonds, property wealth, etc… But I will touch on these anothertime.My goal is to impress upon you the true meaning of this amount, and what it takes to be a millionaire.
The majority of us will buy homes, cars, food, clothing, energy, insurance, and education.Raise families, live, love, play, for most of our lives on one million dollars. Many “self-styled” wealth “gurus” like to throw that number around because it makes for good ad copy, Million, Millionaire, Make Millions, and so on.
The reality is that most people don’t really understand or care about money itself.
Most people love the “idea” of wealth and what it can bring. Freedom to quit a job, a life of luxury, most of all, freedom from work. I’m sorry, but there is no such thing as freedom from work.
It is this dream of wealth that blinds many of us to all these “million dollar cons”. “A sucker born every minute” is a reality and will keep con-artists in business. Also why many of us will continue to be scammed, suckered, and bamboozled for a very long time to come!
Self-made millionaires, if you ever meet any, are some of the hardest working people you will ever meet.
What is the difference between the top 1% U.S. earners and the other 99%? Smart business minds see money as a tool, and utilize it as such. And sure, to most people, “cash is king”. To the entrepreneur, cash is blood, oxygen, life of the business. And without it, business can’t survive.
What if a successful entrepreneur offered to teach you how to make $1 a day-every day, for ten minutes of work a day? Sound like a joke? Which sounds more like reality?
-”A Million a year working part time!”
-A twenty dollar eBook promising several thousand per week for a few hours work?
-A several thousand dollar course promising a million the first year?
-A solid, common sense plan, step by step, and the first step is one dollar a day?
Which is reality, Which is fantasy? You be the judge!
Are you thinking “$365 a year, why bother? Consider compounding, or multiplying your effort. One dollar for 10 minutes of work, work 1 hour $6, work 2 $12, and so on. As you gain knowledge, your skills sharpen, your efficiency increases. One dollar will become two, then five, then ten and so on.
That is how you build a business, that is how you build a fortune. $100 a day, sound better? Then read on…
Consider reinvestment, Many of these “get rich quick” Gurus love to tell anyone who will listen how they”made a million” doing this or selling that. Just assuming thats the truth, what they will forget to mention is the $500,000 or more it cost them to earn that million. They will also forget to mention the many years of 14hr days spent building to that level. The many years of developing skills, acquiring knowledge, networking, and the many failures along the way.
Most successful companies will reinvest 33% to 50% of income. The least efficient, or those with massive overhead costs, will spend 80-95 cents for every dollar earned. Yes it costs money to make money.
As your business grows, reinvestment will be necessary. You will spend on marketing, education, automation(software, employees,etc…). But in the beginning all you will need is time.
Develop a realistic plan and follow through. Begin with incremental goals and try a variety of methods. Identify each successful approach and work on compounding those efforts. Invest in automating your labor. Strive to work smarter and not harder.
There is no easy plan or simple “course” that will teach you. Everyone has there own unique gifts and abilities. Identify your own and be aware of your limitations. Be completely honest with yourself and open to criticism. Strive to bring an element of creativity and enthusiasm into your work. Let the work be it’s own reward, then you’ll be on your way to earning that fortune.
About the Author…
Eric Lorence was a “long haul” truck driver for twelve years before leaving the industry to start various internet businesses and engage in other pursuits.
Visit his Home Page at http://www.zentrucking.com/
Eric’s marketing blog at http://www.thoughtsearch.com/
