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What's your Wealth Creation Equation?




Every human being on the planet me, you, your parents, your children, your grandparents. Every single one of us has a mathematical equation attached to our back you can't see it but it is there and it is different for everybody. No one is immune from this equation just like no one is immune from breathing air or drinking water. Think of it like an invisible backpack that is holding a bunch of variables and those variables create your equation. More importantly, you control the variables that are in your backpack and how they formulate your equation. So what is this mathematical equation that everyone has. It's called your Wealth Creation Equation (WCE), more specifically it is how you earn income and generate wealth.


WCE =Rate of pay per hour x (hours worked – taxes).

If you're unemployed and you don't make money, your wealth creation equation is simply 0.
Now let's assume you have a job at Java making Ksh 1,000 an hour. Congratulations you've just put new variables into your backpack and got yourself a new wealth equation.

So you go from WCE = zero to WCE =10 x (hours worked – taxes). So if you're trying to kill
yourself by working 80 hours in one week at Java, they will pay you ten times eighty hours or Ksh 80,000 minus taxes leaving you with about probably Ksh 68,000 so if your goal is to become a millionaire in two years, you would need to work 100,000 hours at Java or 968 hours every week for the next 104 weeks.

Cons of salaried work


Number one, you can absolutely not scale time as it is fundamentally impossible for you to work more than 168 hours a week. It is also impossible from a health standpoint time. Some people will push it and work 50, 60 or sometimes 80 hours a week but the bottom line remains. Time cannot be scaled.

Number two, it is near impossible to scale wages or salary infinitely no matter if you are making Ksh 1,000 an hour or Ksh 2,500,000 a year you cannot walk into your boss's office and plead to be given a 4,000 % pay raise.

Importance of Choice


Your wealth creation equation changes through your behavior and your choices. Getting a job is a choice which carries with it, its own equation. Starting a business dependent on your time is a choice which comes with its own equation. Choices determine your equation and you control all of it so if you want to get rich, change your choices so your wealth equation in your backpack contains variables that can be scaled and manipulated.

25 years old and rich?


For instance, if you're looking at a 25-year-old who is insanely rich and wondering how they did it, look no further than their choices, their behavior which manipulated their wealth equation. Simple wealth equations with variables that do not scale or cannot be manipulated, does not create wealth. However, large wealth equations with scalable and controllable variables does so. A person like Jeff Bezos or Bill Gates get paid millions of dollar per hour and their WCE is very high. Their WCE is infinitely scalable and the best part is they make money even while they are sleeping. A great business or a high income skill raises your WCE. This means you work less and you get paid more.


In conclusion, you alone control the simple mathematics that govern your ability to create wealth or not create wealth. Thank you for reading all the way to the end. If you have any suggestions on areas to talk about or what I can improve on, please write them in the comments sections. Ooh, and Happy New Year to you. See you next time!

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