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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