Monday, June 8, 2009

The Story of The Pipeline

Wages earn you a living, whilst Profits make you a fortune.

One must first be able to discern between the 2 money concepts here, "Wages" and "Profits".

WAGES. A Wage is a compensation, usually financial, received by a worker in exchange for his/her labour.
  • Compensation in terms of wages is given to the worker, and compensation in terms of salary is given to employees.
  • Hence, Compensation are monetary benefits given to employees in exchange for the services provided by them.
PROFITS. Profits in economics = Total Revenue minus Total Cost
  • An employer pays an employee wages so that at the end of the day the employee will earn profits for the company. This is after the employee has slogged hard to bring in business contracts, and sales of products and services. Even then, the individual worker's hard-work is seldom appreciated as it is the total number of workers bringing in the sales that the company looks out for.
  • This is the reason for some companies to portray themselves as being attractive by branding their salary plan as being Profit Sharing. This spurs workers to work harder.
  • Hence if the company enjoys higher revenue, and lower cost at the same time, the profits would theoretically be higher.
"When you bring in more revenue for the company and reduce cost at the same time, you would be bringing in higher profits for everyone". True or not?

True. But must we live such a life?

  1. Why must we do so much, for so little in return?
  2. Why is it that when we dedicate 24hrs a day to work for a company, it does not pay us back in full.
  3. Do you feel that there are times that you are underappreciated working in a company?
  4. We could be paid so much because we are expected to deliver much more in return.
  5. Is earning a living from wages, enough to make me a fortune?
  6. I will not starve working for this job, but my hunger will never be satisfied.

Feel free to watch this movie, THE PIPELINE, if you want to seek answers to these grouses.
  • Please use the password, 3285981 to view this 10 min movie. It could change your perception of life.
  • It depicts why we work so hard in our work, and yet do not seem to be able to break out of this cycle of despair.
THE WAY FORWARD. The only way forward is to build your own pipeline. Building your own pipeline, determines the extent and sacrifices that you are willing to make while others seem to be enjoing a care-free life superficially.
  • Building your own pipeline represents forgoing all present benefits for a future, more sustainable one.
  • Only when you start to build your own pipeline, will you be able to make profits for yourself, and in turn your own fortune. You are no longer shackled by wages, and rather you would release yourself by the building power of profits.
Hence the saying, Wages earn you a living, whilst Profits make you a fortune.

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