Monday, September 1, 2008

Everyday is Labor

Yes, that's right - everyday is labor! You're either going to have to get out there and labor away your days, or you're going to have to get other people to do it for you. There are only two choices.

Of course, I would choose the second choice anyday. And that's how a business works. Sure, the workers are paid their share of the profits the company generates, but ultimately, it is the owners who are making money off the backs of the workers. Of course, this doesn't stop you from being the owner of a corporation (through stocks) and at the same time laboring away at one.

It's like this: If you can generate $50/hour through whatever economic activity it is that you're doing, a company would pay you maybe $20 to do the job. They'd take the rest of the $30 and do other stuff with it; such as marketing, R&D, and profits, etc.

Now, the thing is that if you're a worker and have to work all the time in order to support your lifestyle (however grand or sparse you choose it to be... YOU choose...), you're going to have to be using your own body and mind to do that labor every day. In order to support all the material things that are your life - you're going to have to keep working. From that, you'll have to save a portion (parsimony) to support yourself when you're not working or can't work (vacation, retirement, etc.). BUT, what if you get injured or can't work for some reason? Or what if you just don't want to damn work? Too bad! You've got to work because that's the path you've chosen.

You can choose another path, however, but you've got to do it early! You can choose to be the owner of an entity that continues to generate income for you even when you're sitting at home. What is that entity? Yes, it is a corporation or a business. Of course, there are some businesses that require you to work, and virtually all businesses require you to work at least at the beginning... but you better be aiming for a business where the reigns can be handed over to someone else AND still give you a nice monthly income (if you want to be truly free). In this way, you can still pass your days working on the business (which, in the context of the universe is probably insignificant... unless you're doing something that will change the world), or you can choose to take vacation at any time, OR you can choose not to work altogether! Of course, you're going to have to create this business for yourself or take one over somehow.