Are you feeling that the meagre monthly pay check that you are getting is no longer sufficient to sustain your lifestyle? Are you eager to find out what is the formula for earning a higher income?
On media and in news, you will get to know of people who earns millions and wonder how they did it? First let me ask you a question, “Have you ever wonder how did your employer/market determines your income?” You might say is contribution, hmmm.. not quite. The exact answer should be value. Be it if you are a 8-5 employee or a business owner, the amount of income is determine by the value you created. So the next question is how can we create more value in order to earn more? Below are 3 suggestions for you to consider:
1. To Work For Longer Hours
I guess this should be easy to understand. When you are an employee and work beyond 8-5 (the usual office hours), either you get more pay through over time allowance (OT pay) or you are being more productive in generating more results at a longer working hours (Assuming that you are a doing real work). Hence the value you added to your company is to put in more of your time and effort to generate more results/products. Best of all, what you generated has a direct co-relationship with your company’s revenues. This naturally will put you among the top candidates for promotion. And with promotion comes with higher salary and tadaa.. more income for you. Your boss will be gladly to reward you for your hardwork to encourage you to work even harder and longer for the company.
However, the truth is that this method is what I term as limited and a non-sustainable way to increase your income. Why? The reason is simple.First of all, although all of us have only 24 hours a day, we couldn’t be trading all our 24 hours for money. We still need to sleep, eat and shit anyway. Hence, no matter how a tough guy you are, the most you can go is working for 16 hours a day? And I cannot imagine how shag you will be if you choose to work at this rate.
Second, let’s say you are in your early twenties and still single, you can easily commit yourself to a few hours more per day in your work to produce results. Sooner than you realised, you will meet someone you love and together you form a family with kids. You realised you can no longer commit the extra long hours you gave before because you couldn’t wait to fetch your kid from school and weekend to you are precious for family bonding. Moreover, upon hitting near 40s, you realised you are no longer as energetic as before as you get tired easily. Thus, you take frequent medical leave to go for your checkup etc. Your boss might thought you are no longer committed to work as he don’t get the same value you gave before and therefore your pay will be stagnant for the many years to come.
Therefore I would only recommend method 1 to the young graduates who are fighting for their career at the beginning stage. The longer hours you put in can not only generate value to make up for your inexperience but it can also be your stepping stool to gain more knowledge and skills from your job. Then what about the more senior or experience staff? Is there hope for increment? Let’s move on to method 2.
2. To Upgrade Yourself
Method 1 discuss mainly about productivity. To recap: how you create more value is to commit more of your time to generate goods and results for your company. Method 2 on the other hand, will be on efficiency. This will mean by investing your time and perhaps money in taking enrichment courses that teach you how you can create more value at the same stipulated time frame. If you are lucky, your company will send you for such courses for free! and in return, you increase your efficient and thus more value for the company. An example of such courses could be on automation.
Let’s say you work for a bakery. Everyday you can bake a total of 8 cakes from 8am to 5pm in your usual working hours. As a skilful baker, the 8 cakes you bake sells like hot cakes everyday. You realised the demand is high and you, being a reader of spectra of life blog, remember reading about method 1 and say to yourself. “Hey let’s create more value by working longer, than I can bake 2 or more cakes per day!” But you also just learn about method 2 and just happen that you completed an automation course, you decide to put what you had learnt into good use. And true enough, with machinery and automation, you are able to produce 20 to 30 cakes per day and all of them still sell like hot cakes! Wola, there you have created instant value for the bakery and no need to mention, promotion is also coming along your way.
Although method 2 sounds great, but can you do better than this? Method 2 guarantee you to create more value through the concept of leverage to increase your efficiency but it still lack of an impact. So how to create the impact? Read on…
3. To Reach Out For The Masses
Methods 1 and 2, teaches you to increase productivity and efficiency in the context of to your one company or your only business (if you are a business owner). The value you created will only potentially reach limited hands and therefore at some point in time, the income will still plateau.
Method 3 is the ultimate method we all should learn and adopt in order to have limitless potential in creating income. This method want you to multiply your efficiency in creating more value. What I meant by multiplying is to generate the same amount of value at the same efficiency to a larger scale of people. This way, your value is received by more people and these new recipients will give you a sum of money in return.
So you might wonder how do this method come into real life context? In fact it has been happening everywhere in our daily life, for example the business model of franchising. Macdonald’s , the largest franchise retailer has a global presence hence they are able to sell burgers to every human possible living in this world. Now that’s a lot of business as our world population is growing exponentially every year!
As an employee, you could think of other channels to provide value to the masses, for example creating an info business on the internet etc. Take your hobbies and turn it into a business idea. For example, holding a class to teach about sketch-booking, cooking or even photography. Basically anything! Through these, you should be able to have multi streams of income from people who receive lesson as values from you.
So dear readers, do think about what how you can do to create more value. And I truly hope that you would not employ method 1 for long. Make it a temporary solution and move on to method 2 and even 3! Do not have a limit on the amount of value and the things that you can create as we are all created to achieve greatness and success in our own race!
All the best!