November 3, 2009

How Much Money Could You Be Making?


I have realized why some people stick with the 9-5 grind their whole lives, even though they want more out of life.

It’s not just a point of comfort and security – we are notorious creatures of habit. Once we get settled into a job after college, we keep on doing it simply because it’s what we are used to. The longer we stay in the grind, the higher our chances are that we will never escape it!

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Another point is that we are one of the laziest species on the planet – it’s very difficult for some people to motivate themselves and work much harder than others for less reward. What I mean by this is that, in the beginning of a business, an entrepreneur will work much harder than his 9-5 counterpart, and will probably earn less than the counterpart too! This is counter-intuitive to our survival instinct. The following graphs compare the salary one will receive and the effort involved with the grind, versus being a CEO:

Effort and Salary

Essentially, a 9-5er’s salary will steadily increase until it peaks in his 40s or 50s, where it will stagnate. His effort will revolve around various job promotions, but will never be much more strenuous from one day to the next.

An entrepreneur will start out with possibly much less income – and even runs the risk of losing it all and thus earning less than a 9-5er years ahead. But if he plays his cards right, he will succeed with 10x, 100x or even 1000x the income of a 9-5er! As for effort, the most possible effort is exerted by the entrepreneur in the very beginning of his enterprise, where he needs to perform all roles imaginable, be the most creative, and generally work 25 hour days. But after that, life just gets better and better, until he hits the 0 hour workweek ;)

So how do you go against your human nature and delve into the exciting world of entrepreneurship? You need to force it to happen.

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