Breaking The Financial Trap: Creating A Secure Retirement (part 2 Of 5)

Part 2 of 5: A Bold Solution

Part 2 of 5: A Bold Solution

Sooner or later we're all going to find ourselves face-to-face with the

consequences of the financial trap that is being spun around us every

day. Like it or not, there are those who will, if they can, keep us in

debt for the duration of our lifetimes - and beyond. The sooner we

accept this fact, the sooner we can focus on creating the extra income

strategy necessary to successfully fight back.

I call this strategy the "Millennium System" - in other words, the

system for creating financial security in the new millennium. So if

you're ready, let's roll up our sleeves and get to it.

In order to understand the "Millennium System" concept, we must first

understand how income is generated. There are basically 4 ways

to legally earn money in a capitalism-based economy (not including

inheritance or gambling):

1) as an employee,

2) through self-employment,

3) by owning a business, and

4) by investing capital.

Let's take a quick look at each of these.

1) Employee - If you think that working harder for a promotion, or

taking on another job, is the solution to your financial worries, then

let this be your wakeup call. Unless you are at the very top of the

entertainment, athletic, or corporate pyramids, the fact is you will

never be able to trade enough hours for dollars to make a real

difference in your wealth.

There are two unavoidable negative realities working against every

job holder: taxes and the nature of business. As with gravity, you can

fight against them for a while, but they will always win out in the end.

Capitalism is a system designed to reward those with capital, and

consequently punish those without it. That's why your bank charges

you an extra fee for a bounced check; you're punishment for not

having enough money is to have more money taken from you.

As an employee, because you don't have much capital, your

punishment is you get to pay the highest taxes of anyone in the

economy. And there are virtually no tax shelters available for your

income. It's like being the fox at a fox hunt; the game is simply not

designed for you to win.

The very nature of business works against you for the same reason.

For example, even though studies show most Americans would prefer

to telecommute at least part of the time, and the environment would

certainly benefit from less traffic on the roads, productivity demands

and management's need for control will prevent the vast majority of

workers from ever discovering the joys of working from home.

Businesses turn a profit by keeping costs lower than revenues - and

labor is far and away the largest cost center for most businesses.

Therefore, if your primary income is from a job, understand this basic

fact of life: a company's ownership will never pay an employee more

money than it costs to replace them.

For example: ever heard of age discrimmination? The reason so many

employers get away with it is because it's easy to legally justify

replacing older, expensive labor with younger, better trained, hungry

workers willing to work for less.

(And as for the value of experience, it's actually overrated. Most

10-year employees don't have 10 years of real experience; often

what they really have is one year of experience repeated 10 times.)

It's the same with automation - if a computer or robot can learn to do

your job faster, better, and cheaper than you do, you'd better face the

fact that your days on that job are numbered. It's simple economic

wisdom - and it's good business sense if the company wants to stay

competitive.

It turns out that your economic progress, and your family's security,

is determined much more by how well you use your mind to creatively

add value to the marketplace, than by how long and how faithfully

you're able to follow other people's directions.

So the moral of the story is this; a job is meant to sustain you while

you prepare yourself to become a business owner. It was never

designed to make you financially independent, and it never will. The

solution? Instead of fighting the system, get financially educated,

and get on the winning side!

by: skyvault

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