The profit system is how eight out of ten millionaires made their money.
What is the profit system? There are two basic money making systems.
They are the wage system and the profit system.
The Wage system entails trading time for money.
If you have a job and are receiving either an hourly wage or a salary you are on the wage system.
Also if you are in sales but are only making commissions when you are on the clock at work you are on the wage system.
The profit system entails putting money to work for you.
There are two main ways to do this.
One is to own a business system that, once set up, generates profit whether you are there or not.
Two is investing.
They are related because your business system is an investment, but there are a lot of different things to invest in besides business.
To state the obvious, profit is all the money that comes in after expenses are paid.
Wages are the money that comes in after the time is spent.
Time to get real.
No one gets rich in the wage system.
(Except rock stars and professional athletes.
So if you are not one of those...
).
The reason is that there is less apparent risk in trading time for money.
You know there will be a pay check at the end of the week.
You know how much it will be for, and you know what you have to do to get it.
Sales jobs are a slight exception because there is a little more risk.
You don't know how much you will earn until after your sales are made.
And sales commissions usually pay better than an hourly wage.
Now within the profit system there are usually many risks.
If you start a business it may fail.
If you invest in a stock it may drop in price.
However they might not, and if you get good at analyzing and can develop a tolerance for risk then your rewards will be great.
For entrepreneurs failure is the daily bread, more so than success at first.
But all failure is an opportunity to learn and grow.
Learning from mistakes can teach you how to minimize risk and maximize profit.
Learning to use the profit system is risky, and fraught with peril.
That's why not everyone does it.
That is also why once you develop some skill at it you will generate way more income than you ever could while working for someone else.
If you have a job you are a cog in an entrepreneurs business system.
You are getting paid because he is making ten times more than that to have you run it for him.
And he doesn't have to invest his time like you do.
The exception to that is the self employed business owner who owns a glorified job.
If the business doesn't run without your presence you are still trading time for money.
Maybe you just like working at your own business.
If you can go on vacation half of the year or more and your business still runs with out you then you own a business system.
Here is a very basic idea of how to get rich for real.
Invest time and money in educating yourself about the industry you're interested in, and buy a business system.
Do whatever it takes to get it off the ground.
Once it is up and running, tweak it as necessary to make sure it is running itself profitably.
Learn everything you can about how money works and start investing the profits from your business in different ways.
Educate yourself and analyze opportunities before you throw money at them.
You can't eliminate risks, but this will minimize them.
Be patient, learn from failure, never quit, have a vision, be relentless, surround yourself with successful people.
And did I mention never quit!?