ASHOK Rao, the account head of a pharma company, joined his first job 12 years back. He goes to the office every day, works for 8 to 10 hours and, at the end of the month, gets his pay. This is how he will spend rest of his working life. He has no idea how to move up in life despite being in the rat race for over a decade. It can be done, but it does take time, effort and desire to make one's life better and more productive.
In the last article, we got introduced to the concept of active income, income for which services have been performed, such as wages, salary, professional services like doctors, lawyers, business income, which requires continuous participation.
Normally, people spend hours at a workplace. After all, one needs to work in order to earn. That’s why we usually use the phrase ‘no work, no money’. However, the amount of income is not actually determined by the number of working hours. Today, we will see how the choices we make impact our earnings and also how one can make that move up in the ladder swiftly.
What is the difference between a cleaner dedicating 10 to 12 hours of work and a CEO of the company putting in the same amount of time? Obviously, the money. The amount of rewards one gets is related to the amount of authority, responsibility and risk one is willing to take.
For a salaried person, salary levels are largely dictated by the contribution that the employee makes to organisational performance, which is normally related to the impact of profitability. When you understand this principle, you begin to take control of your salary rise. You can find or develop a role, which commands a higher value, and therefore a better salary. You can do this either with your present or new employer by accepting more responsibilities. Contribute to the organizational goals and profits. Professionals are compensated for their job on hourly basis. Look at the ways you can increase your professional income. Provide additional services related to your profession. Become an affiliate of a complimentary profession, and create a linked network. Organise a seminar or workshop, educating people on your topic, and spread awareness.
Finally, try to get the maximum out of the time and energy you spend while working. This will go a long way in determining the quality of your life.
In the next part, we will find out the ways to increase passive income, and how to add multiple streams of income into your existing income stream, without working for it.