What is your economic accelerator? (Part 2)
I wrote previously that an "economic accelerator" allows you to get faster and sooner to your ideal financial situation (one million dollars in the bank, perpetual yearly cashflow of $50,000, etc.).
Another way to put it is that an economic accelerator is something you do which helps you to create MORE value, resulting in MORE money coming your way.
Unfortunately, some jobs are simply "economically challenged": no matter how much value you create, your boss can simply NOT increase your income. In that sense, some jobs (or corporations) operate almost in a Communist-like fashion.
In fact, the more value you create (or the more efficient you become), the more WORK your boss will give you!
Not surprisingly, most office workers do the minimum to get by (below that minimum, you run the danger of getting fired).
The ideal job is one that is "economically liberating": that is, the more value you create for customers, the more income you get.
This is not a utopian view. Warren Buffett, in fact, says that the most important communication to employees has to do with "compensation."
What he means is that employees should know CLEARLY how they make money, and how they can make MORE money.
However, here we run into a phenomenon that is largely invisible yet is no less real: most employees are kept in the dark about how they create value, for the simple reason that if they truly knew HOW they create value, they might then quit the job and become an independent contractor or even a startup company competing with the employer.
Employers prevent that from happening by, of course, making all employees sign a Non-Compete Agreement, forbidding them to compete against the employer for one to two years after they leave their jobs.
Another way employers prevent the danger of employees-becoming-competitors is to HIDE from employees HOW value is actually created for customers.
This seems fair. Indeed, if you were a capitalist and a business owner, you would probably behave similarly. You would hide from your employees the critical knowhow they need, so they would remain dependent on you to make a living. As the saying goes, "Give a man a fish, and he will work for you. Teach him how to fish, and you just lost a valuable employee."
The problem, of course, is that without this value-creation knowledge, you live your entire life without tapping your business potential. Business knowledge, which is key to wealth creation and becoming financially independent, is thus hidden from the masses of people.
As a result, otherwise smart and creative people live an entire lifetime WITHOUT ever benefitting from the capitalist system, which enables and empowers any business person with the opportunity to create massive amounts of wealth by pressing the gas pedal that I call "economic accelerator."
The only person who has his foot on the gas pedal, is the business owner. Everybody else (employees) is a mere passenger, who has no control over their economic destiny.
In future postings, we'll see how you can find your economic accelerator so that you can proactively take charge of how much value you create and, by extension, how much money you make.
Another way to put it is that an economic accelerator is something you do which helps you to create MORE value, resulting in MORE money coming your way.
Unfortunately, some jobs are simply "economically challenged": no matter how much value you create, your boss can simply NOT increase your income. In that sense, some jobs (or corporations) operate almost in a Communist-like fashion.
In fact, the more value you create (or the more efficient you become), the more WORK your boss will give you!
Not surprisingly, most office workers do the minimum to get by (below that minimum, you run the danger of getting fired).
The ideal job is one that is "economically liberating": that is, the more value you create for customers, the more income you get.
This is not a utopian view. Warren Buffett, in fact, says that the most important communication to employees has to do with "compensation."
What he means is that employees should know CLEARLY how they make money, and how they can make MORE money.
However, here we run into a phenomenon that is largely invisible yet is no less real: most employees are kept in the dark about how they create value, for the simple reason that if they truly knew HOW they create value, they might then quit the job and become an independent contractor or even a startup company competing with the employer.
Employers prevent that from happening by, of course, making all employees sign a Non-Compete Agreement, forbidding them to compete against the employer for one to two years after they leave their jobs.
Another way employers prevent the danger of employees-becoming-competitors is to HIDE from employees HOW value is actually created for customers.
This seems fair. Indeed, if you were a capitalist and a business owner, you would probably behave similarly. You would hide from your employees the critical knowhow they need, so they would remain dependent on you to make a living. As the saying goes, "Give a man a fish, and he will work for you. Teach him how to fish, and you just lost a valuable employee."
The problem, of course, is that without this value-creation knowledge, you live your entire life without tapping your business potential. Business knowledge, which is key to wealth creation and becoming financially independent, is thus hidden from the masses of people.
As a result, otherwise smart and creative people live an entire lifetime WITHOUT ever benefitting from the capitalist system, which enables and empowers any business person with the opportunity to create massive amounts of wealth by pressing the gas pedal that I call "economic accelerator."
The only person who has his foot on the gas pedal, is the business owner. Everybody else (employees) is a mere passenger, who has no control over their economic destiny.
In future postings, we'll see how you can find your economic accelerator so that you can proactively take charge of how much value you create and, by extension, how much money you make.
posted by Super Peter at 1:50 PM
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