The Reason Why Investment is Better Than Working

The Reason Why Investment is Better Than Working

For some time now I have been sharing with you about the “concept of wealth creation”. In that case I highlighted 18 rules of wealth creation such that if

implemented properly has the power of changing your status quo financially or wealth-wise. Most times even when we have the right information to make us finanancially free yet bulk of our problems is taking actions.
 

Having said that, in this article I am going to share with you, in my own opinion, the reason why investment is better than working. If you can recall from one of the 18 rules of wealth creation above I stressed the need for you to be an employer rather than be or remain an employee. Despite the fact that views on this subject differs from person to person, let me seize this opportunity to clarify you in my own opinion why I believe that investment is far better than working. Are you ready now? If yes, let’s go on then.

To invest simply means to buy property, company shares, etc in the hope of making profit or generating interest. It can also mean to spend money, time, energy, effort, etc on something that you think is good or useful. Although views on this subject differs from person to person but let me share with you the reason I believe that investment is far better than working. Thus, investment is the act of investing. Although people invest for different reasons but the primary purpose of investment is to have something as a reward in return which is a called return on investment (ROI). Investment is usually classified into three based on time hence there is short, middle and long term investment.

Mathematically,

Profit = Selling price – Cost price.

That is if you buy something at a lower price and you sell that thing at a higher price then you will make profit. On the contrary, loss is when you buy at a higher price but selling at a lower price.

Note: Net Profit = Gross profit – Expenses

Investment has a reward called profit or interest while on the other hand work has a reward called salary (earned every month for work done or services rendered) or wages(earned usually every week for work done or services rendered). It should be noted that there are instances in some underdeveloped, developed and developing countries earn rewards hourly or daily for work done or services rendered. If you are someone  who works  for salary or wages you will have increased salary or increased wages as well as r bonuses and sometimes allowances depending on your place and nature of work. If however you work as an affiliate for affiliate companies (online, offline or both)  you may as well have increased commissions depending on the affiliate company and your level in the company. 

Mathematically, the rewards for workers are in the form of additions to your normal or basic salary or wages. On the other hand , investment rewards are in the form of multiplications if the investment is done with discretion. This is because salary or wages move in the form of an arithmetic progression ( i.e a series of numbers that increase or decrease  by the same amount each time e.g  2, 4, 6,8, etc) while investment moves in the form of a geometric progression ( i.e a series of numbers that increase or decrease when multiplied or divided by a fixed number to produce the next number e.g 1, 3, 9, 27, 81, etc).

In addition to the aforementioned reasons given above, investment places you in a position of authority. This means that as a wise investor you are more or less an entrepreneur and so you have some control, if not all the control, over your investment unlike the worker who remains a subordinate regardless of the position you are in the company you work for. Unless you break away from that shell of subordination by working and saving for the purpose of investing wisely, you can never create wealth. Now the tell me, would you be a worker or an investor? The choice is yours to make.

Food for Thought: “Every problem has a formula and so if you apply the right formula you will get the right result”.