Profits Are Better Than Wages

When I was 25 years old and struggling to pay my bills, I had the philosophy of most working people. I showed up, put in my time, and waited for a raise. If the raise didn't come fast enough, I complained. That was my entire financial strategy.

Then my mentor Mr. Shoaff introduced me to a different way of thinking. He said, "Profits are better than wages."

That one sentence changed my financial life forever.

The Problem with Wages

Wages are what you earn for your time. And there is nothing wrong with earning wages — it's noble work. But here is the limitation: there are only so many hours in a day.

If you earn $20 an hour, you can work harder, but you cannot work more than 24 hours. You've hit the ceiling. Wages have a lid on them.

Profits do not.

The Enterprise Mindset

Profits come from creating value — from solving problems, serving people, building something useful. You don't get rich by demand. You don't get rich waiting for someone to raise the minimum wage. You get rich by performance.

And here is the exciting part: you can develop this mindset whether you own a business or not. Even within a job, you can start thinking like an enterprise. Ask yourself: How can I bring more value? How can I solve a bigger problem? How can I serve more people?

Multiply, Don't Add

My mentor showed me America's economic ladder. It starts at $5 an hour and goes all the way up. The difference between the bottom and the top is not hours worked. It's value created.

So here is the philosophy that will change everything for you: Learn to work harder on yourself than you do on your job. If you work hard on your job, you can make a living. If you work hard on yourself, you can make a fortune.

That's the difference between wages and profits. One is limited by the clock. The other is limited only by your growth.