It’s Hard to Win as an Employee

| 2015-09-25


What happened to the American Dream? Decades ago the common belief was that a high standard of living and financial freedom could be attained by anyone through hard work. Today, many feel that they’ll likely never retire and debt is just a way of life.

Do you know how depressing this sounds?

The truth of the matter is it’s becoming increasingly difficult to get ahead as an employee. This article looks at three factors that play a role.

1. Low Wages
2. Taxes
3. Higher Cost of Living


When an individual trades her labor for income, how much she makes hourly is significant. The more she makes, the more goods and services she’s able to purchase. The issue with wages is that they have remained relatively flat over the last 40 years, when adjusted for inflation. If the price of goods and services remained the same over this span, it wouldn’t be such a bad thing. But as we’ll see in the final section prices have risen steadily over the same time period. This means that a lot of workers today simply don’t make enough money as things are just too expensive. Their only option is to work longer and harder.


The second reason it’s difficult to build wealth as an employee is because of high taxes. Employees do not receive the same tax breaks as investors and businesses. For some people, four months out of the working year go to paying Uncle Sam. It’s hard building wealth, or even making ends meet, when a significant portion of your check goes to someone else.


The last item is consumer prices. If you’ve bought groceries or gas lately, or even paid a utility bill, you are aware that prices are high. As discussed in the first section, many people are pressured to make things work on a small income. Prices have risen sharply over the last several decades, and they will only continue to rise. The individual has two choices: reduce spending or increase income. It’s wise to do both.


If getting ahead today as an employee is so difficult, have you ever considered NOT being an employee? Most people are struggling today because they lack a financial education. Over the last four decades, wealth has gone to individuals who DON’T work hard for money. It’s gone to people who know how to have their money work hard for them.

Financial education is about learning how to have your money work hard for you and legally reduce taxes – like the rich. Being an employee doesn’t work anymore. It’s time to work smarter, not harder. Learn how to make your money work hard for you.

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