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WAGE SLAVERY Wage Slavery
WAGE SLAVERY

If you work for a living then you may be a wage-slave. You need your wages/salary in order to live. You are enslaved to some type of employment; your time and services are not under your control. Your boss or customers or clients control much of your time and life. Would it be otherwise-with a few changes in the choices that you make, you can set yourself free. Own your own time. Become a capitalist. That word has almost evil connotations. But what does it really mean? A Capitalist is someone who uses their capital to "earn" a living. The income generated by their capital is their "wages". 

YOUR "GOOD" CREDIT
ARE YOU BOMBARDED WITH OFFERS TO LEND YOU MONEY? SEND YOU CREDIT CARDS? MOST OF US ARE. LENDERS KNOW THE POWER OF COMPOUND INTEREST. IF YOU CAN TAKE ADVANTAGE OF THE TIME VALUE OF MONEY [AKA INTEREST], YOU CAN AMASS CAPITAL. WHY BE A PERENNIAL DEBTOR DOOMED TO LONG YEARS OF WAGE-SLAVERY WHEN YOU CAN BE A CREDITOR EARNING INCOME FROM YOUR CAPITAL? THE BEST CREDIT RATING YOU CAN HAVE IS NO CREDIT RATING AT ALL. DON'T BUY MONEY FROM OTHERS - SELL IT YOURSELF.
 
THE CAPITALI$T

1 - MANAGEMENT 
2 - LABOUR 
3 - CAPITAL 

THE THREE ITEMS ABOVE DESCRIBE STANDARD CATEGORIES OF AN ORGANIZATION. MOST INDIVIDUALS BELONG TO CATEGORY #1 AND #2. IT IS GENERALLY OBSERVABLE THAT THOSE IN #1 AND #2 WILL WORK FOR 30 TO 40 YEARS. THOSE IN #3 DON'T WORK AT ALL - THEIR CAPITAL DOES THE WORK AND THEY REAP THE BENEFITS.  
LET'S DEFINE "WORK" AS PERFORMING A SERVICE FOR WHICH ONE GETS PAID - THIS RANGES FROM THE MINIMUM WAGE EMPLOYEE TO THE HEAD OF A GIANT CORPORATION. WHETHER FOR LITTLE OR BIG BUCKS, AN EMPLOYEE TRADES SERVICES FOR PAY. CAPITAL PERFORMS A SERVICE ALSO AND LIKEWISE GETS PAID. IF YOU PROVIDE THE CAPITAL, ITS EARNINGS ARE YOURS. 
 
HOW TO GET CAPITAL
UNLESS YOU ARE FORTUNATE ENOUGH TO WIN THE LOTTERY OR INHERIT WEALTH, CAPITAL USUALLY IS ACQUIRED THROUGH SAVING AND INVESTING ONES WAGES. FOR MANY WORKERS, THEIR WAGES WOULD PROVIDE AMPLE CAPITAL TO GAIN FINANCIAL INDEPENDENCE EXCEPT FOR ONE MAJOR STUMBLING BLOCK - SPENDING. SPENDING GOBBLES UP EARNINGS AND OFTEN BEYOND - INTO A LIEN ON FUTURE EARNINGS, I.E. DEBT. IS THERE A WAY OUT? YES, IT INVOLVES CHOICES AND THE RECOGNITION THAT BY FOREGOING CURRENT SPENDING, YOU CAN BUY YOUR WAY OUT OF WAGE-SLAVERY.  

CURRENT SPENDING AND ALTERNATIVES

LET'S LOOK AT THE CURRENT MAJOR SPENDING CATEGORIES AND WHAT VIABLE ALTERNATIVES THERE ARE WHICH WILL GENERATE CAPITAL. DEPENDING ON HOW MUCH YOU ARE WILLING TO SACRIFICE NOW, WILL DETERMINE HOW SOON YOU CAN ESCAPE WAGE-SLAVERY AND LET YOUR CAPITAL EARN YOU A LIVING.
 
HOUSING
OWN YOUR OWN HOUSE - IT'S THE GREAT AMERICAN DREAM. IF YOU BELIEVE THIS DREAM YOU WILL PUT THOUSANDS OF DOLLARS INTO A "DEAD ASSET". OF COURSE YOU HAVE TO LIVE SOMEWHERE, BUT IF THE MAJOR ASSET YOU ACQUIRE IN YOUR LIFETIME IS A HOUSE, THEN YOU HAVE MISSED A MAJOR OPPORTUNITY TO ACQUIRE CAPITAL THAT WILL EARN INCOME FOR YOU. AS AN EXAMPLE, SUPPOSE YOU PURCHASE A HOUSE FOR $160,000, PUT DOWN $10,000 AND FINANCE THE BALANCE AT 8% FOR 30 YEARS. AT THE END OF THE 30 YEARS, YOU WILL HAVE MADE 360 PAYMENTS OF $734 PLUS A $10,000 DOWN PAYMENT WHICH ADDS UP TO $406,360 FOR THE HOUSE. IF YOU HAD INSTEAD USED THE $10,000 DOWN PAYMENT TO BUY A TRAILER, WHAT A NOT-SO-LITTLE NEST-EGG YOU WOULD HAVE IF YOU HAD JUST SET ASIDE ALL THOSE MONTHLY PAYMENTS. IT WOULD BE CLOSE TO $400,000 IF YOU HAD LEFT IT IN A NON-INCOME BEARING FORM; IF YOU HAD INVESTED THOSE PAYMENTS AT 8% EVERY MONTH, YOU WOULD HAVE OVER ONE MILLION DOLLARS (ERE TAXES). WILL YOUR $160,OOO HOUSE BE WORTH THAT MUCH AFTER 30 YEARS? OF COURSE, THIS IS AN EXTREME EXAMPLE-THE AMOUNT A PERSON WANTS OR HAS TO SPEND ON HOUSING IS PARTLY A MATTER OF PREFERENCE. THE PURPOSE OF THIS DISCUSSION IS TO SHOW THAT THERE ARE SPENDING ALTERNATIVES WHICH CAN TRANSFORM YOUR LIFE FROM A "WAGE-SLAVE" TO A CAPITALIST.
 
CHILDREN
YES, CHILDREN ARE A "SPENDING" CATEGORY-A LOT OF OTHER THINGS ALSO, BUT THEY REQUIRE AN APPRECIABLE PROPORTION OF ONE'S INCOME. IF YOU WANT KIDS OF YOUR OWN - FINE; BE PREPARED TO MAKE THE NECESSARY FINANCIAL OUTLAYS TO RAISE AND EDUCATE THEM. BUT REMEMBER, IF YOU LIKE KIDS, THERE ARE LOTS OF THEM AROUND- NIECES, NEPHEWS, NEIGHBORS. AND ARE YOU SURE YOU REALLY WANT KIDS? JUST BECAUSE SOCIETY ENCOURAGES THE PRODUCTION OF OFFSPRING, DOES NOT MEAN THAT EVERYONE HAS TO JOIN THE PRODUCTION LINE. MYTHS ABOUND IN ALL CULTURES AND ARE INSTILLED IN THE INHABITANTS FROM AN EARLY AGE. THE "NECESSITY" OF HAVING CHILDREN IS ONE OF THESE MYTHS. THE HUMAN SPECIES IS A LONG WAY FROM THE ENDANGERED CATEGORY.
 
TAXES AND INSURANCE
1- TAXES CAN BE REDUCED WITH VARIOUS STRATEGIES INCLUDING INVESTMENT IN NON-TAXABLE BONDS, RETIREMENT PLANS AND THE INSTALLMENT METHOD OF RECOGNIZING INCOME. THESE ARE COMMON "SHELTERS". OF COURSE INCOME TAXES CAN BE REDUCED BY INCREASING EXPENDITURES IN THOSE CATEGORIES THE GOVERNMENT REGARDS AS WORTHY OF "DEDUCTIBILITY". BUT, INCREASING SPENDING TO GAIN A TAX-ADVANTAGE IS SELF DEFEATING. WHY GET A MONSTER MORTGAGE JUST TO BE ABLE TO DEDUCT THE INTEREST? IN FACT, THE MORE "PROPERTY" YOU COLLECT SUCH AS REAL ESTATE AND VEHICLES, THE MORE TAXES YOU WILL PAY. AS THE VALUE OF "DEAD" ASSETS INCREASES, SO DOES THE TAXES THEREON. THIS IS NOT TRUE OF THOSE INCOME-EARNING ASSETS SUCH AS STOCKS AND BONDS. THE MERE FACT OF OWNERSHIP DOES NOT GENERATE TAXABILITY.
2- INSURANCE EXPENSE CAN VARY WIDELY DEPENDING ON THE VALUE OF YOUR REAL/PERSONAL PROPERTY AS WELL AS YOUR LIFESTYLE AND PREFERENCES. TWO CATEGORIES OF INSURANCE WHERE AN INDIVIDUAL CAN MAKE CONSIDERABLE SAVINGS ARE LIFE AND HEALTH INSURANCE. REDUCING OR ELIMINATING COVERAGE INVOLVES THE ASSUMPTION OF MORE RISK BUT SETS FREE FUNDS FOR INVESTMENT. YOUR CREDITORS MAY REGARD YOUR LIFE INSURANCE POLICY AS AN ASSET, BUT WHEN IT PAYS OFF YOU WON'T BE CASHING THE CHECK. TO FOREGO HEALTH INSURANCE CAN BE A RISKY PROPOSITION, BUT IT IS AN EXPENSIVE "ASSET" TO MAINTAIN. IF YOU ARE A SINGLE INDIVIDUAL [OR HAVE A PARTNER WHO CAN SUSTAIN HIM/HER SELF FINANCIALLY] AND ARE FAIRLY HEALTHY, ELIMINATING OR REDUCING THESE COVERAGES CAN PROVE REWARDING.
 
LIFESTYLE
THERE ARE THOUSANDS OF GOODS AND SERVICES ON WHICH YOU CAN SPEND YOUR INCOME. MANY ARE NECESSITIES AND MANY ARE NOT. AFTER THE NECESSITIES ARE MET, PERSONAL PREFERENCES DETERMINE THE BALANCE OF EXPENDITURES. IF YOU CAN TRADE-OFF THE IMMEDIATE SATISFACTION OF HAVING SOMETHING NOW WITH THE FORMATION OF CAPITAL, THE GOAL OF FINANCIAL INDEPENDENCE CAN BE ATTAINED.
 

COMPOUND INTEREST
TO SEE HOW MUCH YOU ACCUMULATE BY SAVING SOME OF YOUR INCOME EACH MONTH, BELOW IS A TABLE WHICH SHOWS HOW MUCH MONEY $100 PER MONTH WILL GROW TO AT VARYING RATES OF INTEREST.

TO CONVERT THE PRECEDING TABLE TO DIFFERENT MONTHLY SAVINGS AMOUNTS, JUST MULTIPLY THE VALUES BY 1.5 FOR $150 PER MONTH; BY 2.0 FOR $200 PER MONTH; BY 2.5 FOR $250 PER MONTH; ETC. THIS EXAMPLE IS JUST A SIMPLE ANNUITY TO ILLUSTRATE THE POWER OF COMPOUND INTEREST-IT IS NOT NECESSARILY AN INVESTMENT STRATEGY.

 
THE ROAD TO FINANCIAL FREEDOM

SPEND IN MODERATION
SAVE FOR LIBERATION.
 

FREE SAVINGS CALCULATOR
IF YOU WOULD LIKE TO CALCULATE THE FUTURE VALUE OF A MONTHLY SAVING PLAN WHICH YOU ARE CONSIDERING AND HAVE A SPREADSHEET PROGRAM SUCH AS MSWORKS FOR WINDOWS, LOTUS1-2-3 OR EXCEL, CLICK HERE. THIS IS A VERY SMALL SPREADSHEET WITH AN EASY TO USE FILL-IN-THE-BLANKS FORMAT WHICH YOU CAN USE OVER AND OVER AGAIN.
 
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