This Content Is Only For Subscribers
It is hard or nearly impossible to get rich with a context and content that limit you to a 1:1 leverage ratio. It is hard to get rich because there is no leverage. For the most part, the Employee and Small business ration with few exceptions. For example, most employees can only work for one company at a time. While they may hold a second job that still falls in the 1:1 ration. The same is true for many small business owners or self-employed people. That friend of mine who wanted to open a clothing store would most likely have been changed to one store. I sincerely doubt if he could handle more than one store. A dentist can only drill in one month at one time and a layer or accountant only has so many billable hours in a day.
A vast majority of high income professional people from the small business get stuck at an income cap of $10,000 to $150,000. The ones who make more do so because they are highly specialized and charge a lot more per hour or by the project. This group caps out at around $500,000 per year. Very few make much more than that. Again, the problem is the 1:1 leverage ratio.
Life get off to a fast start is because they have some special gift, intelligence or talent. They may be great scholars, fast earners great athletes or artists such as movies stars. Many do well early in life. Yet for a tortoise lime me, I know that the easy I would win my own race was to want he race using the ratios of leverage. It was the same plan rich used. Maybe if I had been rally smart and become a rocket scientist, maybe I could have been successful in the more traditional world of business and climbed the corporate ladder. But early in life when I began having trouble in school, I now that I had to ding my own way of winning my race. Today my concern is greater than many of my peers who got the high paying jobs early in life. My income is higher because I use the leverage of assets rather than the leverage of my labor.
For example, if you are like baseball star Alex who was paid $300 million for a ten year contact plus commercial endorsements then obviously the employment is the best for you. Even though his ratio is 1:1 for ten years. It is a pretty good ratio when the dollar signs are added in. Secretary of the Treasury, Paul O’Neill received over $100 million in shares and stock options as an employee of Alcoa. Even though he was in a work situation with a 1:1 ratio.
