Salary VS Profit

[Theupdude]

There is a saying 'if there is risk then there is love'

To be honest, in my opinion, salary is actually a kind of safety net. You are selling your labor over time, and in return, you get a certain amount of money at the end of the month. Its advantage is predictability, you know how much income you will have, it is easier to budget, and the risk is low. But its limitation is that the upside is closed. No matter how skilled you are, your salary does not grow very quickly, and often does not keep up with inflation.

On the other hand, in business or investment, it is possible to earn income every day, but there is also the possibility of losing money every day. It takes years of hard work, reinvestment, and discipline for an entrepreneur to create turnover. But once a business or investment gains traction, the scale of profit can be many times larger than salary.

Another thing is that salary money usually goes to consumption rent, food, bills. When a large portion of the profit from a business or investment is reinvested, it creates compounded growth.

[Xcode7]

There are people who start their own businesses and those who prefer to work for others. It's strange, but some people enjoy their comfort zone, and if they're comfortable with it, I don't see a problem. For a long time, I was a salaried employee, and I confess I miss the predictability it brought. On the other hand, I enjoy the freedom of working from the comfort of my own home, close to my family. I haven't yet achieved "predictable," consistent, and recurring income, but I'm almost there.

Financially savvy people will turn their salary into profit, and profit into financial freedom.

It all depends on the mindset and there is nothing wrong with that because sometimes there are jobs that pay us a lot so that we don't need to think about anything else other than the responsibilities of the job and all our needs and desires can be fulfilled, that is a good step in my opinion if someone's desire and ability are like that, because not everyone wants and understands doing business to make a profit.

[tygeade]

When you are unsure about what you want to do, staying at salary side is better. Because if you are "unsure", that means you are not convinced yet that starting a business is for you.

I have been checking out a way of making money, a new business, but so far I am unsure about it and I am not doing it, wife has a business of her own and that is not doing badly, I hope it does even better so that I would have a chance to test mine out as well, but right now both of our income goes to just keeping that business alive and growing. As someone who has seen it close up, you need to be madly in love with your business for it to succeed, if you dislike it, or be bored about it, then you are not going to get the results you want.

[durg0319]

Salary and profit serve mainly different purpose.

Yes salary is a fixed income earned by an employee or even yourself for service rendered,
Salary is more predictable and employees have less control over salary.

But profit is earning from business or investments, calculated revenue and expenses, profit is more variable, and business owners and investors have more control over profit.
So ultimately, the choice between salary and profit depends on individual priorities and circumstances.

I choose profit because some one doing business and investing well will gain and make profit before the end of the month as for salary earners.

Salary gives stability, but profit has more room for growth if the business or investment goes well. With profit you’re not limited by a fixed amount at the end of the month, and like you said, sometimes you can earn even faster than a salary earner. At the same time, profit also comes with more risk, while salary is more predictable. It really comes down to what someone values more, stability or potential growth.

[justdimin]

Both salary and profit are both rewards for actions. Think about it; salary is paid in most cases just twelve times a year, yes twelve times, profit on the other end can be earned any day, and any time of the year, off course a return on investment.

I get the point that mostly profits has more advantage and benefits over salaries in most cases but then it depends on individuality preference. People go into things that's comfortable for them that's why you can find a maximum capacity of people going for jobs and all that to shy away from some huge responsibilities and in the other hand having a business that brings in profits is the best medicine to some person's but both plays a key role to different individuals.

Still most people would prefer salaries instead of job and maybe that's why we see a lot of employees but a very few entrepreneurs. People always think business as a riskier game where they have to gamble everything they have just to gain future profits which are not even guaranteed. Being an entrepreneur takes more than just efforts and hardwork. You need to have a mentality and money making skills which is what will make you gain profits out if the business orelse you'll end up in heavy debt cycle.

Salaries on the other hand are much reliable and can at least fulfill our basic requirements and make us not wonder here and there for profits. We can always find other ways to make extra money with our current job but with business it might be completely different. We will have to be fully focused on our business which will hardly give us any time to think about anything else.

[DaNNy001]

Your last statement sums it all up, only a few percentage of people actually live well as salary earners but majority fall into debt and just eat like ants.. financial freedom comes when you you have a business that generates profit for you either on a daily, weekly or monthly basis...working for people is a trap, you get to do all the hard work and make all the money for a group of people while you are being paid peanuts

[Davian144]

It all depends on the mindset and there is nothing wrong with that because sometimes there are jobs that pay us a lot so that we don't need to think about anything else other than the responsibilities of the job and all our needs and desires can be fulfilled, that is a good step in my opinion if someone's desire and ability are like that, because not everyone wants and understands doing business to make a profit.

Business is another word for enterprise, so anyone who has the ability and the means to run a business with the expectation of higher profits is worthy of doing so. Because large profits can certainly have extraordinary effects on those who run it, such as being able to meet their living expenses and also afford what the business owner desires. However, if we reflect on opportunities and the level of consistency in running it, I believe it won't always be the same for everyone. Sometimes someone has the opportunity to do it but lacks the ability to do it. So, there must always be a balance between the two for the business to continue running smoothly in the long term.

[Baghdad]

If profit = total revenue - total cost, all employees makes profit, if what was spent working everyday is less than the total amount paid weekly, bi-weekly, monthly or annually.

[bhadz]

Your last statement sums it all up, only a few percentage of people actually live well as salary earners but majority fall into debt and just eat like ants.

That is how life nowadays. Having one job isn't enough to sustain even for a single person and that's because of the high prices of commodities. I think each country is dealing with so high inflation that even the regular income earners cannot even live a simple life anymore when they don't work 2 or more jobs.

financial freedom comes when you you have a business that generates profit for you either on a daily, weekly or monthly basis...working for people is a trap, you get to do all the hard work and make all the money for a group of people while you are being paid peanuts

It's not that with businessmen. They are also struggling from the beginning and I know businessmen that even now despite the profit generation of their businesses, they also have debts. But what's good to them is those debts are the good ones. It means about their expansion and having more of their products and inventory to generate more money.

[MarjorieZimmermanGinger]

Plus what is reinvested from salary and profit is a big margin, it is more likely to reinvest a large chunk of profit, than that if a salary which is mostly used to pay accumulated bills.

The method can be adjusted, and if you can set aside some of your salary to increase your investment capital, it's much better as long as you have a plan for managing it. Most people take accumulated profits to reinvest, and this is done using a profit margin, which is taken from a predetermined percentage. The problem is, if your salary is used to pay bills or accumulate for other needs, making it impossible to increase your investment capital, then in such situations, we must find another solution. The way to do this is by using profits to reinvest, as some people do to implement a consistent and measurable investment concept.

[junder]

Your last statement sums it all up, only a few percentage of people actually live well as salary earners but majority fall into debt and just eat like ants.

That is how life nowadays. Having one job isn't enough to sustain even for a single person and that's because of the high prices of commodities. I think each country is dealing with so high inflation that even the regular income earners cannot even live a simple life anymore when they don't work 2 or more jobs.

What you say is true, because I'm currently experiencing the same thing. I currently have a job that can be considered consistent, but even so, I'm still applying for available jobs. This proves that having one job is sometimes not enough to meet your needs. The quote I remember is, "If we want to buy something without considering the price, then we must work without considering the time." So, hard work is a must.

But even if we want to have two jobs, we have to assess ourselves to see if we'll be able to handle both well, so don't forget to consider that as well.

[Different patterns]

Your idea is definitely a good idea but running a business along with a job is very difficult you cannot maintain these two things at the same time. Because in the case of a job you have to spend a certain amount of time there and then your sleep, food and drink, giving time to family, and taking some rest are very important to keep yourself mentally calm. But if you can run these two together by working hard then after a few years you can skip the job and run only the business then you will not have any problem. But initially when you leave your job and start a business you will face many challenges if you are not financially strong.

I really understand your point, but running a business together with a job which pays you a salary is not that hard, because many people find themselves in this kind of situation for many reasons. The major driver is often financial, which is capital to start up a business. The money you get from a regular job might not be enough for you to cover all the expenses, especially when it comes to unexpected costs. When you start up a side business, it can help you with an additional income stream; it can help to pay some bills; it is a way to diversify income and also reduce reliance on a single source.

Having a side business comes with several benefits to this approach. Firstly, it offers financial security, because you can rely on one source, because if one income locks up, the other can provide support. Secondly, it can help you for personal growth and skill development. Thirdly,running a side business can also provide a sense of fulfilment; building something from scratch can be rewarding and can also offer a sense of control that a regular job may not provide.

[Bigjoe158]

I will go for profit. Daily turn over is the best because your profit grows daily. At the end of the day, you will find out that those who earn salaries buys from you who do small business. Literally salary earners are working for the business man or woman who sells around. Do you wonder why most salary earners go broke before the end of the month? It is because they buy things for credit and at the end of the month they pay back,meaning the business owners keep making good profit while the salary earners go broke.

[khiholangkang]

Plus what is reinvested from salary and profit is a big margin, it is more likely to reinvest a large chunk of profit, than that if a salary which is mostly used to pay accumulated bills.

The method can be adjusted, and if you can set aside some of your salary to increase your investment capital, it's much better as long as you have a plan for managing it. Most people take accumulated profits to reinvest, and this is done using a profit margin, which is taken from a predetermined percentage. The problem is, if your salary is used to pay bills or accumulate for other needs, making it impossible to increase your investment capital, then in such situations, we must find another solution. The way to do this is by using profits to reinvest, as some people do to implement a consistent and measurable investment concept.

Salaries and profits should be an attractive and sustainable and very good value in the long run, it's just that we need to pay attention to how financial calculations must be very thorough, especially before investing we need good financial management, because we not only talk about profits in life, but safety and preparation become important points, investment is something that must be done when the needs and emergency funds are completed.

Most salaries are used for financing needs in a few months usually, so the gap in the salary to be invested is also definitely small, because emergency funds must also increase as your life needs increase, while the investment profits can be played again to be rolled out continuously, but the heaviest points here are investments not always profitable, there are risks that must be talked about and adjusted.

[ndutndut]

There are people who start their own businesses and those who prefer to work for others. It's strange, but some people enjoy their comfort zone, and if they're comfortable with it, I don't see a problem. For a long time, I was a salaried employee, and I confess I miss the predictability it brought. On the other hand, I enjoy the freedom of working from the comfort of my own home, close to my family. I haven't yet achieved "predictable," consistent, and recurring income, but I'm almost there.

Financially savvy people will turn their salary into profit, and profit into financial freedom.

It all depends on the mindset and there is nothing wrong with that because sometimes there are jobs that pay us a lot so that we don't need to think about anything else other than the responsibilities of the job and all our needs and desires can be fulfilled, that is a good step in my opinion if someone's desire and ability are like that, because not everyone wants and understands doing business to make a profit.

Yes, it all depends on each individual's mindset and skills in deciding what will be best for them and achieving financial freedom. Because not everyone can succeed in business, being an employee or pursuing a career to increase income will be a choice, and vice versa.

But if you have creativity, the best advice is to become an entrepreneur rather than an employee, because by being in charge, you indirectly create jobs for others. If you can cook start a culinary business, trade become a skilled trader, and so on. Because if you still rely on the government to provide jobs, you will find it difficult to create wealth for the future. Pursue business/freelance rather than work as an employee if you have the skills and discipline.

[Shafique Baba]

It all depends on the mindset and there is nothing wrong with that because sometimes there are jobs that pay us a lot so that we don't need to think about anything else other than the responsibilities of the job and all our needs and desires can be fulfilled, that is a good step in my opinion if someone's desire and ability are like that, because not everyone wants and understands doing business to make a profit.

I feel the same way, for an average person job is better option than business,. Specially from responsibility point of view. An Average man's usually have the  limited vision and he feel comfortable with fixed   income or incentives or less  work.whereas in the business there is  chance of getting higher profit margins .But it need higher  responsibility and higher risk taking ability and broader vision. So according to me  its totally depends upon the mindset or aptitude of particular person and his comfort zone.

[Cgrexp]

Both salary and profit are both rewards for actions. Think about it; salary is paid in most cases just twelve times a year, yes twelve times, profit on the other end can be earned any day, and any time of the year, off course a return on investment.

Salary can be seen as a quick fix, working and expecting to be paid mostly at the end of a given period. Another thought is; salary is mostly paid by profit earners.
A steady turnover of profit in most cases is as a result of consistent entrepreneurial  effort.
The volume and impact of a salary and profit is incomparable with that of profit.
Plus what is reinvested from salary and profit is a big margin, it is more likely to reinvest a large chunk of profit, than that if a salary which is mostly used to pay accumulated bills.
Profit over salary, any time any day!

Salary and profit are both rewards earned through work but their nature and impact are different. Salary is the income that we earn within a fixed time frame. It depends on how long we have worked and our position in the organization. On the other hand, the profit that we get through an initiative, business or investment can be unlimited based on the possibility, time and amount. As you said, salary is received several times a year but profit can be earned at any time, but in this case, proper planning is required. I think those who are not comfortable taking risks prefer stable income because they get a sense of security and reliability. But those who really want to use their financial freedom and potential are the ones who give importance to the profit aspect. However, to be successful here, you need to put in continuous effort, time and planning.

[dezoel]

Your last statement sums it all up, only a few percentage of people actually live well as salary earners but majority fall into debt and just eat like ants.

That is how life nowadays. Having one job isn't enough to sustain even for a single person and that's because of the high prices of commodities. I think each country is dealing with so high inflation that even the regular income earners cannot even live a simple life anymore when they don't work 2 or more jobs.

What you say is true, because I'm currently experiencing the same thing. I currently have a job that can be considered consistent, but even so, I'm still applying for available jobs. This proves that having one job is sometimes not enough to meet your needs. The quote I remember is, "If we want to buy something without considering the price, then we must work without considering the time." So, hard work is a must.

But even if we want to have two jobs, we have to assess ourselves to see if we'll be able to handle both well, so don't forget to consider that as well.

If you are in a job where you can grow and be better and earn more, then there are no issues. But I have maxed out on my job, there is no way I can work better and do more and become something else, like a manager or boss or whatever. So that means I am at my max, and when you are like that, applying for other jobs makes no sense neither, because it would be just same job but somewhere else, it snot going to eb a better job.

When you have that, the smart thing to do would be trying to figure out a way to make more income some way where you do not work. That way, your money works for you, while you also work for someone else and make money. Bitcoin is exactly that for me, I put money in bitcoin, and I hope it keeps going up.

[rachael9385]

Your last statement sums it all up, only a few percentage of people actually live well as salary earners but majority fall into debt and just eat like ants.

That is how life nowadays. Having one job isn't enough to sustain even for a single person and that's because of the high prices of commodities. I think each country is dealing with so high inflation that even the regular income earners cannot even live a simple life anymore when they don't work 2 or more jobs.

What you say is true, because I'm currently experiencing the same thing. I currently have a job that can be considered consistent, but even so, I'm still applying for available jobs. This proves that having one job is sometimes not enough to meet your needs. The quote I remember is, "If we want to buy something without considering the price, then we must work without considering the time." So, hard work is a must.

But even if we want to have two jobs, we have to assess ourselves to see if we'll be able to handle both well, so don't forget to consider that as well.

Hard work is a must but we live in an era where new age millionaires work smart. There's nothing wrong in working .multiple jobs especially if you are the type that doesnt make profit from an investment or a business. Like you said, it's advisable to access yourself before having two jobs, some people follow the need for money and end up breaking down because the jobs gets too much for them. It's better to focus on one and grow form there

[Creeper0]

Salary and profit are both rewards earned through work but their nature and impact are different. Salary is the income that we earn within a fixed time frame. It depends on how long we have worked and our position in the organization. On the other hand, the profit that we get through an initiative, business or investment can be unlimited based on the possibility, time and amount. As you said, salary is received several times a year but profit can be earned at any time, but in this case, proper planning is required. I think those who are not comfortable taking risks prefer stable income because they get a sense of security and reliability. But those who really want to use their financial freedom and potential are the ones who give importance to the profit aspect. However, to be successful here, you need to put in continuous effort, time and planning.

Both salary and profit are the rewards of hard work. As long as you work hard to earn salary, you will get salary. But in the case of profit, it is completely different, you have to work hard and wait for the business to be established with risk in the beginning. When you are established in business, then you do not have to work much. Even the period of profit may be unlimited as you said, but salary is limited. That is, as long as you work, you will continue to get salary at a fixed time.

There are advantages and some disadvantages in both cases. Although it is said that to earn salary, only talent and skill are required, no capital is required. But there are still many countries where even to get a job, capital is required, skill is required and you need the recommendation of an influential person.

From such a position, I think it is better to do business with risk, although in the beginning it requires patience, hard work and taking risks, but with time you will definitely succeed and you will move towards living an independent life. For me, work is just slavery and choosing to live a subordinate life.