Business vs Employment

[Cgrexp]

An employee is usually paid for his hard work on a fixed time, but businessmen have a process where income is created without their presence and the pace of income or wealth growth of an employee and a businessman is not the same. Employees are usually set a salary limit and they do not get more than the fixed limit. However, there is no fixed limit to the profit of a businessman. The more products he can produce and manage it properly, the more profit he will get. It is not that a person who is employed cannot become rich, they can also become rich, but not only through their salary but also through stock options, investments or long-term wealth formation.

[snowpega]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

If you have good skills and you are hired at a higher level in a good company with a very good pay rate, then I think you can still become a millionaire, haha. But yes, it is true that employment in the majority of cases does not bring anyone financial freedom. But if one has a clever and smart mindset, then one can consume their employment salary in asset investment, but only if it montly expenses allows him to save some funds so that they can invest it further.

Being an employee at the initial stages is not bad at all. Becasue one can gather some funds being an employe at any good comapnay and in future with the help of this money one can start its own bussines. But here is also the most important thing to discuss, which is that not everyone becomes a successful businessman because of their weak strategies. One has to learn good ways and strategies to become a good and successfull bussinessman in my point of view. What do you say?

[Stepstowealth]

But no one actually becomes untouchable rich just by being an employee.

There are people who have been able to accumulate wealth by having multiple sources of income because I feel that is the base requirement for being wealthy but the primary source of income came from the jobs they occupied and some people are very fortunate enough to occupy very well paying jobs under very big companies that really appreciate their workers. To be rich you have to have multiple sources of income and some people have been able to do that by establishing multiple businesses while some people have multiple sources of income from the job they occupy adding another little businesses. People who are able to become wealthy from business can also be individuals who are able to occupy multiple roles in multiple companies working part time in each let's say as a consultant.

[HONDACD125]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Isn't it obvious? When you are employed, you only get a fixed amount as your salary every month, and even if that amount is pretty high, it won't make you wealthy even if you become rich from it, and being rich and wealthy are two different things. If you are employed in a big company that pays you very well, you might become rich, you will have a comfortable life with all the amenities and the financial capability to get whatever you want, but you won't become wealthy by just being employed, because wealth means that you should have enough money and resources that you don't need to work anymore to maintain the life you are living.

So, when you have your own businesses or a business, you basically don't have any limit on how much money you can make from it. The better you run and manage the business, the better it will be for you because it will make more revenue, and you will make more money. This is why, those who become millionaires or billionaires, they start businesses, firms, companies, and then either expand them or sell them to bigger players than them and become wealthy like that.