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Unfair America (Warning: Numbers)

Let’s be honest here, the number one factor differentiating the successful from the unsuccessful is the effort. Quantity, quality and type of effort are all factors regarding effort, and the successful excel at all three aspects.

Yeah, it’s not just the quantity of effort committed, if you’re working your heart out to provide for your family, for instance, with two minimum wage jobs just to make ends meet, there needs to be a change. I propose that the change is not to increase the minimum wage, or anything government related as those have macroeconomic. large impact on consumer households, whether or not the benefits outweigh the positives is beyond me. However, what I can say is that the government will come up with an imperfect, flawed solution, and it’ll take ages to implement it. Don’t wait, act now.

But what can you do? Let’s take a look at a grave scenario; Picture a single, Texan mother working 100 hours a week at minimum wage to provide for her two young children living in the apartment with her. I’m warning you, there’s going to be a lot of numbers…

She works 100 hours at minimum wage, totaling about 725 dollars a week, or $37,700 a year. After income tax in texas, she has $31,187, or $31,922 with Trump’s tax plan. We’ll be working with the latter, more recent situation and let’s round it to $31,900 for convenience’s sake. Let’s assume she owns a two-bedroom apartment, paying the median Texas rent for it (note that she can definitely obtain a cheaper apartment), she will spend about $14,880 a year on rent alone, assuming she spends $300 a month ( for other apartment related fees, she now has $13,420 a year for everything else. Assuming she spends $500 a month ($6,000 a year) to get enough food for her household, she’s left at $7,420. Now, her boys go to public elementary school, costing no tuition, but perhaps $200 for each boy for supplies, school trip fees, or anything of the sort. We’re left at $7,020. Let’s also assume she spends about $1,000 a year on shopping for clothes and other necessities. We finish with a possibility to save about $6,000 a year. Of course, this is very oversimplified, but not too far from the truth.

Let’s take a look at the time aspect of this example, she works 100 hour weeks, weekends included, this is about 14 hours a day, ridiculous already, she spends about 7 hours a day sleeping, leaving her with 3 hours a day, or 21 hours a week to do other things. Assume she spends one hour a day eating, she now has two hours a day left. Of course, the tendency would be to relax. However, I would recommend trying to acquire assets, doing research, learning anything that can assist with passive income production. Let’s assume she spends 30 minutes relaxing daily, and 1 and a half hours learning about passive income. if she learns to invest her money and return at least 9% yearly, starting with $6,000 she would earn $540 of extra income every year. Should she compound it and add $6,000 every year, she would have a total equity of just over $47,500 at the fifth year. Which would net her over $4,200 dollars of extra income yearly, at which point she may choose not to compound it, and utilize it. This will likely result in over $3,200 after-tax dollars a year, assuming it is taxed at about 20%. Note that the compounded four times annually in this example.

After all these numbers, what’s my point?

The reality is that this is an incredibly unfortunate and terrible scenario, this lady would be living through five years of a living hell to get that extra $3,200 dollars a year, however, that represents a 10% increase in her regular income, earned completely passively.

The point really is that it’s possible. I don’t wish the above example upon anyone, and I sincerely hope that society makes it easier on people in this situation, however, the reality is that there are people working these hours, except they aren’t financially literate. Often, they use debt to keep up with the joneses. This is insane, it’s a terrible idea to rely on the government, so I urge everyone in a similar situation to learn, learn, and learn more. Until one can invest their money and garner passive income, they won’t be financially free.

Change is possible, success is possible, don’t lose hope, no matter where in life you are.

If you’re interested in starting your journey to financial independence and success, I highly recommend picking up Rich Dad Poor Dad, here’s an affiliate link to purchase it on Amazon, you would be supporting me too!
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

If you’d want to learn more about achieving goals and fighting a lack of motivation, I highly recommend Grant Cardone’s The 10X rule, please feel free to purchase it using this Amazon affiliate link in order to support me as well!
The 10X Rule: The Only Difference Between Success and Failure

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