Wednesday, February 3, 2010

What is Your Wealth Building Philosophy?

Let’s just suppose that you are faced with the following scenario. Your employer has a project that is really important to him that will only last for 30 days. You are hand-picked to take on this project because you are the brightest and most qualified. This project is so important to him that he not only willing to compensate you well for the job, but he is willing to let you choose the method of payment.

Here are your two compensation options: Plan “A” – where he will pay you a penny a day, doubled each day for 30 days and Plan “B” – where he will pay you $10,000.00 a day, each day for 30 days.

Which one would you choose?

Now let’s check out the results of the two plans side by side.

You can see that for a while Plan “A” was not doing so well as compared to Plan “B”. However, from the 25th day on, Plan “A” really blew Plan “B” away!

Why is that?

I’m glad you asked! Well, Plan “A” is exponential and symbolizes the magical power of compounding compound interest where time has great leverage. Plan “B” is linear and symbolizes simple interest where time has no leverage.

If you chose Plan “A” you are willing to take risks; you are entrepreneurial; you are a business builder; you are a “1099”.

If you chose Plan “B” you are very conservative and not willing to take many risks; you think like an employee; you like security and are a “Paycheck on Friday” type of person; you are a “W2”.

Some questions to ponder:
  • How do you choose to think?
  • Are you positioned to let your money compound?
  • Are you positioned to let your efforts compound?
  • What is your wealth building philosophy?
I'm so excited to share this information with you. If you have enjoyed the information or feel that it would benefit someone else, please share it. If you have any questions or comments, please feel free to contact me.
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