Who provides the money you need to survive and thrive?
How do you get more?
If your life strategy has been to EARN INCOME, you may be exhausted with working more hours, or feeling trapped and not valued.
The CREATE WEALTH strategy is one way individuals and companies thrive, no matter what happens.
In the late 1980’s a recession hit, as the dot com bust raged across the planet. Airlines cancelled their airplane orders, and layoffs started at my plant. Most of us workers didn’t have any other options, since the whole economy was shrinking. So, we were surprised when one union went on strike to raise their wages ($ per hour). We thought, if they would strike, it would be to save jobs, not put more money in their pocket.
One design engineer wrote in the company newsletter that it was clear that strikers did not know how wealth was created.
EARN INCOME is when workers trade their time for the company’s money.
If they want more money, they need to
work more hours,
get a 2nd job, or
ask for more $ per hour.
WHAT’S IN YOUR PIE?
The company has 3 main expenses, or three slices of the pie, where money is spent.
- Labor
- Admin (Management and Inspectors)
- Materials
INTERNAL PRESSURE. Workers would need to improve (to reduce the Admin and Scrap costs) to be worth a BIGGER SLICE of the pie.
EXTERNAL PRESSURE. The bad economy caused the company’s pie to be smaller, because the money from customers was shrinking
On the other hand, the engineer’s family just came back from vacation on the European competitor’s plane. Being an interior designer, he noted that the plane’s interior was superior. The bulkhead plastic was better quality, the overhead bins were bigger, and the layout had more leg room. Their workers had a different money-making world-view. They were increasing VALUE to the CUSTOMER.
CREATE WEALTH is a financial strategy for workers who trade their value for the customer’s money.
“The competitor’s workers don’t want a bigger SLICE of the pie.
They want a bigger PIE.
They create value out of their minds
(no extra materials, labor, or inspectors needed).“Our competitors are going for market share to gain customers’ money.
Watch out, in 20 years, airlines will switch over to the airplanes having more value. If workers want more money, they need to create value for the customer, to be worth it.”Aerospace Design Engineer
EARN INCOME. The formula for Income is known to every accounting student:
Income = Revenue – Expenses.
EXTERNAL PRESSURE. In tough times you may not be able to raise your price (wage).
Also, you can only squeeze your expenses so far.
INTERNAL PRESSURE. In bad times, EARN INCOME can be a mentally exhausting financial strategy.
To get more money, people who believe in EARN INCOME trade time for company’s money.
- EARN INCOME provides a path to earning money as you trade your time for it.
- CREATE WEALTH can open more doors, or bring more opportunities, as you increase your value.
- If you learn BOTH strategies, then you invest in learning.
The more knowledge you apply, the wiser and more valuable you become.
So, what is the formula for wealth?
And how do you ‘create’ it from your mind?
Wealth = ? = ? + ? +?
Hint: What do managers look for in finding workers who are better, faster, and worth more?
The difference needed.
- MANAGERS often realize they must use a customer’s viewpoint in order to be successful in the marketplace. They need team members who can add value every step of the process, from defining needs, to producing product, to serving customers. They need valuable people who can do many roles. They choose workers who CREATE WEALTH.
- WORKERS have so often been hired and promoted for single roles that this becomes their dominant world-view. They see themselves as Leaders, Project Managers, or Customer Service people. Therefore, they tend to self-sabotage themselves in saying, “I don’t need to take sales training, because I am not a sales person.” They miss out that every worker needs influencing skills to get their boss to listen and support their ideas for improvement.
- Those workers who shift their mindset are more desirable.
Managers can tell the difference in mindset (behavior):
from EARN INCOME
(I show up; give me money.)
to CREATE WEALTH
(I am better, faster, and worth more;
give me money and appreciation.)
One lady who was taking our class on a building a compelling resume asked, “When the company writes a job description, do they use code words, where they say one thing, but are looking for something else?”
The answer is “Yes, all the time.”
Employers are looking for three valuable things from your mind, which they can measure (the Valuation Model):
Wealth=Value=Quality + Speed + Low Cost.
So, If you were a manager, what would you look for?
So, how do YOU show you are
more valuable
than others
who can do the same tasks?
- Build your Resiliency+ Master Resume kit, because it gives you the words, and examples, that show you are Better, Faster, and Worth More.
- When you cross-train others in this powerful mindset, you can raise the value of your whole team (and save your jobs).
