The best investment you can ever make is an investment in yourself--period. As long as you are working for someone else, you will always be relying on someone else. If you are always relying on someone else, you will always be suppressing your full potential. For example, let’s say that you make your income through commission or an hourly wage. If you cannot show up for work, you do not make anything--zero, zilch, nada---not a penny. Therefore, in this situation, showing up to work means making money, and not showing up to work means not making money. Although you may be making a good amount of money hourly or through commission, you must trade your time for money. If you cannot give your time, you cannot earn money. Let’s say that you are making your money through a salary. Personally, I feel that salary jobs are the worst type of income because no matter how little effort or how much effort you put into your job you are paid one set amount.
Let’s say that you are making $50,000 a year and working 40 hours a week. If you take that $50,000 and subtract 30% income tax you are left with $35,000. If you take the number of hours in a week (40) and multiply by the number of weeks you work (50 taking into consideration two weeks vacation) you get 2,000 hours. Then if you were to take that $35,000 (income after taxes) and divide it by 2,000 (total hours worked) it comes to $17.50 an hour.
Imagine that instead of being on hourly wage, commission wage, or salary you invested in yourself and you were able to open your own business or offer a service to people that allows you to make $100 an hour. Take the $100 and multiple that by the 2,000 hours that you are already making you will find yourself making $200,000 ($140,000 after taxes) breaking it down to $70 an hour all by working on your own schedule and investing in yourself.
Let’s take things a step further. Let’s say that you were making $100 an hour actively (meaning you are doing something to make that money) and you were pulling in an extra $100 a day through passive income (investments, dividends, real estate, interest paid out, etc.) you will bring in an additional $36,500 ($25,550 after taxes) Add up those two numbers and you will be pulling in after taxes $165,550 a year.
Now, keep in mind this is based off of a 40 hour work week with 50 weeks a year. If you work more than these hours and continue to invest in yourself, your income will go up. It all depends on your lifestyle and how you would like your time to be spent.