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At 15 yrs old, I started working at McDonald's. I worked 30 hours a week and made $160/month.
I felt rich ... until I saw the owner made $1M a month. It was my 1st lesson about Capital vs. Labor.
Here's how we teach everyone in the U.S. about being an Owner vs. an Employee:
I felt rich ... until I saw the owner made $1M a month. It was my 1st lesson about Capital vs. Labor.
Here's how we teach everyone in the U.S. about being an Owner vs. an Employee:
As an employee, you make more money in 2 ways:
1) Increased hours
2) Increased hourly pay
You make $ according to this formula: Revenue = Hours worked * Hourly Rate
It's different for an owner ...
1) Increased hours
2) Increased hourly pay
You make $ according to this formula: Revenue = Hours worked * Hourly Rate
It's different for an owner ...
As an owner, you make more money in 2 ways:
1) Increased quality of your decisions
2) How much Money you Invest into each decision
You make $ according to this formula: Revenue = Quality of Decision * $ Amount Invested
1) Increased quality of your decisions
2) How much Money you Invest into each decision
You make $ according to this formula: Revenue = Quality of Decision * $ Amount Invested
Here's an example:
Draymond Green is an NBA player for the Warriors (employee). Since 2012, he's made ~$85M in Salary. His "hourly pay" has increased because of his performance.
His financial upside is capped based on how much the team & him have agreed he should get paid.
Draymond Green is an NBA player for the Warriors (employee). Since 2012, he's made ~$85M in Salary. His "hourly pay" has increased because of his performance.
His financial upside is capped based on how much the team & him have agreed he should get paid.
@chamath is an Owner. In 2010, he invested $25M for 10% of the Warriors. Today, his investment is worth roughly $520M.
Because of Chamath (and Joe Lacob's) decisions, they have increased the value of the entity. As an equity owner in the Warriors his upside is not capped.
Because of Chamath (and Joe Lacob's) decisions, they have increased the value of the entity. As an equity owner in the Warriors his upside is not capped.
Simply put:
As an employee, financial upside is capped.
As an owner, you can make infinite money.
As an employee, financial upside is capped.
As an owner, you can make infinite money.
The concept of Employee vs. Owner was never taught to us in school. Instead it was assumed we'd all be employees -- "What job do you want to have when you grow up"?
We should've been taught about how to own the McDonald's, not how to work in it.
We should've been taught about how to own the McDonald's, not how to work in it.
And this brings me to my main point: The Baby Dividend. Lets each ppl about ownership!
Give every new baby $5,000 in an ETF that can't be touched until they are 65.
I initially heard about this idea from @altcap and on @patrick_oshag Invest Like the Best podcast.
Give every new baby $5,000 in an ETF that can't be touched until they are 65.
I initially heard about this idea from @altcap and on @patrick_oshag Invest Like the Best podcast.
@awealthofcs has also written about this here: https://awealthofcommonsense.com/2020/07/a-roth-ira-for-every-baby-in-america/
By the time a child is 18, they will have somewhere between $30k - $150k in this account.
The money is not actually what matters.
What matters is that they will have a real-world education of
- Investing
- Ownership
- Compounding
- Personal finance
The money is not actually what matters.
What matters is that they will have a real-world education of
- Investing
- Ownership
- Compounding
- Personal finance
The beauty of this proposal is that is costs about $20B, which is less than 1% of the $4T+ U.S. Budget
In the U.S., the greatest country in the world, over 60% of people own no shares in the stock market.
Of course there are large groups of people that think Capitalism is toxic — they have no upside in the economic future of our country!
Of course there are large groups of people that think Capitalism is toxic — they have no upside in the economic future of our country!
Let's fix this by providing each child with economic upside & Ownership in the future.
$5,000 for every child in the US!
$5,000 for every child in the US!
I wrote a full post about this here: https://www.rohunjauhar.com/posts/the-baby-dividend
And if you'd like to learn more about:
- Money
- Real Estate
- Personal Finance
You can sign up for my newsletter which I send to you every Sunday by clicking here: http://www.rohunjauhar.com
- Money
- Real Estate
- Personal Finance
You can sign up for my newsletter which I send to you every Sunday by clicking here: http://www.rohunjauhar.com
