Why a 9-5 Job Will Never Grow Your Net Worth Like a Business

You will never get rich working for other people. This sentence gets thrown around the many corners of the internet, always glorifying entrepreneurship and investing in stocks,  over employment to increase the chances of growing one’s net worth. One disadvantage of working on a 9-5 job is the fact that the more money you earn, the higher the amount you have to give as well to taxes. If you are earning under $100,000 from your salary, you are most likely to give about 30 percent in taxes. Yes, taxes really suck. But, this is happening every payday, whether you like it or not. 

Growing your net worth is a lifelong goal that entails you have to work hard in order to earn a good salary. But then, the sad thing about it is the fact that when you’re just relying on what you have earned from your 9-5 job you will only be earning enough to spend it for your daily needs and monthly bills. In case you do not know, here's the average (household) net worth by age in 2020, the statistics showed from this site revealed that individuals aged 35-44 only have an average net worth of only $35,000. 

By looking at the statistics closely, you will be surprised to see that the average net worth of most Americans can be considered trivial. This is because many people tend to save only very little while they keep on buying liabilities instead of assets. Remember that a salary with plenty of zeros tacked on the end does not immediately equate to being rich. If not managed properly and if you do not have any other sources of income, the amount you earned can quickly disintegrate. And, it’s all gone right before you realize it. So, why will a 9-5 job never grow your net worth? Here are some of the reasons why.

Your 9-5 job makes you too comfortable to take risks. 

If you want to increase your net worth, be prepared to take risks. Know that most successful entrepreneurs also took plenty of risks just to be able to achieve what they have today. They are always willing to put everything on the line with the hope of getting what they want. If you are busy with your 9-5 job, you tend to become too comfortable with what you have and won’t see any reason why you need to take a risk just to make your life so much better than what it is now. You have already become too content knowing that you have money to pay your bills and make ends meet on a daily basis. You are afraid of the thought of possibly losing everything you have so you prefer to just let things remain as they are. 

Somebody else is building his dream using your skills and talents.

When you’re living your life as an ordinary employee, you are essentially building somebody else’s dream. Add in the fact that your salary is usually fixed so no matter how hard you work, pouring in your skills and talents to your employer’s advantage on a daily basis, you still won’t be able to increase your net worth that way. If you are earning $30 per hour, know that your employer who is running the show is earning way so much more than that because of your hard work. The worst thing about it is that every significant contribution you have as an employee, it will be counted as an asset to your employer and not to your own net worth. 

Well, there is nothing wrong with helping someone else become successful. This is true if you are an avid believer of such a cause. But, if you desire to grow your net worth like a business, being a mere employee will only be hurting your chances of achieving it. You are giving at least 40 hours and even more every week to build other people’s dreams. But, what about your own dream? What if you spend those 40 hours working on something that makes you live your dream? But, if you decide to take a risk, put up your own business, every hard work you put into it will all be for your own benefit. You may still be paying taxes for the money earned from your business, but the amount left will all be yours for the taking. The best thing about it is that this amount would be much more than what you earn from working as a 9-5 employee. 

Time is a more valuable resource than money.

Allowing yourself to be paid per hour will never get you ahead of everyone else. Ask those people from the human resource department and they can just tell you exactly how much money they have to pay per hour to be able to acquire the needed talent for a specific job posting. Even if you claim to have earned a degree from a highly reputable school and be able to work in a law firm and receive a hundred dollars an hour, chances are high that once all your expenses are deducted you will still find yourself lucky to be able to gross a third. 

Even if you decide to work yourself to an early grave just to get paid at 3,000 hours per year, such an effort alone will never make you land on the track of having a net worth that is as high as those entrepreneurs are having. 

Most jobs across the board require individuals to trade their time for a certain amount of salary. They will be asked to work for eight hours a day and get billed on an hourly basis. In exchange, these employees will also be able to receive a set number of dollars every payday.  You may be able to get money every payday, but there is no way that you can ever get your time back. 

If you want to increase your net worth, first you have to work towards eliminating your debt. Net worth is calculated as equity minus debt. So, the lower your debt is, the higher your net worth would be. But, remember that working on a 9-5 job alone, is not a surefire way to increase your net worth. Having a high net worth doesn't necessarily mean you are rich. But, there is no doubt that positive net worth is really something to be proud of. Besides, knowing that you are not drowning in debt is already reason enough to celebrate life.