Making Money is About Providing Value
There is only one way to make money in this world. It is by providing value. In fact, that is exactly why we moved to a currency system from trade and barter. It is a way to easily find and compare the value of something. The more money something costs, the greater the value.
Now there are two ways of providing value. By selling products or by selling services. Depending on how many people value your product/service will determine how much money you can make from it.
Products
The first one is simple. Selling products is very common, it’s everything from your phone to food. You sell cold lemonade on the side of the street on a hot day during the summer. A refreshing cup of lemonade is valuable to someone who is parched on a hot summer day. You sell that valuable product for the money.
No one will buy a hot coffee in the middle of a hot summer day. That product brings no value and thus no money. That’s why selling products can be difficult. You may have a great product that works great but if no one finds any value in it, it will never sell.
Services
Services are the second way to earn money. The vast majority of people provide the service of their time to a company for a wage. Some jobs are paid by the number of hours worked directly. You work 4 hours that day, you get paid for 4 hours of work, no more no less. Other times you get paid a salary regardless of the hours worked that day. That is your classic 9-to-5 office job. Or maybe you get paid per project, regardless of how long it takes you to complete. These are your repeated service jobs, mowing the lawn, power washing, painting, etc.
Each of these service jobs provides value to someone which in turn you are rewarded with money. Sometimes the service you provide is a skill that few possess, other times it is a task that one would rather not do, or maybe the service you provide is a luxury or form of entertainment to others. Regardless of what the service is, it provides value to someone else which is why there is a demand for it.
Minimum Wage
The misunderstanding of the amount of value you bring to a job is ultimately the problem with the higher minimum wage argument. The hourly rate of a job represents the true value of that position. If the rate is low, then it is not a valuable position. In other words, it is easily replaceable and required no skills. Typically the position is a repetitive task.
The true way to increase your income is not by protesting for a higher minimum wage, instead, it is to increase the value that you provide to your employer. The wage of a position will find its true value based on market value. People are only willing to do that work if they are paid x. If the wages are less than x then no one would do that work, forcing the employer to increase their wages. This is the reason why you see don’t see many jobs are the legal state-level minimum wage but instead much higher. The company needs workers so they are willing to pay for the value the workers provide.
Read about What Minimum Wage Would Look Like if it Followed Cola
Increasing your value through education, skills, and experience is the best thing you could do in your life. Complaining about your wages and then doing nothing about it is irrational, to say the least.
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