Overspending and wealth creation

It is impossible for one to build wealth by overspending. Wealth creation can only occur by surplus and not by deficit. It is up to you to make the choice. You should ask yourself the question: do you desire to be wealthy or to be poor? The question is formulated with desire and not want. Desire implies your attitude converging with your saying. One thing is to say you want to be wealthy, another thing is to make the needed sacrifice involved with controlling yourself and spending less than you make. Spending less also means delaying gratification. That is to delay your pleasure of the present to the future. Think about this!   

Building wealth requires principles and tradeoffs

Building wealth requires principles and tradeoffs if one wants to make it. It is important to master these principles and sacrifice you have to make. This is true irrespective of whether you are a salaried worker or an entrepreneur. The first principle one has to be aware of is that of accumulation or compounding. It is interesting to note that anybody with high school education studied compound interest and its calculation. But, how many people use this principle in their day-to-day lives? Many people generally wait to hear a magic word on how to get rich when they attend seminars. If you want to be rich, you must first spend some years accumulating money by spending less than you make. The tradeoff for this is sacrifice of denying yourself of things. This is a common sense which everybody should know, but only a few people can make the needed sacrifice. In my next posts, I will use simple calculations to demonstrate this principle.      

Walter Okpala: Teams cannot be homogeneous and productive unless ...

Walter Okpala: Teams cannot be homogeneous and productive unless ...: Many companies spend a lot of money and time trying to form teams in their organizations. In the era of internet technology and collaborati...

Teams cannot be homogeneous and productive unless ........................!

Many companies spend a lot of money and time trying to form teams in their organizations. In the era of internet technology and collaborative innovation, having teams working around the clock worldwide is very important. However, many teams are not productive as expected. The main reason for this is the difference between compensation paid to members of the same team. How do you think members of the team will react if they know that their immediate superiors would receive about 5 times their compensation at the end of the project? To worsen it all, credit always goes to the bosses for positive results. It is true that some executives mention the team as the executors, no one knows who the members of the teams are. In order to understand this clearly, I am going to ask you a question. How will you feel if you discover that your superior will receive 5 or 10 times the value of your compensation, including bonus? Will you totally dedicate to your work where another person will take all the credit? This is especially true for workers with talent. 

     In my next posts, we will look at the consequences of this practice! 

                   

Walter Okpala: Differences between salaries of executives and oth...

Walter Okpala: Differences between salaries of executives and oth...: From my experience in teaching in companies, I could notice the complaints from the junior staff over the salary differences. The junior st...

Differences between salaries of executives and other workers 2

From my experience in teaching in companies, I could notice the complaints from the junior staff over the salary differences. The junior staff always think they do not belong although they are the ones who do the actual work. As a result of this complaint, I began doing reserach about how this issue affects the productivity of workers and how it can be corrected for better harmony in the team work. I have reached the conclusion that everybody in an organization is important, although some may appear to be more important.

     Imagine the telephone operators, a position generally considered low in the hierarchy and outsourced. It turn out that the first contact a customer has with a company is through these workers. Their attendment is vital and determines if a customer stays with the organization or looks for another one. A CEO is at the top and receives information from many departments. What he or she may not know is that the bad performance of one of his departments is caused by the telephone operators. Another example of the importance of blue color workers is in the assembly of automobiles. If this category wants to sabotage the organization, the workers can just fix the parts wrongly. In this way, the cars will have accidents and probably kill people. When these go to the press, the automobile company is obliged to have a recall of all the cars for repair. Recall costs a lot of money to companies. 

      Therefore, everybody in an organization should be valued so they can have a sense of belonging. If the salary between the CEO and the lowest in the hierarchy is set in the ratio of 10:1, I think the problem should be reduced. That is if the CEO receives $1 million, a cleaner should receive $100,000 per year. If this change is carried out, many positive changes will take place in organizations. Think about this!

           

Walter Okpala: Differences between salaries of executives and oth...

Walter Okpala: Differences between salaries of executives and oth...: It is interesting to note that the salaries of senior management of companies are very much higher than those of other functionaries of the...

Differences between salaries of executives and other workers!

It is interesting to note that the salaries of senior management of companies are very much higher than those of other functionaries of the same organization. It is understandable that people with higher qualifications and experience should receive more than others. However, how can we explain the fact that some executives make $ 20 million a year while other workers in the same organization receive an average of $60,000. The main explanation for this discrepancy is that executives bring more value to the organization than others. Although this is true, it is important to remember that those at the bottom carry out the execution stage. In my opinion, I think it will be a good idea for organizations to establish a ratio between the salaries of executives and junior staff. What do you think? I will like to have your input!    

Walter Okpala: How is your performance result?

Walter Okpala: How is your performance result?: How do you perform in your Organization? Is it an excellent performance or a mediocre one? Your importance in an organization must be refle...

How is your performance result?

How do you perform in your Organization? Is it an excellent performance or a mediocre one? Your importance in an organization must be reflected by your performance. An excellent performance result indicates that you are very useful to the organization. In that case, you can be considered as a linchpin. Your job can be guaranteed by you only when you become a linchpin to an organization. I have written about this in my earlier posts, but let me say it once more. What guarantees our job is not the state of the economy, or the government, or the boss. Rather, our job is guaranteed when we become so indispensable to the organization that it cannot do without us!

     So, check your performance result and evaluate your feedback and see how you can improve your bad qualities. Don't take your feedback as a personal issue or try to defend every point on it. Rather, take it as a lesson and use it to change your bad behaviors. Ask yourself how you can become a linchpin to your organization.

     Think about this!