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Why You're STUCK At Your Income Level (and what to do about it) [Archive] - Page 6 - SOWPub Small Business Forums


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April 12, 2008, 06:09 PM

Thanks for mentioning Anchoring.

I'd seen this done with Distances. In the US and people were asked how Long the Mississippi River was - longer/shorter then 300 miles and how long was it; or longer/shorter then 1000 miles and how long was it.

In both cases, whether people said longer or shorter, the Length they suggested was Near the first number they'd been given. BTW, it's actually 2320 miles long!

As for this applying with income. I don't think it's the case per se.

Take a humble Laborer - labour is the basic thing we have to offer so I'll use it as an example. Some are earning $16.90 an hour flat rate (no overtime or weekend penalties or night penalties - $16.90 an hour no matter when they work or how long they work for. Some are earning $35 an hour with all the penalties and bonuses. The difference... Where the work is and What Type Of Laboring it is.

Cleaners, as employees making $14-$17 an hour, while others are making $29 an hour plus $30 a day travel-to-work allowance, plus overtime money plus $1.50-$4 an hour Productivity/Site Allowance. The big money cleaners are known as a Peggy (cleaner) usually at construction sites or mines - either sites in town, close to town or FIFO (fly in fly out) camps.

A sparky in town might be on $50k while a FIFO sparky could be on $140k.

But is the person Willing to do the work? THAT is the question.

Everyone Could take on a second job - either a few hours after Normal work or weekend. But Will they?

A lot of jobs offer Overtime. But not everyone does it when available. Preferring to work a 40 hour week and take home Base Pay instead of maybe doing a 55 hour week and taking home nearly double - or finding a higher paying job they will enjoy more.

If THEY feel their needs are being met with their present income level, they will not do too much more Work to make more money. If they NEED to make more money, then they pull their finger out and do so.

Of course, if you take away their responsibility and allow them to get by even if the NEED arises, then they will not pull their finger out.

E.g. When bankruptcy (BR) looms, why do people not get second jobs and the like to Work their way out of it? Because BR is the Easy Out. There is always welfare, handouts, etc. Someone to bail them out so they don't need to be responsible for themselves.

For most people - that's Most but not all - their income doesn't make a difference to their financial state. Someone on $50k can be doing well while someone on $100k is just about broke. Because as their income increases they buy more Stuff.

If you take actions of your own volition, then fine. But when you have no Choice then you need to look at what came before.

What I mean is, and by way of example...

Guy makes around $80k a year. He chooses to rent at $400 a week. He chooses to go out to dinner three/four times a week at $70 a head. He chooses to buy his morning break and lunch meals at work in expensive cafes. He chooses to buy $5 coffees throughout the day. He chooses to buy the 60 inch plasma screen TV and super hi-fi system. So when it comes to a car, all he is left able to afford is a second hand beat up pickup.

The difference between a guy on $50k doing well and a guy on $80k doing poorly, is their Money Management - and - what they are willing/unwilling to do when it comes to earning money.

Take this guy for example....

Makes $17 an hour as a process worker in a factory. BUT, he lives with a single mom who is on single mom welfare and thus gets cheap housing. When the welfare people come to check up on them, he quits his job as proof he is unemployed, so the rent stays cheap. Then he gets another job for six months until they check up again.

He spends a lot of effort to work the govt system but not to better himself in anyway.

People complain about not having enough money while buying booze and smokes. The usual thing.

What are you Willing to do? That's what it comes down to. Some people are willing to put in the Effort to earn money, others aren't.

If you (generic you) wish for more income, are you willing to work a second job? It's a yes/no question. If the answer is "no", then why not?

Michael Ross

P.S. I once had three jobs - main, after hours and a weekend job - to enable me to achieve what I wanted to achieve. And jettisoned the jobs as they weren't needed any more. I was Willing. Most people are not. They prefer to whine about their lack of money.

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