Why Your Salary Should Be Based on Results

Want to become rich? You might want to rethink your salary, because the way you’re getting paid could be keeping you from becoming a millionaire. According to Steve Siebold, author of How Rich People Think, there’s one major difference in how rich people and everyone else choose to get paid: Normal people are paid a steady salary or an hourly rate, but rich people are paid based on results. Business Insider adds that rich people typically determine the size of their own paycheck and are more likely to be self-employed. “It’s not that there aren’t world-class performers who punch a time clock for a paycheck, but for most this is the slowest path to prosperity, promoted as the safest,” Siebold explains. “The great ones know self-employment is the fastest road to wealth.”

Many people prefer a steady salary because there is a sense of security that comes with knowing exactly how much money is coming into your bank account. Yet this sort of thinking will keep you from making money. As Siebold says, “People who work for themselves have the power to proactively seek out business and increase revenues at will. They can work as many or few hours as they wish and change the direction of the company any time they choose.” Moral of the story: To avoid financial mediocrity, don’t settle for a standard salary. Let go of security and start that business you’ve been dreaming of!

Get more of Siebold’s advice by reading his book How Rich People Think.

What type of salary system do you follow?