Why salary is the lowest level on the cash flow ladder.

[Etini]

When it comes to finances and cash flow, there are many endeavours that people undertake to have finances flow into their lives. A typical of such endeavour is working to earn salary or wages. While it is the most prevalent source of income, if has been proven to be very limited in it's potential to provide stability and sustainable wealth. It would be folly for anyone to base his or her entire livelihood on a salary. Here are few reasons:

1) With salaries, your income depends on factors beyond your control: Someone can just dislike or envy you and decide to sack you or set you up and you lose your job. At that point, your entire life is completely paralyzed because your life depended on a salary.

2) You must always expend efforts to earn money: With salaries, if anything happens and you can't make it to work, you would not be paid. Unlike other cash flow levels that income doesn't really depend on your efforts. Working for a salary completely depends on your efforts to get paid. That renders you devoid of income if you are sick or incapacitated.

While we all started out with a salary, don't stay there. Create other sources of income that have different characteristics from the salary Income to enjoy financial stability.

 

[Ramolak19]

For a number of reasons, salary is frequently seen as the lowest rung on the cash flow ladder. It is a set sum that might not rise dramatically over time. Second, deductions for things like taxes and other costs are applicable. Furthermore, depending just on one's pay restricts one's ability to expand financially because it eliminates prospects for asset creation or passive income. Therefore, long-term financial stability and prosperity may require more than just a paycheck.

 

[Mika]

That's not true. I worked for salary for many years before turning to self employment through freelancing and online businesses. When I received pay check ever month, I saved some percentage of my income and when I had sizeable savings, I started investing in stock market, bonds, certificate of deposits, mutual funds, and even crypto. If you are on the payroll, you will have regular income, when you have a regular income, it is not only easier to manage your finances but even save money and invest money

 

[btaliat]

Salary is low only in most developing and underdeveloped countries where they don't place much value on certification and even skill. The political classes of such countries artificially created huge gap in the salary structure to phase out middle class.

In saner countries, they will prefer they pay you in wages rather than salary. With this, there will be respect for workers as they will always have money. But in a situation where someone settles for collectingkmeh just 12 times out of 365 days that make a year, it is pathetic.