When Walt Disney was asked to explain the biggest problem in his life, he answered: “Money. I always needed more money.” When we think big picture about the ways in which we can make money, there are generally two positions:
(1) We can sell our labor for an hourly wage. If you make $10 per hour and work 8 hours per day, you get $80 pre-tax. Simple enough.
(2) We can run a business. In that case, the money we make is the difference between profits and expenses, adjusted for taxes. Again, simple enough.
Originally posted 2013-06-24 16:11:26.