Labor vs Capital

Labor is often confused with capital.

The difference between the two is one will never get you wealth because you trade time (a fixed resource) for money, while the other allows you to gain wealth without being tied to time at a desk.

In every case, the size of your paycheck isn’t indicative of your wealth.*

For example, tech executives make a big salary for their labor but the people who own the company are significantly more wealthy and don’t have to labor to get paid.

For most of your life you might primarily be an employee.

So, how do you start to make money as an owner in addition to a labor?

It’s not timing the market, it’s time in the market. – Warren Buffett

Which translates to: invest sooner rather than later.

Be a part of capital, don’t just be a part of labor.

*Wealth is assets that earn while you sleep.

Photo by Sonny Mauricio on Unsplash.

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