How Much Do You Make An Hour?
30th of August, 2019
The next time you walk into your local pub and flick across a $50 to try and cover the cost of a round of drinks have a think about this?
Did you know that the award rate for the bar attendant serving your beer at the local pub is less than $18 an hour? It might not be much but it’s still more profitable than the other side of the bar where you not only have to pay for the beer that you consume, but also the dry-cleaning bill for what you spill down your shirt!
At a push, on a public holiday, a bar attendant can make just under $45hur. So I was thinking “if I was going to be a bar attendant, where would I want to work?”
Photo by BENCE BOROS on Unsplash
After a little research I found that Sri Lanka is top of the pops when it comes to public holidays with 25 each year. So even if the happy bar attendant from our local was to work all 25 holidays with an 8 hour shift its still only a smidge off $10k pa!
But compare this to the yearly income of BRW Rich Lister Gina Rinehart.
Go have some fun with this website. YOU vs Gina Rinehart.
It will show you how long it takes Gina to earn your yearly income.
According to the website, Gina makes about $250,000 per hour.
That’s over 13,800 times that of our award earning bar attendant.
Now maybe the figures are a little rubbery. I’ve never seen Gina’s tax returns.
How is it possible that one person gets more an hour than the other will be paid in many years?
Photo by Melissa Walker Horn on Unsplash
They both still only have a possible 168 hours a week?
So what’s the difference?
Clearly the difference is that Gina’s reward is NOT related to her effort, unlike our bar attendant. Gina uses the secret of “the Effortless Advantage” which has the distinguishing characteristic that earning it requires no effort whatsoever.
So when Gina obtains a government granted licence, in her case, exploration and mining leases or a casino licence in the case of James Packer. It is the same with real-estate or shares, they are all priced by the capitalisation of the “Effortless Advantage”. If you add the effect of credit being extended against the assets this allows the value of the assets to be bid up even further.
Gina’s wealth is ever increasing regardless of her effort. Irrespective of if she sleeps in or goes home early. It is completely unrelated to the public holiday she works.
Photo by Shane McLendon on Unsplash
It is the capturing of “the Effortless Advantage” that brings her in Trumps and I put that pun in intentionally as Donald has since birth has been sucking all the Advantage he can with the least amount of Effort.
The land Gina controls is laden with iron-ore and this is her “Effortless Advantage”.
Donald’s dirt is laden with Trump Towers and Golf courses.
It is NO different to a building located in Pitt Street being more valuable than one located in Mt Druitt. Or why a farm with green fertile pastures is worth more per acre than one located in a less productive environment.
It’s all about how much a piece of land can produce? The more it can produce, the more profit it can make and hence the more highly priced it will be.
It’s all about the productive value of the land.
Land that can produce the most (all other things being equal) will be the most profitable and hence have the highest productive value.
Photo by Stanislav Kondratiev on Unsplash and Photo by Dan Gold on Unsplash
In essence it will be the land with the highest price tag. This price Advantage is given to its owners without any extra effort.
Which brings us back to Gina’s iron-ore rich acreage.
This then begs the question what can YOU do to benefit from all this?
The simple answer is if you want to turbo-charge your finances you need to understand “the Effortless Advantage”.
You need to understand how the Credit and Investment Markets interact. You must know how to act and most importantly WHEN to act. This is what the Calnan Flack Economic Cycle Action Plan is for.
As investors, it is important that we not only chase but capture “the Effortless Advantage”. Those that own and control “the Effortless Advantage” will reap far more rewards than the diligent person that does the work.
This is the true road to wealth, controlling, compounding and receiving your “Effortless Advantage” while taking action at the appropriate time.