Thursday, April 3, 2014

The Bottom Line!

Back in 1998 when my two boys were small they broke a toy they had just gotten for Christmas.  They casually tossed it into the corner and began playing with something else.
 
"Do you realize the value of that toy? "I asked.
 
Two blank faces...about 9 and 7 years old.  Young...but old enough for a lesson on money...and time.
 
"It cost about $20."
 
Two blank faces...now one angry face. 
 
"That means your uncle who earns about $10 an hour had to work how long to pay for this?"
 
"Two hours," they answered in unison.
 
"Not quite that simple," I began.  "Your uncle runs his own carpet cleaning business.  He has to spend time and money getting to and from his clients.  He has to spend money to find clients.  On top of that, he has to pay taxes...15%"
 
"It may have taken him 5 hours to make this $20," I concluded. 
 
Two quizzical looks turned to looks of enlightenment...
 
"What do you have to say now that you understand the value of the toy you discarded?" I said with a hint of satisfaction knowing another teachable moment had been successfully completed.
 
They conferred with whispers for a moment, knowing that their answer would be the difference between another speech...or a spanking. The oldest one stepped forward to issue their official response...
 
"You mean our uncle only makes $4 an hour?"
 
As I did the math in my head I realize I had just been bested by two small children.  They had cut through all the things I had tried to show them to get down the only thing that mattered;
 
I wanted them to see he ran his own business...
 
I wanted them to see he had to advertise and market...
 
I wanted them to see he had to do administrative things to manage his business...
 
I wanted them to see the impact on taxes on his business...
 
What did they see?
 
The only thing that really matters...
 
THE BOTTOM LINE...
 
What's yours? 
 
Until tomorrow, I wish you Money, Power, Success!

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