For many millionaires, the pathway to wealth is by owning their own businesses, not working for someone else
New York, NY (PRWEB) September 1, 2006
While new figures released today from the U.S. Labor Department reveal that employers added 128,000 new jobs to the economy in August, an astounding 775,000 people became millionaires last month, and 550,000 launched new businesses.
“Most people don’t realize that every day, 25,000 people in America become newly-minted millionaires,” says money coach Lynnette Khalfani, author of The Money Coach’s Guide to Your First Million (McGraw Hill; Sept. 2006). “For many millionaires, the pathway to wealth is by owning their own businesses, not working for someone else,” Khalfani adds, noting that 70% of all millionaires in the U.S. are entrepreneurs.
So as workers nationwide enjoy a day off for Labor Day, Khalfani suggests that unhappy employees consider quitting their jobs to escape the downside of working in Corporate America.
In public and private industry, in every sector of the workforce, employers are eliminating a host of employee benefits, or reneging on their promises to provide certain perks that were previously touted to attract workers. Pension programs are closing. Retirement sweeteners, such as 401(k) plans with matching employer contributions, are being scaled back. Health care benefits are dwindling. Employed-sponsored educational assistance is on the decline. Moreover, workers are being asked to pay ever-increasing premiums for their medical benefits, disability coverage, and life insurance, Khalfani notes.
“If layoffs and decreasing job benefits weren’t bad enough, over-worked men and women in the U.S. must now contend with smaller paychecks as well,” says Khalfani. The Labor Department reports that average hourly earnings rose a scant 0.1% in August compared with the 0.3% increase economists were expecting. Meanwhile, pay and benefits rose by a paltry 3.1% in 2005 – the lowest rate since 1996 and not enough to outpace a 3.4% rise in inflation. In 2005, for the first year since the Great Depression, the personal savings rate in the U.S. went negative, and an unprecedented two million households filed for bankruptcy protection.
“Lower wages are hampering Americans’ ability to save money, weather financial setbacks, and pay off record levels of personal debt,” Khalfani says, adding: “When you consider all these factors, it’s clear that this Labor Day, what millions of workers should be doing is thinking about becoming their own bosses in order to safeguard their financial futures.”
Khalfani, a former Wall Street Journal reporter for CNBC, is also the author of the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom. She has appeared on “Dr. Phil,” “Tavis Smiley,” and the Emmy-award winning reality program “Starting Over.” She has also been featured in The New York Times, USA Today, Redbook, and Essence.
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