Trading Hours For Dollars

By MoneyBlueBook

This topic has been discussed and debated by many in the financial community and is regarded as controversial by some. Numerous bestsellers have been written on the subject.

Traditionally, when it comes to making money, most people share the same mentality - "If I work harder in my job, put in more overtime hours, I'll get ahead and make more money." Unfortunately, no matter how many hours they put in, they'll forever be constrained by the laws of nature. There is only a finite number of hours you can work in a day during which you can exchange your available working hours for monetary compensation - essentially, trading hours for dollars, or trading time for money.

The New Approach

The new approach is hard for many to accept as it requires a different understanding beyond what we were taught as children. The new approach places lesser priority on active income and a greater emphasis on passive income generation. Active income would be money earned while putting in your hours sitting at your office desk (trading hours for dollars). But passive income would be money generated from sources such as stock investments, real estate appreciation, rental income, and even advertisement revenue earned by websites that you own. The limitations of the old approach to money are obvious.

You Are Constrained By Time

By trading hours for dollars, you are foregoing time that could be spent tending to other things in your life such as friends and family. You are choosing to spend your time in an office, rather than

By MoneyBlueBook

Recently I went to eat at a local casual diner. There were very few customers but yet the service was still terrible. Our waitress made us wait and delayed in taking our order or even offering us water. The water never came until I raised my hand for another waitress to bring it to us. Our waitress never offered us much service. It was only a quick evening snack so the bill came out to only about $11.00. I had initially decided not to tip at all because the service was so lousy but decided to at least chip in an extra $1.00. When the waitress saw her tip, she became enraged! She began whining and complaining very loudly and angrily to no one in particular but clearly and purposefully within earshot of us, while her mild mannered manager tried to calm her down to avoid a scene. Eventually her obnoxiousness made me stand up and confront her verbally. The manager ultimately offered us an extra dessert to make peace and apologized for her behavior.

Voluntary Compulsory Tipping

Afterwards, the incident got me thinking about how tipping has gone from being a gesture of good will to a mandatory social custom. The tip is supposed to be a sign of appreciation for a job well done and purely voluntary. Although the amount is never legally required, failure to tip in certain situations can now result in embarrassment, or even feelings of guilt. That is the part I don't understand and find very frustrating. If tipping is