FandK SavingsJune 14, 2021 · 3 mins read
Your path to financial freedom involves knowing how you earn, how much you earn and how to increase your earning capacity.

Influencing factors of budgeting and financial management spread across a wide range and as such it is only right to understand the part that each class of factor plays in creating and building wealth. Part of financial intelligence is gaining financial knowledge. Moreso, the salient knowledge of the dynamics of how money flows into your hands, either as a 9-5er or an entrepreneur, or a tech junkie. Beyond saving towards a goal or the many extras involved in the motivation for better financial practices, a lack of proper understanding of your nature of earnings may be what’s been stopping the big break from slaving so much to build wealth. Now, everyone loves the salient tips that would get them to freedom faster than the way excessive efforts would. Go with me on this journey to uncover the secret dynamics of how you earn.


This is probably the most common work reward-related term you have heard in your entire work or career life. The term salary is what I’ll define basic as well as intricate. Basic because it is expected by everyone that does a measure of work in the traditional working system. Regardless of whether you are the boss or employee, you get to wonder about salary because you have to earn a salary. What? Did you think only employees earn salaries? Bosses earn one too. In fact, in the grand scheme of things, employers are also workers and as such deserve to be paid for the work they do. The way the salary is designed is for it to be paid every month.


You are probably wondering if the term wage still exists in mainstream use today. In simple terms, a wage is widely used to describe a form of payment after work is done. Now, a wage could be earned on an hourly basis, daily basis, weekly basis, or even on a contract basis. To differentiate between a wage and a salary, a wage is the wider term and some institutions consider salary under the big umbrella of a wage; a salary wage.


Although a little archaic, the term proceeds generally refers to the amount earned over time, especially in the context of a business. It could also mean the money earned after executing a transaction.


Your profit is the amount you realize when you earn more in the area of proceeds over the expenses in business activity. Any profit earned goes back to you as a business owner and as such you have the power to choose what to do with it. It becomes your call to either spend it personally or invest it back in your business.

Minimum Wage

Have you ever wondered where the regulation for work pay originates from?. Well, that is where the minimum wage comes in. Bodies are responsible for determining the minimum a worker can earn per hour. These institutions can differ across the professional setting of the kind of work.

Base Pay

As a newly employed worker, your base pay is the first earning you get without the inclusion of additional benefits or perks. This means that your earning may be subject to a review and in turn, can increase as you go on in that capacity of work.

The Input of Earning Dynamics on Financial Independence

Besides you have a good grasp of how your earning works, understanding these dynamics is a great practice for financially intelligent folks. Especially in the digital age where there is a hybrid work environment, you may be in a work position where you have more than one dynamic in play. More importantly, as you want to invest, save, and generally see your funds grow, a great way to start is by understanding how money flows into your hands. 

Remember, a solid foundation is fundamental to building big financial dreams

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