You just don’t get money (unless you count as gifts etc) -most people have to earn it. Most people use their talents and skills. Some work for others, Some start their own business. Have you thought of what you want to be when you grow up? Have you thought about how much will you earn if you take that job? This article talks about what are the various ways in which people earn money? An overview of Salary of Different Professions, Skills needed in 2020.
If walking a dog earns Rs 100 and Krishna walks the dog 3 times How much will Krishna earn?
Where does the word Salary come from?
Dictionary says Salary/Income is a fixed compensation for services, paid to a person on a regular basis. Other words for payment for work done are compensation, earnings, fee, pay, remuneration, stipend, and wages.
The word salary has come from Latin word salārium. The word appeared in 1350-1400 in Middle English. It was money given to Roman soldiers to buy salt.
How do People earn money?
Most people use their talents and skills. Some work for others, Some start their own business. Robert Kiyosaki, the author of popular book Rich Dad Poor Dad, classifies the various ways of earning money into 4 types: Employee, Self-employed worker, Self-employed worker and Investor as shown in the image below. One can also see the video here.
- Employee: Employees earn income by working for other people. Most individuals are in this area. One work for a company and trade his time for money. If one wants to earn more money, one must work more hours. Another option is work for another company that pays better. And If you don’t work, you don’t make any money.
- Self-employed worker: Self-employed people earn income by working for themselves – they own their jobs. This quadrant includes Doctors, Lawyers, and Accountants etc.etc. Highly specialized individuals that are paid hourly rates. The disadvantage is if they fall sick then their income stops.
- Business owner: Business owners earn income from the businesses they own. They have others who work for them as their employees. They aren’t selling time for money, but rather selling a product or service. They are employment creators for the society. Businesses come in all shapes and sizes. A fruit seller or the Maruti Suzuki: both are examples of businesses but of different sizes.
- Investor: Investors earn income from their investments – from money generating more money.
Everyone is at least on one spot of the quadrant.The rules of the game are totally different in each quadrant. They are completely different worlds and require different mindsets, tools, skills, and behaviour. The income of a person depends on his/her knowledge, i.e. what he or she has studied. Did he/she study engineering or he/she studied medicines to become a doctor? What talents does the person have and how he or she uses it? For example, Sachin Tendulkar started playing cricket for India when he was only 14 years old. Education, skills and career choices decide how much a person is paid. Usually, people with more education and skills earn more money than people with less education and fewer skills. Hence parents often say, “Study well so that you can get a good job”.
Traditional schooling teaches us largely to focus on becoming an Employee (E) or a high-paid Self-Employed(S) individual such as a doctor, lawyer or accountant.
In business, the owner takes the risk and gets rewards. For example, the shop-keeper would be worried if customers are not coming to his shop or not buying anything. But salesman in his shop would not be so worried because the responsibility of running the business is not his, he should get his salary at the end of the month. He would be affected if the shop-keeper decides to close the shop or fire him.
Let us take some examples of jobs :
A teacher goes to the school and teaches the students. At the end of the month, she is paid, teachers salary depends on their qualifications, the class they teach, and whether they are teaching in a private school or government-run school. To become a teacher one needs to train in Bachelor of Education (B.Ed).
A baker bakes cakes and pastries. He needs to know the recipes to make cake or pastry, the measure of the ingredients, how to bake it, and decorate it.
A cricketer is good at either batting or bowling. He needs to field the ball and work with his team to win matches. Virat Kohli is a good cricket.
An actor needs to act. He needs to become the character in the movie or serial and convey the required feelings. For example, if an actor is playing the role of a clown, he needs to act silly, wear colourful clothes and make people laugh.
A maid comes to the house to clean vessels, swaps and sweeps every day. For her services, she gets paid at the end of the month. An average pay for a part-time maid is less than Rs 2000 per month. It might vary depending on the number of rooms in the house, the number of people in the house or the place one stays in. Maids are cheaper in Kolkata than in Delhi. There is no education requirement to become a maid.
When you are sick, you visit a doctor. After the doctor inspects you, diagnoses the illnesses, he prescribes the treatment. Your parents then pay the doctor. The doctor provides medical services by looking after the patient and he is paid by every patient on at least the first visit. Doctor’s fee might vary from Rs 100 to Rs 1000 depending on the ailment and the doctor you visit. For a viral fever, you might go to a general physician who would charge say Rs 100-200. But if one has an ear problem, then he/she might go to an ENT (Ear, Nose, and Throat) doctor who charge more.To might become a doctor one has to study Bachelor of Medicine and Bachelor of Surgery (MBBS)
Many of your parents might be working for firms like Infosys, TCS, Wipro, Microsoft, Google, Accenture etc. They work as Software Engineers in Information Technology (IT industry). Software engineers apply the principles of computer science and mathematics to the design, development, testing, and evaluation of the software and systems that make the computers work. To become a computer engineer one needs to have Bachelor of Engineering (B.E) in Computer Science from engineering colleges. Indian Institute of Technology (IIT) is well-known engineering colleges in India.
YouTube Video of CashFlow Quadrant
Salary of Different Professions
To give you an idea, a monthly salary of some of the professions is given below. Each job pays different amounts of money, or “rates.”
|Description||Min Salary||Max Salary|
|IT Manager||Engineering Degree||5-7||Oversee the smooth running of IT systems||40,000||105,000|
|Software Engineer||Engineering Degree||3-5||Prepare program specifications, coding, documentation, testing||30,000||65,000|
|Bank Teller||Diploma/Degree||1-3||Handles off counter transactions, assist with customer enquires etc||10,000||18,000|
|Personal Banker||Diploma/Degree||2-3||Provide advice and recommend investment products||15,000||38,000|
|Electrical/Mechanical Engineer||Engineering Degree||2-5||Plan & control maintenance work. Coordinate with customers and contractors||10,000||40,000|
|Call Centre/Supervisor||Diploma/Degree||2-3||Oversee a team of junior and senior officers||20,000||40,000|
|Receptionist||Diploma/Degree||1-3||Receive customers, Attend to phone calls.||7,000||20,000|
Skills needed in 2020
Skills needed change over the period of time. Before 1990s people worked in Government jobs staying in the same job till their retirement. After 1990s people started going for Private jobs as they paid well and they often changed the job. Skills needed in 2020 are given below
So do you think what you earn is in sync with what what you want to be when you grow up?