Why Formal Sector Workers Can Not Match Established Traders Financially

The reality is that, formal sector workers who depend solely on their salaries can not match informal sectors, who are established in their trade, financially.

This assertion is common in everyone’s community and neighborhood and does not need padding.

The question is why? The reasons are the main reasons informal sector people refer to formal sector workers as stingy.

The following reasons could better explain the situation and help formal sector workers who so wish to adopt similar strategies to better their financial situations.

1. Traders are always looking for money or income or profit while formal sector workers do not. Growth is not just an increase in height or age, but an increase in anything. Financially, a person must add to whatever is existing to be considered as growing.

Traders will only give out discounts or free things when they know they could still make a profit or gain. However, this is not the case for formal sector workers, who give out discounts or free things at the expense of their static salary. Such a formal sector worker would only be acting to reduce financially despite any religious gain. The fact is, traders are also entitled to any religious benefits even though they know they could get their discounts or gifts back in profit. Formal sector workers must therefore adopt the mindset of informal sector people to continuously be looking for money or profit or income from any legal opportunity, since taking advantage of an illegal opportunity is a crime or a sin.

2. Formal sector workers perceive financial or business prudence as unkindness. Formal sector workers are likely to give their financial resources out without thinking twice about it, while informal traders demand payment for services they render. Interestingly, when formal sector workers are asked to pay for any service rendered by their informal sector relatives, they are perceived as unkind or wicked, while it is pure financial prudence based on the financial architecture of the country and the world, as God himself said one must work or sweat to eat.

3. Formal sector workers consume with static income. It is a known case that whenever prices increase at wholesale shops or dealerships, retailers will increase their selling prices even before they go for new consignment from the wholesale shops. The implication, therefore, is that established traders live on parts of their profits while maintaining the value of their trading capital. Meanwhile, formal sector workers survive on their static monthly salaries which may not even take them to the end of the month. Traders then have the ability to maintain a lifestyle consistent with their current profit levels instead of formal sector workers who could access their salaries in advance for various reasons.

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