The Hard Truth about Employees and Companies

Have you heard or yourself made such comments before:

"How could the company be retrenching people when they are making profits?"

"Why can't the company provide us with more benefits, they are so rich, it's just peanuts to them." 

"Why does the company only ask me to work, but never send me for any training?"

"I sacrificed so much family time for the company, why am I not promoted?" 

Whenever I read or hear such comments, it just make me wonder why do people not realize the truth about the relationship between employees and companies? As a corporate warrior for nine years and counting, each year only reminds me more firmly about this hard truth. 

Companies exist to accomplish the vision of the owners. It could be to leave a legacy, fulfill their dreams, make money or whatever. It's never, I repeat, NEVER for the employees. To a company, employing an employee is a transaction. A transaction for a service the employee can provide for the firm, to allow it to achieve the vision. This is similar to you going to the hairdresser for a haircut. The hairdresser gives you a haircut and you pay him or her. Or you going to the supermarket to buy milk. You get the milk, the supermarket gets the money. Simply, a transaction. 

To be blatant, employees are just a pawn to accomplish the vision of a company, in return for something (money or pay). To allow the pawn to help achieve the company's goals, some companies may provide training, have good benefits and so on. But the ultimate goal is to ensure that the pawn helps it achieve the target.

So what benefit does the pawn get? 

While we understand that companies exist for themselves (the owners), it does not mean that the employee is always at the losing end. For one thing, the company has to pay the employee for the work which allows the employee to accumulate and work on this  pennies to create his/her wealth. As employees, we should make full use of the opportunity when given to work for this company. How you make full use really depends on your ultimate goal. It could be to earn reputation in a certain area to spring board your career, gain experience, learn a new skill through doing, and of course build wealth from the pay. 

Since companies exist for their own goals, the pawns (employees) exist for their own goals as well. 

Once you understand this hard truth, you will know that no one owes anyone a living. The company employ you for the service they want from you, and you agreed to provide them with such service to the required standards. If the company wants you to make sacrifices that you are against your goals, then it's your job to prevent that. 

Remember, it's a transaction. 

Why my partner and I manage our finances separately

My partner and I have almost separate finances.

The only item that is many under both our names, is the present home that we are living in. Our mortgage repayment is done 50- 50 and deducted directly from CPF. We have no joint bank accounts (except the one that the bank made us open for the mortgage for cash top- ups, if required. The value in it is $0 for now), no credit cards under both's names, or whatsoever. And we are living very well under such arrangement.

Both of us are working, and are able to support ourselves prior to the marriage. And both of us  intend to continue working after marriage. Hence, why should marriage change how we manage our finances? In addition, we understand and respect one another's differences. As such, the decision for separate finances.

One Ground Rule

We have only one ground rule regarding each others' finances -- Whatever we do, we must spend within our means (no debt, except for housing which we can be in debt for). 

Divide and conquer for shared expenses

My partner and I divide our shared responsibilities, and work on them individually, consulting each other when required. Our thoughts are that it is easier to focus on just a few items, and do them well, than to work together on every single thing.

For shared expenses, such as utility bills, conservancy charges, home broadband, and property tax, etc., we divide such bills among ourselves, such that overall, the total bills each of us pay is roughly the same. So my partner is responsible for utility bills and property tax, while I am in charge of conservancy charges and home broadband. The person who is totally in charge of the bill, is in charge totally on it, from paying its expense, to the choice of vendor, coming up with ways to lower expenses (especially for utilities, and so on).

For our functional home project, each of us is in- charge of (the expenses) of a few rooms. Of course, in this case, there are more discussions since we will both be using same rooms.   

For kids, I am in charge of childcare/ education, while my partner is in charge of everything else (insurance, food, milk powder, etc.).

As for groceries, eating out and so on, we never go dutch for each such trips. It will be a hassle. It's hard to divide and conquer this piece of expenses. Hence, we just take turns to pay, or the one who spends more pays. We never count the number of times or track these, but rather just go by gut feel. That's it.

Apart from that, we pay for our individual shopping, insurances, entertainment, outings with friends and whatever. How much each of us spend, save, and so on, is none of each of other's business, as long as  you don't get the other person into serious financial problems. Our net worth are also not related to one another.

Advantages of having separate finances

While marriage is usually a merger of two people's lives, keeping finances separate has its many advantages.

The couple may have different goals in life. One may want to lead a life like Mr. Money Mustache, while the other aspire to live a life a more luxurious life. One may want to retire as soon as possible, but the other may find working engaging and wants to work as long as he/she can. There is no right and wrong, as long as we live responsibly (i.e. live within ones' means). 

In addition, it is easier to have control of yourself than others. For instance, if you want to increase savings, it is easier to implement it by lowering expenditure and/ or increasing earnings.

I believe in fairness and being responsible for your actions. If both the couple are gainfully employed, why should one person spend another person's hard- earned money? If only one of person is interested in expensive hobbies like golfing or photography, it doesn't make sense for the other to pay for it. If you don't earn a lot, what gives you the right to spend your partner's money to satisfy your desires?

Finances is one of the most frequent source of conflict between couples, and it usually arise due to disagreement with how each manage them. By keeping it separate, and respecting how each of us manage our finances (as long as it is reasonable), it is likely to minimize conflicts.