Profit is not a four letter word (it's actually 6), but it's not a "dirty" word either.

What is "profit"?  Profit is simply when the benefits received are of more value than the cost to receive those benefits.

We often associate profit with business and we should.  They certainly exist in order to make a profit and offer the owners of the business a return on their investment.

But what about us as individuals?  Do we ever "profit"?  Are we (as people) out to make a profit?  I think the answer is yes.

Take this example:

My wife and I are looking for a new freezer to put in our basement.  We have a great need for freezer space with two little kids and the freezer with the refrigerator just isn't big enough.

I took a look at some freezers today and found one that might work for $199.

So if I were to purchase this freezer would I actually "profit" from buying it?  How could I possibly profit if I am giving up $199.  Obviously the retailer will attain some level of profit, but me?

Think about it and go back to the definition.  We have a need for a freezer, whether it be to throw less food away, eat more leftovers, convenience, space or whatever there are a variety of needs.  There is a value to all of that to me and my wife.  I must think that the benefits I will receive from having this new freezer are greater than the $199 (cost) I will give up to get the freezer.  In other words I will profit from this purchase.

In a free society, where we can trade goods, services and money each side of the transaction is looking for profit.  When I go to work, I am essentially saying that the paycheck I receive is of greater value than the time and talent I contribute to the organization.  If I truly thought it wasn't worth the paycheck I would make a change.  I could take a lesser position with maybe less stress and less time commitment or fewer growth opportunities, but I would probably do so for less money because it would take less money for me to profit from my time and effort.

Profit in and of itself is not a bad thing.  Profit has a way of motivating us and challenging us to question and consider our decisions more carefully.  Going back to my paycheck example.  What if I was suddenly working 80 hours a week (and I know some people do)?  Would the paycheck still be worth the amount of time I am giving up?  Would I still profit from the transaction?  What if takes time away from my wife and kids and forces me to work late hours and weekends?  Profit would force me to become more efficient at work, to work smarter and to come home sooner.  In this example, if my "cost" is my time, then by cutting my costs I am able to achieve a better or more acceptable profit, because the paycheck is now holds greater value than the cost. 

Just like businesses we make decisions around profit every single day.  In some ways it is basic economics we just have always reserved profit for business, but when we think about it isn't a business just a collection of individuals?  If that's true then individuals must be out for profit too.

KCuz