I’m sure you’ve heard the phrase “time is money” – well money is also time.
In fact, the understanding of this inversed truth is one of the best realizations you can have when it comes to time and money.
See, the only thing you have in life is time.
From the moment of your first breath at birth, the clock starts ticking. The sands start to fall down the hour glass. The fuse of your life was lit and starts to burn down. You landed on a spinning orb whipping around the sun at a rate of 16,000 miles an hour. The countdown of the number of sunrises and sunsets afforded to you starts ticking off.
All you have from birth to death is the timespan between them.
Once you leave the nest you quickly realise you need to support yourself; food, clothes, shelter and the like.
These things require money.
So to get it, you start trading some of your precious commodity, time, for the money you need.
Here’s where the tragedy is for most people.
They don’t graduate beyond this stage. They spend most of their valuable product, the time of their life, simply trading it for money.
It becomes a never-ending treadmill of spending their time to gain money only so they can sustain themselves longer to spend more time working for the money they need all over again.
And we wonder why people are stressed out, unfulfilled, and not having the time of their lives.
Here’s what wise people do…
They learn the knowledge and skills to be better traders or their time.
The money they earn from their time they invest and have their money make more money, a surplus. This will allow them to eventually gain time freedom.
Wise people seek leverage of their time meaning they look for ways to earn money not directly tied to their time. This involves building a business where you earn money on other people’s time and effort or you spend a finite amount of time building products and services that can be resold over and over with no additional investment of your time.
This is what’s called an RROT, a reoccurring return on time.
The most overlooked time money relationship is wisely spending your money to buy back your time. Ask the wealthiest person on the plant, at the end of their life the one thing they wished their money could buy and their answer will always be time.
At the end of your life it’s the one thing money can’t buy – but along the way it can.
Let me give you the greatest secret of the rich and how to buy more time…
First, you have to know what price you’d be willing to pay for more time and that starts with valuing your time.
Let’s say you want to earn $150,000 a year.
At 50 weeks a year, 60 hours a week, (by the way, don’t kid yourself with just a 40 hour work week).
That means your time needs to worth $50 an hour.
Now here’s the “math magic” successful people know and apply.
How many of your 12 hours a day are you doing less than $50 an hour work?
What tasks, meetings, and functions are you doing that don’t yield at least a $50 an hour outcome? The first thing to do is figure out which of those tasks or functions you need to stop doing.
Those are a waste of time.
Next, which ones still have to get done but aren’t $50 an hour work.
That is where you can buy back some time by hiring somebody say at $25 a hour to do your $25 an hour work while you stay focused on your $50 an hour work.
You immediately have a margin of $25.
This is where I see most people not being able to get off the treadmill.
They spend their valuable time doing low wage work, thus not being able to prudently spend their time on activities that increase their income; filing, database entry, organization, research, eating preparation, common correspondence, bill processing, website maintenance, etc. etc., are activities that are neither not your highest and best used tasks or can be delegated at a much lower rate.
Now with your increased efficiency and increased income, you can invest some of that margin into buying back some of your time.
Cleaning your house, mowing your lawn, washing your car, changing your oil, planning your vacation and many other functions can be hired out so you can use your precious commodity, time, doing things that bring you richer, fuller, more joyous experiences; certainly more joyous than scrubbing your toilets.
So not only do you trade your time to get money, to be even wiser trade your money to get more time.
Does that make sense?
I hope so because it’s the key to making more money, spending less time and getting more from the precious little time we have on this planet.
Signed with Success,