A key focus of my blog is Financial Literacy/Money. If it interests you, growing your wealth typically involves leveraging the skill sets and time of others as opposed to doing everything yourself. The following contributed post is therefore entitled, Make More Money in Less Time.
* * *
If you’re wanting to make more money in less time, then the first thing you are likely going to need to change is your paradigm around making money.
See, the majority of people trade their time for money in a very direct and linear way… for instance, if you consider the majority of jobs, they pay based on time input, whether that’s an hourly rate or an annual salary it is fundamentally calculated on the basis of the amount of hours you work.
The challenge with this, however, is that there are only so many hours in the day and there’s a cap to how much anyone can charge for each hour they work. Of course, you can upskill and gain greater expertise in order to charge more for each unit of time you offer – but even a highly skilled brain surgeon is capped to the number of operations they can physically do each day, week, month or year.
The brain surgeon and the janitor both have the same problem – they are trading their time for money, admittedly at different rates, but their problem is the same. If they want to make more money then they need to input more time.
Similarly, if you have a business that ships physical products the more products you sell the more time you will require putting things into cardboard shipping boxes – meaning, the more money you make the more time it takes, which is a recipe for not much of a lifestyle.
Therefore, many business owners find themselves working way too many hours – creating a business that might be turning over a decent profit, but is eating into their lives and the lifestyle they dream of.
The way to make more money in less time is very simple. You need to start leveraging assets; be that a financial asset such as a property that you rent out, a digital asset such as a blog that you sell advertising space on, an intellectual asset such as an invention or even an online course, or a business system where you leverage effort (e.g. own a big business with employees).
We’re now going to take a brief look at an example of how to make money via this model of leverage, as the most important thing to bear in mind throughout the examples above is the commonality they all share in that they leverage effort rather than your own time.
Let’s look at the example of property; here you simply find a property and you rent it out. Let’s say your mortgage is $1,000 a month and you rent it out for $1,250. You make $250 profit per month without having to do much at all… then, if you want to expand your income you simply expand your property portfolio – and in this sense you can have ten properties or one hundred; you don’t have to work any more hours to manage ten properties or a hundred… because you outsource the property management to a specialist company.
Meanwhile, it’s likely that your property will appreciate in value – so, whilst you are making your profit on each property, you’re also increasing your overall capital as the value of the house increases as does your net worth.