Tuesday, June 11, 2013

How To Get Rich - Generate More Time

Do you know how important time is in growing your wealth ?

Do you think the wealthy have more time than you do ?

Yes, the wealthy actually do have more time. Read on to find out how !

Why Time Is So Important

When it comes to investing, time is extremely important. Simply put, the sooner you start building your wealth the more you will have.

Think of yourself as saving a fixed amount of money every month. The more months you do this, the more money you will have. Go to the tools page on this site under the savings calculator. Run through a couple of examples and see what the outcome is. You may be amazed.

The sooner you start your wealth building plan the more time you will have to grow and enjoy it. Ideally, you should start your plan right after high school or college, with your very first job. Before this point is even better if you can. Time is on your side.

There are 525,600 minutes in each and every year plus an additional 1,440 minutes every fourth year (leap year).  This should give you plenty of time to plan for your future. However, most waste away these valuable minutes sleeping, eating and just plain goofing around.

Wealthy Have More Time 

The wealthy have more time to become even wealthier because they use other peoples time. Let me explain.

People that own businesses or rental properties quite often hire employees to make money for them. As long as the employee generates more income for the employer than the wages and benefits paid to the employee, the employer gains. The more profitable employees you can hire, the more money you will make

Most full time jobs are 40 hours per week, or 124,800 minutes per year. Minus approx. 24,000 minutes for annual vacation (2 weeks) This means the average individual sells approx. 100,800 minutes of their time each year for a fixed amount of money in wages. This time is being used to make money for the employer.

This means that for every 5 or so employees a wealthy person has, their time is doubled. This is called time leverage and it is one of the most powerful concepts for accumulating wealth.

Employee or Employer

Now, if you had a choice I think you would like to be an employer instead of an employee, right ? At least I hope so after reading the above.

Did you know that some of the wealthiest individuals in the world today are college drop outs ? It's true, and they realized early on in life that they would not become wealthy by being an employee for someone else. There simply wasn't enough time no matter how high a wage they could earn.

However, for most of us, we simply don't have the knowledge or the ideas to start our own profitable business. There is also a great deal of risk and time required to develop a profitable business on our own.
The good news is there is a safe and easier alternative for building your wealth.

Be Both and Prosper

It is possible for you to be both an employee and an employer at the same time. You can be an employee to earn enough to pay your living expenses and live your desired lifestyle. You can be an employer by investing a portion of your income in large profitable businesses who hire many employees.

For most, it is best to be both, at least until the investments make enough to pay for your living expenses and support your desired lifestyle. At that time you can "retire" as an employee and become an employer full time.

Well, actually your time can be used to enjoy your life or look for other ways to become wealthier, it's your choice. This is because you have now hired other people (through your investments) who will be working to make you money. You no longer have to sell your valuable time for money.

Your time and the time of others can be used to your advantage to build your wealth. It's now your choice to see how you can use your most valuable commodity, time.

As always, I welcome your comments and suggestions for future topics.

1 comment:

Anonymous said...

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And he actually bought me dinner because I stumbled upon it for him.

.. lol. So let me reword this.... Thanks for the meal!
! But yeah, thanks for spending some time to discuss
this subject here on your website.

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