February 27, 2013, 5:00 am

Stop Trading Time for Money

by: The Financial Blogger    Category: Alternative Income,Productivity
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Whats the difference between you and an entrepreneur? The entrepreneur works with 200+ hours in a day while you are limited to 24.

 

HOW MUCH TIME DO YOU HAVE IN A DAY?

 

That’s an interesting question isn’t it? Let’s say you want to start a side project to make more money. How much time do you have in a day to make it happen?

 

Chances are that you sleep at least 7 hours per day We are down to 17,

 

You need to eat, wash and take care of yourself; another 4 hours gone 13 hours to go,

 

Darn! On top of that, you work out and stay up in shape; another 1h30 disappeared 11.5 hours left, the clock is ticking!

 

Oh wait! You also work, right? How about 9 hours per day with transportation? 2.5 hours to build something,

 

You are down to 2.5 hours in your day and you havent spent any time with your spouse, family or friends. You didnt even have time to watch the latest episode of The Walking Dead!

 

Oh well, you have 2 days free on weekends when you can squeeze in a few hours for your side project between groceries, cleaning and some free time. I’m sure you are going to build a huge empire… one weekend at a time! (sic)

 

WHERE CAN YOU FIND TIME TO MAKE MORE MONEY?

 

That’s an even better question. If you want to start making money on your own and improve your lifestyle once and for all, you need to make changes to your schedule. Warning; this means that you need to challenge all of society and break the unwritten rules of the dream crashers. If you really want to make money aside from your day job, you’ll need to turn around, leave I the sheep and run in the other direction. Have you tried to run the opposite way in a marathon? It is that hard!

 

Review Your Schedule and Prioritize

 

Over the past 10 years, I’ve gone from a simple admin clerk to a private banker making 6 figures systematically (since 2008). I have worked my share of hours but it’s not true that I had worked over 50 hours a week during all these years to get here. All I needed to do is to work smarter than my colleagues.

 

Look at what you do at work. Examine each minute of your day and ask yourself this simple question:

 

If I was paying someone else to do what I do in a day, would I consider him worth all the hours hes paid for? Would I like to get more back for the money I pay him?

 

Chances are that the answer will be no you are not working during all the hours you are at work. You do face time, you spend too much time talking with your colleagues, you waste an incredible amount of time in meetings and non productive tasks. I know because I do too. We all do.

 

However, several times a year, I stop what I do at work and try to establish a new routine. A fresh routine to help me avoid unnecessary meetings and chit-chat with colleagues. A routine that will ensure that my time at work is efficient and that I deliver more than expected. Why would I do that? Simply because the more efficient I become, the more “free time” I have to do something else ;-). If I deliver more than what is expected, why my manager would argue with me that I don’t use my time properly? This is the only way you can truly free up some time from your schedule and start working on your own project.

 

Today, my online business is also bringing in 6 figures in revenue and I work less than 10 hours per week on it. How do I do that? I’ve stopped trading money for hours.

 

YOU ARE MORE PRODUCTIVE, THEN WHAT? START MULTIPLYING YOUR HOURS IN YOUR DAY

 

The concept is super simple; imagine that you have all the money in the world. You can pay someone to cook breakfast, lunch and supper for you. Another person would clean your house, cut the grass and take the car to the garage. Basically, with all the money in the world, you can buy yourself a lot of free time.

 

The concept is similar to when you are building a company; you pay other people to work for you so you can have more free time to generate value. The key is to pay people less than what you make. If your employee works 1 hour and generate $50 in your pocket, the key is to pay him less than $50. The difference is going right into your pocket and you still haven’t work a minute. You need 10 hours of work to be done today? Just pay for them! Pay someone $30/hour and rack-up $200 in your pocket by the end of the day and you can still enjoy your day doing nothing.

 

But Someone Would Work for $30/hour For You Instead of Making $50/hour Working For Himself?

 

The answer to this question is surprising; because people are trading time for money. It’s a natural concept accepted in today’s society: you need money, you have to work. Period. It’s as simple as that; you just have to trade your time for an hourly wage and everybody is happy.

 

The thing is that trading time for money is an acceptable concept in today’s society. In fact, if you are not willing to work longer hours at work, you are perceived negatively. If you focus like a manager or an entrepreneur on paying qualified employees to do the work and take Fridays off, you are perceived as a lazy dude. So while you are acting smart, most people will think that you are lazy and that you abuse other’s people time. Nonetheless, they will happily make the decision to trade more time to earn more money the following day.

 

YOU WILL ALWAYS TRADE TIME FOR MONEY – BUT YOU CAN DO IT EXPONENTIALLY

 

There is another myth about trading time for money; pure passive income doesnt exist.

 

If you live off your dividends – you need to spend time managing your money.

 

If you earn rental income – you need to spend time dealing with tenants and take care of your property.

 

If you own websites – you need to spend time writing content or at least managing your VAs.

 

If you run a business – you have employees to manage, contracts to close, etc.

 

However, the main difference between an employee and these four situations is the following:

 

When the employee leaves the office at 5pm, he stops making money. The investors, landlord, site owner or business owner makes money 24 hours / 7 days a week.

 

I wake up every day with more money in my pocket than last night.  When I look at how much my sites had done overnight, I am amazed and I have never received a pay check for sleeping!

 

So the key is to make your hours of work produce exponential results. You can do that by either building a structure that will generate passive income in the future or by employing people to work for you. In both cases, you will end-up earning more money without trading your time for an hourly wage. This is what I call: stop trading your time for money.

 

This is probably the main reason why I’m working on the side to build my online business; to increase my overall hourly wage and make money while I’m sleeping. Eventually, I would like to buy a rental property with this money too.

 

What are your thoughts about trading your time for money? Are you trying to find other ways of making money? In which field?

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Comments

Well for those who have the means, resources and expertise to own a small business or do work for themselves, this makes sense. Having other areas make money for you is obviously ideal, but a lot of people don’t have (or haven’t spend the extra time/energy in) finding extra money to invest that will increase funds exponentially. Trading time for money is a lot of times the only choice people have.

When I first started reading this I was intrigued by how you could maximize the amount of hours in your day to make more money all while still only have 24 hours. It is awful calculating out how many hours you can actually put to good use during the day. But when I got towards the bottom and realized what you were talking about: becoming a landlord, running a website, ect, I understood.

Great post and one i totally agree with. I ran a seasonal store during the christmas a few years ago. We sold games, calendars, etc. Paid our employees 10 an hour. We had some days we barely broke even, but during christmas week, we were paying our employees a total of about 300 for the day, but making about 2500 in net profit for that day. It was amazing to hear these results while i was at my real job. As for Kelly’s comments, i disagree. I think its challening when you dont have upstart cash, but i dont think its impossible. Where theres a will, there is a way.

On a side note, i didnt realize you were a private banker. I always thought you were a Financial Planner. I’m trying to break into the private banker world as well right now.

Trading time for money stinks, but is inevitable for most people. I’m a college student and the only kinds of jobs that are available to someone my age with my level of education are jobs that offer hourly pay.

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