You’ve heard it numerous times. Time is money. But what does that really mean? Let me know if this strikes a chord with you.
Rich people spend money to save time and poor people spend time to save money.
Why is this so true? Because rich people really understand that time is money. They spend it to leverage their time and thus, be able to make more money and have more time for themselves.
As a younger guy, I was the poster child for saving money. I changed my own oil in the car, “fixed” the computer issues on my own and so on. I did it because I had to. I had no money! So, if you have NO money, this can’t really apply to you. However, what does the definition of no money mean? Zero? Negative? Or just money you really don’t want to part with?
When this item comes up, you first need to determine what “no money” really means. Unless you have negative money, meaning completely broke with zero credit, you do have money. Let me explain. If someone offered you the opportunity to buy a house on the beach in Malibu, CA for $10,000 that normally goes for $3,000,000 would you come up with the cash? If the answer is “no”, OK then you have no money. If the answer is “yes” then you have the money.
The same goes for the situation If someone tells me that they “can’t afford” to hire someone to do the basic tasks of their business because they say they of the lack of funds. What I do is run them through this simple exercise. You may want to do the same. It’s kind of fun.
First, let’s figure out what your hourly rate is. Yes, you have one. Take your yearly income and divide by 2000. So, if you made $60,000, your rate would be $30 and hour. Now, look at the tasks that you do on a daily basis and ask yourself this really in-depth question. (Yes, there is a bunch of sarcasm going on with that statement.) Is this task that I am doing right now a $30 an hour task or a $10 an hour task? If it is a $10 an hour task, stop doing it! Pay somebody to do it.
The point is, if you can pay someday $10 an hour while you do $50 an hour work, you will be ahead by, hmmmmm, $40. So, you CAN afford to hire somebody. Again, can you come up with the money to pay somebody so you can focus on the high value aspects of your business? You just need to do it, or not, it is your decision.
This is all about leverage and learning to leverage your money, time and people. There is no greater skill you can have. Really rich people understand this to the maximum level possible.
When you understand how valuable your time is, how to leverage that time and how to prioritize your tasks, then you will be on the road the riches.