There’s a smarter way to make money than the way most people go about this process, as most people swap their time for money by having a job, or operating a small business that directly swaps time for money – such as a personal trainer, hairdresser, or consultant.
The smarter way to make money is to leverage assets, build systems, and make investments than allow you to leverage your time and put your money to work for you, rather than you having to work for it.
For instance, a lot of web developers understand the power of financial leverage in this sense, as rather than earn a stable salary, often in excess of $100, they realise it would be much better to develop a subscription based app such as Spotify or Netflix that can be downloaded multiple times, meaning they receive subscription revenue as a passive income, on a recurring basis; essentially their initial effort (i.e. time input) has been leveraged multiple times.
This is clearly the smartest way to make money, and investment can be just as fruitful, indeed there are many courses that offer a fast-track learn to trade syllabus, yet all too often we see stock markets and investing strategies as being ‘above our head’ and perhaps a bit too risky, yet there are strategies that mitigate risk and investing can be very profitable – but just like with anything else, you need to take the time to learn about what you’re doing rather than going in blind and hoping for the best.
The challenge is that we understand there’s a smarter way to make money but we are often so conditioned to trade our time for money, as an employee or small business owner, by society, the school system, and our lack of self-belief that we don’t make the necessary paradigm shift required to break free from the rat-race.
The challenge, when it comes to making an income in a traditional way, of course, is there’s an intrinsic limit on how much a person can make when they are trading their time for money, as there are only so many hours in a day as well as a ceiling to the amount a person can charge for a unit of their time.
However, when you build a system, you can leverage this system time and time again with uncapped potential. Going back to the web developer, just look at the money making potential of apps like Netflix or Spotify.
It doesn’t have to be that extreme, however, to be successful. It could be as simple as employing a few ice cream van operators, and leveraging this network around your city, rather than being a one-person band that sells ice cream, meaning they have no time or financial leverage.
The point is the greatest challenge when looking to make an extra income is that most people earn a living by trading their most precious resource of all, their time, in return for money; as whether you stack shelves in a supermarket or perform open heart surgery – in both instances, you are ultimately swapping your time for money.