Do you want to make more money by working less and want to grow your wealth? Well, we all have the same amount of time in a day, however, it’s interesting how some people are able to create great success and wealth while others end up having an average life. Without counting those who grew up wealthy or were lucky enough to inherit or win the lottery we have to admit that there have been many people who come from nothing and use their time to achieve the goals they had set for themselves, and do so with great success and wealth.
Today we’re taking a look at how the rich leverage their time and money to make more money by working less and continuously growing their wealth. Now when I say that these people are working less, I don’t mean that they aren’t working hard to increase their wealth. On the contrary, they work incredibly hard especially at the beginning of their journey to create a life of freedom. What I mean is how they use their time compared to the average person and how they build their wealth over time, eventually, they don’t have to work if they don’t want to.
1- Understand the difference between absolute income and relative income
Absolute income focuses only on the absolute number of dollars you earn. Relative income emphasizes time, mobility between locations, and even the individual’s lifestyle. If you can develop skills that are valuable to the market while maximizing both your time and your skills, you can increase the value of your time. You will give yourself a better opportunity to build wealth since it can provide you with more time, freedom, and money.
How to make more money by working less? One way to grow your wealth is by focusing on developing skills that are valuable to the marketplace. For example, learning how to build websites or sell to audiences online. Managing automation systems or learning copywriting are all great ways for you to earn more without working longer hours, which means less time spent earning money.
Building high-dollar skills are important because it allows you to build an income that gives you freedom of time. This allows you to focus on scalability or building other additional sources of income and when it gives you freedom of location you can still have a greater lifestyle while spending much less money.
A little secret that virtually all wealthy people follow to make more impact with their time is to focus their time not on tasks but on scalability. In other words, they avoid being the bottleneck of their business. For example, let’s say that you have a restaurant you go and buy the ingredients you make the food and you sell the food and you have a pretty successful small business. However, since you do everything yourself even though there is demand for your delicious foods some people do not get to enjoy them because they are not able to get served due to how busy or in demand your business is at any given moment.
Make more money by working less and grow your wealth, if you want to grow and expand your business you must take time to focus on the big picture, otherwise, everything else will fall by the wayside and your business may not survive. If you hire employees to take care of these tasks you have somebody who cooks, somebody who takes care of the customer and you get to serve, as that will deliver ingredients in the event that you begin to run low. All of a sudden you have a system of business that no longer needs you, you are no longer the bottleneck of the business and as long as they are profitable, you can now open as many restaurants as you want.
You are able to have a higher impact serve more people and make more money in the process because you focused on scalability instead of just tasks. Consider McDonald’s and several other fast food places. These businesses have systems in place where they are able to hire almost anyone to take care of the task. High-level executives, meanwhile, concentrate on high-value tasks like marketing and advertising.
When you are the CEO or owner of a company you usually make much more money than the average worker even though you make more money by working less. This is because you fire yourself from your lower-value position to focus on higher-value work. It’s a good idea to begin focusing on high-value work by figuring out which 20% of your to-do list will provide 80% of your results. This is a very powerful strategy if you don’t know where to start.
2- Understand the financial patterns of the average person versus the wealthy.
You can manage your finances better if you know what assets and liabilities are. If you’re not familiar with these terms they are things that put money in your pocket or take money out of it. The difference between the average person and the wealthy is that the rich use their money to create assets that create recurring cash flow or passive income. For example, if you buy a rental property and rent it out you will have income coming in every month. So try to invest grow your wealth and make more money by working less.
As Warren Buffett once said if you don’t learn how to make money while you’re sleeping you will work until you die. So first we must focus on increasing our relative income by increasing the dollar value over time, so we can make more money in fewer hours worked then we focus on not becoming a bottleneck in this business. So we can work without ourselves then we invest this money in extra time and assets that create continuous cash flow independent of what we do this way. No matter what we do we will still have strong sources of income. In the comments below let me know if there was one concept you took away from this article and share tips on how to grow your wealth.
If you can develop skills that are valuable to the market while maximizing both your time and your skills, you can increase the value of your time then you do less work and earn more.
1- Create a course
2- Write an e-book
3- Invest in stocks
4- Affiliate marketing
5- Rental income
1- Spend time learning about money.
2- Find a reliable source of income.
3- Establish a budget.
4- Have adequate insurance (but don’t over-insure) and save a significant portion of your income.
5- Establish a reserve fund.
6- Continuously improve your skill set.
7- Consider ideas for passive income.