Many would agree that two of life’s most precious resources are time and money. Of those two, time is of even greater importance, because you can never get it back.
What most people don’t realize is that a job, regardless of whether it pays you $50,000 or $250,000, won’t ever buy you your freedom. If you’re working for someone else, you are building their dream, not your own. Two weeks’ vacation time and a few sick days shouldn’t excite you; it should disgust you.
Time and Money
In a job, you make a certain amount of money for a certain unit of time. Your boss and your company employ you because they make money off of you, and usually they are the ones taking the bigger cut of the pie. When you go to work for someone else, you are putting a time value on each hour you work. This is the most common compensation program out there, and that should tell you something; it probably isn’t the best.
Most people who are making more money in the job world are also working longer hours. Although this isn’t always the case, as you climb the corporate ladder and get promoted, it is very likely that you will be burdened with more responsibilities. In other words, even if you can make more money, you have to give up more time to do it.
Many people would like to invest or start their own business, but because their job requires so much of them, they find it difficult to find the energy or the time. This is the problem with getting on the fast track of the employment rut.
If you remember the cashflow quadrant from last time, you may recall that there are actually four different ways of making money. If you want to amass wealth, the goal is to move from the left side to the right side of the quadrant and create a passive income source. It’s crucial to remember that money can be made in a variety of ways.
Instead of making a fixed amount of money for a unit of time, businesses and investments allow you to create a variable amount of money depending on your performance.
This is a good place to be, but it’s not the best. Specialists, salesmen or even house flippers sometimes find themselves in this position, and while taking on more patients or closing more sales or selling more homes allows them to create a greater cash flow, it isn’t always consistent, and there is usually some risk of failure. More work also means less control over time.
The ideal situation is to create an asset that has the potential to produce ongoing increasing returns.
Incomes of this type almost always require considerable work and effort upfront, especially if you want to retain integrity and character as you amass wealth. There are business and investment vehicles that allow you to accomplish this feat, though complete and total time freedom isn’t always available.
A business will require some maintenance (and effort if you want to continue to grow it), and investments generally call for specialized knowledge and regular attention.
However, most people will find this position more appealing than working a dead-end job for the next 40 years (all jobs are dead-ends). Financial independence allows for freedom of choice. Many people who create this type of income continue to have a positive impact on the world and put their time and money towards the fulfillment of other people’s dreams by choice. What a way to live!