Leverage is becoming more and more important in our society. We have the internet, a huge vehicle for leveraging time. You can outsource any task for pounds and pence on sites like Elance. You can employ a virtual assistant who you can pay by the hour or even by the minute, to do tasks for you to free your time to focus more on Income Generating Activities.
Most people think that what they are doing now is earning them the money they’re earning. The hours they spend working are earning them their pay. It took me many years to work out that this is NOT the case.
“It’s not what you’re doing now that earns your wage, it’s what you’re not doing.” – Rob Moore It’s not what you are exchanging your time for that is earning your income, it’s all the things you are doing that is keeping you at that income level. Let me explain: If someone earns £3,000 per month working 50 hours per week, all the things they are NOT doing are where £5,000 per month, £50,000 per month, and £500,000 per month exist.
“If you do what you’ve always done, you’ll get what you’ve always got.”
The difference that makes a difference that the wealthy and successful really understand is where NOT to spend their time: what activities NOT to do that are not worth their time or value.
Most of the things most people are doing are not earning them money. 40 of those 50 hours a week will be earning 5% -20% of the money, and two or three ‘Key Result Areas’ in just a few hours a week will be earning 80% to 95% of the money.
If you were NOT to spend your time in those 40 hours that only bring in 5% - 20% of the money, leverage those things out, and replace that time with higher value tasks, management and further leverage, you’d like compound your income by a factor of five or ten, in the same amount of personal time.
You would have earned five to ten times more NOT by doing more, but by doing different. NOT by working harder, but by leveraging and changing the focus of your time. NOT by demanding more hours in a day, but by doing less.
This concept should be very exciting to you.
There are four main assets you can leverage:
- Leveraging other people and their time
- Leveraging money [OPM, bank, JV, private investors]
- Leveraging systems and software
- Leveraging other people’s contacts and resources
Leveraging these four assets creates more than 24 hours in a day on your personal time. It can create 100 or 500 hours a day being exchanged for your vision.
Remember, you don’t need more time, you need more time from other people working for you.
The poor exchange their own time for money. The poor use that time on low value tasks, where most of their time brings in little to no money at all. The rich leverage other people’s time.
“You’re either leveraging other people’s time towards your vision or being leveraged by someone else, working to their vision.” - Rob Moore
Put simply, the key is achieving more, with less. More money with less money. More time with less of your personal time. More results with less of your personal effort.
To many this concept is just not believable. They’ve been brainwashed to believe that ‘working harder’ means you’ll earn more money. But everyone experiences leverage in acceleration or reverse.
You see, either you’re utilising leverage in your favour, earning on OPM [bank, JV partner], getting results on time invested and OPT [other people’s time], and these leverage points are helping you to your vision. Or this is happening to you, in reverse, and you are working for someone else’s vision, being leveraged by them, getting paid an hourly wage for time you’ve given up and will never get back.
If you work for someone else and you’re not happy, or you work for money and that money stops when the work stops, and no one works for you, then you are being controlled by others’ leverage. They are earning from you, you’re bottom of the food chain, and earning the least while probably working the hardest.
You probably have the least control too, and possibly you’re the unhappiest. Now this is not to say that working for someone else is wrong. We all need each other, and we are all interdependent. The banks need us and we need them. The cleaner needs the boss and the boss needs the cleaner. Earned income is still income, and it’s most commonly the first step on the income ‘quarters’ ladder.
If you can master the art of leverage then you will be wealthy beyond all of your expectations, plans, goals and quite possibly dreams. You will earn vastly more on your portfolio than you would using your own money.