Time is Money
There’s the saying that time is money.
Which conversely means that money is time.
Let’s say your time is worth $50/hour and you work 8 hours straight.
But let’s say one day you have to go to the store during coronavirus and wait in line up to one hour till you’re done purchasing everything.
That’s $50 wasted that you could have used to make more income from your time.
What should you do?
You leverage other people’s time to free up your time to make more money.
For example, you hire a local teenager with a car and pay them $20 to do your grocery shopping/errands at the store for that one hour and deliver it all to you.
In that one hour you paid them $20 while you worked and made $50.
Resulting in a net positive $30 from leveraging your time and other people’s time.
What does it mean to leverage?
The dictionary has different definitions but in this case, I would like to define leverage as using something small in order to achieve something big.
Like using a small stick as a lever to move a big rock that you couldn’t move with your bare hands.
In this case, we’re talking about using a small amount of money (relative to you) to help you make bigger money (also relative to you).
Rich get richer because…
There’s the saying that the rich get richer and the poor get poorer.
I’m starting to notice that during coronavirus, the rich are getting richer because they could already afford to hire other people to do their errands while they do their job or build their online money making empire.
They use apps like Instacart, which is third party grocery shopping app where shoppers pick up your groceries for you.
There’s also taskrabbit where you pay people to run errands for you of any kind.
They leverage their time and don’t have to wait in lines because stores are limiting the amount of people who can go in at a time.
So they pay other people to do their errands for them.
Again, what should you do?
Even if you’re making $15 an hour as a cashier at Whole Foods in New Jersey, I suggest looking into ways you create a passive income generator while you’re not working.
In an effort to boost your average hourly income to a point where it starts to become expensive for you to go grocery shopping for yourself.
*Keep in mind, I only use the concept of grocery shopping but it could be for any other task.
I actually like grocery shopping so I wouldn’t pay someone else to do it for me (yet).
But I don’t like mowing the lawn.
So I might find a local kid to do it for me, etc.
After all, if you’re worth $50 an hour and you could be using that time to make that money instead of spending it grocery shopping where you’d be effectively missing out on $50, why not hire someone at a rate of about $20-30 an hour to do it for you and make a net income of $20-30?
You have to start thinking of in terms of multiplying your time by leveraging other people’s time and talents.
A good book I found to be very valuable with the ideas on how to leverage time and talents to create the life you want for yourself is “Procrastinate on Purpose: 5 Permissions to Multiply Your Time” by Rory Vaden.
The book is a game-changer and will change your life.
I HIGHLY recommend if you feel like you don’t have enough time in your day to do the things that are REALLY important to you.
The economic and societal benefits of you leveraging your time
The person who you hire on Instacart to go out and get your groceries, or on task rabbit to file your papers while you work on building your income generating business now has a job.
They get money from you.
In return, you get the opportunity to make even more money than if you had done the task yourself.
You can then reinvest this money into making more money or leverage more people’s times and talents in order to free yourself up to make even more money.
From the example above, you had a net positive of $30.
You can use $20 from that $30 to hire the next Instacart shopper to get your groceries next week.
So you’re hiring them with the net positive income you generated, and still retain that $10 extra from the $30.
Then that week you make another $50 from your hour job but this time, you don’t have to dig into this $50 to pay the instacart person because you had that extra $30 from last week.
So you’re at net +$10.
Next week, you only pay $10 from your $50 hourly job to pay the instacart person and $10 from your net positive money from prior weeks.
So you net $40.
That takes care of you for the next two weeks of hiring instacart shoppers.
Thus resulting in a net $100 from two weeks’ worth of $50/hour work that you didn’t have to go grocery shopping.
That $100 pays for 5 weeks worth of grocery shopping from the instacart person…
You invest some of the extra money into more income generating sources.
And on and on the cycle continues upward and now you’re rich and getting richer and people have more and more jobs to do.
And your money is making you more money while you sleep.
If you can’t beat them…work for them
Let’s say you aren’t at that stage of your life where you can afford to have people run errands for you so you can make more money.
Say you’re making $15 an hour at Whole Foods.
After income tax you might only be taking home $12 an hour or less.
So paying someone $20 an hour to go grocery shopping for you doesn’t make sense because you’d be at a net negative dollar disadvantage.
However, in your off hours before and after work, you can shop on Instacart or drive Uber to make more money even though you’re directly trading your hours for dollars, which in the long is not ideal.
If you do drive uber, here are my 3 tips to make more tips when driving Uber.
But it’s a head start toward generating you passive income so your money is making money for you while you sleep.
In what form that takes, I do not know.
Only you do.
You might be talented musically so between your side-hustles and main job, you’re producing music that people are willing to pay for on Patreon.
You might be a comedian who can record himself on YouTube and also set up a Patreon account to take donations.
You might build Etsy Printables so people print out stickers or fun sheets of stuff to do from your designs.
This link is to a financial blogger’s Etsy printables course on how to go about selling printables on Etsy.
I know the blogger, she’s nice, but I do not know her course because I haven’t taken it.
Just wanted to share in case it could be of benefit to you!
The sky’s the limit, good luck!
Before I go, I just want to point out that this concept doesn’t just have to be used during Coronavirus or a global pandemic to work.
I merely said coronavirus because that’s what’s currently going on.
Rich people have been leveraging other people’s times and talents it for decades.
But hey, we all have to start somewhere, right?
It sucks in the beginning.
It really does.
But with patience and perseverance you will get to where you want to be through working hard, working smart, and getting creative with it.
If I only worked by myself, I might have been able to generate about $100,000 in annual sales in my business.
But I knew that I didn’t want to do all of the heavy lifting by myself.
So I thought bigger and hired a team and now we are looking to generate an estimated $600,000-700,000 in annual revenue in our first year in the business that I started.
I couldn’t have gotten to that place if I was just me.
My goal is to break a million dollars in annual revenue within the next two years and I know it’s going to take a good team to get there.
We need to be smarter, and think smarter than we’ve ever thought before.
You can’t solve tomorrow’s problems with today’s thinking.
And in order to get what you’ve never had, you need to do what you’ve never done.
It took me almost 6 years to save up enough money to start my business.
6 years of getting told no, getting punched in the face (metaphorically), and getting back up and keep trying, before seeing these kinds of results.
I think you have it in you to get to where you want to be too.
You just have to start looking for ways to leverage other people’s times and talents in order to multiply your own time and money.
- Instacart to grocery shop for the upper middle class
- taskrabbit to also do errands for the upper middle class
- “Procrastinate on Purpose: 5 Permissions to Multiply Your Time” by Rory Vaden
- Patreon to get donors
- Etsy Printables course by Millennial Boss
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