I don’t want to hype things up, but some consider this the holy grail of making money, the godsend of getting rich. I certainly don’t want it to seem like money and wealth is all I stand for, which it isn’t, and I outlined then when I spoke about me.
Okay so before we get to the point, I want to outline a few common misconceptions and ideas beforehand. Let’s first talk about time – the universally abundant commodity which nobody seems to have enough of.
Time
Everybody has access to this commodity, and I’d say in great abundance. We all have 24 hours a day, 1440 minutes or 86400 seconds. Okay, so if everyone has the same amount of time, then why do some people work 4 hours a day and make millions, while others work 16 hours a day and are living from day-to-day? In fact, it’s not only wealth that this applies to, how can some people spend their entire lives mastering an art (say, cooking), while other people like Tim Ferriss supposedly ‘hack’ it in 6 months?
The answer? It’s what they do with their time. Now that’s not revolutionary, it’s a simple fact, and it’s called productivity. Some people simply do more with their time than others, create more, earn more.
Money
So, this concept we have of money, we get hold of it by using our time to perform certain activities which pay us. That could be working in a newsagent’s, managing employees or conquering the world like Richard Branson. Back to productivity, the amount we get paid depends on what we do with our time.
In terms of numbers, why do some people make £5 an hour, whereas some make £50, £500 or even £5000 per hour? If people can make such vastly different sums of money within an hour, then you can conclude that you don’t get paid for time. If that was the case you could simply sit at home and have money sent to you, and everyone would earn the same amount of money.
So what do people get paid for? Here’s the million dollar answer: The value that they bring to the time. I’m not sure how much of a revelation this will be to you, after all, you’re reading this blog, but I can assure you that not enough people know this.
You don’t get paid for the hour. You get paid for the value you bring to the hour. – Jim Rohn
Value
This I think is where many people get it wrong, they opt to work more hours and longer days, but don’t change how they work. Sure, you make a bit more money with those extra hours of moderate value, but it’s not where the ingenuity lies.
Bill Gates didn’t make his fortune by earning $10 an hour working in a labouring job, he added value, a lot of value. But surely a heart surgeon adds more value to a human than Mr. Gates does with a PC? Probably true, but it’s the amount of humans you bring the value to. A heart surgeon can only perform so many operations in a day, a lifetime, but Mr. Gates created an international corporation to serve thousands, millions even hundreds of millions of individuals worldwide, and he can delegate a lot of that work to others (and machines), a heart surgeon can’t do that. You may say that’s unfair, but that’s the way it works, you can’t put a heart surgery on a production line, and as far as I’m aware a machine hasn’t been created to perform them without the aid of a human.
So in order to get more money per hour, you need to add more value to that hour. As far as I’m aware nobody is 100% efficient with their time, so there’s always some improvement that can be made.
Adding More Value
It’s easier said than done, but if you wish to earn more then it’s a task you’ve got to take. Some people may be happy at their current level, and then I’m happy for them, but I’m interested in growing my skills and abilities so I can continue to add even more value than I have done in the past, not for the sake of earning for money, but for the sake of adding more value to peoples’ lives.
The simple way to add more value is to become better at what you do, nothing phenomenal. If you’re a baker then that means honing on your baking skills, if you’re leading a big corporation then it means becoming a better leader, among other things.
If you’re wondering where to start, I’ve got a few ideas: read whenever you get the chance, turn your car into a university with audio programs and attend seminars.
To Sum Up:
- Time is universal, use it well
- Money is not time-dependant
- Adding more value to the marketplace is how you make money
- To add more value – learn more.
Have you ever thought about money like this before? I’m interested to hear your thoughts on the topic, do you continually try to add more value? Or hasn’t it dawned upon you?
- Nick
I know if I’m intentional about growing myself and adding value to others the money will come. The time I invest in those two things will have huge return. Great post and thoughts!
I’m on board with that, and I like to think the same of everybody, they just need that mindset! I don’t think people realise how big the return is until it comes, but then that’s a fantastic surprise
Thank you, Dan!
One thing I’ve always believed is that if you follow your passion religiously – learn as much as you can about it, and share it, then money will come inevitably. Too many people underestimate learning (not bloody formal education), and what it can do in terms of monetary rewards.
I’ve seen that Jim Rohn quote twice in 30 minutes now, maybe it’s a sign!
P.S Thanks for the link
Passion is seriously the best way forward, there’s nothing quite like it in terms of gaining, not just personal but others to with the value you create!
Ha! True that, I don’t want to go as far as saying ignorant, but some people really are unaware like you say…
Hmm, maybe, you’re already doing a lot to add more value per hour! Well, thank YOU for the comment, Sam!
Creating value vs. making money is a vital concept we need to grasp if we’re looking for any sort of financial success down the road. But most just look at the making money side of the equation . . . then wonder why they can’t make any.
You must create value AND you must deliver that value. It requires both. Your example of Bill Gates is perfect. His value may not be as deep as saving someone’s life, but he has delivered that value to millions and millions of people. So here’s your equation . . .
Value x Delivery = Money
or
V(d) = $
Cheers!
Very true, and it slightly amuses me at first, but then I realise that I’ve got work to do!
To excel and really prosper yes indeed, you do need both. But I think that you’d still do pretty well even if you were just devoted to value alone (delivery + no value won’t go far :S), but if that were the case I reckon you’d soon be delivering to many…
I like equations, and I dig that one! Thanks for sharing Trevor
I couldn’t agree more. Money is simply the reward you receive for creating value. The more you think about this, the more you realize that people are always willing to exchange their money for your value, and that if you concentrate on providing value to them, you will eventually receive money from them. The more value you create, the more people you create value for, the more your reward will be.
Chim@onestoppersonaldevelopment.com recently posted…The Life of Your Dreams Doesn’t Come to You – Benny Hsu, Get Busy Living
Exactly! It’s a widely misunderstood concept, value is what drives the marketplace – not money, money is just a spin-off that people take pride in having.
Thank you for your comment, Chim!
Nick Goodall recently posted…Switching Up The Diet – It’s Time For Change!