Money is time: understanding the inverse truth about time and money.

Author:Hardy, Darren
Position:Publisher's Letter - Column
 
FREE EXCERPT

I'm sure you've heard the phrase time is money. Well, money is also time. Understanding this inverse truth is one of the best realizations you can have when it comes to managing your time and money.

See, all you have in life is the time. From the moment of your first breath, the clock started ticking. The sands of time started to fall down the hourglass, and the fuse of your life started to burn down. As soon as we are kicked from the nest and realize it takes money to buy food, clothes and shelter, we start trading some of our precious product--our time--for money. The problem is most people stay on this neverending treadmill, continually trading their time for money, thus never having enough time, or money.

Wise people leverage their time. They look for ways to earn money not directly tied to their time--whether that's building a business where you earn money on other people's time and effort or spend a finite amount of your time building products or services that can be resold with no additional investment of your time. Then they invest the money they earn, putting their money to work for them, building more money and eventually a surplus. The surplus buys time freedom.

The most overlooked time-money relationship is the concept of wisely spending your money to buy back your time. Ask the wealthiest people on the planet at the end of their lives the one thing they wish they could buy, and their answer will always be time. Let me give you the greatest secret of the rich: Figure out the value of your time, and then use your money to buy it back--at wholesale.

If you want to earn $150,000 a year, your time is worth $50 an hour if you work 50 weeks a year and 60 hours a week. If you spend 12 hours a day working, how many of those hours are on tasks that don't produce $50-an-hour outcomes? That's where you can buy back time by hiring...

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