⏰ Stop Trading Time For Dollars
Do you know the difference between the rich and the wealthy?
If not, here’s a quote for you:
“Poor people do the wrong things, rich people do the right things, wealthy people own the right things” - anonymous
Everyone has 24 hours in a day. What separates the poor, the rich, and the wealthy is how much money their hour makes.
Your goal is to stop trading time for dollars, and instead own assets that make money while you sleep.
And that’s done by building leverage.
On a basic level, leverage is putting time or money into something, and getting a bigger output.
So if you spend 8 hours hiring 10 full-time employees (input), you then have 80 work hours to leverage (output).
Now here’s the best part… you don’t need money or a business to start building leverage.
Leverage building starts on day 1 and never stops.
⚖️ The 4 Types Of Leverage
There are 4 types of leverage that can be used to increase your output without increasing your input.
#1 - Investing. This one’s fairly straightforward. If you buy something at $1M, then sell it for $10M a few years later, you 10x your output.
#2 - Digital Products/ Software. Digital products and software like A.I tools and e-books are great leverage because you only build it once. Then you can resell it to thousands of people.
So a one-time input of time and money leads to a limitless output.
#3 - Labor. When you hire employees, you can leverage their time to meet a demand. This frees up your time to either take on more work (clients) or put it towards other money-makers.
EX - You’re paid $100 to mow a lawn. If you hire someone to mow the same lawn for $50, you make $50 with no effort. Rinse and repeat.
#4 - Media. We’ve just begun to see this type of leverage in the last few decades, but I believe it will be the highest leverage tool to come.
This is the process of using and selling attention to make money.
Rev in billions of media companies (2022)
The more attention they have, the more they make. Yet, they can do so without extra costs (input).
The secret is to use multiple types of leverage in your business simultaneously.
For example, Facebook is a media company that has employees to build the software and manage tasks like customer service.
Alright. Let’s talk about what this looks like for you.
🛠 How To Build Leverage
When looking to build leverage in your business, ask yourself “How can I get more back from the time I’m putting in.”
Notice, this does NOT mean you need to have money to start leveraging.
Here’s how you can start today:
#1 - Learn a unique skill
If you don’t have a lot of money, this is where to start.
A unique skill set is a skill that not many people have and is difficult to teach. If you are good at a skill that is in high demand but has low supply…
Your price becomes anchored to the value that you provide, not the time you spend.
#2 - Build your personal brand
Hayden’s (Co-Founder) stats after building a brand for 7+ years
Whether you have money or not, this is the highest-leverage asset you can have.
This is building your social media presence so that people know who you are and want to buy from you.
If you’re interested in how to grow your personal brand, stay tuned for Friday!
For those with a business, you should be utilizing labor leverage by paying someone to complete tasks that take a lot of time.
Most outsource for things like outreach, customer service, video editing, data entry, etc. These are tasks that can take up a whole day, yet don’t yield high results.
#4 - Build systems (SOP’s)
When you have a process in your business that you do more than once or you will need to hire for, write out the steps. This is what’s called a SOP (standard operating procedure).
Do it once, never explain the process again, and cut time fixing mistakes.
For those who have the money and/or the skills, investing is a great way to build leverage.
Most choose to invest in assets like real estate, tech startups, and gold.
🧰 Your Toolbox
I’ll be honest, learning to build leverage is a difficult skill to learn. Yet, the better you are the more money you’ll make.
Here are 5 resources to get started (some are linked above for convenience).
#5 - Onlinejobs.ph is an online hiring platform for the Philippines. It’s great for outsourcing because they often charge less.