One Word Can Make You A Millionaire. And That Word Is...
I intentionally did not put the word you are searching for in the title. First, I want you to know there are many forms to this word. This word can also be used in many different ways. So, what is this magic word? The word you are searching for is (leverage). Financiers, like me for example, consider leverage to be the use of loan moneys to buy shares in a business or other assets that will give a greater return on the money borrowed than the rate of interest charged---thus making a profit. It's about getting paid. After all, isn't that the reason you are reading this blog? But leverage has a wider meaning when we use it to refer to less obvious assets in a business---such as time, marketing, and systems.
So, how do we use leverage in these areas to become wealthy? Everybody has the same twenty-four hours in a day, yet some people like (The UnderCover Millionaire) manage to earn an enormous amount of money and become very rich by using our secret word "leverage." They do this by leveraging themselves in every aspect of their lives. Today, I will focus on (Time Leverage) in our quest to become millionaires. Leveraging is about duplicating a high-value item or skill at a much lower cost.
Let me give you an example of time leveraging. If you sell your time for $20 per hour and you work twelve hours per day, the maximum you can earn is $240 per day. But what if you were able to teach less skilled people to do what you do and pay them $10 an hour instead of $20? If you have one person working your system, you will make $120 per day. You will be making less than before but you can use your time, say twelve hours a day, selling their time.
If you sold just four of those people's time at $20 per hour (because they are producing $20 worth of work) and still paid them only $10 per hour, you'd be making $480 profit per day. You have leveraged yourself from earning $20 per hour to $40 per hour. Wow! What a concept.
This a basic point, but one that is critical if you are looking to become wealthy. Selling your own time will never make you wealthy. You must always develop systems and use other people's time to produce something you can sell at a higher price.
Carlos C. Johnson III
The UnderCover Millionaire