You Won’t Make It Without Thinking This Way.

If you’re unfamiliar with the term, paradigm shift, it can best be explained by what happens when you go from thinking one way about something to another way.  

Now, when it comes to our finances and in particular making money, a lot of people are overdue for a paradigm shift, meaning a shift in the way they view making money, as so many people are still leaving lives of quiet desperation, trapped on a financial treadmill, working the 9-5 when all they want is to break free and walk the path toward financial independence.

This article is going to offer some food for thought in the context of how we make money, and the best way to shift your thinking in terms of attracting abundance into your life and pro-actively generating financial wealth.

See, school and society doesn’t teach us to be “wealthy”, which for this article means having both the time and money to enjoy lie. Society, and school in particular, teaches us to “get by” and become good employees.  Yet getting by in life, isn’t what most people aspire to and being a “good employee” is one of the last things you want to do if your goal is to create financial wealth.

Now, for many people wealth relates more to the ability of not having to worry about money and being able to enjoy spending time with their family, or doing the things they love, rather than amassing heaps of cash – but there are two vital ingredients to wealth in any context; having both time and money.  

See, a lot of people trade one for the other, or are at least unbalanced – meaning, the people that have a lot of free time don’t tend to have much money and the people with lots of money tend to have no free time.  Balance, is everything, and when it comes to finances, it’s just as important to have the time freedom to enjoy the money you earn, as it is to have the cash in the bank.

In the book “Rich Dad Poor Dad”, Robert Kiyosaki asserts the key difference between how the wealthy use their time and resources, in that the rich tend to invest their time into developing assets that generate passive income, rather than swapping their time for money in the linear way most employees and small business owners do.

The fundamental principle underpinning wealth is that of leveraging your time, for there is a limit to how much money a person can make when they are stuck on the financial treadmill, often known as the rat race.

If we look at employees, we can see they are literally swapping units of their time for units of money, and while the factory worker might get paid a lot less for their unit of time than a brain surgeon or solicitor, the brain surgeon, the solicitor and the factory worker, are all working on the same basis.

Similarly, the small business owner and self-employed person tends to trade their time for money too, just in a way that means they own their time a little more, but if they aren’t actively swapping time for money, for instance because they are sick, or away on holiday, then their income stops.

When earning in this way there’s an intrinsic limit to how much people can earn as there’s a ceiling to how much a person can charge for each hour of their time, and there are only so many hours in the week.

The wealthy, on the other hand, understand the concept of time leverage.  For instance, someone that spends a few hours to review cryptocurrency platforms, or spends a few years on writing a book, or developing a portfolio of investment properties is putting their time into something that can be leveraged in order to create passive income.

If you were to write a book, for instance and you were paid a $2 royalty on each book you sold, and managed to sell 10,000 copies a year, that’s a passive income of $20,000. Thus you are being rewarded multiple times on your initial effort.

In summary, if you truly want to be wealthy and have financial abundance in your life you need to shift your paradigm from that of the employee and small business owner mentality to that of an investor – not necessarily the Wall Street kind -, who actively goes out and builds assets that appreciate over time, and generate income on a passive basis.

If you’re unfamiliar with the term, paradigm shift, it can best be explained by what happens when you go from thinking one way about something to another way.  

Now, when it comes to our finances and in particular making money, a lot of people are overdue for a paradigm shift, meaning a shift in the way they view making money, as so many people are still leaving lives of quiet desperation, trapped on a financial treadmill, working the 9-5 when all they want is to break free and walk the path toward financial independence.

This article is going to offer some food for thought in the context of how we make money, and the best way to shift your thinking in terms of attracting abundance into your life and pro-actively generating financial wealth.

See, school and society doesn’t teach us to be “wealthy”, which for this article means having both the time and money to enjoy lie. Society, and school in particular, teaches us to “get by” and become good employees.  Yet getting by in life, isn’t what most people aspire to and being a “good employee” is one of the last things you want to do if your goal is to create financial wealth.

Now, for many people wealth relates more to the ability of not having to worry about money and being able to enjoy spending time with their family, or doing the things they love, rather than amassing heaps of cash – but there are two vital ingredients to wealth in any context; having both time and money.  

See, a lot of people trade one for the other, or are at least unbalanced – meaning, the people that have a lot of free time don’t tend to have much money and the people with lots of money tend to have no free time.  Balance, is everything, and when it comes to finances, it’s just as important to have the time freedom to enjoy the money you earn, as it is to have the cash in the bank.

In the book “Rich Dad Poor Dad”, Robert Kiyosaki asserts the key difference between how the wealthy use their time and resources, in that the rich tend to invest their time into developing assets that generate passive income, rather than swapping their time for money in the linear way most employees and small business owners do.

The fundamental principle underpinning wealth is that of leveraging your time, for there is a limit to how much money a person can make when they are stuck on the financial treadmill, often known as the rat race.

If we look at employees, we can see they are literally swapping units of their time for units of money, and while the factory worker might get paid a lot less for their unit of time than a brain surgeon or solicitor, the brain surgeon, the solicitor and the factory worker, are all working on the same basis.

Similarly, the small business owner and self-employed person tends to trade their time for money too, just in a way that means they own their time a little more, but if they aren’t actively swapping time for money, for instance because they are sick, or away on holiday, then their income stops.

When earning in this way there’s an intrinsic limit to how much people can earn as there’s a ceiling to how much a person can charge for each hour of their time, and there are only so many hours in the week.

The wealthy, on the other hand, understand the concept of time leverage.  For instance, someone that spends a few hours to review cryptocurrency platforms, or spends a few years on writing a book, or developing a portfolio of investment properties is putting their time into something that can be leveraged in order to create passive income.

If you were to write a book, for instance and you were paid a $2 royalty on each book you sold, and managed to sell 10,000 copies a year, that’s a passive income of $20,000. Thus you are being rewarded multiple times on your initial effort.

In summary, if you truly want to be wealthy and have financial abundance in your life you need to shift your paradigm from that of the employee and small business owner mentality to that of an investor – not necessarily the Wall Street kind -, who actively goes out and builds assets that appreciate over time, and generate income on a passive basis.

 

***This article is in partnership with a guest writer, or a brand, or a company and may contain affiliate links. Nonetheless, these are my experiences and my opinion. For questions, contact me directly here.