Monday
One to One Ratio = No leverage
It can never be done one for one I replied. What do you mean? He asked. I mean that there are a commonly accepted 40 hours in a work week, 2080 hours in a working year. In a one for one relationship you are getting paid X for working 1 hour of work. I don’t care what X equals for you, if you multiply it by 2080 that is the maximum you will earn in a year. One hour in equals one hour of pay. You’ll never make it to "rich" that way. You need leverage. Leverage is simple, you use something else to increase your efforts. A long stick multiplies the force applied to the object. “Leverage”. You put some money in an investment and it multiplies “Leverage” You hire someone to do work for you “Leverage” it is a simple concept but missed so often. The goal is to “leverage” whatever you do to increase the out come of your efforts to more than a one for one ratio. That’s how you build wealth. In a one for one ratio, if you stay at home to play with your kids, that is time that is not earning money. If you take a vacation, that is time that is not making money. So…the plan is to leverage your time. While I am on vacation, I want my investments to be working for me, my online site to be generating income, my employees working for me etc…so that when I do take time for the important things in life, my finances are leveraged to generate income. What is your goal? Mine is to leverage my YTB travel company into something that generates YTB income which generates YTB commissions for me. Simple.
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