Hi. J. Massey here, with the CashFlowDiary.com. Just yet another tip of why
business and real estate rock, in my opinion. One of the things that many
people already know, but yet, have experienced about business or real
estate, is just the concept of understanding why leverage is so important.
Let me share with you what I mean.
Many people say they wish they had more time, or they also say that, "I
don't have any time. That's why I'm not doing something, is that I don't
have time." What's interesting is that by investing your time, you begin to
get what I call a better return on your time, and most people don't think
about getting a return on their time. For example, you're watching this
video right now for a few minutes. This video, for a few minutes, should
produce a return on your time. I don't know what idea or concept you're
going to get from it, but the point is a return on your time is very, very
important. Most of us, we grow up being told to go to school, get good
grades, get a job, and then we accept a return on our time, and we call it
our paycheck, our salary, or our hourly wage. What if you decided suddenly
that your time was worth more? What would you need to do to become worth
more? See, by thinking about, as Jim [inaudible: 01:36] would say, "Not how
much you make in an hour, but the value you bring to the hour." When you
start thinking about that, that changes your concept of return on time and
the things that you should do. Leverage is very key to this in
understanding that you need to be using your time as the highest invest
use.
Here's an example that many of us can relate to: Washing your car. Washing
your car, I don't know, for some of you, it's beyond ridiculous. You
probably actually treat your car like a kid or a baby, or something of that
nature, and that's fine. Maybe it's your hobby; that's good. For most of
us, washing our car is a chore that we don't want to do, and maybe we
should outsource it. Let's say it takes you 3 to 4 hours to actually wash
your car. That's a big car. Maybe it's only 2 hours, how about that? Or
even 1½ hours. You earn, say, $15 an hour. $15 an hour, and if it's 1½
hours, that means it $22.50 that you would ordinarily, at whatever job or
whatever it is that you're doing, be able to earn, but instead, you spent
that time washing your car.
What if it cost you $9.99, though, to wash your car, and they could do it
in 30 minutes? What does that mean? That means in that hour you got value
for the equivalent of $20 in real time, and what's even important, is that
while they were washing that car for that 30 minutes, guess what you got?
You got the benefit of leverage. You used someone else's system so that you
could focus and do something else, whatever that something else is. Maybe
that something else is simply spending more time with your kids. Maybe that
something else is actually writing a book or getting started with some new
idea or concepts. It doesn't matter. You experienced leverage.
If you're interested in more information like this and others, definitely check out our
website at CashFlowDiary.com. You can also check out our
iTunes podcast; we have that available for you. Or check us out on the
Facebook page. For some of you, you may want to go ahead and take advantage
of our complimentary course, Cash Flow Foundation. It's the beginning of
our Cash Flow Creation System that will absolutely teach you how to never
need a job again