Tuesday, August 19, 2008

Relative Income (or Give Yourself a Raise - part 2)

OK, so you make $40-80K per year and your work 50 hour weeks. You own your business and spend your evenings answering e-mails, and all day planning meetings, going to meetings, and networking to get more clients. Your weekends are often scattered with you meeting with clients and answering e-mail on your PDA when your partner isn't watching.

Want to make more money? Spend less time. If you value your time for yourself as greatly as you charge your clients for it, (Which you should.) then you are wasting your own money by taking your time for granted.

Let's say you are a massage therapist who charges $60+ an hour for your services and you spend 5 hours this month trying to get your books in order... (5 x $60 = $300) How much money would it have cost you for a local bookkeeper to do it for you in half the time? Perhaps $80 per month? So by spending $80 on a bookkeeper for the month, you save $220 this month. And you now have 5 more hours to spend with clients, go on a date, or something else that brings you pleasure instead of causing you headaches.

Your time is so very valuable, and if you trade it simply for income, or even worse perceived income, then you are cutting your real wealth right out from underneath you.