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How many hours a day can you work?
How many dollars an hour can you get paid?
Multiply that together and that how much you can get paid in a day. Now how much is that ever going to increase?
You could work a little longer, but thats not the long term solution you want, or you could get a pay rise, an extra 10% here and there. But there’s a limit to how much you can earn while trading time for money so unless you’re an elite althete, a rock star on tour or a celebrity you aint going to get rich this way.
The real wealthy people employ a principle that makes money while they sleep, which is:
Leverage.
The two main resources you can leverage is money and other people.
With money you can buy stocks, property etc. where you can benefit in two ways. First is the capital gains as the underlying value of your asset goes up. Secondly you can also earn income through dividends and rent.
You can leverage this further buy borrowing money to buy assets you think will go up in value, and have the rent, dividends and tax deductions help offset the cost of the interest payments. To leverage money, you usually need money in th first place, and then there is also the risk of your investments going down in value.
Leverage people is having other people work for you. This is usually going to happen through a business where you either employ or sponsor people. Employing people has it’s own share of problems. They can act unethically, need sick days and holidays. Not only that, they might decide one day to start their own competing business using the knowledge you’ve taught them.
An alternative to leveraging people is by training people to start their own business, and then earn a comission on the sales of their business. This way the person is responsible for themself, yet you still get all the benifits of leverage.
This approach is more common than you might think. In fact its the very way I’ve created my residual income, and have taught other to do the same.
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