Monday, September 15, 2008

Time --> Value --> Money --> Financial Freedom!

My friends, the above is probably the most important diagram you will ever see in your life. That's because it represents your life!

This is your life, on a daily basis. And it keeps repeating itself over and over and over again.

So HOW you program your daily life, WILL determine whether you achieve financial freedom, as well as how fast you achieve it.

The most important message here is that you have to determine whether the time you spend on ANY activity is adding value, or NOT adding any value.

For most employees, value-adding time occurs from 9 AM to noon, and from 1:30 PM to 4:00 PM. I'm being very generous here because most likely, people are only productive 2 hours every day. That's right, experts estimate that out of 8 hours, only a maximum of 2 is actually spent producing actual value for the company.

It's also important to understand the following financial freedom sequence:

Time --> Value --> Money --> Financial Freedom

In other words, to achieve financial freedom (that is, to have enough money working for you to generate a return that allows you to live your favorite lifestyle without having to work), you first have to manage your time CAREFULLY and STRATEGICALLY so as to create as much value as possible per minute or per hour, and you have to convert that value into money as efficiently as possible.

Innovation = Converting time into value
Marketing = Converting value into cash

Take some time to examine the diagram above and look at your own daily life: what activities are you performing every day? What value are you creating? How are you converting that value into cash?

I will write more about this super-important issue.