Article Tags : compounding . entrepreneur . hourly wages . leverage . multiples . Wealth Building
Rarely can you build wealth from hourly work – there are only so many hours in a day. Even successful law firms, accounting firms, and other professional either learn to charge rates that are tied to hourly effort or expand into other areas where they can leverage their expertise. Some succeed by creating operating leverage – getting more and more revenue from workers from relatively fixed expenses (rent, insurance)—called operating expenses.
You’re going to build wealth by getting multiples
How do you get multiples? The hourly work pays for the lighting bills, but the techniques I’m going to show you will produce assets that are working for you day and night.
At some point, you will burn out. How can you vacation or retire if your income is tied to hourly work? For most, your pension or retirement nest egg with the ravages of inflation and certain future taxes will not be enough. You need to have something that’s producing for you apart from your salary or hourly fee. If something goes wrong or you get fired, you will need resources to survive and to sustain you.
Harness The Power Of Leverage
Without understanding the concepts of leverage – compound interest multiples, business and relationship fundamentals – you will be doomed to hard work but not the full rewards. You can be disciplined. You can live below your means. Save. Invest carefully. You can also be disciplined and make much more from the same hard work in less time.