Value is what you create, Wealth is Value with Time

Our time is all worth something. To a stranger it can be worth more. To a friend, probably less.

To find out what your time is intrinsically worth, take your annual income and divide it by 2000. 2000 is roughly the number of working hours in a year or about 50 weeks.

So $100,000 divided by 2000 is $50/hour.

Huh… Is that a lot? Depends. It’s subjective and up to the individual.

If you want to increase your Value, what your create needs to be higher. This is why people who have high output are high earners. What they product, or create, is valued at greater level.

So how to do you increase your value?

Start by finding high income skills and honing those skills. Any skill could be a high income skill.

Let’s take teaching. Intrinsically, being a teacher isn’t a high income skill.

BUT it could be.

If you are a teacher, you can be a private tutor specializing in a single area or you could be a leader of teachers paving the way with revolutionary instruction and classroom management.

Those are high income skills – being the best at what you do and being a leader among leaders. You don’t have to be a math whiz or “gifted” to be a high income earner, you just need the work effort to get there.

So what about Wealth? How do you turn your Value into Wealth?

Wealth is compounded Value. The more Value you create and spread to more individuals, the more Wealth you can amass.

Let’s take a retail business. They have a bunch of products each with their own value. If they sold one unit or one widget, someone pays them for that widget based on the market price.

Let me tangent on market price real quick: Grocery stores in affluent area have a high sell price than poorer areas. The food doesn’t change, just the price of the item. The market (location, time, and customers) are setting the price for the item. The item doesn’t change. This is also why some companies pay more for the “same job”. If you work at a small company they might not have the resources for higher wages compared to large corporations.

Ok, back to Wealth. This business creates Wealth by serving people throughout the day. The Value of the items is compounded by time (day) and customers (patrons served).

You can do the same with your Value. By saving money, helping more people, or having multiple income streams (ways to get money) you can add to your Wealth.

When you start reaching for new heights and unlocking new levels, your Value goes up. Take on an extra project at work, take a class, or attend a seminar. These will help you to increase your Value to employers or customers.

Wealth isn’t created over night, it’s created by time.

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