In today’s episode, I am speaking about trading time for money and why you need to stop, so let’s dive in.
Your income is limited by time. When you’re trading time for money, your income will always be limited. There are only 24 hours in a day to devote to the pursuit of money, and since most of us need eight hours’ sleep, time to cook, eat, go to the toilet, shower, exercise, relax, and spend time with family and friends. That leaves us around 10 to 12 hours max to trade in for money. That’s it. But the reality is that no matter how much each of your hours is worth, when you are trading time for money, there is always a cap imposed, and that cap is time.
The other thing is that not many people can just ask for a higher hourly rate because they want it. Clients might just say no and take their money elsewhere. But the other big thing is your impact is limited. When you are continually trading time for money throughout your life, time is limited for pursuing the things we’re passionate about. This could be a hobby we love, giving back to the community, or building something that we could have a real impact in the world. Simply put, with limited time comes limited impact.
So, how do we stop trading time for money? Well, in all honesty, it’s about changing your mindset. The main thing we must do is change our beliefs. When we drop the mindset that says in order to make money, we have to trade our time for it, our minds open up to the other possibilities. There is no rule that says that to make X pounds, we have to work X hours, so think about trading value for money and not time. Think about what value you can create for other people and how you can deliver that value. What assets, skills, knowledge, connections, or ideas do you have that people value? And recognise your strengths and competencies, and go all in.
What are you really selling in your business? Because you’re not selling time. You’re selling your years of experience, expertise, and ability to make an impact, a transformation for your client. That is what you are selling, not an hour or two of your time. Packaging that into something exciting for your clients and putting a price point that works for both of you on it, and then move out of the time for money trap. Don’t let yourself be pulled into the “It won’t work in my industry” level of thinking. Look for inspiration outside of your industry to see if you can find a model that works that does not trade time for money.
So, I hope that this episode has helped you to understand why trading time for money really is a bad idea, and gave you some things to think about around how to price instead. And whilst we are here, I would love to let you know about the next Wealth Lab that we have happening inside the Uncover Wealth community. The Wealth Lab runs from November 11th to 15th, and during it, we will be building out your profit plan to release the next six-figure take-home from your business. Head over to annetteandco.co.uk/wealthlabnov19, or just click the link that is available in the show notes to register your place. Thank you so much for listening. Until next time, let’s find the clarity in your numbers, increase your wealth, and get more money in your pockets.