Wealth and financial freedom. These are terms that you'll hear pretty frequently throughout my articles. My goal here is to help you reach financial freedom. To get there you're going to need to create wealth.
But what is wealth? Is it $100 thousand dollars? Or maybe $1 million dollars? Perhaps a big fancy house or a fat retirement account? If you have any ideas, put them in the comments below, what is wealth to you?
That's the question we're going to answer today.
There is a myth in life that we are pretty much programmed to believe from the very start, even as young children. You see your parents getting ready and going off to work everyday. And when you're old enough you're expected to get a job, put in your hours and get a paycheck in return. The more time you work, the more money you make, which eventually, many decades down the road, leads to wealth right?
Most people believe that wealth is money. Their cash, their retirement account, their investments, their net worth. They go through life trying to gather as much money as they can. And how do they do that? By working more hours and putting in more time of course!
Let's use the example of trading as your job. Many new traders fall into the trap of believing that in order to make more money trading, they have to spend more time in front of the charts and make more trades. I've seen this be the downfall of many a trader. They are unable to understand that time does not equal money.
If you want to reach financial freedom, as I expect all of us here do, you need to toss this idea out the window. In trading and speculating there is no correlation between time and money. there are no guarantees that putting in more time will earn you more money. Eight hours of trading does not mean more money than 10 mins of trading.
When I first started trading I could easily put in 8-10 hours of chart time and I was just scraping along as far as my account was concerned. Now I spend literally 10-15 mins a day, as you've seen in my daily videos, and I make exponentially more money.
This might not make sense to you, it might even make you mad, maybe it doesn’t seem fair. So let’s step back for a second and redefine how we things about wealth and what it really means.
Wealth does not equal money or cash or net worth.
Real wealth is TIME. Wealth is how much time you can maintain your current lifestyle if everything were to suddenly stop. If you brought in no more income, if you couldn’t work, got sick, or whatever else, how long could you sustain your current standard of living without having to make any adjustments?
Unfortunately, many people wouldn’t last the month, and far too many can’t even go a week. Now keep in mind, these timeframes are across a wide range of incomes! There are millionaires who, between their mansion mortgages and fancy cars, couldn’t go more than 1 month without income before they would have to start downgrading their lifestyles.
Take a second, right now, and consider how much time you have if you don’t make another cent. Do you even know that number?
Wealth means time. Time is the most precious thing we have. Every second we go through life it is being used up and we can never get that back. Even this time you are spending watching this video is gone forever.
This is a very difficult transition to make with your mindset. But until you can make that shift you will be limited in your ability to achieve real freedom. Each of us only has so many hours, so much energy, so much health. You can only make so much money if your income is dependent on your time, and even then you will be very limited in your ability to live life because you’ll be constantly working!
Your journey to financial freedom really accelerates when you start to detach your income from your time. You’ll move from more time = more money, to less time = more money, and eventually no time = more money and your money and assets will do all of the work for you.
People around me have a hard time understanding this but I know that as a trader and investor I’m paid for my patience, discipline and good judgement, not my time. I look for my entry and exit criteria and if I don’t see them, I close the charts and go on with my day. My trading strategies take literally minutes per day and allow me to spend my precious time living my life the way I want to, not tied to a job.
The sooner you can internalize this, the sooner you can accelerate your wealth and freedom journey and see exponential growth.
I hope you found this helpful and that it gave you a new perspective on wealth, time and money.