I'm sure you've heard this from many sources, but it stands tried and true: "Wealth is a mindset". This mindset is made up of a few key factors. In our Money Talks blog, we love touching on these factors one at a time and helping our friends understand their income, earning potential, and wealth clearly. Combined with great time management, strategic planning, and repeated good habits, wealth, like muscles in our body can grow and strengthen.
Our #1 financial abundance factor we'll cover today is Automation. This sounds kind of mechanical, right? Images of a factory might pop into your head, and if you’re NOT a business owner, you may even think this doesn’t apply to you -- but it definitely does! The magic of automation doesn't discriminate, and it pairs beautifully with saving and investing. If you're keen to make investments in the stock market, fractional shares are something you could consider as a way of putting money into stock that would usually be costly and perhaps out of reach.
Have you heard that old adage “Time Is Money”, but haven’t ever really grasped what that meant?
In our last blog on How To Save Money, we discussed quick and easy corner-cutters that didn’t really consume any time. Things such as where you choose live, how much money you choose to spend on your recreational time, and micro-adjustments to your lifestyle, that all can generate big bucks in savings. But today, we’re going to take a look at where you can INVEST your money to save you TIME and increase REVENUE.
Let’s take the biggest time sucker in our lives for our example of this principle -- CHORES.
Those seemingly innocent few hours you may spend doing your laundry, your dishes, or grocery shopping could be cutting into your earning potential BIG time. If you were to drop off your laundry ($15-$40/mo, depending on your family size), take advantage of grocery delivery services like PeaPod (roughly $30/mo), and invest in a portable dishwasher (if you don’t already have one), which is a one time fee of about $250, you’re looking at a yearly automation investment of about $850, which in some cases, is even TAX DEDUCTIBLE.
Here’s where this gets interesting… Laundry averages about 2 hours/week, grocery shopping (including driving, loading, and unloading) averages about 2.5 hours per week, and dish washing averages about 20min per day, or 2.5 hours weekly. That’s 7 hours a week, or roughly 28 HOURS per month…even scarier still -- 336 hours a YEAR.
If you were to sign up for an online learning center like Lynda or Skillshare, become an expert in your line of work, investing those SAME 28 hours per month into your education, without even having to leave your house, it’s likely that you could score a job earning about 30% or MORE than what you’re currently earning.
If the average person in America makes roughly 45K yearly, that’s a salary increase of about $13,500 before taxes. Meaning, after your Automation investment, you just made $12,650 in added gross income. If your education subscription costs $200 (in some cases, also tax deductible) you STILL make $12,450. Food for thought.
Even if you took on a part time job at $20/hr for a 3/4 the time you spend doing chores, doing something you enjoy, you’re still making $5,040 before taxes. After your automation investment deduction of $850, you’re STILL pulling in $4,190 in added gross income.
Time is also emotional currency as well. Two more examples of this principle at work in everyday life is hiring a sitter to watch your kids as an investment in growing a closer relationship with your partner, or purchasing a piece of exercise equipment, being a long term investment in your health, thus saving you from pain and thousands of dollars in medical treatment later in life.
This principle can be applied to pretty much any area of your life, including hiring experts to manage aspects of a budding business or idea that will increase your service or product value exponentially just by knowing shortcuts to growing your wealth faster.
As you can see, time literally IS money, and understanding how an investment in Automation can work wonders in your financial world is a winning strategy. When you outsource small tasks, your time is freed for big learning or big earning. Share with your family and friends to spread the automation love, and post your own automation tips in the comments below!
Empire Tax Professionals