There are 3 money skills to master in life, but is learning about money a boring topic to you? You know what’s not boring though? Early retirement – let’s go!
Hey what’s up everyone this is Alan and today we’re going to learn 1 of the 3 money skills you have to master if you want to retire early.
The 3 money mastery skills are: Earning, Saving, and Growing.
You can be a rockstar in one of those skills, but that would not lead to true early retirement. For example, you can earn a high income, but if you’re horrible at saving, then it really doesn’t matter.
So let’s break down the first money mastery skill and the one you’re definitely the most familiar with.
Whether you have a job at a company, part of the gig economy, a freelancer, or a business owner, you’re earning money.
However, mastering the ability to earn money is a skill set that you have to put active work into.
I will preface by saying that what I’m about to say is not a requirement to have the actual skills of earning money because clearly every adult needs to.
But, I want to give you a different perspective on why mastering earning money helps you level up and achieve your financial goals of early retirement faster.
There are two big obstacles to unlocking your earning potential: 1) Time and 2) Value.
Time as an obstacle to mastering Earning money
Starting off with Time, when you have a job or you’re freelancing, you’re trading money for time. This is because you’re capped out at a certain capacity level because you literally cannot do any more work.
And when you’re capped out because of time, then your earning potential hits a roof.
For example, let’s take a typical hourly employee. I remember in college I was hired to re-stock shelves at a grocery store.
I was paid $7 per hour at a grocery store. After taxes, that was probably closer to $5.
I remember on the first day, I worked a 12-hour shift. During that shift, I had a short break and I bought my lunch at the food court for $12. So after taxes for that first day, I netted less than $50.
And being a super time-conscious person, I remember saying to myself, “This is totally not worth the trade-off for my time”.
So here’s what Day 2 looked like: “I QUIT BYEEE”
Call it what you want, but that was my eye-opening experience as to how important time plays a factor in your earning potential.
Now fast-forward years later to when I was 24-years old and I was running my first profitable business, a marketing software company.
I was no longer trading time for money because our software was selling 24/7 and we were reaching global customers. In fact, in our first year, we reached over 4,000 customers from over 22 countries.
I could be sleeping, eating, out with friends, or taking a poop and it wouldn’t matter because sales still came through without me having to physically be there to facilitate it.
And that’s the difference in actively working on mastering the skill of earning money versus simply accepting just what-is.
You may also be wondering to yourself, “Wait, but Alan, didn’t you just go back to having a job? Isn’t that trading time for money again?”
I can answer that question in two parts.
First, my side-hustle of sharing my Freedom of Choice lifestyle with you on platforms like YouTube and Instagram with the absolute goal of dramatically improving your life is my hedge to trading time for money. Who knows where this original content creator game will take me, but when it does pop-off, the earning potential will be there.
Second, it brings me to the next obstacle to unlocking your earning potential that I mentioned earlier, which is Value.
Conquer value when mastering Earning money
My day job pays well and also has incredible growth opportunities whether I want to stick it out in corporate or go back to running my own business again in the future.
The Value that I receive for my Time in my current job is very worthwhile to me personally. I see it as an investment in my future earning potential, which is a part of mastering earning money.
To close out, earning money is something that we’re all familiar with. We have to do it if we want to survive.
But if you go down the route of learning the skills required and shift your perspective on mastering earning money by overcoming its limitations of Time and Value, then you’ll maximize your earning potential significantly for this part of the money mastery equation.
Part 2 will be about mastering Saving money so be sure to Subscribe below with the notifications turned on so you’ll know when it is released.
This is Alan and here’s to you investing in your knowledge and future in the Freedom of Choice lifestyle – I’ll see you soon.