You Need An Exit Plan

You need to work on the exit plan that will free you from the trading time for money and get you to financial freedom leading to time freedom.

Trading Time For Money

I have fallen into the trading time for money trap, like 90% of the world’s workforce. There are only 24 hours in a day and some of these hours need to be used for necessities like sleeping and eating.

I am working 12 hours daily in a job that pays a hourly rate. Let’s say that the hourly rate was $20, I could only make $240 per day. The tax will also be deducted from this pay at the end of the month and the remainder transferred to me.

Working this type of job will keep you struggling from payday to payday. You cannot create financial freedom and most importantly time freedom with this type of job.

The income from these types of jobs is often called linear income or active income. If you don’t work, you don’t get paid. Even if you are paid a monthly salary, your income will still be limited.

Trading time for money is not just applicable to minimum wage earners, it also applicable to high earning professionals like doctors, lawyers and engineers. These professionals may earn a good salary, but still they are trapped in the trading time for money game.

The most powerful tools to use in wealth building are leveraged income and passive income. These are the keys to creating generational wealth.

You need a side hustle that will enable you to break free from the trading time for money trap.

Leveraged Income

Leveraged income is when you earn money from the efforts of others. When people first come across this, it may seem unfair, but the world of business runs on leverage.

A business makes a profit from the efforts of its employees. The business owner sells the goods produced or the service delivered with a mark up on the wages paid to the employees. This is in essence earning leveraged income from the work performed by the employees.

Leverage is not a bad thing as it is a necessity for the production and movement of goods and services. Money is used as the medium to initiate and accumulate this leverage.

There is a big difference between leverage and exploitation. Leverage helps people earn an income in a job to pay for there expenses. Exploitation is when the workers are leveraged at a really high percentage and not paid a fair amount of money from the task they perform.

There has to be a balance between leverage and exploitation, leverage will enable the business to grow and exploitation will eventually destroy the business.

It is hard to earn much money using leverage as a small business owner. Large businesses can earn a substantial profit by leveraging a large number of employees.

“I’d rather have 1% of the effort of 100 men than 100% of my own effort.”J. Paul Getty

The power of leverage has created many billionaires worldwide. Some of the most well know are Bill Gates, Jeff Bezos and Elon Musk.

One of easiest way to create leveraged income is by using Network Marketing. You can get started as an individual and build up a network of distributors to create leveraged income.

Passive Income

The ultimate goal is to use leverage and also get to the point where you don’t have to actively take part in running the business.

You can do this by setting up systems that will enable the business to function without you being there. You can train and delegate managers to run the business for you.

Once you have perfected a business system, you can franchise it out and earn leveraged passive income. Some of the most successful fast food franchises are McDonalds, Domino’s Pizza, Subway and Taco Bell.

The most successful coffee franchises are Starbucks and Costa Coffee. These companies earn leveraged passive income from hundreds of franchise owners worldwide.

You can also earn passive income by publishing books and courses. The internet makes this really easy and accessible to the masses. You can publish your book as an ebook on Amazon’s kindle platform. There are also many sites like Udemy and Skillshare that you can use to publish online courses.

Other forms of passive income include rental properties and also dividends from stocks.

There is no such thing as 100% passive income, but you can get close to 90% by using systems and also delegating managers to run various parts of the business process.

As an individual you can earn passive income by blogging and also from creating YouTube videos.

Multiple Streams Of Passive Income

Once you have built up a passive income stream that earns you enough money to meet your monthly expenses, you can move onto the next phase…. multiple streams of passive income.

Once you have created a source of passive income to cover your living expenses, you can then concentrate on building up multiple streams of passive income.

It is a good idea to diversify your passive income sources to give you some protection against market fluctuations.

This reminds me of the age old proverb “Don’t put all your eggs in one basket”.

Building multiple passive income streams will eventually lead to to financial freedom.

Financial Freedom

I would define financial freedom as the state where you don’t have to think about where the money is going to come from to cover your living expenses. You will have enough money available to travel to any location you want to in the world. You will have the money to travel in luxury and stay in luxury accommodation. You will have enough money to dine at any restaurant you like.

You have money coming in from multiple sources of passive income streams. You don’t have to ever work again, you are able to live on the income generated by your passive income streams.

“You can only be financially free when your passive income exceeds your expenses.”T. Harv Eker

Time Freedom

Once you have reached financial freedom, you can stat enjoying life to the fullest. You will get to enjoy the only asset that you cannot build up… time. Money will enable you to free up your time, but you cannot purchase more time.

We all have 24 hours of time everyday. Money will enable you to free up some of this 24 hour period that you may have used previously to earn money actively.

Financial freedom can lead to time freedom. You will get to use the time you have to do what you truly want. You will have the freedom to travel the world and experience the luxuries life has to offer.

When you don’t have to worry about the money, you can spend your time how you want. Only a small number of people achieve financial freedom and a smaller number achieve time freedom.

Some people get stuck in the game of wealth building and forget that time is a limited commodity. Once you reach financial freedom, you need to use the money to enjoy your life on earth, as your days are truly numbered.

This is the rough map:

Trading Time For Money —> Side Hustle —> Leveraged Income + Passive Income —-> Multiple Streams of Passive Income —> Financial Freedom —> Time Freedom

This post may contain affiliate links, which means I may receive a small commission at no extra cost to you. I only share products and services that may offer you real value. Disclosure here.

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