Money

Why settle for less when the world is flooded with wealth? Take charge of your finances and secure your share of abundant riches.

1. Wealth is within your reach with the right mindset

To become financially successful, first, change how you think about wealth. Far too many believe myths like "money doesn't buy happiness" or "there's not enough money to go around." Such beliefs hold you back. Instead, see money as a tool that provides the freedom to enjoy life’s precious moments.

Happiness often depends on having the time to enjoy love, family, and creative pursuits. Achieving that time requires a steady income not tied to a traditional 9-to-5 setup. Overcoming negative ideas about money starts with understanding that wealth is abundant and plentiful.

The global economy is overflowing with money—trillions in stocks, gold, and even cryptocurrencies like Bitcoin. There’s no shortage of resources; abundant thinking ensures you’re ready to claim your share when opportunities arise.

Examples

• Many millionaires have diverse backgrounds, from inventors to artists, showing anyone can achieve wealth.
• During a financial recession, trillions of dollars still move in global markets, strengthening the idea of abundance.
• Shifting from "money isn't important" to "money facilitates freedom" can improve your financial outlook.

2. Mastering money starts with VVKIK

Financial organization is easier with a strategy, like the VVKIK formula: Vision, Values, Key result areas (KRAs), Income-generating tasks (IGTs), and Key performance indicators (KPIs).

Start with your vision and values. Define the goals you want to achieve and what principles will guide you. These foundations clarify why earning money matters to you. Once clear, focus on KRAs—specific areas (e.g., relationship building or marketing) that align with your vision. Most of your attention should be on activities in these areas.

Next, narrow your efforts to IGTs. These are tasks that specifically generate income, such as finalizing a big deal. Lastly, monitor everything with KPIs to ensure your energy and resources are generating results.

Examples

• A business owner identifies "client retention" as a KRA and spends time fostering loyalty rather than chasing every new prospect.
• Professional golfers focus mostly on their putter because 40% of their shots rely on it—a form of focusing on high-value tasks.
• Tracking revenue per product sold ensures you're concentrating on profitable areas.

3. Make more money by targeting your income-generating value (IGV)

Understand the real value of your time by calculating your IGV. When you know how much your hours are truly worth, you can focus on efforts that yield higher returns and outsource tasks below your value threshold.

To calculate IGV, divide your weekly income by the total hours you invest, including side hustles or any money-generating activities. This figure shows whether a task is worth your attention or if someone else can handle it for less. Activities that reduce your IGV—like minor admin tasks—should be avoided or outsourced.

Examples

• A professional making $1,000 weekly across 55 hours has an IGV of approximately $18 per hour and should prioritize tasks generating above that.
• Wealthy individuals focus their time on high-value meetings, delegating admin tasks to assistants.
• Instead of mowing their lawn, someone could hire help cheaply and use the saved time to focus on growing a business.

4. Leverage is the key to multiplying your wealth

Use leverage to get more results with less personal effort. Time and money can both be leveraged to achieve significant growth. Without leverage, you're working hard for someone else; with it, you’re amplifying your own gains.

You can leverage time by automating repetitive tasks, delegating responsibilities, or multitasking effectively—like listening to audiobooks during workouts. Leverage money by using other people's funds—such as taking out loans for investment in assets like real estate, where appreciation benefits you far beyond the borrowed amount.

Examples

• A millionaire outsources household chores to focus on business deals.
• Borrowing $750,000 on a $1-million property, and benefiting from its doubling value over a decade, leverages both time and money.
• Scheduling meetings during commutes or while at the gym maximizes time usage.

5. The compounding effect builds wealth sustainably

Long-term growth benefits from compounding, where small initial gains snowball into a significant payoff over time. This happens because every return earned adds to your principal, increasing growth exponentially.

Imagine a water lily doubling in size daily: it covers the pond in 30 days, with half the growth happening only on the last day. Similarly, sticking with investments over decades results in explosive growth. Early contributions are vital, even if the results seem slow initially.

Examples

• A $3,600 yearly investment at 2% interest can grow to over $438,000 after 50 years.
• Athletes like Tiger Woods achieve major success after years of consistent practice, benefiting from early compounding efforts.
• Spending $10,000 today instead of investing can cost you far more in future compounded gains.

6. Don’t fear raising prices—it can actually improve your business

Many entrepreneurs hesitate to increase prices, fearing customer loss. However, a modest price adjustment, like 10%, typically has little impact on customer loyalty but significantly raises profits.

Customers value perceived benefits. A complimentary "freebie," like chocolates on hotel pillows, creates satisfaction without much cost. Also, higher prices often attract wealthier clients while discouraging bargain hunters who waste time.

Examples

• A company adds a 10% margin to its products, generating immediate revenue increases without losing customers.
• Free extras, such as car mats with a vehicle purchase, create goodwill while maintaining high product pricing.
• Luxury buyers often equate higher prices with superior quality and reliability.

7. Abandon the “work harder” myth

Wealth isn’t only about hard work and long hours but working smarter. Prioritize meaningful efforts, and don’t let endless labor trap you into low returns.

Hours spent on admin or small chores are better outsourced. Focus instead on activities with higher returns or freeing up creativity for major projects. Sacrificing personal time for a slight raise won't lead to wealth—it’s strategic work that matters.

Examples

• CEOs who delegate routine operations focus their energy on strategic decisions.
• Freelancers scaling their business hire subcontractors instead of doing low-value tasks themselves.
• Focusing solely on main revenue sources increases IGV and income over time.

8. Focus on achieving financial independence through passive income

Financial freedom arrives when your assets generate enough passive income to cover expenses. You no longer have to rely on active labor to stay afloat.

People who achieve this work to accumulate assets like real estate, stocks, or intellectual property. Over time, these pay dividends or rent, building income streams independent of active participation.

Examples

• Owning rental properties generates monthly income thanks to lease payments.
• Royalties from books or patents create recurring revenue with minimal effort.
• Dividend-paying stock portfolios provide steady returns over decades.

9. Building relationships helps increase your wealth

Your network often determines your worth. Creating alliances with industry peers or mentors can open more significant opportunities.

When you provide value to others, they’re more likely to support and collaborate with you. Relationships also provide inspiration, knowledge, and access to useful networks that help grow wealth.

Examples

• Entrepreneurs succeed by exchanging ideas at networking events.
• Mentorship programs allow beginners to learn valuable lessons from experienced professionals.
• Large deals often arise through long-standing business relationships built on mutual trust.

Takeaways

1. Calculate your IGV immediately. Knowing the value of your time highlights where to focus and what to delegate.
2. Track your net worth monthly. Use this to better understand your financial position and identify areas for improvement.
3. Commit to saving or investing a portion of your income consistently, benefiting from long-term compounding effects.