Stop thinking about how much you want to earn. Start thinking about how much value you can create.
When do you know you have started thinking this way? Well, you start not by thinking about Jeff Bezos as the richest man in the world worth 184.6 Billion. You start by thinking, how many people does Amazon one of the companies he owns serve? Even before we say that firstly Amazon sells 350 Million different products. In essence, you as the customer can make 350 Million different choices. In 2017, the company shipped over 5 Billion items worldwide. Essentially Jeff is not rich, Jeff he is extremely valuable. The human ecosystem heavily relies on him.
So how do you expand your thinking about income to this domain?
Step One; Stop saying they must have a high paying job
Whenever you see someone on Instagram traveling to all parts of the world, the first thought most of us tend to have is what kind of job do they have? Which kind of company do they work for? What is their industry or profession?
What we are trying to do is to equate expensive experiences with a high paying job. Which then moves to of course high disposable income. This kind of thinking promotes us to work hard to get employment in companies known to have high average pay. In fact, it influences young students to select a career choice. Of course, no one wants to be poor.
What though we are forgetting is that this is the first point of income as you grow on the income maturity continuum. This point basically means you are paid only for what you do. Which is limiting as also what you do is controlled.
Having reached the limits of a paying job, where you realize you can only earn on your desk and you also cant choose what you are doing, most people move into self-employment. Where you get more autonomy and also specialize in an area of interest. If things go well you get to dictate how much you earn. The other thing that happens is that you graduate to probably doing work at all times as your business goes online.
You have solved the two base challenges of continuum stage one. However, you start experiencing new ones. The first one is that you still are limited. You need to rest and you can’t work 24/7. There are also parts of the work that you have to outsource, denying crucial revenue.
You start feeling like this self-employment thing was a hoax. You want your job back cause it had all these benefits and a lot fewer hours. Something in you reminds you though that they were paying you not to work on your dreams. A figure that did not compensate you well enough to that.
Then you have a light bulb moment as you work on this new project!
Step Three: Create a system to do what you love
Hire people. Start a firm. Think about all the diverse skill set you need and hire people to expand your company. You need to invigorate it with new ideas. You get a great team and slowly by slowly you get more and more clients.
This is the epitome of success. Your idea has become an organization. Your organization is attracting top talent. Customers talk about your products as an experience. They identify with the brand and even walk around with T-shirts designed by your firm.
What more could you need? A fellow CEO whispers in your ear…
Step Four: Invest in other Companies in different Industries
As you do this you realize that you don’t need to master a new industry. You also don’t need to start again as self-employed and then work with a small team to build the company for like 5 years. All you need is a good eye to identify such kind of companies’ growth path and invest in them.
This is the dream other people’s ideas can pay you too! You can’t believe it. There is only one problem with this view.
Stop looking at them like stages
Moving from employed to self-employed to the founder to an investor is not a step by step process. It’s actually supposed to be your money at any one time. As a result instead of having one income stream, you have quadrupled your income stream.
Remember if your only source of income is work you are limited to eight hours of work, if it’s self-employment you are limited by your expertise and if it’s a company you are limited by the fact that you only produce products for a particular industry.
Instead of being limited. Start thinking at any point in your career development about, what side hustle can I have that can make me money? The easiest to actually use your career expertise and coach people for free online. This improves your skills and knowledge and also your reputation. As you do this you can look to work with a group of friends to start an enterprise. Bringing in a third source of income. Then finally all at the same time be investing in several stock options.
The greatest level?
Is when you think the same for the companies that you have developed. How can you use the income for what you earn from side hustle to:
- Pay yourself
Such that your investment from that source of income feeds into a feedback loop and keeps growing. As for the company you just established it also does the same thing. From 8.00 am-5.00 pm it provides a service to customers. It also supports employees to come up with ideas, which then can become new product lines for the company, in essence, employees side hustling/innovating in the company. Then as these new products grow they become separate entities and the parent company becomes an umbrella company. Then the money from your firm goes to investing in other companies in other industries!
This concept is called the Cash Flow Quadrant. Which enables you to have your money multi-task at any given time. Creating for you again and again!