Summary
- To build wealth, focus on making money, investing, and saving.
- Track your Effective Hourly Rate (EHR) to reach financial freedom faster. It's how much you earn divided by how much you work.
- Knowing your EHR helps identify which activities earn you the most money.
- If your EHR is $50, but you find a job or side hustle paying $100 per hour, prioritize the higher-paying work.
- Outsource tasks that cost less than your EHR, like data collection or lawn mowing, to free up more time for higher-value work.
- By optimizing your time, you can increase your average EHR and grow your wealth more efficiently.
Video
How To Take Action
I would suggest starting by calculating your Effective Hourly Rate (EHR). This will help you know how much you earn for every hour you work. Simply divide your total earnings by the hours you work. This number shows which of your activities make the most money.
A good way of using this information is to look for jobs or side hustles that pay more than your EHR. For example, if your EHR is $50, but you find something that pays $100 an hour, focus more on that better-paying work.
Next, consider outsourcing tasks that cost less than your EHR. For example, if lawn mowing costs $30 and your EHR is $50, hire someone. This way, you can spend more time on activities that pay higher rates.
I recommend tracking these changes to see how your EHR improves over time. This will help you focus on high-value work that grows your wealth faster.
Saving a little bit whenever you earn extra will also contribute to your net worth and financial goals, bringing you closer to financial freedom. Keep an eye on opportunities to invest wisely, as growing your savings is key to building wealth over time.
Full Transcript
on the journey to Financial Freedom this is your map accumulating wealth boils down to three things generating money through your career investing and making sure you save enough so your net worth grows let's start with making money whether you're an entrepreneur or you work for someone else there's one key metric that you need to track if you want to reach Financial Freedom as soon as possible and that's your effective hourly rate your EHR which is how much money you make divided by how much you work let me just give you a small taste of what knowing this number can do for you first you get to know which activities make you the most money if your effective hourly rate is $50 but you found a job or side hustle that can get you $100 per hour you need to do more of that it boosts your average also if there's a task that you can Outsource for less than $50 per hour like data collection or mowing your lawn you need to hire someone to do that now because freeing up that time allows you to raise your average effective hourly rate by working on higher value activities
