money

Time is money – well…may not always be true

coaching, Leverage, relationships

Since childhood we are taught this phrase. As a matter of fact I also use it frequently to tell my folks to keep them focussed on not wasting time. But within this phrase is a fundamental flaw of a linear relationship. If you will spend so much time …….you will get so much money.

But there is a very large leverage that is available to us which can multiply the value of time and make its value with money non-linear. The fractal nature of 80:20 can make, some “time” worth more in money than others.

This typically happens with mentors, coaches and customers who are willing to help you. To some ,like coaches, you can pay to learn something, to others you first give and then get.

I distinctly remember that when I was in my first year engineering in university, I was just not able to pick up a subject called Engineering Drawing. Maybe the professor’s wavelength and mine didn’t match and I flunked badly. Then my brother identified another professor and I took coaching from him and he taught me so well that not only did I excel in engineering drawing, for years after and till now I can explain the the structure of a mechanical system so clearly.

The amount of time that I spent in coaching was much less than the time I spent in taking the classes in college. But the impact was far more dramatic.

In our company, while we have a team which does scouting for accounts, our fastest and more profitable business happens because of referrals that we get because of our relationships. This is true for any company. If you manage relationships well, you can get massive dividends. The time spent on managing the relationships can give you returns far far higher than what you would spend in scouting for business linearly.

But to build relationships, you need to always be willing to give first, to help people first rather than go wit an entitlement attitude. Not all people you help will reciprocate, but those who do will more than compensate for the others. So go out and build relationships.

Till next time then.

Carpe Diem!!!

Flow for financial freedom

Financial Independence, Flow, investment, money

In India, yesterday,  we celebrated the festival of Diwali.  Its also called the festival of lights, because people light up candles and put up electric lights all across their homes.

There are two reasons for this festival.  I am not going to talk about the planetary significance but more about the metaphorical significance. For most Hindus , who celebrate this festival,  its to welcome Lord Ram who was supposed to have come back to Ayodhyay after 14 years of exile.

The other reason why we celebrate this festival is because we would like to welcome Goddess Lakshmi. She is the Goddess of wealth.  Mythology has it that she’s supposed to visit earth during the night, so the best decorated house with the best lighting will attract her.

If you look at the Goddess, you will notice two elephants showering water, which eventually flows down. Now the Goddess Lakshmi is supposed to be very temperamental and does not stay anywhere if she does not like it as per the myths. So you need to keep her usefully occupied while she is at your home.

This is such a strong metaphor. If you don’t keep the money you have , flowing into useful purposes, it will lose its value. Money has to be put to productive use, if you want it to grow. If you try to hoard it, it just loses value.

So when you get money ensure you invest some of it, put some of the money to a good cause (like charity). Only from the remaining use for spending. When you invest, the money goes into productive uses and multiplies. Similarly when you donate, it helps spread good in the world.

Always ensure that money is not lying stagnant. Make it work for you rather than you working for it.

Till next time then….keep the money flowing and increase your financial freedom.

Carpe Diem!!!