Rich people buy time, poor people sell time! I am sure you have heard different variation of these phrase times without number and what this just mean is that you shouldn't do a job where you are paid Y amount of money for Y number of hours which is the job that almost everyone is doing.
These phrases come with numerous reasons like when you trade your money for income, you have a limit to the income that comes in since there is only 24 hours in a day, another thing you hear is being vulnerable financially if the person is unable to work, and not having time for yourself. After stating this reasons, the next escape route you hear is investing in the stock market, starting a business, investing in housing or doing the three together.
While these points may hold some truth, it's essential to debunk the notion that conventional jobs are inherently insufficient. Often, these sentiments are championed by entrepreneurial enthusiasts urging others to embrace side hustles or start their own businesses as the key to financial success. While the advice isn't entirely baseless, it oversimplifies a complex reality.Let me also say that this people might not be wrong to some extent but then there is no way you would invest to make money without investing time, only unless you are a trust fund baby.
You see, we all sell our time for money one way or the other but the simplest way which is visible to everyone is working a paid job as the amount to be paid will be written in black and white on the employment contract. You would not assume that a CEO being paid per hour for his job isn't investing his time for money the difference is that he is paid higher while the person working at Starbucks as a waiter is paid lower (Skilled vs Unskilled).
People talk about side gigs and they make it sound like they are not investing time for money but in reality, they are doing just that but this type of job isn't one that says X amount of cash would be paid for Y amount of hours on the job. So people who are doing gig works might make more money or less money than the minimum wage, depending on the payout from the gig.
If you know someone who spend their weekends clipping coupons and selling used junks from around their community for extra cash are also investing hours for whatever money they make, the difference is that the amount they make isn't fixed to the time but then they do invest time.
People who get above 200 thousand dollars yearly and 1 million dollars in investment are regarded as sophisticated investors and trust me when I say that doctors and lots of medical practitioners fall into this categories which means that they can invest money into more riskier investment. Let's look a dentist who decides to build an apartment for rent, he will be spending time, money, knowledge and other types of resources to get it ready, and when this is done, the return on the investment is usually lower than what was put in to develop it compared to what he would make from taking more health cases.
The truth is we are all selling our time or money but some people do not believe this, they overvalue their time. It is better to use the word spending your time on things that would better pay you instead of saying do not trade your time for money. Talking on spending time to make money, someone earning minimum wage with $500 in savings shouldn't invest the money in the stock market because it is money investment wrongly although the person still spent time to look for a good investment.
This is because the average return for the S&P500 is 10% annually, that means the person might get only $50 in a year of which the price of the stocks can plummet as well. That money would have been better invested in getting knowledge that would increase the income of the person such as getting skills that would place them in a better position with better pay.
In the end, the debate over whether to buy or sell time continues, and the answer may not be a one-size-fits-all solution. It's crucial to recognize that various paths to financial stability exist, and the key lies in making informed choices. Rather than dismissing traditional jobs or glorifying side hustles, understanding the nuanced nature of time and money exchange empowers individuals to make decisions that align with their unique circumstances. Whether you're a CEO, a gig worker, or someone exploring investment opportunities, the real value lies in recognizing that time is indeed a precious resource – one that should be spent wisely on endeavors that contribute to personal and financial growth.
Posted Using InLeo Alpha