In today’s world, we could all benefit from earning more money; and nowadays most people are seeking an additional income in the form of an extra job, or a sideline business, as these options are more viable than increasing their hourly rate of pay.
However, it’s important to remember that life is for a living – not just slaving away at a job, or business, for that matter – and therefore, it’s essential to understand the core principle that underpins the formula for making money.
This article looks at two universal principles that can help you earn more money by creating more value for a particular party – be that a client, customer or an employer.
CREATE MORE VALUE
People are not compensated based on their education, they are compensated based on the value they create for a third party – whether that party is a person or organization in the form of a customer or an employer; at a fundamental level, people get paid according to the value they provide.
The value of an activity such as being an attorney is clearly a lot higher than the value of an activity such as cleaning, which is not to say that a cleaner is any less valuable as a person than an attorney, it’s just that people are willing to pay $350 per hour to defend against a serious allegation or battle for custody of their children – due to the significance and value of the tangible outcome being derived… whereas, a clean house is of less value.
Essentially, if you want to earn more, you need to create more value in terms of the end result you are providing; as the more value, you provide the more you will earn. You’ll want to look for ways you can upgrade your career to one where the value you are offering is greater – as if you want to make more money, the only way to do this is to create more value for someone that is willing to pay you for that value you produce.
There are two ways to learn; first is through experience and the second is through education. Nowadays, formal education is much easier to access with many courses (both vocational and academic) available online. Today, you can even do a distance learning MBA with a prestigious highly ranked university from the comfort of your own home… but a cautionary note, in terms of education is that just because you have an additional academic qualification doesn’t mean you are automatically going to earn more.
There’s a popular saying that goes something like the “more you earn the more you learn”, and whilst this is fundamentally true, there are many people that drop-out of college and make more money than their well-educated friends simply by selling things on eBay.
It should, therefore, be noted that learning is not limited to academic education; indeed, if you were to learn how to invest in property, or how to master the art of influence, these skills are likely to get you much further in life, in financial terms, than having a generic degree. There are plenty of well-educated people working in minimum wage jobs, and oftentimes, you can find highly educated white collar workers attending weekend seminars on topics such as real estate investing, amazon trading, and digital marketing – in order to escape the rat race they subscribed to by going down a traditional academic route.
In summary, the trick is to learn more but to ensure the time and money you are investing provides a decent return on investment in terms of it enhancing your ability to make additional money.