Time Versus Money

What if I told you that someone anonymously deposits 86,400 cents in your bank account every single day? This amounts to RM864 of free cash every single day without working. It is your to spend however you wish but with a condition. You have to use it or you will lose it. Any amount still in the account at midnight each night will miraculously vanish into thin air. Here is my question: how would you spend that money?

I'm sure you are now thinking really hard how you would spend that money. What would you buy? How much you will spend? When should you spend it? Where can you spend it? I'm sure you will take it very seriously but why? Simple. Because that's a pretty good amount of money and you will not want to waste any by the end of the day.

Now I have some good news and bad news. The bad news is no one will be depositing any extra money in your bank account. However the good news is whether you are male or female, rich or poor, young or old, you are given 86,400 seconds to spend, invest or waste. But most people don't look at it as anything valuable.

The Fortune Teller
I'm not any fortune teller but I can predict one's financial future. If you tell me just two things: how you manage your Time and how you manage your Money, I can predict your financial future.

If you are one who use your time to continuously increase your wealth intelligence by attending the right seminars, reading the right books, allocating time to manage your cashflow the right way, the chances of you being rich is very likely. However, if you spend your precious time doing other meaningless things, it's a waste of time. Also, if you spend money on things that are harmful or detrimental; be it for your physical or mental; that is a waste of money. For example, if you know that smoking is harmful to you and your loved ones, yet you spend RM10 every day on cigarette, that is an obvious waste of money.

The Pareto Principle
Vilfredo Pareto was an Italian economist who made a discovery about 100 years ago. He observed that 20% of the Italian people owned 80% of their country's accumulated wealth. He suggested that principle is at work that applies to money, people and time. Some people call it the 80/20 principle. This principle teaches us that when you practice the right priorities, 20% of the effort gets you 80% of your desired results.

20% of your habit contributes to 80% of your wealth
Think about it, if you drink coffee every morning and that costs you RM2 every single day. Just by bringing coffee from home and stop buying them outside, you will potentially save RM60 a month which equivalent to RM720 per year. Imagine saving RM720 per year and investing it at 10% interest rate per year for 30 years, you will potentially have extra RM118, 435.70 for your retirement.


20% of the people owns 80% of the money in the world
If 100% of the people have the same 86, 400 seconds every single day, what sets the 20% apart from the 80%? It is obvious that they have the same strategy of managing 86, 400 seconds every single day. Therefore start increasing your wealth intelligence by focusing your time and energy to learn the success blueprints of the 20%.

Value Your Time
To realise the value of one year, ask a student who failed his final exam.
To realise the value of one month, ask a mother who just gave birth to a premature baby.
To realise the value of one week, ask the editor of a weekly newspaper.
To realise the value of one day, ask the laborer who has 10 kids to feed.
To realise the value of one hour, ask a long distance relationship couple who is about to meet.
To realise the value of one minute, ask the person who just missed his flight.
To realise the value of one second, ask the victim who survived a car accident.
To realise the value of one milli-second, ask the runner who has just won the Olympic Gold Medal.