According to a world-renowned author, marketing expert and coach, Dan Kennedy, there is an ″Income and Wealth Pyramid″ in every society and in almost every industry, that distribute wealth using the metric: 1%, 4%, 15%, 60%, 20%.
This pyramid has remained the same for many decades despite the numerous new year resolutions, wealth empowerment programs, technological advancements and all the governmental wealth re-distribution programs. 60% of any given population barely gets by. They have a myriad of financial and personal needs. 20% are broke and struggling and find it hard to meet basic needs. 15% have their personal and family needs covered and can afford to save and invest with cash to spare. 4% are prosperous and can afford to live in luxury, while the last 1% are super wealthy and can afford anything money can buy.
Every year, people make new resolutions hoping that they could turn that year into a prosperous year, but most people wind up circling back to the same position on the wealth pyramid. Why is this so? While there are many reasons, there is one major reason for this disparity, and it is based on the one type of wealth that can never be recovered once lost or misused. This wealth is distributed to all individuals in the same proportion.
After over 5 years of research and my own personal business experience, I have come to believe that the primary reason for the disparity between extraordinarily wealthy people and the extremely poor people is the use or misuse (or abuse) of one’s time and the degree to which peak productivity is attained. The power of time, therefore, is not in its quantity but in its usage.
How many hours in your day is productive and directly geared towards generating revenue? How much of it is spent commuting, drinking, filling paperwork, chatting, sleeping and watching TV? Research has shown that most people have an average of 28 productive minutes per day.
All of Dangote’s billions cannot buy one minute of yesterday. When time is lost; life is lost
As a fellow user of time, I understand your needs and sometimes frustrations about time. How you have so many things you want to do at the same time and how you run through every day from the early hours to late hours wishing there was more time available. The multiple demands on your time can be extraordinary. But I am here to tell you that you need to take extraordinary measures to match those demands. Measures that can sometimes be radical and extreme.
Since time is valuable and we all have the same amount of time, why do most people still end up poor?
The answer is simple. Most people delay doing the most important things in their lives. They procrastinate and, as we know, procrastination is the thief of time.
‘Delaying your life goals for later, is like saving up sex for old age’ – Warren Buffet’
But why do people procrastinate? Two reasons. The first is that they fear the possibility of failure. The fear of failure makes people sit back, wait, and pray for the perfect day to come. The day when they will have the amount of money, have the perfect circumstance and timing before they take action. However, this perfect day will never come because there is no such day called the perfect day of the week. You will always feel uncomfortable, sometimes awkward when you are out of your comfort zone and trying to accomplish something great.
The second reason people procrastinate is that they are reluctant to pay the price. Thousands of people have tried to bargain the price that is required for success. They try to cut corners and bargain on the amount of work required, the mental exertion required, the rigors of accurate thinking, the time that should be sacrificed, the commitment, and discipline required for the achievement of their goals. Unfortunately, life does not offer bargains, discounts, or promos; a fair price must be paid if a goal is to be achieved.
People who are broke (20%) and financially struggling (60%) are perpetually bargaining on the prices of life and no amount of new year resolution can bail them out.
In a new year just like any other year, there will be massive distractions. You need to drastically reengineer your entire relationship with time and be very aware of the passing of time because it is the only way to achieve the wealth of your dreams. Time has a significant impact on wealth and your capacity to create wealth is affected by time. In whatever ways you can, in your life and business, you need to seek ways to leverage time and make it work in your favour. Have zero tolerance for impromptu activities, surround yourself with people who understand and respect the value of your time, and put a financial value on you time so you are scared to waste it or give it away. If you do not value your time or know what your time is worth, you cannot expect the world to know it either.
There are five ways you can use time to kill wealth. These five wealth killers can significantly reduce your capacity to create enormous wealth. You need to know them and do everything within your power to avoid them. “The five time-based wealth killers” have been curated in a special infographic report that you can access by filling the Form below.
There’s no black box, special New Year resolution, magic wand, random luck, or quick fix. What it takes is simply discipline, dedication, productive use of time, hard work, and increase in your financial knowledge to transform any new year into a wealth year.
Grace Agada-The Senior Wealth Advisor and Founder Create Solid Wealth. Article was First Published in The Business day Newspaper.