Your Biggest Asset or Your Biggest Liability? A Lesson from a Carnegie Mellon Graduate
Our Weekly 2 Minute Read
Over the last month, we've discussed many lessons from a Chinese billionaire. As you have read, my good friend, Mark, is the one with the amazing opportunity to be mentored. One of his mentee tasks is to compare the industry of accounting to life.
While I won't bore you over the details of accounting (yawnnnnn), there's a major feature of accounting that Mark identifies:
Why do wealthy people think in terms of time?
Time is a constant variable in our lives. While we all have equal amounts of it, time is a variable because it comes down to what each individual person does with it.
Like an accounting balance sheet, you have assets on one side and liabilities on the other.
Everyone has two options - we can use our time to either build our wealth (asset) or we can waste our time (liability).
Let's talk about time as a liability first. We know the obvious - wasting time by lounging around, binge watching Netflix, or sleeping too much. But what about wasting your time on the wrong people?
Your time can easily be wasted on unimportant relationships (i.e. hanging out with the same friends at the bar or even spending time with someone who attracts negativity).
On the opposite end of the spectrum, time can easily be manipulated to becoming an asset. Education and planning are important - 10 minutes of learning and preparation can easily be turned into hours of returns.
Compound interest - managing your wealth to build more wealth for you. These are just a few of the ways we can build towards our goals.
So, learn how to identify your liability times. Change them into asset times. Start building this valuable skill, think like a wealthy person, and next thing you know - you will become how you think.
-BK (and thanks to Mark!)