Why making less money can be better than making more money

Would you rather make $60,000 instead of $30,000?

There are 3 answers available: a) Yes, b) No or c) I need more information.

If you chose c) congratulations, that's the first step to understanding investing - please continue reading.

Financial Freedom is not simply about having more money in your account; rather, it's about using money as a tool to master your time, the same 24 hours in a day you get, I get, Tony Robbin's gets, Trudeau gets and the Queen of England gets. The same 24 hours.

How are you going to spend it? Let's go deeper.

Making $30,000 by lending someone money is certainly not the same as making $30,000 by working 8 hours a day for 6 months straight, right? Clearly. Although the dollars and cents are the same in this example the underlying principles couldn't be any further apart.

1. Effort - freedom requires that you leverage your money to free up more time rather than earn more money by using more time. Massive difference. Making money from the stroke of my pen is not the same as making money from the stroke of a paintbrush (nothing against painters)

2. Return on Cash - If I invest $10,000 and get back $20,000, that's a 100% return on my cash. However, if I invest $30,000 and get back $50,000, the return drops to 66.7% although I have made more dollars and cents in the second example. Learning to look at investing as a percentage return instead of a dollar return maximizes growth, mathematically guaranteed.

3. Time - making $30,000 in one year vs. $30,000 in 6 months also is clearly different. The time value of money, or the future value relative to present value, can make or break you too. Remember, building wealth takes time so best to use time in every formula and investment calculation you make. (FV = PV x [ 1 + (i / n) ] (n x t)) for my math nerds out there!!

As with everything I preach, look at the whole picture.