Episode 17 of the Coder's Block podcast out now
There's a Smarter Way to Make Money

There’s a smarter way to make money than swapping time for money, and most programmers already understand the power of financial leverage in the sense that rather than earning $100 as an hourly wage, it is much better to develop an app, be that an SAS app or paid iPhone app that can then be downloaded or subscribed to multiple times without you having to do any extra work - particularly if the revenue is recurring.

This is the smart way to make more money, yet we are often conditioned to trade our time for money, as an employee or small business owner on a direct basis. The challenge here, is that there’s an intrinsic limit on how much a person can make as there are only so many hours in a day plus there’s a clear ceiling to the amount you can charge for each unit of time; whereas when you build a system, you can leverage this time and time again with uncapped potential; just look at apps like Netflix or Spotify for instance.

Similarly, there are ways of making money through investing in things such as cryptocurrency, but be sure to fully understand how it works and do your homework before investing, for instance you could look at Trezor hardware wallet review in order to see what options exist to getting started in investing, or even using, cryptocurrency.

Essentially, the only way to make a serious amount of money is to break free from this paradigm of swapping an hour of time for a particular dollar amount, as the most intelligent way to make more money is to break free from the financial treadmill of employment and set-up your own business in order to invest in building cash generating assets.

Many people, however, when thinking of setting up their own business would consider something like a traditional small business to provide eventually them with an incredible lifestyle, but unfortunately a lot of the time people simply swap the financial trap of employment for the financial trap of self employment.

Now, when it comes to investing and starting businesses, you’ve probably heard the myth that you ‘need money to make money’ particularly when it comes to creating assets.

Today, however, with the power of content marketing, anybody can build a substantial income from creating online courses, e-books, and affiliate advertising at very little start-up cost. The most important benefit to this, is that once an asset is created you can leverage the asset multiple times via automated systems without any further time investment.

See, the challenge when looking to make an extra income is that most people earn a living by trading the most precious resource of all, their time in return for money; whether you stack shelves in a supermarket or perform open heart surgery – in both instances, you would be swapping your time for money.

The amount you are able to trade your time for is contingent on the value you provide; an attorney will often charge more for an hour of their time than a janitor, yet even if you are a highly paid attorney, there are still only so many hours in a day or week that you can trade your time, meaning there’s an intrinsic cap to your earnings.

The smarter way to make money is to leverage systems, processes and assets so that you aren’t stuck in the rat race directly trading your time for money.

Walter Guevara

Walter G. is a software engineer with over 10 years of professional experience. When he isn't blogging or being a CTO he enjoys coding randomly complex things that he hopes many people will get a chance to use one day.

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