In this episode we discuss how to make decisions based on where you are in life in terms of time and money.
When it comes to advice, one size does not fit all. And I think most people understand that because whenever someone here's a new piece of advice immediately, they're usually thinking Is this for me? Is this right for me? And it could be or it could be not. So how do you know whether this advice is right for you? So today, I guess what I'm gonna do, I'm gonna go into talking about how you can make decisions based on where you are in life, in terms of time and in terms of money.
So, have you heard of the time-money quadrant? No, you've never heard of that? Because I just made that up. But this is what I'm imagining right now. And I'm gonna help you conceptualize this as well. So you can see what you would need to do based on where you are with time and with money. Imagine a piece of paper. Take this piece of paper, fold it in half and then fold it in half again.
So you you folded it into force, right? And then unfold your piece of paper. What you should have is four squares because you have a line going down the vertical middle and a line going across the horizontal middle because you folded it twice. So you have these four squares now with these four squares. Imagine that the right hand side there's a line, and that's the money line, and it runs from top to bottom. So that's the money line that runs from top to bottom. It's on the right hand side and on the bottom. Your X axis is your time, and that runs horizontally. Now when you're looking at these four squares, the top left square, that's your green square. That's where you are. Money rich. You are rich in money, so that was the Y. Access the money. But you're not rich in time because you're on the top left, and the time again was the X access. So the top left corner is the green square, which is which means your money rich. The bottom left corner is your red square, and red means your time poor and your money poor. The top right corner is your blue square, and I'll go into that in a moment, and the bottom right corner is your yellow square. The yellow square means you are time rich. You don't have any money, but you do have a lot of time. The blue square that's on the top right hand side is where you want to be. This is where you are both time rich and money rich.
So based on where we are, kind of think to yourself. Where are you? Are you in the green, Where your money rich? Are you in the red where you are time poor and money poor. Are you in the yellow where you are time rich, or are you in the blue? Were time rich and money rich? So here's what you do, based on where you're at if you're in the green, which means you are money rich. What that typically means is you probably have some salt on you, probably a little older. And because you have money, you can leverage that money to do things for you, like, make you more money. And when you leverage that money, you're actually buying other people's time to be able to make you more money. You don't have that much time for yourself.
Maybe you charge $1000 an hour or $2000 an hour, and because you are doing high value activities, you are money rich. You can use that money to start buying up other people's time that might not be valued that high. And then, if you are a business owner, you are likely trying to figure out how you can combine different peoples times so you can create some kind of value where you are able to create more value than the time that's being put in. And that's how entrepreneurs make money right. They buy other people's time to create something that has more value, and then they go and sell that. So that's what you can do if your money rich.
If your money rich. If you're in the Green Square, you can leverage your time. You can leverage your money. I'm sorry you can leverage your money to buy up other people's times, and that's how you should think. If you are money rich, you should not. If you are money rich in time poor, you should not be spending your time learning how to code. For example, to build a new app. Your time is probably spent best elsewhere, and you could probably take that money and hire developers to do that code for you, which is gonna be way cheaper than $2000 an hour.
So that's what you do with your money rich. You buy up other people's time and you leverage your money. If you are in the Red Square, which is in the bottom left, that means you are time poor and you are money. Poor time, poor and money poor. This is the worst place that you want to be because it is so difficult to get out. You have absolutely no leverage. There's really nothing you can do. This is a place where you are stuck because you don't have the extra time to get out of the square. You don't have the extra money to get out of the square either. Everything starts costing more. You don't have time to even look for better opportunities. This is a horrible situation to be in and because you're in a horrible situation at this point. If I were in this situation, I think I would do anything which even includes getting into debt, which might not seem that sound or reasonable when you are time. Poor money, poor but getting into debt to be able to find a shortcut to at least save some time or make some money that would be worth it, because that will help you get into another square. So saving time, you don't have to spend money to start saving time. You can think of very creative ways to start saving time. Perhaps you can work from home.
That way, you cut out the commute, you can start building systems around your life so you're not spending a lot of time doing the same things over and over. And you figured out some way to automate it, which buys you more time. And if you don't know how to do that, then you can go into debt and find someone that knows how to build these systems and create time for you, which gives you the resources you need to go to some other square. And if you're able to save your time and all of a sudden your time rich, then you move over to the Yellow Square, so that goes over to the Yellow Square. The yellow squares at the time, right square. This is the bottom right. This is typically when you are young and you have a lot of time on your hands and you have the patience and the motivation to actually go learn things. For someone like me, I am not time rich. Well, I'm a little time rich, but because I'm a little bit older, I lacked the motivation to get really deep into a subject in the way that I used to when I was much younger.
For example, when I was younger, I wanted to teach myself music production. So I went to a music forum called Future Producers and learned everything that I could about music production and taught myself how to use pro tools. And there's people that pay expensive universities for this right there's like Full Sail University, for example, and I'm self teaching myself to be able to do this, but it took a lot of time. It essentially took one year of locking myself away from the rest of the world for me to be able to really learn how to make professional sounding music, and if I want to do that right now, there's no way that I would have the patients to be able to do that is because I am money rich is so much more easier for me to go hire a studio hand that can keep up with all the latest tech and all the latest techniques. And I can just tell him or her what I want and they can do it for me. And not only that, because they're updated in their current. Then they couldn't even give me tips and advice to expand my creativity.
If you are time rich, you have all this time to go out and do things to start building things and be able to build things so you can start getting money rich. You want to be at the top half of the paper, either in the Green Square or the blue square. The blue square is the dream, right? The blue square is where you are time rich, and you are money rich. This means you can leverage both. You can both leverage your time and money. This is like the dream. This is where you want to be. When you are money rich, you can leverage your time. You can buy up other people's time and when you are time rich, what that means especially combined with the money rich. It means you can spend your time on things you are truly passionate about, and it doesn't have to be money making activities.
It could be things that you truly enjoy. It could be horticulture, gardening it. It doesn't matter. But you were time rich and you are getting into these different passions, and you are able to live the kind of life that you want to live because there's really no worries for you. You have money, you have the time. You can spend your life the way you want to live. If that means playing golf every single day, then go ahead and do it. So that's the dream, right? Not many people get to live in the Blue Square. Most people in the world, I would argue, are in the Red Square. They are both time poor and money poor, and it's really difficult to get out of that square. But it's not impossible. You just have to know how to do it. But this is what I would first use to figure out how I should do my game plan strategy. Should I code my own application? Well, let's see in my time, Rich. Do I have the time to actually go learn all this, then? Yeah, absolutely. Go ahead and do that, because that's going to teach you so much while you're growing. And when you are timeless. When you're in the Yellow Square, for example, you can take on a lot of risk. Bad advice for people that are in the time Red Square is to go get a job and build a side hustle when you are time rich. That is a time when you can actually go out and take risks. Because what what else do you have to lose your actually gaining experience by going out and trying something and all that experience that you're gaining by going out into the market and doing these market activities, they're gonna start compounding on each other.
And as you get older and as you get much wiser, especially once you start making money, then that knowledge that you create when you're time rich, you can leverage your money so much further and make your life so much easier. So if you're in the Yellow Square, forget that job. Take as many risks as possible, fall flat on your face. Go broke. Eat ramen noodles. You have the time to do this. If you are a time money poor, you're in the red square. Then do whatever it absolutely takes to get out of it because it is difficult to get out of it. But it's not impossible. You just have to recognize where you are and understand that this is something where you're going to have to take it up to the next level to be able to get out of this. And this is where most people are in the world. If you're in the Green Square, then what you're doing is you're probably building systems in place so you can start saving yourself time. And that way you don't fatigue or you don't burn out.
So when you're in the green Square, you are money rich. You can leverage your money to buy yourself time from other people. And then at the same time, I would also figure out how I can start buying some of my hours back so I can get in the blue square the time rich and the money rich.
Boom. Bam! I'm out.
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