The Wealth Formula – How do YOU score?

Hey everybody!

I recorded this short video in the town of Baños, Ecuador while Emily and I were traveling though South America.

Today, I wanted to share “The Wealth Formula” with you. It’s something that was taught to me by one of my long-time friends and mentors, Cindy Samuelson.

I love sharing it because it really surprises people. It’s almost like a little slap in the face when you hear it for the first time and it really makes you take an honest look at how you are spending your time.

The whole idea of The Wealth Formula is that we’re all equal in the sense that we have 24 hours every single day. The difference between where we are now and where we are 1 year from now or 5 years from now is how we spend that time.

Now, if you ask most people how many hours there are in a week, most people wouldn’t be able to tell you, let alone tell you how they spend them.

So, let’s go ahead and break it down:

24 hrs. per day X 7 days per week = 168 hrs. per week TOTAL

Of course, there are a few “needs” that most people have to spend some time on. For example, we need to sleep, unfortunately! I’ve tried to fight that all my life, but we do have to sleep.  🙂

8 hrs. per day to sleep X 7 days per week = 56 hrs. per week for sleep

I know. Most people are like, “I wish I got eight hours a day!” right?

Next, we need to pay the bills (work). If we’re not already financially independent in some way, we’ve got to pay the bills while we’re working on our dream, whatever that might be. So, most people probably need 40 hours per week at their current job to pay the bills. 

8 hrs. per day to work X 5 days per week = 40 hrs. per week to work

You might be thinking, “I wish I worked 40 hours a week. I work WAY more than that.” Well, if you’re working way more than 40 hours a week on something that’s not really where you want to be, then that might be something that you want to focus on changing.

Lastly, we  need to have some recreation time; time with friends, family, things like that. Let’s give you 6 hours per day to do that.

“WHAT?! There’s no way I get 6 hours a day of free time to spend with family!” Let’s just jot that down anyway…

6 hrs. per day “free time” X 7 days per week = 42 hrs. per week “free time”

So…

168 hrs. per week TOTAL

  – 56 hrs. per week for sleep

  – 40 hrs. per week to work

  – 42 hrs. per week “free time”

= 30 hours per week remaining! [GASP]

It makes you wonder…where does all that time go??

Most of us run from crisis to crisis and we don’t really manage our time. We don’t discipline and defend our time so it gets wasted on little things, on other people’s emergencies, and then we have no time for ourselves.

So what should you do with your new-found 30 hours?

Cindy (who taught me The Wealth Formula) would say that you want to spend an hour a day “sharpening your saw.” Meaning, putting good stuff into your head by reading great books. I would add listening to great podcasts to that category as I’ve recently become a bit of a podcast junkie.

There are some great podcasts by amazing minds on marketing, business, entrepreneurship, self-development and any other topics that you might be interested in.

If you are “sharpening your saw” for 1 hour per day, that still leaves you with 23 hours left in the week. It’s how you spend those 23 hours that is really going to make the difference between where you are today and where you want to be. It’s the relationships you build. It’s the phone calls you make. It’s the appointments you set and the sales you close using those 23 hours to really build your business, build your dream or whatever it is that you’re trying to accomplish.

“Well, my circumstances are different. I’m a single parent. I don’t have as much time as other people.” Fair enough.

“I have a job where I work twelve hour days.” Okay, fine.

Everybody has their different circumstances. There is a great quote that says:

 ”Argue for your limitations and they’re yours.” 

It’s your choice to make that your story.

If you let the fact that you’re a single parent be the reason that you don’t succeed, then that can be your story. However, there are millions of single parents out there that are writing their own story where they ARE succeeding and they are figuring it out.

(I’m not trying to pick on single parents. It’s just the first example that came to mind.)

That obstacle, whatever it may be for you, can oftentimes become your biggest advantage. If you can get through it, not only will you be past it, but it will PROPEL you!

Let me give you a great example. A lot of you have probably seen Nick Vujicic on YouTube. He was born with no arms and no legs. Today, he’s a successful speaker, real estate investor, entrepreneur, investor and really amazing guy.

Nick Vujicic has said that not only is he successful today in spite of being born with no arms and no legs, but he’s successful BECAUSE he was born with no arms and no legs. 

Remember…we tend to dramatically overestimate what we can accomplish in 6 months and dramatically underestimate what we can accomplish in 5 years.

He wouldn’t be the person that he is today if he wasn’t born with those seeming disadvantages. It’s those seeming disadvantages that actually gave him the opportunity to overcome and to grow.

You could be writing the book on how you overcame your struggle as a single parent (or whatever your struggle is). You could be up on stage sharing your story and inspiring others to do the same. Getting through that obstacle could be the very thing that propels you once you’re on the other side of it.

I hope you’ve enjoyed learning The Wealth Formula as much I as did. And, I hope that your new-found 30 hours will lead to massive change and growth for you!

Remember…we tend to dramatically overestimate what we can accomplish in 6 months and dramatically underestimate what we can accomplish in 5 years.

Thanks so much for reading!

Pat