Although most assume that you have to be rich to get richer. But there is another way. It's what bootstrap entrepreneurs with no start-up capital do to get ahead.
Sweat Equity and Perspiration Profit
Have you ever heard about sweat equity? Sweat equity is the contribution we make to a project through our own effort, as opposed to buying a share with our money. Sweat equity could also be the value we add to our property but we are not talking about this kind of sweat equity. I will bet you have lots of that kind of sweat equity, but the problem is it won't pay you dividends until you sell your home. Sweat equity investments can not only be lucrative but can come with much higher returns than capital investments. However there is a catch, you only have so much time in a day. This is why it is so important to focus your sweat on things that will not only make you income now but continue to make you more in the future.
Sweat Equity is Effort that Adds to or Produces an Asset
Most people think that an asset is only purchased. But that is not the case. Here is a list of cash producing assets that can be built with sweat equity.
Writing a book
Writing a song or album
Building a Product
Creating an Educational Training Course
Building an network
Building a customer base
All of these things can be built with sweat equity and can continue to pay you long after you do the work.
The rich get richer and the poor get poorer, they say. I used to believe that when I was working for someone else. That was the second dumbest thing I ever did. The dumbest was applying for the job in the first place. Once I had access to the financials of the company I worked for, I discovered that smart people get richer. Others are grateful for a pay rise to cover inflation.
It is Time to Have a Plan B
Employers have gone away from the idea that an employee is a long-term asset to the company, someone to be nurtured and developed, to a new notion that they are disposable. Before the boss disposes of you, you need to find a way out of the relationship.
Do not kid yourself into thinking the boss loves you to bits for what you do, or that the company plans to keep you in comfort forever. That only happens to horses nowadays that gave of their best. You are where you are because you are a moneymaking machine. The only problem is you are not making money for you.
Building a Network and Customer Base
We are not the best selling authors, musicians, inventors of products or educational thought leaders. All of these ways to use sweat to build equity requires a talent. We however we do not require any special talents because all you need to do to start investing with your effort to build equity is to build a network.
Anyone can build a network.
Source: EzineArticles
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