Time Vs Money (T-M) Curve

Time and Money (T & M) are correlated in more ways than one. 

If you understand the T-M curve carefully, you might just be able to drive yourself towards a much more balanced life.

In the last YouTube video that we published, T-M Curve was one of the first topics we covered. The explanation of this curve was appreciated by one and all. 

Here is a link to the 2+ hour seminar vide, conducted for the students of Chandigarh University where we talk about wealth management principles, remove some of the most common and stubborn wealth myths and yes, talk about the Time-Money Curve.

Those who could not attend our live session can watch the video here:

The first topic in this video is the Time-Money Curve. 

Let me reproduce the Time-Money curve for you again.

Now, let me describe each phase of the graph. It is important to understand it carefully, rather than missing out because of the simplicity of its look and feel.

Phase 1 of T-M Curve (All-Time, No-Money)

This is the phase when you have all the time in the world and are ready to get into the corporate world - to do what - to earn money. To phrase it a little better, I would say, to trade your time for money. 

You are just a white collared sophisticated labourer, and no more. 

You feel that your life is going to be very different than everyone else's.

Just fresh out of college, you have too much time at your disposal, and you do not mind trading it off for money. And there is absolutely nothing wrong with that.

Almost everyone starts from Phase 1 and starts to earn active money.

Phase 2 of T-M Curve (Less-Time, Moderate Money)

You start making quite a decent amount of money, but of course, you are not making money out of thin air. You have to give up your time to earn money.

You seem to have arrived. Your income is increasing exponentially.

You get married, and life just seems perfect, until the most beautiful thing happens to you in life. You become a parent. 

Your wife has to shelve her job, at least for the time being. You are earning well, but now you wish to spend more time with your children and spouse. But you are already committed to trade-off most of your available time. 

Your career and money also stagnates to a large extent. 

So, here you are, on the U bend of the curve - with hardly any time and earning moderate money. 

95% of people will keep struggling in this U bend, oscillating between career and family - trying to find out the right balance, which is ever alluding. 

You are earning active money because you do not have the time to even manage your earned money.

Most people will give up their entire life in the U bend, not knowing how to move ahead

Phase 3 of T-M Curve (Enough-Time, Enough Money)

Just 5% of the people will climb up to the 3rd phase, where they have all the time and more than enough money to lead a comfortable life. 

They earn passive income. 

They have become the CEO of their assets. 

They have developed habits of the rich - tracking their cash flow, managing their assets and liabilities, planning for future events, understanding their risk profile, sticking to an investing strategy, and letting their money do the work. 

Since the money works for them, they become free of time constraints.

Many of them go on to become financially free.

Moving from Phase-2 to Phase-3

It takes effort and time to move from Phase-2 to Phase-3, but it is all about the worthiness of the effort in the end.

Once you are in Phase-3:

- You become a master of your day, and therefore, the master of your life. 

- You decide your daily routine. 

- You have just mastered money and moved to the top of the T-M Curve.

Which Phase are you in? 

Which phase of the T-M Curve are you in today?

There are very high chances that you are in Phase-2 of the curve.

This is fine, as long as you are aware that there exists a beautiful Phase-3, and you have a plan to move from Phase-2 to Phase-3.

Do you have a plan to move from Phase-2 to Phase-3? Or you still believe that you are an exception in this world that you would be able to automatically move fro Phase-2 to Phase-3 without proper planning and tracking?

Want help to move to Phase-3? 

Ready to work hard? 

Let us know. We will help you out.

Regards

Manoj Arora

Official Website