The Law of Capital
The Law of Capital - your most valuable asset, in terms of cash flow, is
your physical and mental capital, your earning ability.
Your Earning Ability
You may not even be aware that, unless you are wealthy already, your
ability to work is the most valuable asset that you have. By utilizing
your earning ability to its fullest, you can bring thousands of dollars
each year into your life. By applying your earning ability to the
production of valuable goods and services, you can generate sufficient
money to pay for all the things that you want in life. The amount of
money that you are paid today is a direct measure of the extent to which
you have developed your earning ability so far.
Use Your Time Well
The first corollary of the Law of Capital says: "Your most precious
resource is your time." Your time is really all you have to sell. How
much time you put in and how much of yourself you put into that time,
largely determines your earning ability. Poor time management is one of
the major reasons for poor productivity and underachievement in every
industry in America . It is the number one problem for both managers and
salespeople in every field.
Invest Yourself Carefully
The second corollary of the Law of Capital says: "Time and money can be
either spent or invested." One of the smartest things that you can do is
to invest three percent of your earnings every month back into yourself
on personal and professional development, on becoming better at the most
important things you do. In fact, if you just invested as much in your
mind each year as you do in your car, that alone could make you wealthy.
Invest one hour of your time reading in your field every day. Listen to
audio programs in your car. Attend every course that can advance you in
your career. Get personal and professional coaching to help you to get
the very best out of yourself.
Get Better At the Things You Do
There is nothing that will give you a bigger and better "bang" for your
buck than reinvesting a part of your time and money back into your
capability to earn even more. All wealthy and successful Americans have
learned this sooner or later, and all poor and unhappy Americans are
still trying to figure it out.
Increase Your Return on Life
The third corollary of the Law of Capital says: "One of the best
investments of your time and money is to increase your earning ability."
The purpose of corporate strategic planning is to increase "return on
equity" or ROE. This requires organizing and reorganizing corporate
activities so that the company is earning a higher return on the capital
invested in the organization. In your work life, your personal equity is
your mental and emotional capital. Your job then is to earn the highest
possible return on your human capital, to increase your "return on
energy." This way of viewing yourself must become a key part of your
attitude throughout your work life.
Action Exercises
Here are two things you can do to apply this law immediately:
First, take a list of your output responsibilities, the things you do
that represent accomplishments, not activities. Examine the list and
rank the tasks by priority, on the basis of the value of the work to
your company.
Second, take a list of all the things you do, day in and day out. Take
this list to your boss and ask him or her to rank your tasks in terms of
how valuable he or she considers them to be. Then resolve to work on
your most valuable tasks every minute of every day.
