Calculating your IGA: Income Generating Activity

Don’t be too busy to be rich: too busy means poor. Too busy means zero leverage.

Too busy means head-down-doing, and no Captain can steer a ship with his head down. Don’t be too busy doing, so that you can ‘earn’ the time to do the things you love, but forever be too busy doing, so that you never end up doing the things you love. 

Most people live their whole lives like that, and then die. Make the decision and change NOW my friend. 

Calculating your IGA: the first stage is to calculate your Income Generating Value [IGV]. When you know exactly what an hour of your time is worth, you can calculate accurately what tasks you should do yourself, and what tasks you should leverage out, pay for, or inspire others to do for you. 

Taking a step back though, the following exercise is important. This is a book of action, not just a book of hypothesis, so are you prepared to take some action? 

“When all is said and done, more is said than done”

Good, then let’s begin:

For the next 2 weeks create a simple work log of how you are spending your work time [career and/or property]. Have a simple word document open or a sheet of paper or notes folder on your smart phone. Every hour that you work in a day, note briefly what you did. Be honest with yourself, and at the end of the day put the letters IGA next to the parts that were income generating.

At the end of the 2 weeks, work out what percentage of your time is spent on IGA’s. If you’re anything like me, you may be [positively] shocked at how just a few hours bring in most of the money and results, and a huge amount of time is virtually wasted, with little or no financial benefit.

Now, to calculate your IGV [income generating value], total the amount of hours you spend working every week. That includes your job/career, any part time work, and any time you’re putting into property or asset building – the entire amount of time attributed to earning money. You might have something like 55 hours.

Now calculate, or roughly guess, how much money you earn in that timeframe. If you find it easier, calculate the same figures: hours worked and income generated, in a month, it doesn’t matter as long as there is consistency. You may have ￡850 in a week. Make sure that all income that is not a loan is added, any asset or passive income should be included.

Now divide the amount of income by the amount of hours, and you have your IGV – your time value per hour. Every hour you work brings in, on average, ￡x. 

Now you have to be strict with yourself, and have faith in this algorithm. OK, it’s not that fancy, but still you should be disciplined: any task that comes your way that you feel will or could earn you more than your IGV, then do it yourself, because it will pay you to do it. If you keep doing that, your IGV will go up and up and up. 

But even more importantly, every task that comes your way that will or could bring in less than your IGV, you must leverage or outsource it. Either blag a favour, do a reciprocal deal, or pay for the task to be done. If you don’t, you’ll get poorer and you’ll actually repel more money that you pull in. We promise you this – stick to this and it will change your life forever.

“What you earn has nothing to do with what you’re doing, and everything to do with what you’re not doing” – Rob Moore

It’s not what you are doing that is bringing in money; it’s all the things you are not doing that could be bringing in much much more. You’re probably working far too hard to be rich. The things you are doing are probably blocking what you could be doing that earns all the income.

Any questions or comments, please post below and I will reply personally 

Rob