Providing opportunities for your kid(s) to earn money by working hourly teaches them to be lazy. I know, sounds crazy but here me out..
Getting paid hourly is actually one of the most detrimental relationships one can have with money. Trading time for money does not provide any incentive to work harder or to be creative. You get paid the same whether you're productive or not. Furthermore, your income is capped since there are only so many available hours in a day.
On the other hand, getting paid based on production and/or results teaches the principles of hard work and ingenuity and there is no cap on how much you can earn.
Lets discuss getting paid on production. This means the harder you work the more you get paid in the same given amount of time. For example, we are renovating our house and are replacing the carpet with wood floors. Once the carpet was pulled out, there were hundreds of staples on the plywood that needed removed. I offered my kids $.05 for each staple they pulled out using needle nose pliers. My 13 year-old son, Jarod pulled out 160 staples in about 30 minutes and earned $8.00 (see pic below). He would have had to work about 1.5 hours at $5.00/hr to earn the same and there would have been no incentive to pull out 160 staples!
Even better then production is getting paid based on results. When getting paid on results, the better your skill set, implementing systems and using ingenuity, the more you get paid (regardless of how hard you work).
For example, one of my businesses is flipping houses. I get paid based on results. If I find a good deal, manage the renovations efficiently, and sell it quickly, I can make a lot of money. I recently flipped a house in Seattle, WA. I never physically saw the property, hired a general contractor to do the renovations and used a realtor to sell it. I made close to $100,000 in less then 10 hours total (of my time) invested. You can't do that working hourly!
A great example of getting paid based on results that kids can do is eBay or Craigslist. It's easy - buy something below market value then sell it (called flipping) on eBay at market value. The difference is called profit!
Personally, I try not to ever pay my kids hourly and instead find a way for them to earn money based on production or results.
Here's 2 tips to implement this right away.
1). Take a job you are currently paying your kid hourly to do, like folding laundry, mowing the grass, or whatever and change the pay structure so it's production or results based.
2). Be the example. If you currently work hourly, start a simple eBay business with your kid.
Someday she'll thank you when her income is unlimited and she's not stuck in an unfulfilling, dead-end job (being paid hourly)!
Getting paid hourly is actually one of the most detrimental relationships one can have with money. Trading time for money does not provide any incentive to work harder or to be creative. You get paid the same whether you're productive or not. Furthermore, your income is capped since there are only so many available hours in a day.
On the other hand, getting paid based on production and/or results teaches the principles of hard work and ingenuity and there is no cap on how much you can earn.
Lets discuss getting paid on production. This means the harder you work the more you get paid in the same given amount of time. For example, we are renovating our house and are replacing the carpet with wood floors. Once the carpet was pulled out, there were hundreds of staples on the plywood that needed removed. I offered my kids $.05 for each staple they pulled out using needle nose pliers. My 13 year-old son, Jarod pulled out 160 staples in about 30 minutes and earned $8.00 (see pic below). He would have had to work about 1.5 hours at $5.00/hr to earn the same and there would have been no incentive to pull out 160 staples!
Even better then production is getting paid based on results. When getting paid on results, the better your skill set, implementing systems and using ingenuity, the more you get paid (regardless of how hard you work).
For example, one of my businesses is flipping houses. I get paid based on results. If I find a good deal, manage the renovations efficiently, and sell it quickly, I can make a lot of money. I recently flipped a house in Seattle, WA. I never physically saw the property, hired a general contractor to do the renovations and used a realtor to sell it. I made close to $100,000 in less then 10 hours total (of my time) invested. You can't do that working hourly!
A great example of getting paid based on results that kids can do is eBay or Craigslist. It's easy - buy something below market value then sell it (called flipping) on eBay at market value. The difference is called profit!
Personally, I try not to ever pay my kids hourly and instead find a way for them to earn money based on production or results.
Here's 2 tips to implement this right away.
1). Take a job you are currently paying your kid hourly to do, like folding laundry, mowing the grass, or whatever and change the pay structure so it's production or results based.
2). Be the example. If you currently work hourly, start a simple eBay business with your kid.
Someday she'll thank you when her income is unlimited and she's not stuck in an unfulfilling, dead-end job (being paid hourly)!
No comments:
Post a Comment