How Can A 520-Year Old Rule Double Your Income Faster?
One of the most common goals I hear at this time of year is, “I want to double my income”.
It’s a great goal but, in all honesty, very few people will do what is necessary to double their sales in just one year.
Well, what if you could double in 2 years or 3 years. Is that fast enough for you?
If so, read on to find out how a 520-year old rule will get you focused on growing faster this year.
If you have done any investing in the past, you might have heard of the Rule of 72.
The rule predicts how long it takes for you to double your investment, given a particular interest rate. The rule dates all the way back to the Summa de Arithmetica, first published in 1494.
The calculation is simple. Divide the number 72 by your expected interest rate. The result is the number of years it takes for your investment to double.
For example, if you invest $1000 and earn 6% interest, you will double your investment in 12 years (72/6 = 12).
Did you know that the rule of 72 applies to your sales success as well?
Instead of using interest rates in the calculation, just substitute your anticipated increase in sales results.
For example, ff you expect to increase your sales by 10% this year, it will take you 7.2 years to double your sales (and your income).
Are you ok with waiting 7.2 years to increase your take home pay?
I didn’t think so.
Then now, now, NOW is the time to do what it takes to crank up your sales. The longer you wait, the longer it will take for you to double your income.
You see, once you have a breakthrough year in selling, you are extremely likely to repeat that success the following year. Once your brain knows that a big jump is possible, it will expect to do it again and again.
It’s like when Roger Bannister broke the 4-minute mile. For years, people thought it was impossible to run a mile in under 4 minutes.
Just two months after Roger broke the barrier, he did it again. And, since his great achievement in 1954, thousands of other runners have run sub 4-minute miles.
Success begets success.
Imagine if you can increase sales 30% this year. That means you will double your total sales in just 2.4 years.
Think about that. In less than 3 years you could double what you earn.
Twice as much.
If you are earning $50,000 now by the middle of 2018 you could be earning $100,000. If you’re smart and keep your standard of living at $50,000, you could bank the rest of it.
In just three years that results in a bank account with a fat $92,805 in it. Here’s the math:
Oh, yeah, and if you invest that money at 12%, you can double it in just six years. I’m just saying…
What would you do with that kind of money? Put your kid through college? Pay off the house? Fund your retirement account? Take a wild vacation like this one?
So, what is it going to be? Are you going to really get busy and grow 30% this year or settle for a measly 10%?
Decide now. Time is passing every day. And every day you wait to make a move is time you have lost.
Next week I’ll share a few ideas on how you can make a 30% growth goal very, very manageable without working more hours.