By <a href="https://www.cnbc.com/ramit-sethi/">Ramit Sethi</a>



Change is a constant and continuous process in life. As we grow older, we change how we dress, what we eat, where we live and who we become friends with.



Yet when it comes to how we use our time and money ― especially for&nbsp;<a href="https://www.cnbc.com/2019/03/26/money-mistakes-millionaires-like-warren-buffett-bill-gates-google-eric-schmidt-never-make.html" class="">high earners and wealthy individuals</a>&nbsp;― we tend to be more resistant to change.



Here’s a little scenario to illustrate my point: I have a friend who earns more than $750,000 a year. He loves his job, but if you asked him how he’s doing, his biggest complaint would be:&nbsp;<a href="https://www.cnbc.com/2019/04/25/stop-saying-im-busy-harvard-study-reveals-how-successful-people-say-no-and-protect-their-time.html" class="">“I’m so busy.”</a>



So imagine my surprise when I visited him one day and pointed to the bags sitting on his kitchen counter.



“Oh, I just got back from the grocery store,” he said.



After a quick pause, I asked, “Have you ever considered having someone else do your grocery shopping?”



He looked at me like I was crazy.&nbsp;Pay&nbsp;to have someone do his grocery shopping? What kind of elitist would do that?



Here was an adult earning $750,000 a year, but behaving as if he still earns $50,000.



<h2 class="wp-block-heading">The hidden paradox of money vs. time</h2>



The concept of buying back your time is one of the most powerful productivity concepts I’ve learned as a business owner.



Buying back your time is all about convenience: By spending on things like Lyft rides, pre-cooked meals or a housekeeper, you’re actually&nbsp;savingmoney because you get back the hours that you’d normally spend doing things that don’t make you happy.



Most high earners fail to recognize the effectiveness of buying back time. Maybe it’s because growing up, their parents didn’t have more money than time, which changes the calculus of how they make decisions. As a result, those high earners never end up changing their approach to work and their personal lives.



This is a huge paradox of earning more money: Many people claim they value time over money, but if you look at their calendars, you’ll find that the opposite is true.



<h2 class="wp-block-heading">Buying back your time isn’t an act of arrogance</h2>



I used to scoff at people who flew first-class and think,&nbsp;Why would anyone spend an insane amount of money something so pointless? We’re all getting to the same destination.



But more often than not, those people were not stupid. They were high earners who understood value in a different way than I used to.



If you earn $40,000 a year, for example, spending $5,000 on a first-class flight is crazy. But if you’re a CEO who earns $450,000 a year, it makes perfect sense.



In business, misaligned beliefs on time and money can cost you dearly ― while getting aligned can become a force multiplier.



Sometimes, people who buy back their time are seen as showing off. But guess what? Many of us already do it:



<ul class="wp-block-list"><li>Eating at a restaurant instead of cooking at home</li><li>Getting the car oil changed instead of doing it yourself</li><li>Taking an Uber instead of walking or taking public transportation</li><li>Paying retail price instead of looking for a good deal</li></ul>



I’d bet that some of you do these things every week and don’t consider it as “buying back your time.” But you actually are because you’re spending on convenience so you can focus on getting results and move on to more important things.



I’m really into fitness, for example, and Theoretically, I could read a ton of material on bodybuilding, structure my diet and fitness routine ― and stick to it.



But I know I’ll never be as efficient as my trainer, who lives and breathes fitness. By paying him, I can trade money for time and get the best results. (Again, I could be doing it all on my own, but I don’t have to; I’d rather spend that time on my business and with my family.)



<h2 class="wp-block-heading">Give it a shot―it might change your life</h2>



I still find it difficult to know when it’s “right” to spend money or time on something ― and I’m not alone.



Think about all the wealthy and successful people, like my friend who earns $750,000 per year, who are uncomfortable with the idea of delegating tasks to others. But if you’re working hard, you should be able to buy back your time.



The key is to ask yourself:&nbsp;What do I get out of it?



What do you get if you got three hours of your time back every week? Do you get to fly your parents out and put them up in an amazing suite? (If you’re Indian like me, the answer is no: They’ll be staying with you.) Do you get to do things you really enjoy, like cooking your own meal or composing music?



If you’re making more money than ever, aim to save at least one hour per week. Think about all the responsibilities that you hate (e.g., doing the laundry, grocery shopping, managing your finances) where there are great solutions available to outsource or systematize the work.



Then, as you get more advanced, you can tackle trickier topics like scheduling, email management and entire project management.



<a href="http://iwillteachyoutoberich.com/" class="">Ramit Sethi</a>,&nbsp;author of the New York Times best-seller&nbsp;<a href="https://www.amazon.com/Will-Teach-You-Rich-Second/dp/1523505745" class="">“I Will Teach You To Be Rich,”</a>&nbsp;has become a financial guru to millions of readers in their 20s, 30s and 40s. He became a self-made millionaire at a young age thanks to his&nbsp;<a href="http://www.iwillteachyoutoberich.com/" class="">website</a>&nbsp;(which he started as a Stanford undergraduate in 2004), book and personal finance courses.



This is an adapted version of a post that originally appeared on <a class="" href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.quora.com_What-2Dis-2Dthe-2Dgreatest-2Dparadox-2Dof-2Dbecoming-2Dwealthy-3Futm-5Fsource-3Dquora-26utm-5Fmedium-3Dawareness-26utm-5Fcampaign-3Dcnbc-2Dparadox-2Drepost&amp;d=DwMFaQ&amp;c=LO_8KzsOlAGvgA6hdGI4v02U_XLiES0sR51Zca0yIy4&amp;r=fnb6sKq7SKN8iiAQiVc8NQSbL93Ztb9TeGwNUoj2-0Y&amp;m=2n9dCazpBKNeP0sZNLEWPLc0xX64x1aJMuex4HNZRU0&amp;s=C44tttzUAhsbXoPxK8ckmvpylc5UfocO2HdM3gtkpaE&amp;e=">Quora</a>.



This adapted version first appeared on CNBC <a href="https://www.cnbc.com/2019/08/08/self-made-millionaire-this-is-the-greatest-paradox-of-getting-rich-people-fail-to-recognize.html">https://www.cnbc.com/2019/08/08/self-made-millionaire-this-is-the-greatest-paradox-of-getting-rich-people-fail-to-recognize.html</a> and is republished with its permission.

Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

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By Chris Hattingh
In an article for the Daily Maverick (26 July 2017) Professor Ben Turok called for more information regarding the wealthy in South Africa. We are all quite aware of the repeated calls of experts, analysts, and academics for inequality to be addressed, that it is the most pressing issue of our time. I agree. It does need to be resolved.
It needs to be resolved because experts and respected figures such as Thomas Piketty, Christine Lagarde and Professor Turok repeatedly hammer the message that inequality is caused by one group forcibly taking from others. With this narrative being drilled into us, it should come as no surprise when social tensions rise and violence occurs.
Why is wealth inequality such a pressing moral problem? As in many other pieces by other authors, Professor Turok offers no explanation – it is merely accepted as fact. If I were to accept the line of argument offered here, I would have to accept the premise that wealth is fixed, that it is communally produced, and that a certain group forcibly takes the biggest slice of the wealth pie. Fortunately, for every one of us, wealth is not fixed – the wealth of individuals is constantly shifting as they make their individual choices and try to live their lives as they deem best.
<h4>Wealth as a result of the mind at work</h4>
The statistics Professor Turok provides show wealth inequality in South Africa, and are just that – statistics. They have no moral content. It is flippant to infer that wealth has been accrued because it was stolen from others. Wealth is the result of man’s mind at work. A person looked at the world around them, weighed up the threats and opportunities present, evaluated their talents, abilities, time and resources available, formulated how they could best be used to improve his life, and then acted on their vision. This is a moral process because it is up to each one of us to use our minds to survive and thrive in this world.
If wealth was gained because of force or fraud used against others, then the burden of proof rests on Professor Turok and the others who agree with his view. Any charge that a person has become wealthy because of theft or fraud must be taken very seriously because South Africa is supposed to be a country based on democracy and equality before the law. If there is no evidence that the accused person became wealthy through immoral means, then any such charge falls flat. The shift from ‘that person has wealth’ to ‘therefore they must be a criminal’ is a shocking weakness in reasoning.
<h4>Freedom does not mean handouts</h4>
Do we think so little of people that we want the government to run our lives? Through myriad legislations, stifling interventions and controlling minimum wage edicts, the government removes the agency and dignity of people who should be free after decades of colonialism and apartheid. Freedom does not mean handouts; it means that anyone can try, to the best of their ability, to better their life in ways no government bureaucrat or ivory-tower academic could even imagine. It means that they can engage in business with others and improve their lives, and, by doing so, increase the inequality that separates them from those who have not worked equally as hard. What kind of person could deny this ideal?
In the article by Professor Turok, the case of the Guptas is the only example of inequality that is immoral. Through payoffs, underhand dealings and fraud which all of this exemplifies, the Guptas allegedly bought their way into the corridors of power. They did not compete with anyone on an open market. They negated all attempts open competition by allegedly using fraud to buy their influence and in so doing they have entrenched the kind of inequality that must be exposed and punished. For inequality critics to try and equate businessmen who voluntarily trade with others, with people who use shady political dealings and fraud to improve their standing, is dishonest and, seemingly, merely a means to score political points.
<h4>To trade with another, you have to appeal to their reason</h4>
Inequality in the economy is the result of people succeeding at providing goods and services needed and desired by others. To trade with another, you have to appeal to their reason. You cannot force another person to buy your goods – you have to make the best possible case to convince them of the value they will gain by trading with you.
With the rise of the ‘app economy’, even more inequality will develop in the years to come. Already, more and more people are moving away from traditional means of employment and benefitting from more sources of income. The result is, and increasingly will be, that they are earning more money than before. My most fervent hope is that, hopefully, the government will realise that its mandate is not to run people’s lives; that it will step back, cut regulations and allow people to trade voluntarily, honestly and freely with each other.
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Author: Chris Hattingh is a researcher at the Free Market Foundation. The views expressed in the article are the author’s and are not necessarily shared by the members of the Free Market Foundation.

Op-Ed: The inequality bells are ringing again in South Africa

<div class="source"><a href="http://www.cnbc.com/leah-ginsberg/" rel="author">Leah Ginsberg</a> | <a href="http://twitter.com/lginzy">@lginzy</a></div>
Would you rather have a house or a handbag? If you have to choose, you can&#8217;t afford the Hermès white Himalaya crocodile diamond Birkin bag that Christie&#8217;s just unloaded for $379,261, making it the most expensive handbag ever sold at auction.
The exclusive white Himalaya Birkin, handmade from Niloticus crocodile with more than 240 diamonds on its 18-karat-gold hardware, is routinely in the top spot for most expensive bag — this year&#8217;s titleholder (sold in Hong Kong) knocked the crown off another white Himalaya Birkin that <a class="inline_asset" title="https://news.artnet.com/market/most-expensive-bag-ever-sold-2016-507656" href="https://news.artnet.com/market/most-expensive-bag-ever-sold-2016-507656" target="_self">sold for a little over $300,000 in 2016</a>.
<div id="attachment_126745" style="width: 610px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-126745" class="wp-image-126745 size-full" src="http://cnbc.africa/wp-content/uploads/2017/06/Expensive_Handbag_in_the_World_sold_at_Christies_Hong_Kong_on_31_May_2017.600x400.jpg" alt="" width="600" height="400" />Hermès matte white Himalaya Niloticus crocodile diamond Birkin sold for more than $379,000 at Christie&#8217;s in Hong Kong</div>
Celebrities, of course, love the bag. David Beckham, who is worth $350 million, <a href="http://www.cnbc.com/2017/05/17/david-beckham-gave-wife-victoria-an-expensive-hermes-birkin-bag.html" target="_self">bought his clothing designer wife, Victoria, an albino Nilo crocodile Himalayan Birkin</a> in 2008 for a reported £80,000 (or about $100,000). Kim Kardashian has also been spotted with the Himalayan.
<div id="attachment_126746" style="width: 510px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-126746" class="wp-image-126746 size-full" src="http://cnbc.africa/wp-content/uploads/2017/06/David-Victoria.jpg" alt="" width="500" height="335" />Photo: Flickr.</div>
The Himalayan is so-named because the coloring resembles the famous mountain range, and it&#8217;s &#8220;possibly the rarest and most desirable handbag in the world,&#8221; according to Hermès expert <a class="inline_asset" title="http://www.vogue.com/article/most-expensive-hermes-birkin" href="http://www.vogue.com/article/most-expensive-hermes-birkin" target="_self">Jane Finds</a>.
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&#8220;Hermès only very rarely—and very thoughtfully—creates unique pieces of this caliber,&#8221; says Finds. <a class="inline_asset" title="http://www.christies.com/features/Deconstructed-The-Himalaya-Birkin-7219-1.aspx" href="http://www.christies.com/features/Deconstructed-The-Himalaya-Birkin-7219-1.aspx" target="_self">Christie&#8217;s</a> estimates only one or two of the bags are handmade per year.
The bag is so rare and expensive in part because white or albino crocodiles are hard to come by and the dying process for the bag is painstaking.
Even the simplest of Birkin bags <a class="inline_asset" title="http://fortune.com/2015/06/23/hermes-birkin-investment/" href="http://fortune.com/2015/06/23/hermes-birkin-investment/" target="_self">start at about $10,000</a> and are famous for their often months- or years-long waiting lists to purchase.
But Birkins aren&#8217;t just fashion statements or folly — these bags only <a class="inline_asset" title="http://time.com/4182246/hermes-birkin-bag-investment-gold/" href="http://time.com/4182246/hermes-birkin-bag-investment-gold/" target="_self">appreciate in value</a> with time.
Just ask Victoria Beckham. She reportedly has 100 Birkins in a collection that&#8217;s estimated to be worth <a class="inline_asset" title="http://www.vogue.com/article/birkin-celebrity-style-kim-kardashian-west-victoria-beckham" href="http://www.vogue.com/article/birkin-celebrity-style-kim-kardashian-west-victoria-beckham" target="_self">$2 million</a>.

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Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

Op-Ed: The inequality bells are ringing again in South Africa

You know you’re rich when you buy this — a $379,261 handbag is the most expensive ever sold at auction

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Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

Op-Ed: The inequality bells are ringing again in South Africa

You know you’re rich when you buy this — a $379,261 handbag is the most expensive ever sold at auction

News Tips

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