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Posts Tagged ‘delegating’

What Can Double Your Income and Increase Your Time Off

December 21, 2009 1 comment

Delegation is a key to leveraging yourself and, therefore, the key to doubling your income and increasing your time off. The following summarises the fundamental principles of effective delegation:

1. “Do what you do best; delegate or discontinue the rest.” Another way of stating this is, “Delegate any tasks that can be performed by a person earning less than your desired hourly rate of income.” If your goal is $100,000 per year, for example, delegate any tasks for which you would not be willing to pay $50 per hour, thereby freeing you up to focus your own time and energy on tasks that are worth $50 per hour or more. Any time you spend on tasks of lesser value represents an inefficient investment of your time and energy. Read more…

Ricardo’s Law and the Key To Productivity

December 18, 2009 1 comment

A London Member of Parliament and stockbroker in the early 1800’s David Ricardo was also an avid student of economics, ultimately succeeding Adam Smith as Britain’s pre-eminent economist. His influence dominated the aims and methods of the discipline throughout the nineteenth century.

Ricardo is perhaps best known for his Theory of Comparative Advantage of Nations, which suggested that specialisation leads to wealth and self-sufficiency leads to poverty. He recognised that two countries can benefit from trade even if one of them is better at producing everything than the other. The example most often cited was England and Portugal. Portugal could produce both wheat and wine cheaper than England (giving them an absolute advantage in both commodities). However, delving deeper into the economics of these two industries, Ricardo found that one unit of wine in England cost the same amount to produce as two units of wheat while in Portugal, the production cost of one unit of wine was the same as 1.5 units of wheat. In other words, Portugal had a comparative advantage in the production of wine and England had a comparative advantage in the production of wheat. Ricardo went on to show how both countries could benefit by trading these two products with each other, with Portugal focusing on the production of wine and England focusing on the production of wheat. Another perspective is that, even though Portugal could produce wheat cheaper than England, every unit of wheat it produced cost the country the opportunity to make a higher profit by producing a unit of wine. This is known as the lost opportunity cost. Read more…