I first heard of the phrase “The Law of Income” about five years ago. It was in one of the most inspirational books I’ve ever read – from T. Harv Eker – The Secrets of the Millionaire Mind. If you’ve never heard of it and haven’t read the book, I strongly suggest you pick it up. You might just have your mind blown…in a good way!
So what is the law of income? And why should you care?
It was March, 2014. My first wife divorced me just a year earlier and I was still working to get back on my feet.
- I had gotten out of consumer debt (yes!)
- I just started paying down my mortgage
- And, I was starting to date again
I was feeling good. Life was feeling semi-normal again. I had cleaned up most of my wounds of the past.
It was time for me to move forward – in my personal life, my work life, my spiritual life, and even my financial life!
It was time to challenge my mind once again – to propel myself into the future that I wanted instead of the present that I was recently handed…
Naturally, I found myself at the library, searching for answers…
After browsing the shelves a while, a certain title jumped out at me. Of course, this was T. Harv Eker’s book, “The Secrets of the Millionaire Mind” – the one I mentioned at the beginning of this post.
It was about money (which is my typical prerequisite for reading a book, LOL!), but it sounded a bit psychological. I gave it a shot, and it’s still impacting my actions to this day, five years later.
The Law of Income
This book was jam-packed full of radical ideas about your mindset and how it can equate to wealth (in fact, I wrote an entire post about my discoveries in this book! — “9 Things the Rich Do That The Poor Do Not“).
In particular though, the book was centralized around the law of income, which I now fully believe in.
As T. Harv Eker describes,
“The law of income is a wealth principle. It states that you will be paid in direct proportion to the value you deliver according to the marketplace.”
In other words, if you start a blog about an anthill in your driveway, there will only be so many people that are interested and willing to read about it (ie. your market is limited to Grandma Baker, who thinks you’re simply amazing…mainly because you’re her offspring).
However, if you start a blog about the stock market and point out various ways that people can get rich with trades AND you prove it to be effective, you’ll likely be quite successful (because who doesn’t want to get wealthy with a few simple stock trades??!). Your potential market for that is HUGE!!
The law of income — If you deliver a product or service that helps thousands (maybe millions) of people, then you’ll get paid handsomely for it!
Top Examples of the Law of Income
Think about some of the most successful people in the world:
- Jeff Bezos – He started Amazon, a service that offers basically any product to anyone in the world quickly, and at a low price. He’s impacting billions of people, and his reward is in direct proportion to his service (ie. the richest person in the world).
- Oprah – We know her by one name because she’s one of a kind. She is famous for her talkshow which is seen by millions of people every day, AND she’s a famous business owner and entrepreneur. She helps millions of people and is paid millions of dollars because of it.
- Ryan Kaji – This kid is the originator of “Ryan’s World“, a YouTube channel that has over 43 billion views. With his expansive reach, he’s paid a crazy amount! I’m talking $20 million a year! It’s insane, but it follows the law of income. He’s paid based on the value he’s delivering to the marketplace. People love it, they watch it, and he’s paid incredibly well for all those simple, silly videos.
Related: 34 Kid Friendly Business Ideas
What Should You Do About It?
Now that you understand the law of income, what should you do about it?
Think about what you’re currently doing and what you’re being paid.
- Are you impacting only a few people a day?
- Does your income reflect that?
- What could you do to scale up your efforts?
- How could you impact more people with your skills?
Second, take action.
Maybe you just need to try a little harder at the field you’re in. Perhaps the work you’re doing now is solid work, but you’re only supporting your boss. What if you thought bigger? What if you tackled bigger problems in the company? You’ll start getting noticed by more people, and higher-level people at that. If your work is sound, you’ll likely receive a pay increase or even a promotion!
Perhaps your efforts aren’t the problem. Maybe it’s your field. Maybe there’s just no way to impact more people. Then maybe it’s time to try something new. Maybe a new career? Or maybe just a side hustle to get you started! Here’s some links that might help.
- How to Make Money Blogging Immediately
- 35+ High Paying Jobs Without a Degree
- Jobs that Make the Most Money (both the typical AND the unusual)
- How to Find High Paying Side Hustles
- 50+ High Paying Side Hustles for Single Moms
Are You Applying the Law of Income?
Are you making a pittance for your yearly income? Or are you making more money than you ever dreamed of?
Whichever the case may be, I’m sure it follows the law of income.
- Positively impact the lives of many, and you will be paid well.
- Positively impact the lives of only a few, and you will be paid modestly at best.
That’s just the way it is. Like it or not.
Want to earn more? Then it’s time to ramp up your efforts! Impact more people! It really is as simple as that!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.