If you made $100k but you spent $101k, you went backwards. No matter the income you must manage your expenses. If you don’t, then you will find yourself holding less than when you started out.
Do you feel that you’re not making any progress in your bank account? You need to look at your income and your expenditure. To put it simply – your offense, and your defense.
Financial defensive measures are things like savings and spending cuts. Set yourself a savings target. If you don’t have one, 10% is a good starting place. Not too painful, and not too ambitious.
10% should be manageable for anyone who has a steady income. In order to reach your savings target, you might find benefit in making your own set of budget cuts. We all know there are things in our lives that cost money while returning minimal, or even negative benefits. A lot of people today pay for vice and entertainment.
By forgoing such entertainment, it would be easy for them to save 10% of their income. How do I know this? Because for a long time, I earned a very low wage. During that time, my wife and I bought two houses.
So I know, prioritizing income is of huge importance.
Here are some ideas for lifestyle items you can cut from your budget to achieve some savings.
>Alcohol
>Gambling
>Subscription services (Netflix, Xbox Live, ect)
>Pay credit card debt before interest EVERY TIME
>Memberships you don’t use (quit gym & workout at home)
Once you’re on top of your defensive strategies, you will find that further savings are of no great benefit. Cutting $3 from your grocery bill, for example. Big deal. What are you gonna do then? You’re gonna need to get on the offensive. You need to raise your actual income.
When I wanted money to invest in physical precious metals, I went to mow people’s lawns after my day job. I worked very hard. Across a summer, I was able to buy an 1 ounce of gold and 200 ounces of silver. This is the power of increasing your income.
When I wanted money for other investments, I began flipping. I still have my day job, and I flip goods in my spare time. By targeting profitable goods, and knowing my market back-to-front, I make a decent side income.
In my spare time I wrote a book about my exploits in the world of flipping. I used free tools – Google docs and Gumroad – to create and sell my book. I used free time – my commute to and from the city for my day job.
These are just examples from my life.
Others I know have their own stories, and their own ways of increasing their income. There’s no reason for you to get stuck on your journey. Keep your eyes and mind open. Save what money you can, but focus on raising your income. Choose a field in which you can excel on your own merit – don’t wait for you boss’s permission. Get started today and Get Paid More.