WORK ON GROWING YOUR INCOME
The best gift you can give to yourself is to invest in yourself. Roy Bennett writes, “There is no more profitable investment than investing in yourself. It is the best investment you can make; you can never go wrong with it. It is the true way to improve yourself to be the best version of you and lets you be able to serve those around you.”
This is even truer, when it comes to investing. This is because personal income is one of the factors that greatly influence your investing capabilities.
As Jason Zweig put it, “The single biggest holding in your portfolio is you. Income that your career will generate over your life time.” In other words, your income will highly impact your ability to accumulate wealth.
For a person earning 1M per month, saving 10% or more may come easily for him since 10% of 1M is just 100K. He will still have 900K to spend. To travel the world, enjoy good food, good clothes and even drive a decent SUV.
On the other side, someone earning 10K will barely meet the daily basic needs for his family. Good food, nice clothes and even medical treatment will be needs that he cannot meet easily. Saving even 5% of his income will be hard. Even if he saved 100% of their income, they would still have 10K and not a penny more.
The average millionaire has about 8 sources of income. If you want to improve your chances of doing well financially, you have to work on growing your income. Otherwise, trying to accumulate wealth without high income will be very hard.
HOW DO YOU RAISE YOUR INCOME?
Income levels are highly correlated with the value you bring to the society. The people who add the most value are the people who the society can’t do without. These people are in high demand but low supply and are heavily rewarded for their value addition. People with higher levels of education, a unique set of skills, years of experience and who offer valuable services to the society lead in the income ladder.
To raise your income, you have to move up those ladders. You have to equip yourself with high paying skills and provide as much value as possible to the society so that you may be rewarded heavily.
Although some forces that lead to higher incomes are beyond our control, I believe there is something you can do to earn a few extra coins.
Even though the wealth gap- the gap between the ultra-rich and the poor in the society continues to widen, there is still a huge opportunity for a few people to scale the income heights.
Whenever I think about income creation, two ideas come to mind. Sahil Bloom writes, There’s no shortage of opportunities to make money- just a shortage of people willing to put in the work to capitalize on them.” Another anonymous one says, Your own limited resources will not make you wealthy in the end. You have to take advantage of the resources around you. If you are not leveraging on other people’s money, knowledge and experience, then you are working harder than you should to earn less than you deserve.” You are either earning a low income because of one of these major four factors; you haven’t mastered a high income skill, you don’t have money to expand your business, you don’t have the right networks to get you connected to the right opportunities that you are looking for, or you are not yet experienced in your field of expertise.
Capitalizing on one of these will boost your chances of earning a higher income.
HAVE A HIGH SAVING CULTURE
You have a huge chance of building wealth without a high income but you cannot build wealth without a high savings rate.
If you want to do well financially, you have to be very good in saving. More so if you are not a high income earner. Wealth is basically the accumulated savings that are left after you deduct your expenses.
One thing that we often forget is that it’s not how much you earn that matters. Rather it’s how much you keep.You must learn to pay yourself first. The secret to saving more is to cut on your unnecessary expenses.
BUY ASSETS
Robert Kiyosaki put it best,“the rich buy assets, the poor buy liabilities.” Kiyosaki refers to an asset as something that puts money into your pocket and a liability as something that takes money out of your pocket.
If you only use your money to buy liabilities- you have poor spending habits, then even after you increase your income, you will end up increasing your expenses hence not building wealth. This is why people who acquire instant wealth like inheritance or lottery wins end up bankrupt within a very short period of time.
The way to get richer and amass great wealth is by adding more assets into your assets column. This is how the rich keep on getting rich.
Compiled by
LUKAS ACTUARIAL & INSURANCE SOLUTIONS
VIEW PARK TOWERS
13TH FLOOR SUITE 6
Lets talk : 0710135824
Email Us : LETSBUYISURANCELIFE@GMAIL.COM
Our Official Website : https://lukasactuarialsolutions.co.ke/