The naked truth is that most women need to create additional income streams to rebuild their wealth. The answer to financial freedom for life doesn’t lie in earning 8% or even 10% annually on a traditional retirement account unless that retirement account is into the millions; this varies, of course, depending on age and lifestyle.
Sure, it’s super important to understand any investment that you make, but what I am seeing from working with women who are struggling to put aside money to grow every month is that increasing income provides the means to accomplish wealth building.
Over the past year or two I’ve been working more with women to help them increase their income using their skills based on the knowledge I’ve gained from the two companies I run. I absolutely love this work and the clients I serve, so I want to expand my website to reflect this service more clearly. I asked my trusted SEO consultant for his expert advice.
He said that he can’t see any way that being an income or business strategist relates to index investing or working with a financial advisor, which was my original focus for financial woman. He advised me to focus more on one area, at least with my websites.
How do income expansion and investing smart NOT relate? The foundation of each is growing wealth and having financial freedom!
Focusing on small business income increases wealth, invites personal growth, creates tax benefits, and can be adapted to suit our life styles as we age. You’ve probably read this before at Financial Woman, as it’s my huge aha that can benefit everyone; I’ve seen this unfold in my own life.
To expand on this point, here’s information from a little handout I did for one of my private business strategy clients recently to help her focus on why she hired me.
Wealth Building Actions
- Increase Income
- Spend Less
- Get Higher Returns from Your Money
It seems crazily simple that it’s almost embarrassing to write, but we often lose sight of this money truth in the busyness of running a business, keeping a boss happy, or often times having exhaustion from losing sleep worrying about our money.
Of course we can break these three steps down and enhance them. I almost included “being strategic with taxes” in particular as a separate category, but it really falls under “Spend Less”. Paying less in taxes reduces spending, very simply. These three simple steps sum it up nicely.
Getting higher returns from investing automatically triggers “Oh my gosh, I need to invest better!” and I don’t know how. This is important, but what if one of your smartest investments is putting money into your company to expand your income?
A few years ago, a friend of mine said very frankly “I don’t know about stock investing, but I do know how to make money running and expanding my business”. Most of her investment capital was put into expansion and the company did very well. In fact, she sold the company for a nice sum. Was it a great investment, albeit not traditional? You bet!
Am I saying to forget about traditional investments? Absolutely not; having your eggs in different baskets lowers risk. But I am suggesting being strategic and smart about your money and owning that investment money put into increasing your income is indeed one of those baskets.
Look at the total picture of your skills and your wealth. Recognize and own your best personal assets, to make money no matter what the financial markets are doing.
Many women don’t even consider investing in a skill to increase their income as an investment. Interestingly, at the same time, many women spend vast sums for the very best and most expensive classes and activities for their children because an investment in themselves can feel greed or selfish.
So, take another look at the list of three wealth building actions. Next ask yourself, “What’s the quickest and easiest thing I can do right now to grow my wealth?” Maybe it’s investing your money more proactively for a higher return. Maybe it’s taking a look at your spending, which almost always results in positive changes with little effort, or maybe it’s getting those business cards printed, or taking that course so that you can increase your income.
Income strategies and investing smartly not related? Ha! They’re both about wealth creation so that you can have a life you enjoy, right? The two are beautifully intertwined.
And speaking of increasing income, on December 11, I’m hosting a free webinar sharing the top strategies to increase your income without spending a bundle doing it. Register here for the Increase Your Income Fast Webinar before it’s full.