Do you have that subtle but constant nagging fear that you won’t have enough money? Are you wondering how to build wealth? What is enough money, really? Our minds tend to harbor worst case scenarios based on our brains evolving from our cave days. This survival mentality does have some merits, though, as long as it doesn’t keep us stuck in scarcity. The survival related fear is not having food and shelter.
Let’s crush this fear right now so you can shift to a mindset of confidence and creativity. That’s where you’ll build wealth.
Here’s how to crush that sabotaging fear. Grab your money journal, which I know you have by now if you’re a regular Financial Woman reader.
The fear ends when you feel at peace with money. Get okay in your mind with money by doing this process that I call the Money Survival Equation.
Determine Minimal Lifestyle Expenses
Forget all your current monthly expenses and lifestyle obligations right now that feel burdensome.
Make a list of everything you would need to pay for to live a safe and secure lifestyle in a small home or apartment, food, and absolute mandatory expenses. Include health insurance, but not expensive supplements, for example. Include a standard model android, not an iPhone and iPad or two. Think fun road trip, not Europe.
You get the idea.
Total the amount.
Cover Minimal Expenses
Think of a skill set that you could outsource as a service or as a consultant. Examples are managing social media, business headshots, videography for weddings, catering, building websites, accounting, legal or consulting. The list is endless. (Want some help? Click here now to get my Free Income Ideas Evaluation)
Multiply the number of hours you could bill. About 10 to 40 hours a week, depending on other commitments, is usually doable. Multiply this by your potential hours. Deduct probable expenses, remembering that with many businesses, such as consulting, there are almost none.
Deduct your minimal lifestyle expenses from your potential income.
Note that you can almost certainly reduce your taxes if you’re tracking your business expenses and have a legitimate business. A legitimate business is one where you’re trying to make money. Are you following a plan to do that? If you’re not, then dump the business idea and move to the next idea. If you are, then deduct all legitimate business expenses before your income is calculated. I call this bringing your expenses above the tax line.
Back to your Money Survival Equation. Are you covered? Do you have enough money to live?
Yes? Nice. Doesn’t that feel great to know?
Now, do you desire more than just the minimal survival lifestyle? If the answer is yes, keep reading so you can get your equation number up.
The reality is that there are only two parts of the equation, income and expenses. That’s a pretty simple equation. It’s the same for everyone.
Think Expansion & Leverage
However, you can step into financial creativity to boost that equation. Begin by asking yourself how can you increase your income number.
Are you a therapist? Think group programs?
Are you a teacher? Think group tutoring for private school students.
Are you a doctor? Are there add on products you can sell, such as supplements?
Can you provide your services in a more affluent area?
Would a certification allow you to raise your fees?
Would an add on skill allow you to raise your fees?
Can you add an online element to your business; such as selling on Etsy or putting your service on outsource websites? This can allow you global expansion.
Other random ideas are to rent a room on Airbnb, pet sit and take in a roommate.
Shifting Your Thinking
By doing all of the above things, you are shifting your thinking from fear to financial creativity. Now, this will blow your mind:) What if you controlled your expenses? And what if your income exceeded your expenses because this expansion and leveraging income really works? (It does!) Then you’d have “extra” money to invest!
What if you increased your investing skills? What if you spent a few hours one month learning how to have more money? Having more money is a skill that can be learned, like other skills, but you have to spend the time learning.
What if you learned how to grow your money and you actually did it?
Think knowledge and action, to buy low and sell higher; not day trading, but longer term trends, such as buying when the stock market has dropped and stocks are cheap, or “on the clearance rack”. Or buying when every other house has a For Sale sign in the front yard. This works every few years with stocks, bonds, and real estate (including your home, with tax benefits). Buying cheap and selling high builds wealth over time.
Then, what if you learned to increase your investment income and you did it?
You can choose between dividends, interest, selling call options against stock holdings, and real estate rentals, depending on what works best at any given time.
This is financial creativity.
Decide to have money.
Drop your fears and change your life by learning how to accumulate and build wealth.
Create and live the life you want.
Click here now for my Free Investing Basics eBook to get moving!