If you’re thinking of investing now or in six months, you’re probably saving from your salary. However, how much are you really saving? Will you be able to live off your savings?
If are saving, do you know taxes and inflation could erode your savings? Only if you make your money work harder, can you have a hope of securing your financial freedom. This is because income from your job isn’t enough in the long-term. It could increase over time as you become more skilled. However, to keep earning, you have to keep working – meaning that your time is really not your own. It doesn’t matter how good and valued an employee you are or how much you have put in your skills – when you leave or get fired from your job, your salary will disappear.
You could have some control over your work, but the main decisions, (such as what time you want to wake up in the morning, where you would like to live, how you enjoy spending Friday afternoons…) are not yours to make. They are your employers decisions to make. In fact, your whole future could be in your employers hands. If you lost your job today, would your savings cover next month’s bond payment or the next 5 month’s payment?
You need to have an income that isn’t your salary
Don’t get me wrong, there’s absolutely nothing wrong with saving. It’s just that saving only stops you from getting poorer. The hard truth is that it’s hard for it to make you richer. This is because real wealth isn’t about income but assets. It’s about how you can live without depending on a salary. So, here are three steps you can take to cure yourself from what I call the “wage slave syndrome.”
1. Start a home businesses
Start by finding the best low cost – high profit home business. Once you it up, it should create a steady flow of income, but shouldn’t take up too much of your time. Then, start looking for other home based income opportunities.
2. Make sure you get the best income from the “high time demand”
Your business has to give you the highest returns. For example, I make about R6,000 a month from rentals. It’s a steady income and doesn’t need more than an hour of work a week. The income I make from freelancing is time consuming but significantly higher than that my rental income.
3. Make smart decisions with your money
Once your income starts flowing, you need to make smart decisions with your money. Try to avoid spending. You have to build a significant investment account that matches your level of risk and lifestyle. Yes, we all like the finer things in life, but you have to look at the end goal.
This is just a little note encourage you to take a serious look at your finances, your personal life and your working situation. If you need help with business ideas based on budget, free to contact me on firstname.lastname@example.org.