It’s official—Americans aren’t going back to work.
Even though there were 10 million job openings in June of 2021.¹
If you’ve been out and about, you’ve seen firsthand that jobs aren’t getting filled.
You may have noticed the signs at your local grocery store. Or the longer wait at your favorite restaurant. Or slower service from businesses you depend on.
They all stem from the same source. Americans aren’t rushing back to work.
But why? The COVID-19 pandemic caused mass unemployment and havoc for millions of American families. Wouldn’t they want to start earning money again, ASAP?
It’s not the unemployment benefits holding them back. Those dried up months ago, and the numbers still haven’t budged.
And again, it’s not that there aren’t jobs. There are millions of opportunities out there!
Here’s an idea—many people have woken up to the fact that most jobs suck.
Most jobs leave you completely at the mercy of your boss. If they mismanage the business, your job’s in danger. If you want a bigger bonus, your job’s in danger. If another pandemic breaks out, your job’s in danger.
They give you no control over your hours, your income, your location, or your future.
Who would want to go back to that?
Instead, Americans are looking for a better opportunity. They want control of their future, their wealth, and their hours. They want to replace the insecurity of a 9 to 5 with more reliable sources of income.
If they see an opportunity that checks those boxes, they’ll be willing to re-enter the workforce.
Americans are looking for a better path. The million dollar question is, who will provide it for them?
¹ “Many Americans aren’t going back to work, but it’s not for the reason you might expect,” Paul Brandus, MarketWatch Aug 14, 2021, https://www.marketwatch.com/story/many-americans-arent-going-back-to-work-but-its-not-for-the-reason-you-might-expect-11628772985
² “What states are ending federal unemployment benefits early? See who has cut the extra $300 a week,” Charisse Jones, USA Today, Jul 1, 2021, https://www.usatoday.com/story/money/2021/07/01/unemployment-benefits-covid-federal-aid-ending-early-many-states/7815341002/
It will test your talents, your mental toughness, and your ability to adapt. And those tests—if you pass them—can spark extraordinary growth.
Here are four ways entrepreneurship will change you.
You’ll develop self reliance. Entrepreneurs need to learn to solve their own problems, or fail. They don’t have a team to handle the daily grind of running a business.
Instead, new entrepreneurs handle everything from product development to accounting. It’s a stressful and high stakes juggling game.
But it can teach you a critical lesson: You’re far more resourceful than you thought. You’ll learn to stop waiting for help and start looking for solutions.
You’ll discover loyal friends. One of the downsides of entrepreneurship is that it may expose toxic people in your circle. They’re the ones who might…
As you and your business grow, you may need to limit your interactions with them. They might be too draining on your emotional resources to justify long-term relationships.
Rather, your circle should reflect values like positivity, encouragement, and inspiration. Those new friends will support you through the highs and lows of entrepreneurship.
You’ll learn how to manage stress. Late nights, hard deadlines, and high stakes are the realities for entrepreneurs.
To cope, you must build a toolkit of skills that can carry you through the hardest times. Otherwise, you may crack under the pressure and lose any progress you’ve made.
It comes down to one key question: Why do you want to be an entrepreneur?
Are you driven by insecurity? Or by vision?
If you’re trying to prove a point to yourself or others with your business, you may fall apart at the first hint of failure.
If you’re driven by vision, you’ll see failure as part of the process.
Examine your motivations. Over time, you’ll grow more aware of your insecurities. Talk about them with your friends, families, and mentors. As you bring them into the light, you may find they have less and less power.
Entrepreneurship can spark an explosion of professional personal growth. You’ll grow up. You may start with an employee mindset, but you’ll mature into a leader. That’s how entrepreneurship will change you.
P.S. If this seems daunting, start with a side hustle. It can ease you into the role of entrepreneurship without throwing you into the deep end too soon!
That’s because no single source of income or wealth is perfect. They’re all subject to ups and downs, highs and lows.
Think of it like going to the golf range and handing the caddie an armful of drivers. You’ll make powerful drives every time, but what happens when it’s time to putt? Even worse, how will you escape bunkers?
It’s a classic case of too much of a good thing. If you’re a serious player and plan to play for the long run, your golf bag needs a variety of clubs—a few different irons, wedges, and putters—to handle whatever challenges you’ll face during the game.
The same is true of building wealth.
It’s not a silver bullet. But diversification can offer a layer of protection against the ups and downs of the economy. It can also provide you with supplemental income during lean times.
So how can you start diversifying today? Here are two ideas…
Start a side hustle. This simple strategy can diversify your income sources. Regardless of what’s happening at your 9-to-5 job, you can count on your side hustle to help generate cash flow.
Meet with a financial professional. A licensed and qualified financial professional can help you implement diversification in your savings. This could make a huge difference in protecting your wealth from the ups and downs of a changing economy.
Contact me if you want to discover what this strategy would look like for you. We can review what you’ve saved thus far and check your opportunities for diversification.
“But what exactly is passive income?” they asked. A simple Google search revealed thousands of articles with a common theme—passive income is money you make while you sleep!
But is passive income really possible, or does it just live in the dreams of people looking for a way to make money without working?
To answer that question, let’s look at what passive income is (and isn’t). Then you can see if it will work for you!
Passive income, generally speaking, is a product or service that requires an upfront investment of time, effort, or wealth to create.
- Rental properties that require wealth to purchase, and are cared for by a property manager while creating rental income - Books, music, and courses that required time and creativity to create and now generate income without regular upkeep - Investing wealth in a business as a silent partner and taking a slice of their revenue
Can those income sources generate cash flow while you sleep? Of course! But notice that all of those opportunities require either work or resources that can only be acquired by work.
Does that mean you shouldn’t prioritize passive income sources? No! They can sometimes provide the financial stability you need.
Just don’t expect a passive income stream to effortlessly appear in your lap.
Remember, there is no such thing as free money. All wealth building opportunities require time, effort, and energy to reach their full potential.
If you want to learn more about creating passive income sources, contact me. We can review your talents, your situation, and your dreams to determine smart strategies for developing passive income.
But by definition, your job ceases to become your source of income once you retire.
Instead, you’ll need to tap into new forms of cash flow that, most likely, will need to be prepared beforehand.
Here are the most common sources of retirement income. Take note, because they could be critical to your retirement strategy.
Social Security. It’s simple—you pay into social security via your taxes, and you’re entitled to a monthly check from Uncle Sam once you retire. It’s no wonder why it’s the most commonly utilized source of retirement income.
Just know that social security alone may not afford you the retirement lifestyle you desire—the average monthly payment is only $1,543.¹ Fortunately, it’s far from your only option.
Retirement Saving Accounts. These types of accounts might be via your employer or you might have one independently. They are also popular options because they can benefit from the power of compound interest. The assumption is that when you retire, you’ll have grown enough wealth to live on for the rest of your life.
But they aren’t retirement silver bullets. They often are exposed to risk, meaning you can lose money as well as earn it. They also might be subject to different tax scenarios that aren’t necessarily favorable.
If you have a retirement savings account of any kind, meet with a licensed and qualified financial professional. They can evaluate how it fits into your overarching financial strategy.
Businesses and Real Estate. Although they are riskier and more complex, these assets can also be powerful retirement tools.
If you own a business or real estate, it’s possible that they can sustain the income generated by their revenue and rents, respectively, through retirement. Best of all, they may only require minimal upkeep on your part!
Again, starting a business and buying properties for income carry considerable risks. It’s wise to consult with a financial professional and find experienced mentorship before relying on them for retirement cash flow.
Part-time work. Like it or not, some people will have to find opportunities to sustain their lifestyle through retirement. It’s not an ideal solution, but it may be necessary, depending on your financial situation.
You may even discover that post-retirement work becomes an opportunity to pursue other hobbies, passions, or interests. Retirement can be about altering the way you live, not just having less to do.
You can’t prepare for retirement if you don’t know what to prepare for. And that means knowing and understanding your options for creating a sustainable retirement income. If unsure of how you’ll accomplish that feat, sit down with your financial professional. They can help you evaluate your position and create a realistic strategy that can truly prepare you for retirement.
This article is for informational purposes only and is not intended to promote any certain products, plans, or policies that may be available to you. Any examples used in this article are hypothetical. Before enacting a savings or retirement strategy, or purchasing a life insurance policy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.
¹ “How much Social Security will I get?” AARP, https://www.aarp.org/retirement/social-security/questions-answers/how-much-social-security-will-i-get.html
Well, maybe a brand new sports car or free ice cream for life. But even a state-of-the-art fully-decked-out sports car will eventually need routine maintenance, and the taste of mint chocolate chip can get old after a while.
The same kinds of things can happen when you start your own business. There are many details to consider and seemingly endless tasks to keep organized after the initial excitement of being your own boss and keeping your own hours has faded. Circumstances are bound to arise that no one ever prepared you for!
Although this list is not exhaustive, here are 5 things to get you started when creating a business of your own:
1. Startup cost
The startup cost of your business depends heavily on the type of business you want to have. To estimate the startup cost, make a list of anything and everything you’ll need to finance in the first 6 months. Then take each expense and ask:
Once you’ve determined the frequency and necessity of each cost for the first 6 months, add it all together. Then you’ll have a ballpark idea of what your startup costs might be.
(Hint: Don’t forget to add a line item for those unplanned, miscellaneous expenses!)
“Find a need, and fill it” is general advice for starting a successful business. But if the need is apparent, how many other businesses will be going after the same space to fill? And how do you create a business that can compete? After all, keeping your doors open and your business frequented is priority #1.
The simplest and most effective solution? Be great at what you do. Take the time to learn your business and the need you’re trying to fill – inside and out. Take a step back and think like a customer. Try to imagine how your competitors are failing at meeting customers’ needs. What can you do to solve those issues? Overcoming these hurdles can’t guarantee that your doors will stay open, but your knowledge, talent, and work ethic can set you apart from competitors from the start. This is what builds life-long relationships with customers – the kind of customers that will follow you wherever your business goes.
(Hint: The cost of your product or service should not be the main differentiator from your competition.)
3. Customer acquisition
The key to acquiring customers goes back to the need you’re trying to fill by running your business. If the demand for your product is high, customer acquisition may be easier. And there are always methods to bring in more. First and foremost, be aware of your brand and what your business offers. This will make identifying your target audience more accurate. Then market to them with a varied strategy on multiple fronts: content, email, and social media; search engine optimization; effective copywriting; and the use of analytics.
(Hint: The amount of money you spend on marketing – e.g., Google & Facebook ads – is not as important as who you are targeting.)
4. Building product inventory
This step points directly back to your startup cost. At the beginning, do as much research as you can, then stock your literal (or virtual) shelves with a bit of everything feasible you think your target audience may want or need. Track which products (or services) customers are gravitating towards – what items in your inventory disappear the most quickly? What services in your repertoire are the most requested? After a few weeks or months you’ll have real data to analyse. Then always keep the bestsellers on hand, followed closely by seasonal offerings. And don’t forget to consider making a couple of out-of-the-ordinary offerings available, just in case. Don’t underestimate the power of trying new things from time to time; you never know what could turn into a success!
(Hint: Try to let go of what your favorite items or services might be, if customers are not biting.)
5. Compliance with legal standards
Depending on what type of business you’re in, there may be standards and regulations that you must adhere to. For example, hiring employees falls under the jurisdiction of the Department of Labor and Federal Employment Laws. There are also State Labor Laws to consider.
(Hint: Be absolutely sure to do your research on the legal matters that can arise when beginning your own business. Not many judges are very accepting of “But, Your Honor, I didn’t know that was illegal!”)
Starting your own business is not an impossible task, especially when you’re prepared. And what makes preparing yourself even easier is becoming your own boss with an established company like WealthWave.
The need for financial professionals exists – everyone needs to know how money works, and many people need help in pursuing financial independence. WealthWave works with well-known and respected companies to provide a broad range of products for our customers. We take pride in equipping families with products that meet their financial needs.
Anytime you’re ready, I’d be happy to share my experience with you – as well as many other things to consider – when becoming an associate with WealthWave.
Excited? Afraid? Disappointed? Nothing?
Those feelings can reveal deeper truths about your relationship with money. And that relationship can influence your financial future.
That’s because, despite what people say, money is often wrapped up in feelings about…
That’s why people’s behavior with money is often not well-reasoned. Instead of making measured decisions based on the numbers, people find themselves on autopilot. In other words, they react instead of respond.
Let’s look at some examples…
Let’s say your relationship with money is primarily fear based. Maybe you saw your parents struggle with their finances, and you constantly worry about reliving their experience.
The autopilot response? Frugality and risk-aversion, even if you earn a comfortable wage.
There’s nothing wrong with either of those qualities in moderation. But taken too far, they may seriously damage your personal relationships and prevent you from taking advantage of financial opportunities.
Plus, the constant stress and fear of losing everything might impact your mental and physical health if not properly managed.
There’s also the opposite extreme. What if you use wealth to establish your social status?
You’ll be far more likely to buy things you don’t need to show off to your peers. You may even begin compulsively shopping to cope with stress.
In other words, you may be using money in unhealthy and damaging ways. And the stress and guilt that come from such behavior can seriously harm relationships and your ability to accomplish your goals.
So what’s the solution? What should your feelings toward wealth be?
The starting point must be that money is primarily a tool. It doesn’t define you. It isn’t evil. It’s simply a tool that empowers you to pursue things that you love.
Simply put, money isn’t an end unto itself. It’s a means to an end.
The question is, then what do you love? What do you want to do and see and pursue? And what role will money play in achieving those goals?
Once you reorder your relationship with wealth along those lines, a whole world of possibility may open up like…
But it all starts with understanding your current feelings towards money, and then deciding on what you want your future to look like.
If you need someone to process those feelings with, contact me! I’m here to offer you guidance and support on your journey towards financial stability.
There’s no way to guarantee that it’ll pay off because there are so many unknowns that go into starting a business. But one thing is for sure: If you’re the adventurous type and aren’t afraid to give it your all, you won’t be able to resist the urge to try!
So if you’re thinking about entrepreneurship, here are some factors to consider…
Do you have enough experience in your field?
It’s a fact—entrepreneurs with at least three years of experience in their industry are 85% more likely to succeed.¹ If you haven’t met that threshold, you might not be ready for entrepreneurship just yet! Are you equipped to handle the stress?
Entrepreneurship can be intense. You’re going to be the one who has to problem solve payroll, bookkeeping, marketing, sales, customer service…the list goes on and on.
If you aren’t ready for this kind of pressure, entrepreneurship might not be for you. It may be better to begin developing stress coping strategies now that could serve you well if you pursue entrepreneurship in the future.
Have you developed a professional and personal support network?
Starting your own business is tough. Having a support network can make it easier. Without a positive, supportive circle (in person and online), you run the risk of…
People you know who have already started businesses are great contacts for advice. And if they’re extremely successful, they may even be willing to mentor you as well.
It’s also critical to surround yourself with inspired individuals who can support you in your moments of self-doubt or when you’ve had a failure. These are the people that can help you keep going when things get tough!
Are your personal finances in order?
If you’re paying off massive amounts of debt, have no savings, and are living paycheck-to-paycheck (or worse…borrowing from friends or family), entrepreneurship would likely stress your finances even more. How would you pay your rent or put food on the table if your business underperformed? That’s why it’s best to discover how money works before—not after—you start your business.
This article isn’t meant to discourage you from going out on your own and forging your own business path—entrepreneurship is an incredible opportunity to chase your dreams and build wealth! Rather, it’s supposed to help you succeed. The sooner you start addressing the factors in this article, the sooner you can start building the business you’ve always wanted!
¹ “The Average Age Of A Successful Startup Founder Is 45,” Entrepreneur Middle East, George Hojeige, Feb 5, 2020, https://www.entrepreneur.com/article/345884
There’s a significant financial mistake people in their 20s and 30s make. It’s simple, but if you’re young, it could change your financial future…
Have you made this mistake? Think you know what it is?
Young people don’t save enough. Not by a long shot. On average, Millennials have only saved $23,000 for retirement.¹ And a recent survey revealed that 65% of 50 year olds felt the greatest financial mistake of their 20s and 30s was not saving.² It’s no wonder, then, that the same group feels they have under-saved and under-prepared for retirement.
So what can you do if you’re a young person seeking to build wealth? Here are three ideas…
Automate saving every month. The power of automation makes saving easy. Saving stops being a conscious decision with which you may or may not follow through. Instead, it’s a background process you can set and forget.
Meet with a financial professional. They’re the guides you need for navigating the world of budgeting, saving, and building wealth. They can help you identify the goals and strategies you need to inspire your savings.
Focus on your own financial growth. Comparing your lifestyle to your peers is tempting, especially when you’re young. But it can be dangerous, especially if it causes you to spend more than you earn. Just remember—you may not really know the financial situation of your friends as presented on social media. People tend to just show the good and not the bad. Orient yourself towards improving your own situation and building your future.
So don’t make the mistake that so many have made. Follow the tips in this article and start laying the foundation of your financial future.
¹ “Retirement Security Amid COVID-19: The Outlook of Three Generations 20th Annual Transamerica Retirement Survey of Workers,” Transamerica Center For Retirement Studies, May 2020, https://transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2020_sr_retirement_security_amid_covid-19.pdf
² “Money Mistakes: Exploring the financial situation of people over 50,” Caring Advisor, https://caringadvisor.com/money-mistakes/
There are a lot of reasons why. It takes planning and self-control. You’ll have to ask yourself if you can fit every purchase into your budget. It means giving up something today in order to benefit tomorrow.
These are all true, but saving doesn’t have to be hard work. One way to make it easier is to automate your savings and then watch your balance grow!
Automation is such a powerful tool because it makes saving effortless. With automation, saving is now a default, as opposed to a decision—you’re always saving in the background.
For example, you might have a goal to save $1,000 for a vacation. If you’re saving $20 per week, that would take less than a year. And the same logic applies to larger goals—it’s a key strategy for creating retirement wealth.
First, decide how much money you can afford to save each month. Then set up automatic deposits from your main bank account into your savings account. That’s it! Every month, money will go straight from your paycheck to your wealth building efforts.
Now, you’re positioned to go about your daily business, confident that you’re preparing for the future. And it only takes a few minutes to do! If you want to discover more wealth building strategies, contact me. We can review your financial situation and create a game plan.
Let’s find out!
A survey of the wealthy revealed that 76% engaged in aerobic exercises for 30 minutes per day, 4 days per week.¹ The same survey revealed that only 23% of the non-wealthy do the same.
So the question isn’t whether the wealthy work out. It’s whether exercise played a role in their journey to financial security.
The connection isn’t as clear as we may like. That’s because correlation doesn’t equal causation. Plenty of wealthy people also read a lot (see my other article on the connection between wealth and reading). But no one would claim that reading alone created their prosperity. The same could be argued for exercise—perhaps the wealthy only found the time to work out after they achieved financial independence!
There’s a host of research that demonstrates the power of exercise to…
In fact, exercise is as effective as antidepressants in some cases!³ That means exercise may help remove barriers that inhibit your ability to build your goals and achieve your dreams. It can also fuel the creativity you need to help solve problems and increase your potential market value. One study discovered that physical activity in men resulted in a 14-17% increase in income over a 15 year period.⁴
The takeaway? Imitate the wealthy and get some exercise! It’s a non-financial habit that may pave the way to better mental health and help position you to achieve greater things, wealth-related or not.
¹ “Why Is Aerobic Exercise Important to Building Wealth?” Thomas Corley, Rich Habits, Aug 25, 2020, https://richhabits.net/why-is-aerobic-exercise-so-important-to-building-wealth/ ² “The Mental Health Benefits of Exercise,” Lawrence Robinson, Jeanne Segal, Ph.D., and Melinda Smith, M.A., HelpGuide.org Oct 2020, https://www.helpguide.org/articles/healthy-living/the-mental-health-benefits-of-exercise.htm# ³ “Exercise is an all-natural treatment to fight depression,” Harvard Health Publishing, Feb 2, 2021, https://www.health.harvard.edu/mind-and-mood/exercise-is-an-all-natural-treatment-to-fight-depression ⁴ “8 Daily Rituals Most Millionaires Have In Common,” Lou Carlozo, Money Under 30, Nov 16, 2020 https://www.moneyunder30.com/millionaires-daily-rituals
Having one doesn’t mean you’ll necessarily have the other. But if you want to have both, there’s strong evidence that healthy relationships can be a key investment in your earning potential AND happiness.
A Harvard study followed 100 graduates through their adult lives. The results were profound—those with strong relationships earned far more than their peers.2 In fact, there was a deeper connection between love and income than intelligence and income.
The takeaway? One of the greatest investments you can make is in the people around you. Screening out negative influences and creating warm, loving relationships can profoundly transform your potential. Don’t ignore what matters most in the name of your career or success.
That’s easier said than done. Few are ever taught what it takes to build healthy relationships, how to identify negativity in friends, or what toxic people look like.
Everyone’s situation and knowledge level is different. But for most, it’s wise to seek out a mentor. Who is someone you know who’s built happy, prosperous relationships with their family and friends? Talk to that person! Study how they see the world, how they process information, and handle conflict. It might just change your perspective and the course of your life.
¹ “What is the secret to a long and happy life? Not money, but relationships,” Claire Badenhorst, Biznews, Jun 22, 2021, https://www.biznews.com/sponsored/2021/06/22/happy-life-relationships
That’s because passive income streams don’t require constant time and effort to maintain. Once they’re up and running, they require minimal maintenance to keep earning.
Let’s consider a hypothetical example…
Sarah and Jim are coworkers and friends. Jim is content to work from 9 to 5, five days a week, in exchange for his paycheck. He trades about half of his waking hours for his income.
Sarah, however, is more ambitious. She wants a more effective way to create additional cash flow.
So, she starts a business selling crafts online. At first, it’s a lot of extra work—she creates the products, makes the listings, runs ad campaigns, and even ships the items herself. But she’s creative and motivated, and her business grows.
It doesn’t take long before she earns enough from her business to hire an employee to help with the marketing and shipping. She can focus on what she loves—making the crafts!
But that extra pair of hands increases her productivity even further. Now, she can hire another employee to actually make her crafts.
Suddenly, Sarah is almost totally uninvolved in her business beyond high level decision making. In addition to her day job, it’s become a source of income that requires minimum upkeep. And she still has time every evening for her family and opening up new passive income streams!
The takeaway? The sooner you can create viable sources of passive income, the better! It comes down to matching your effort to your reward. It’s a chance to create impressive returns over the long-term for an upfront investment of time, money, and energy.
If you’re interested in opportunities to create additional income streams, contact me! We can discuss strategies that the wealthy leverage to create passive income.
One study revealed that 85% of self-made millionaires read 2 or more books per month.¹ That’s not a coincidence. Many of us have been told that reading improves our vocabulary and grammar skills, but there’s so much more to it than that! Reading can help develop traits that can provide an excellent foundation for a prosperous life and building wealth.
1. Reading expands your perspective. Think of it like a hack that grants you access to the wisdom of others. Instead of only drawing from your own experiences and resources, reading is an opportunity to discover fresh and challenging ideas. And the more connections you make between the ideas you read about, the more creative—and valuable—you become.
2. Reading can counteract negative emotions. Reading is good for your brain—it can reduce stress levels and prevent age-related cognitive decline.² But it goes deeper than that. It turns out that making new connections is good for your mental health. There’s evidence that reading can help combat struggles like depression.³
Why? It’s because reading can help people process difficult situations. Reading about other characters and different perspectives can help forge new mindsets and beliefs. And the more you process through difficulties, the better equipped you become to build a prosperous life.
3. Reading builds empathy. It’s no surprise that discovering other perspectives or exploring the inner lives of characters builds empathy.3 What might be surprising, however, are empathy’s benefits.
Not only does empathy lead to a richer emotional life, but it’s been shown to be critical for creating healthy—and productive—workplaces.⁴ Understanding the emotions and feelings of others makes you a more effective leader, coworker, and person.
Notice that none of these skills are directly financial—you won’t learn them in a finance or accounting course, and probably no one would pay you to read a book per month. But, as you can see, they can be critical for expanding your perspective and growing your career.
If you’re interested in reading more, start small and easy. Try reading for 15 to 30 minutes per day for a week on a topic that interests or excites you. Then slowly expand your reading time as you feel comfortable. At the end of the month, see how you feel! You might be surprised by how much your perspective has grown or shifted.
¹ “5 Common Traits of A Self-Made Millionaire,” Caden Strause, Medium, Oct 26, 2020, https://medium.com/frugal-friday/5-common-traits-of-a-self-made-millionaire-f6cf65c13c6c
² “5 ways reading benefits your health — and how to make reading a daily habit,” Lia Tabackman, Insider, Dec 1, 2020, https://www.insider.com/benefits-of-reading
³ “The Health Benefits of Books You Have to Read to Believe,” Madison Yauger, Shape, Oct 27, 2020, https://www.shape.com/lifestyle/mind-and-body/benefits-of-reading-books
⁴ “New Research Shows Why Business Leaders Struggle With Workplace Empathy,” Bryan Robinson, Forbes, May 17, 2021, https://www.forbes.com/sites/bryanrobinson/2021/05/17/new-research-shows-why-business-leaders-struggle-with-workplace-empathy/?sh=749a6d8684ad
You’ve come to the right place.
Over the next few weeks, this blog will explore the habits of the wealthy. You’ll discover why the wealthy incorporate certain activities and rituals into their daily routine and how you can implement them, starting TODAY.
You might be surprised by what you learn. That’s because almost none of these habits have anything directly to do with how you spend your money.
But they have everything to do with building character and improving lifestyle. That’s because the wealthy are often ordinary people who reached a critical realization early on—financial success is just one element of a rich life. The more growth you experience as an individual, the more empowered you can become to build wealth.
There are plenty of exceptions—you’ll find countless people who are both prosperous and non virtuous. This series isn’t about them, and it’s certainly not for those who want to pursue that path.
But if you’re curious to discover the habits of the wealthy, keep your eyes on this blog. You may learn something you can put into practice right now that might transform your future!
It might not feel like it, but getting paid hourly can limit your professional growth and your income potential. Here’s how…
If you’re earning an hourly wage, you’re quite literally getting paid for your time. That’s why it’s so common for shift jobs like security guards, restaurant workers, and retail employees to be paid by the hour. And it makes sense—they’re literally paid to be present (to get work done) at their place of employment for a limited number of hours each week.
But there are two ceilings you’ll hit with this system. First, you only have so many hours you can work. Let’s say you earn $15 an hour. If you could somehow work 24 hours a day, 7 days a week for a full year, the maximum you could earn is $131,040.
But if we’re realistic, earning $15 per hour, working 40 hours per week with no time off, would get you less than a fourth of that, roughly $31,200.
Is that $31,200 worth it to you? With an hourly system, that type of trade-off is unavoidable.
Second, hourly wages don’t encourage efficiency. The more hours you punch in, the more you get paid. If you’re working in a project or sales-oriented field, that means you’re incentivized to drag your feet. Even worse, you’re actually punished for increasing your speed and ability!
What if you got paid by the project or sale? Getting paid this way, once you’ve finished one project or made a sale, you could move on to the next. The faster you complete your work, the more money you can potentially earn. Your income scales as your ability improves!
Hourly wages are acceptable if you’re starting out. But there will come a point where you’ll need a better compensation structure to grow your income. Either seek salaried work, or consider starting a business that pays by the job or by retainer. You may be surprised by the difference it makes for your cash flow.
Parents, you may be better positioned to build a legacy for your children than you think. That’s because if you leverage basic financial concepts and strategies, you might be surprised by how attainable a sizable inheritance is! Here are four ways you can help your child build wealth.
Save a nest egg for your child’s retirement. Do you have a million dollars lying around to give to your child? Probably not. But you have something that’s even more valuable—time.
What if the moment your child was born you put $13,000 in an account earning 6.5% interest? By the time they turn 67—even if you don’t add anything else to that account—it would be worth $1,000,000. That cash could make all the difference for your child’s financial future. To make the most of this strategy, meet with a licensed and qualified financial professional before your child is born. They can help you make the preparations to put it into place.
Start saving for college. A college education is a huge expense, and it’s one that will only increase in cost. So what should you do to prepare for this future burden?
Start saving as soon as your child is born! The same principle applies—the sooner you start saving, the greater your potential for growth. Once again, collaborate with a financial professional before your child is born to maximize this strategy.
Adjust your emergency fund. Nothing can derail well-laid financial plans quite like an unforeseen emergency. And nobody seems to attract unforeseen emergencies quite like kids!
That’s why it’s important to create an emergency fund to cover 3-6 months of income. It’s a time-proven line of defense that can protect you from dipping into your savings or going into debt to cover home repairs or midnight ER visits!
Create a will. Finally, it’s important to consider estate planning. Why? Because it ensures that your wealth and assets are passed down to your children. It’s a final and meaningful way to provide for your family, even if you’re not with them physically. Proper planning can also help shield them from the complexity of estate taxes and the burden of the probate system.
Leaving a financial legacy is far more doable than you may have imagined, and the time to start preparing is NOW. Collaborate with a licensed and qualified financial professional as soon as possible. They’ll point you towards practical steps you can take to start building wealth for your children today.
The older Gen Zers have just come out of college, but this group’s imprint on society is already clear. You might be surprised by their attitude towards money and wealth! Let’s explore how these digital natives interact with money and why their financial habits might be influencing your business strategy.
Social media is an integral part of their world. They spend more time on their phones, tablets, and laptops than any other generation. The iPhone was old news by the time younger Gen Zers were born. This generation needs a whole new set of rules for how they shop and find financial advice.
For instance, Gen Zers are 72% more likely to buy from brands they follow on social media.¹ And there’s been an explosion of financial advice–not all of it good–on TikTok—#personalfinance has 3.5 billion views on the platform.² So if you’re interested in not just understanding Gen Zers, but also getting their attention, it pays to keep up with social media trends.
Gen Zers have yet to accrue massive debt. Gen Zers have thus far avoided the traps of credit card and student loan debt that have burdened every generation before. The numbers aren’t stellar–on average, Gen Zers have over $10,000 in non-mortgage debt–but that’s just a fraction of the debt carried by the typical Millennial or Gen Xer.
Of course, Gen Zers haven’t had as much time to accrue debt. It could well be that in 10 years they have just as many student loans and high credit card balances as older generations. But there is hope! Why?
Gen Zers are avid budgeters. 68% of Gen Zers use some form of budgeting system.³ Only 41% of the general population can say the same.⁴ That’s a massive improvement! If Gen Zers can use their budgets to avoid massive debt, they could find themselves well positioned financially.
In other words, Gen Z is hungry to learn how money really works. They’re already taking steps to avoid the missteps of past generations. The real question is who will teach them what it takes to become wealthy?
¹ “Generation Z Spending Habits for 2021,” Lexington Law, Feb 8, 2021, https://www.lexingtonlaw.com/blog/credit-cards/generation-z-spending-habits.html
² “Viral or vicious? Financial advice blows up on TikTok,” Nicole Casperson, InvestmentNews Feb 15, 2021, https://www.investmentnews.com/financial-advice-blows-up-on-tiktok-but-at-what-cost-202260#:~:text=That%27s%20what%20financial%20advice%20is,form%20of%2060%2Dsecond%20videos.
³ “Generation Z Spending Habits for 2021,” Lexington Law, Feb 8, 2021, https://www.lexingtonlaw.com/blog/credit-cards/generation-z-spending-habits.html
⁴ “What Is a Budget and Why Should I Use One?,” Tim Stobierski, acorns, Sep 6, 2019, https://www.acorns.com/money-basics/saving-and-budgeting/budget-meaning/#:~:text=While%20many%20factors%20likely%20contribute,budget%2C%20according%20to%20U.S.%20Bank.
Do you ever feel like no matter how much money you make, it never seems like enough? You’re not alone. A recent survey found that more than half of middle-income families didn’t have three months of expenses saved.¹ Debt and spending can be out of control for many reasons—the economy, our upbringing, or even because we’re hardwired to want more. This article explores three bad habits that may be hurting your financial situation. You might be surprised by what they are!
Treating credit cards like free money. When you’re tempted to buy something and don’t have the cash, it’s easy to just use credit. But instant gratification can have serious consequences. Little by little, you may find yourself racking up more and more debt. Paying your monthly credit card bill can start requiring all of your cash flow… and maybe more. Yikes.
The solution? Limit your credit card usage as much as possible. Make a habit of only using your credit card for certain low-dollar items, like gas. If you can’t buy your impulse purchase in cash, go home!
Trying to buy happiness. It’s tempting to think that you’re going to be happy if you buy one thing or another. But what happens when the newness wears off? Suddenly, you have a closet full of clothes and shoes that really aren’t making you any happier! The same is true of houses, cars, gadgets, anything you can think of. Buying things to keep up appearances or just because you think they’ll make you fulfilled is a recipe for overspending on things that, ultimately, don’t matter.
The key is to find happiness beyond your material possessions. That’s no small task, and there’s no set road map for it. But it’s absolutely critical to find a source of meaning that isn’t tied to stuff and things. You could be happier—and more financially stable—for it.
Ignoring your financial situation. Let’s face it—finances can be scary! Overwhelming debt, paying for college, and feeling out of your depth are uncomfortable emotions. And ignoring and denying uncomfortable feelings is often a first line of defense.
But it’s a dangerous game. Ignoring what the numbers tell you can lead you deeper and deeper into financial instability. You could be setting up a much harder path for yourself in the future than if you tackled your financial situation now.
Tackling your financial fears isn’t always easy. It might require serious soul searching. Just know these three things…
Acknowledging the problem is the first step. Once you can admit that your finances need help, you’re ready to start making positive changes.
Seeking help is always wise. Whether it’s a friend, spouse, qualified counselor, or financial professional, enlisting help can give you the courage you need to face your fears.
You can do this! It might not feel like it, but you have what it takes to confront this challenge… and win! Don’t lose hope, and start moving forward.
Managing your money wisely requires more than knowing different techniques and strategies. It takes maturity. The more you invest in making improvements to your life overall, the better emotionally equipped you’ll be to navigate the world of personal finances.
¹ “A year after COVID, personal finances are not so grim for millions of Americans,” Jessica Menton, USA TODAY, Apr 9, 2021, https://www.usatoday.com/in-depth/money/2021/04/09/irs-stimulus-check-2021-third-covid-payment-unemployment-benefits/7015277002/
You know, one where you felt as if all your energy was being drained from the moment you walked in until the moment they kicked you out. Maybe it was a bad boss, or just something about the industry or type of work.
This article will help you evaluate whether or not your current career path is worth pursuing by considering the opportunity cost of staying where you are versus leaving to pursue your dreams.
First off, what is opportunity cost? It’s an economic term which refers to the benefit that a person must give up in order to attain something else. Typically, it’s calculated in dollars. For instance, career A might pay you $50,000 while career B may pay only $30,000. The opportunity cost of choosing career B would be $20,000.
But here’s the catch—there are factors beyond pay that you must consider when choosing a career.
What if earning boatloads in your career requires dedicating all your waking hours to that endeavor? Are you sacrificing your joy, freedom, or even mental health just for a paycheck? The opportunity cost of your career and salary might be your joy, your freedom, your family, and your state of mind!
So when considering a job or a career, weigh ALL the costs. Will your career consume your time, distract you from your true passions, and impair your mental health, all in exchange for a fat paycheck? Or will it enrich your life, use your time wisely, and allow you to make enough money without sacrificing the joys of family and friends?