So why does it feel like you have so little control? How many people feel financially helpless? Like there is barely enough to make ends meet and never enough to prepare for the future?
78% of Americans were living paycheck to paycheck before the pandemic hit.¹ That means most of us weren’t in control of our finances. We were just riding the coattails of a fabulous economy.
So what does it take to achieve financial control?
Here are some basic ways to grab the reins of your personal finances!
You should know how much you make. But do you know how much you spend and on what? Discovering that your bank account is empty at the end of each month is one thing. But figuring out where your money is going—that’s something else entirely. This knowledge is what will help equip you to create a strategy and take control of your life.
Start by figuring out how much you spend in total and subtracting that number from how much you make. Then, break down your spending into categories like rent, gas, eating out, entertainment, streaming services, and anything else that takes a chunk out of your normal expenses. It might feel like homework, but hang in there.
Goals are the key to creating an effective financial strategy. You have to know what you’re building towards if you want to develop the best steps and strategies. It’s okay to think simple. Maybe you’re just trying to get out of debt. Perhaps you’re trying to save enough to start a business or buy a home. Or you might be a bit more ambitious and have an eye on a dream retirement that you want to start preparing for now.
Figure out what it is you want and how much it will cost. From there you can use your budget to start cutting back in categories where you spend too much. You might discover that you need to increase your income to accomplish your goals. Map out a few steps that will move you closer to making your dream a reality.
Once you’ve built a strategy based on your goals and budget-fueled insights, the only thing left is to follow through and take action. This isn’t a grandiose, one-time maneuver. This is about little decisions day in and day out that will help make your dreams a reality. That means making small moves like meal prepping at home instead of eating out, or avoiding clothing boutiques in favor of thrift shop finds. Those little acts of discipline are the building blocks of success. You might fall off the wagon every now and again, but that’s okay! Pick yourself up and keep pushing forward.
It’s important to have each of these three components operating together at once. Knowing your financial situation and not doing anything about it may not do anything but cause anxiety. Cutting your spending without an overall vision can lead to pointless frugality and meaningless deprivation. And a goal without insight or action? That’s called a fantasy. Let’s talk about how we can implement all three of these elements into a financial strategy today!
¹ “78% Of Workers Live Paycheck To Paycheck,” Zack Friedman, Forbes, Jan 11, 2019, https://www.forbes.com/sites/zackfriedman/2019/01/11/live-paycheck-to-paycheck-government-shutdown/#3305f4cb4f10
Benjamin is a 73 year old author. He lives in a small apartment in a mid-sized city that he leases for free from an old business connection.
Benjamin wakes up every day at 6am, stretches, makes instant coffee on his stove, and then starts typing. At this point, he’s not interested in writing the next great American novel—he wrote four of those in his early 50s. He splits the sizable royalties, which continue rolling in each month, between his spartan lifestyle and funding his top ten favorite charities.
His daughter is financially successful, so he has no dependents. He hasn’t received bills in the mail since 2010. His greatest expense is splurging on the senior special at the diner up the street, which is owned by one of his biggest fans. And all that means is that his meal is usually on the house.
His life consists of his morning stretching routine, instant coffee, feeding the pigeons on the fire escape, and writing short stories for his two grandkids. And he goes to bed every night with a big smile on his face.
Benjamin is unusual—he doesn’t need life insurance.
But if you’re in a period of life in which you carry significant financial responsibilities for the people you love, you’re not like Benjamin. You most likely DO need life insurance. And even if you already have a policy in place, there’s a good chance you don’t have enough coverage. LIMRA reported in 2021 that there are over 102 million people in America who are uninsured or underinsured—that’s almost one in three people!1
And with skyrocketing costs of living and an ever-changing economy, you likely need a review ASAP.
So if your responsibilities involve more than sharpening pencils and making sure your plants are watered, schedule a checkup with your licensed and qualified financial professional. It’s Life Insurance Awareness Month, so now is the perfect time to fine-tune your financial protection.
¹ LIMRA, Sep 2021, “Facts About Life 2021, Facts from Life Insurance Awareness Month, Help Protect Our Families”
Have you fallen into a rut of living the same day over and over again, rehashing the same information and thinking the same thoughts? Maybe you’re bored and looking for adventure or intellectual stimulation. It turns out that there are actually a few things you can do to consistently push your mental capacities and become a lifelong learner!
Good writing is magical. It can transport us to distant lands and introduce us to incredible worlds and characters. But reading can also transform our minds, especially when we encounter new and challenging ideas. We’re able to overcome the limitations of our own imaginations and experiences and see the world through someone else’s eyes.
Surveys have shown that almost all successful people, regardless of their backgrounds, read extensively.¹ And it’s no wonder; the ability to assume appreciate perspective is incredibly powerful. But what should you be reading?
Not all reading is created equal. Romance novels about vampires and werewolves might count as brain “junk food”. It also might be best to avoid a 19th-century philosophical treatise right out of the gate!
Instead, explore entry-level books about topics you don’t know a lot about. Dip your toe into new subjects and see if they spark your interest! You can always move to more advanced work on the subject from there. On the other hand, you can find new opinions and perspectives on topics that you’ve already mastered. How is your field changing or evolving?
Conversation is another great way to encounter new ideas. Chances are that you’re surrounded by vast amounts of knowledge sitting untapped inside your friends and family. You just need to know how to extract it! The keys are to listen seriously and ask real questions based on what you’ve heard. Most of us are more consumed with what we’re going to say next than with what the other person is saying. Honing in on what you’re hearing and trying to develop questions as you listen helps you understand what they’re saying and fuels your curiosity. It’s a virtuous cycle where everyone benefits!
But the key to both of these lifelong learning strategies is to focus intensely. That means when you’re reading or taking a class, turn off your phone and absorb what’s right before you. Engage in conversation intentionally, asking real questions based on what the other person is saying. You might be surprised how tricky both of those things can be at first! But stick with it. Those learning muscles will grow stronger and stronger until you’re brimming with information!
One final tip: always ask why. Don’t just ponder something to yourself. Ask someone who might possibly have an answer! And don’t be vague. Be as precise and specific as possible when you ask your question. The best thing about learning is that you can potentially keep learning forever! Learn to love the process of learning, and you might be amazed by how far your brain power can go.
¹ “A self-made millionaire who studied 1,200 wealthy people found they all have one — free — pastime in common,” Kathleen Elkins, Insider, Aug 21, 2015, https://www.businessinsider.com/rich-people-like-to-read-2015-8
Have you considered the role your surroundings play in your everyday life? It turns out that one of the easiest ways to bring about change in our lives is actually to change our environments. What if the layout of your bedroom or the distance from your desk to the kitchen was impacting your productivity and decision making? There’s plenty of room for each of us to improve. Here’s how and why making some changes to your environment works.
Making decisions is draining. (Heard of “decision fatigue”? It’s real!) We can only make so many choices per day before we start to run out of steam and need a rest. But we’re faced with countless choices every time we wake up! Should I go back to sleep? Should I shower or brush my teeth first? What will I wear to work? Should I try out that new shortcut to the office? It can become stressful for your brain to struggle with a choice every time one of these little prompts presents itself. That’s why we rely on decision shortcuts called habits.
A habit is just a routine that you regularly perform. Most of the time we don’t even notice that we’re engaging in a habit because it’s second nature to us. And there’s a reason for that. It’s your brain saving energy by going on autopilot to perform an action without having to make a decision. That way you can use the bulk of your mental power on unique and important problems that might pop up during the day, not on thinking about when you should brush your teeth!
What does your brain’s love of shortcuts have to do with your environment? Let’s look at an example.
Your alarm clock is right next to your bed. It goes off every morning at 7:30am. It doesn’t take you long to figure out that you can smack the snooze button and go straight back to sleep with hardly any effort. Before long you’re hitting the snooze button every time the alarm goes off without even thinking about it. You’ve trained yourself to sleep in later by making your alarm easier to turn off. But what if your alarm was on the other side of your room? What if to silence it you had to stand up, walk over, and hit a button? That simple change could give you the jolt that you need to wake up and get your day started on time!
Take a look at your surroundings and ask yourself what kind of behavior it encourages. Is it more convenient for you to grab a soda from the fridge or fill up your water bottle? When you work at home, are you in the middle of distractions like the kids playing or too close to the TV? At work, does your office layout lend itself to productivity or socializing with your co-workers?
It might take some legwork to get started, but try to arrange your life in a way that makes wise decisions easier. You might be surprised by the results!
We live in a world of dollars and cents, ones and zeros, and cold, hard facts. Dreams and hopes are great, but results will always be our number one priority.
But what if your imagination mattered?
What if your mind’s eye actually held the key to success? There’s strong evidence that actually visualizing certain outcomes can reduce stress and empower you to achieve your goals and dreams. It might sound like voodoo, but it’s actually not! Here’s how it works.
Your brain is connected to your body. Your brain registers things that happen to your arms and legs and ears and lets you know if they’re good or bad. A soft blanket? Good! Stubbing your toe? Bad!
But the connection between your brain and body goes both ways. Imagining an action in your mind can actually improve your performance in real life. There’s plenty of anecdotal evidence for this; legends like Arnold Schwarzenegger and Muhammad Ali.¹ ² But there’s also research to back it up. People who imagined exercising certain muscles gained almost as much strength as people who physically exercised!³
Visualization can also reduce stress. Studies have found that novice surgeons and police officers who receive imagery training feel less stress and have less objective stress.⁴
Imagining yourself on a generic island paradise in 15 years is just daydreaming. The key to effective visualization is specificity. Be as precise as possible. Break down how you’ll achieve your goal or throw that game-winning pass into as many tiny movements as possible, and imagine how you’ll execute each one. Incorporate your senses; what will you smell and hear when you finally achieve that goal?
Verbal affirmations can also help with this visualization process. Take a page from Muhammad Ali, and tell yourself that you’re the greatest every morning before you get breakfast! Even better, say your goal out loud before you go to bed or eat lunch. Writing up a mission statement that you read daily or making a vision board of images that inspire you are also ways to boost your visualization!
Just remember that one of the key strengths of visualization is that you can do it anywhere. Develop your goals, make them as specific as possible, and then start imagining!
¹ “The Power Of Visualization And How To Use It,” Lidija Globokar, Forbes, Mar 5, 2020, https://www.forbes.com/sites/lidijaglobokar/2020/03/05/the-power-of-visualization-and-how-to-use-it/
² “Seeing Is Believing: The Power of Visualization,” A.J. Adams MAPP, Psychology Today, Dec 3, 2009, https://www.psychologytoday.com/us/blog/flourish/200912/seeing-is-believing-the-power-visualization
³ “Seeing Is Believing: The Power of Visualization,” Adams MAPP, Psychology Today
⁴ “The Power Of Visualization And How To Use It,” Globokar, Forbes,
Sure, it’s a source of value and a medium of exchange. But above all, it’s a symbol.
What is a symbol? It’s a visible representation of something that’s invisible.
Think about it—can you see success? Not really. It’s an abstract idea. So money is largely how people evaluate if they’re succeeding or failing.
What do you see when you imagine a successful person? Expensive cars, big houses, fancy clothes, and lots of zeros in a bank account.
Those are the symbols of success. And make no mistake—money is the central symbol of success.
How do you feel when your bank account looks full? You probably feel awesome! You get a quick rush, and your steps are just a touch lighter.
But what about when you’re in debt or when you can’t make ends meet? Maybe you feel not so great. You might become stressed and anxious, and feel like you’re not good enough.
That’s because money is a visible representation of your success or failure. It’s a way to keep score.
You see that loaded bank account, and you think “Everything looks good! I’ve really got my act together.”
You see an empty bank account, and you think “What have I been doing? I’ve really messed up my finances.”
Here’s the sticking point—the symbolic nature of money is great for motivation. But it’s terrible for guiding decisions.
Why? Because chasing the symbol can easily lead you to making moves that give you the appearance of wealth without being wealthy. You start buying things far beyond your budget to represent wealth you don’t actually have. This is the fast-track to living paycheck-to-paycheck.
But as motivation? That’s where the power of the symbol lies. Think about that bump you get when you see your net worth climb. Use that feeling as fuel to keep pushing when you hit roadblocks and obstacles.
So what does money mean to you? Is it a scorecard? A way to motivate yourself? Or something else entirely?
How you answer those questions will determine whether money is a powerful tool or a dangerous weapon in your life.
It’s a precarious position—few things are more dangerous than being overconfident AND wrong. It’s a direct path to acting rashly and making big mistakes.
And when it comes to money, those mistakes can be costly.
This isn’t speculation—it’s a scientifically studied phenomenon called the Dunning-Kruger effect. Put simply, it’s the tendency for unskilled people to grossly overestimate their own competence. The lower the skill level, the more likely they are to overestimate themselves.
And that plays out in personal finance time and time again.
Think about that family member with yet another hair-brained business idea. Or the NFT-slinging college student who’s certain that one of the .JPGs on his computer will be worth millions someday.
It’s the same pattern—you learn a factoid about money. “Compound Interest makes your money grow.” “Real estate can be lucrative.” “You need to start saving ASAP.”
You take that information and, instead of using it as a foundation to do more research, you use it as ammunition. Now you’re an expert! And experts don’t need to read or learn—they already know everything.
From there, it’s a slippery slope into dangerous territory.
Next thing you know, you’re swept up in businesses you don’t understand, or handing your money to “gurus” who promise get-rich-quick schemes.
It’s not always so dramatic, of course. Overestimating your financial literacy can manifest in more subtle ways—like not bothering to comparison shop for a mortgage because you’re confident you already know all there is to know about home loans.
But the end result is always the same—you make mistakes, and those mistakes cost you money.
So, how can you avoid falling into the trap of overconfidence?
The first step is to acknowledge that it’s a trap. Be aware of the Dunning-Kruger effect and its impact on your personal finances.
The second step is to commit to lifelong learning. Read books and articles, listen to podcasts, meet with a professional—whatever it takes to continuously expand your knowledge.
And finally, be humble. Recognize that there’s always more to learn, even if you’re already pretty savvy when it comes to money.
If you can do those things, you’ll be on your way to financial success. And that’s something you can feel confident about.
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!
It makes sense. Life is hectic. Schedules are full. Sometimes, you feel like you hardly have a second to brush your teeth, much less have time to sit down and enjoy a heart-to-heart conversation with a friend. And so important decisions get pushed further and further into the future.
That’s fine in some cases. Do you need to decide how to organize your garage right now, at this very moment? No, probably not.
But with something like your finances, procrastination can cause disaster. Why? Because time is the secret ingredient for building wealth. The sooner you start saving, the greater your money’s growth potential. Likewise, the sooner you get your debt under control, the more manageable it becomes.
And with your money, the stakes couldn’t be higher. After all, it’s your future prosperity and well-being that could be at risk. Procrastination is downright dangerous.
That urgency, however, doesn’t make it easier to start saving. In fact, you may have noticed that finances suffer more from procrastination than anything else.
There’s a very good reason for that. Procrastination is driven, above all else, by perfectionism. Failing feels awful, especially when you know the stakes are high. Your brain sees the discomfort of trying to master your finances and failing, and decides that it would feel safer to not try at all.
It’s a critical miscalculation. Making an attempt to master your finances can at least help move you closer to your goals. Procrastinating never does.
Think of it like this—50% success is better than 0% success.
The key to beating procrastinating, then, is to conquer the perfectionist mindset and fear of failure. It’s no small feat. Those habits of mind are often deeply ingrained. They won’t vanish overnight. But there are some simple steps you can take, like…
Break big goals down into small steps. This relieves the overwhelm that many feel when facing important tasks. As you knock out those small steps, you’ll feel empowered to keep moving forward.
Don’t go it alone. Procrastination thrives in isolation. Seek out a friend, loved one, or co-worker to help hold you accountable and share the load—even if it’s just a weekly check-in to see how each other are doing.
Work in short, uninterrupted bursts. Set a timer. Put down the phone. Work. After about 15 minutes, you’ll notice something strange happening. Time starts to either speed up or slow down. Distracting thoughts vanish. The lines between you, your focus, and the task at hand start to evaporate. You feel awesome. This is called a flow state, and it’s the key to productivity. Make it your friend, and you’ll probably notice that procrastination becomes rarer and rarer.
Now that you know the cause of procrastination, try these tips for yourself. Set a 30 minute timer. Then, break your finances into tiny action steps like checking your bank account, automating saving, and budgeting. Work on each item in a quick burst until you’ve made some progress. Then, talk to a friend about your results!
Just like that, you’ve made serious headway towards beating procrastination and building wealth. Look at you go!
It’s more important than a business plan (though you need a business plan).
It’s more important than mentorship (though you DEFINITELY need mentorship).
It’s more critical to success than killer products, funding, or even skill.
All of those things are important pieces of the puzzle—but without a problem to solve, none of them matter.
Why? Because if there is no demand for your product or service, you’re guaranteed to fail.
In order to have demand, someone has to have a need that’s not being met. That’s why you need a problem.
Even the most outlandish luxury items solve problems—they make customers feel a certain way about themselves. They make people laugh, or feel successful, or feel wanted. And for many, they’ll pay a premium to achieve that.
Some businesses solve problems that people don’t even know they have. Did anyone before July 1994 think that going to a bookstore was a massive hassle? No! Well, except one person—Jeff Bezos. But it turns out his hunch was right. He solved a problem that no one was aware of, and has profited handsomely for it!
It doesn’t matter if you’re starting a side hustle on the weekends or launching a million dollar startup. You must solve a problem. And the more demand your solution creates, the higher likelihood of success you’ll have.
So what should an entrepreneur do first? Find a problem! Ask yourself—or better yet, ask people around you—what kind of problems they have. What kind of pain in their lives do they wish would just go away? Is there a way to solve that problem with your skills and talents?
If so, congratulations—you’ve found a viable business opportunity.
It’s a concept pioneered by Robert Kiyosaki of Rich Dad Poor Dad fame. And it’s one of the best explanations of creating income around.
Here’s what it looks like…
Employee | Entrepreneur
Freelancer | Investor
The employee and freelancer trade their time for money.
The entrepreneur and investor create or purchase income generating assets.
Think about what an employee does. They show up, punch in, and work for a set number of hours. In exchange, they either get paid by the hour or a set annual salary.
If they’re extra conscientious and prove their worth to their employer, they may get a raise or bonus as a reward. But their income is entirely dependent on the good graces and success of their boss. They never directly enjoy the fruits of their labor.
The same is true for the freelancer. Sure, they may enjoy greater independence than an employee, but they’re still trading their time for money. Think of them as a mercenary rather than a soldier.
Compare that with the entrepreneur. The difference is that the entrepreneur creates a system for delivering a service that’s duplicatable.
Let’s say you start a lemonade stand. You put up a few bucks to buy some lemons, sugar, cups, a cooler, and stand. It’s a risk—there’s no guarantee you’ll have any customers.
Fortunately, it’s a hit—the neighbors line up to enjoy your refreshing beverage!
After a few days, you’re swimming in cash. In fact, you earn enough to open another lemonade stand. So you buy the same supplies, and hire a friend to run the new location. Just like that, you’ve scaled your lemonade business.
Eventually, you have so many lemonade stands that you don’t have to manage one yourself. Instead, through initiative and upfront commitment, you’ve created an income stream. That’s how entrepreneurship works.
But now suppose that a friend comes along. She’s been eyeing your success and wants in. She’ll put up the cash to open another ten lemonade stands across the neighborhood (it’s a BIG neighborhood).
In exchange, she gets a slice of the profits from all the stands. She takes on some risk by giving you money in exchange for some income. In other words, she’s an investor. She’s using her money to earn more money.
There are two critical points to notice about the entrepreneur and the investor.
1. They take risks. Being an employee is relatively predictable—if your employer continues to do well, you’ll give X amount of time, and you’ll get X amount of money. But starting a business is a risk. Giving money to an entrepreneur is a risk. Entrepreneurs and investors commit resources to projects with no guarantee of success.
2. They have far greater potential. There are only so many hours you can trade for money. When successful, entrepreneurs and investors have far more resources at their disposal to trade for money.
Simply put, entrepreneurs and investors face greater risks, and greater potential rewards.
Which quadrant generates most of your income? Is there a quadrant you would like to explore further?
But you look around and your heart sinks. You haven’t moved an inch! You’re exactly where you started.
That’s what happens to Alice in Through the Looking-Glass. The Red Queen, who’s dragging Alice by the hand, delivers this infamous line: “Now, here, you see, it takes all the running you can do, to keep in the same place.”
Sound familiar? That’s because there is an effect called The Red Queen Problem. And it can mean the difference between success and failure for your business.
The Red Queen Problem originated in evolutionary biology. It’s the hypothesis that evolution in one species pressures other species to evolve.
Think about a peaceful savannah. All the creatures are in equilibrium—half the time the cheetahs catch the gazelles, half the time the gazelle escapes.
But imagine that one day, a cheetah shows up that’s built a little differently—she can outrun every gazelle on the plain. So can her kids, and her grandkids, and her nieces and nephews.
Suddenly, there’s dramatic pressure on the gazelles. The theory is that they have to literally pick up the pace or face extinction. If the fastest gazelles survive, they’ll have fast children, and balance will be restored.
But now an arms race has begun. All the other predators—and their prey—face the exact same pressure to speed up or die.
The same is true in business.
There’s a constant evolutionary arms race of reinvention. One business develops a groundbreaking process or product, and all their competitors must adapt or face extinction.
In short, stagnation is destruction. Innovation is keeping up. Your growth and evolution is likely the result of growth and evolution among your competitors. As the Red Queen said, “it takes all the running you can do, to keep in the same place.”
But make no mistake—the sooner you reinvent, the greater the rewards. That faster cheetah on the plain? She instantly shoots up the food chain, securing her species’ place.
Again, the same is true in business. The first businesses to mass produce personal computers, or create cloud software, or redefine socialization have had massive advantages.
The goal is to be the one in the lead, the one who dictates how others adapt.
So are you leading? Or are you adapting?
There’s nothing else like it to seize your attention. It’s hard to look away from a trainwreck. It’s even harder when you’re the one driving the train.
Failure leaves you reeling. It forces you to ask a critical question—”what went wrong?”
The answer can reveal some powerful truths.
It reveals truths about your process. Maybe your strategy for carrying out business is flawed and needs to be retooled.
It reveals truths about your assumptions. Flawed strategies stem from faulty assumptions. What are you assuming about people or the world that led to your failure?
It reveals truths about your character. Assumptions don’t appear from nowhere. They’re shaped by experiences and core beliefs about what’s right, wrong, and how the world works. Failure exposes those character forming beliefs like nothing else.
Simply put, failure cuts right to the core of who you are. And that can be a powerful and positive experience, if you’ll listen to it.
So get out there. Drop the ball. Spill some milk. Botch something.
And don’t be afraid to call it like it is—when it’s clear that you’re failing, acknowledge it and jump ship.
Then, ask yourself “what went wrong?” Be brutally honest. Take notes. Adjust as needed. And then get back out there.
You’ll find that you’re far stronger than you’ve been led to believe, and that you grow more resilient the more you attempt.
So here’s to failure. May you have enough that it paves the way to your greatest success.
But if working for yourself is so awesome, why do so few take the plunge?
The reason is simple—uncertainty.
It makes sense. School taught you how to scribble notes and pass tests, not start a business.
And that uncertainty creates anxiety.
Picture yourself as a business owner. What would it look like?
If you’re like many, you saw flashes of expensive cars, meetings, and… nothing. Entrepreneurship is such a foreign experience that you don’t even know how to process it.
And that leads to the ultimate uncertainty—what if you fail?
What will others think if your business goes under? How will you feel about yourself? Will you be able to pay the bills?
In short, entrepreneurship feels like a black box of something that’s best left alone.
Sound familiar? There are two antidotes to the uncertainty of entrepreneurship…
Embrace uncertainty. The next time you feel a twinge of fear, pause. What are you afraid of happening? What could go wrong? Maybe it’s something valid. Or likely, it’s something you can overcome. Train yourself to observe and question your fear. You’ll grow more and more confident taking calculated risks. You may even find yourself ready to start a part-time side hustle!
Find support. Facing uncertainty is far easier when you’re surrounded by support. Friends, family, and mentors can provide an emotional safety net should things go south. They can also offer wisdom and counsel that can mean the difference between success and failure.
Where do you stand on entrepreneurship? Do you want to start a business, but can’t see what it would look like?
If so, let’s chat. Consider me your sounding board for your anxieties about the transition from employee to entrepreneur. I can help you process your fears and flesh out a vision for your business.
You just need the practical know-how to overcome your fears and start the journey.
The goal of this article is to empower you to take bold action.
So turn off the YouTube self-improvement videos and fire up Google Docs. Here’s how to choose the right side gig for you.
Step 1: List your hobbies. Passions can make excellent side gigs. Why? Because they leverage skills you currently have, and are already commanding your attention and interest. Those are critical ingredients for success.
It doesn’t matter how niche or obscure your hobby might be. Write it down. In fact, the more oddball your interest, the more potential you may have to monetize it.
Step 2: Evaluate the market. Simply put, can your skills solve a problem for people? If so, then you have a potential client base at your fingertips.
Those problems may not seem obvious at first. But you may be surprised by what people will pay for your service or product.
Not knowing how to play an instrument is a huge roadblock for music lovers.
Lacking time to decorate, clean, and organize is a persistent dilemma for type A personalities.
Social Media illiteracy is a massive headache for older people starting small businesses.
All of those problems are opportunities to boost your income, if you have the skills to solve them. It just takes some time and creativity to identify problems.
Step 3: Size up the competition. But here’s the catch—there might be hundreds, or even thousands, of others seeking to solve the same problems as you. In fact, your competitors might already have a well-established grip on your target market.
However, if your skills or niche are highly specific, you could have a rare opportunity on your hands that no one is fulfilling, or that no one is fulfilling well. You could eventually scale your side gig income to replace your day job!
This leads to a critical principle for deciding which side gig is right for you…
Opportunity lies at the intersection of high demand and low supply.
The more people demand a service, and the fewer competitors already providing it, the greater your likelihood of success.
There’s just one factor left to consider…
Step 4: Weigh costs against rewards. Starting a business requires a combination of time, effort, and money. No exceptions. The question is whether—and when—the rewards will outweigh the costs.
Starting a car manufacturing business? Good luck—you’ll require a huge amount of capital, and won’t see profits for years.
Refurbing curbside furniture with tools and skills your grandpa left you? Hats off—your startup costs are almost zero, beyond some time and energy.
Which side gig fits these parameters for you? Whatever it is, let’s chat about it. We can discuss what it would look like for you to start pursuing it today!
What if you could get paid for doing something that you already enjoy doing? We’re all good at something. Many people have turned their hobbies into a side business as a way to earn extra money. For nearly everyone, there’s a topic they know well or a skill they have that many other people don’t have. That niche can spell opportunity – and a chance to turn something you enjoy doing anyway into a money-maker.
Depending on the type of hobby you want to monetize, your startup expenses may be quite low. For writing, coding, or graphic design, you might only need a laptop or tablet – something you may already have. If your hobby is fixing up old cars, however, you might need a place to do the work – possibly adding to the expense. For that scenario, you could check out the possibility of putting in a couple of Saturdays per month at a local shop to help save on rent and insurance costs.
With a little ingenuity, you might be able to earn $10 to $40 (or maybe more) per hour doing work you enjoy. Artists can earn extra money by selling arts and crafts items through virtual stores on specialized websites. Freelance writers, coders, designers, and even teachers can find work as well on similar type websites that bring clients and service providers together. If you have a knack for knowing what’s valuable, you may be able to turn garage sale and estate sale buys into a rewarding online business on any popular consumer-to-consumer and/or business-to-consumer sales website. (Hint: If this is something you’d like to try, start out small. Concentrate on one type of item that might be near and dear to you, like brass musical instruments, or antique mason jars.)
The old saying that asserts “knowledge is power” applies here as well. Let’s say your childhood fascination with dinosaurs never quite went extinct. Maybe there’s a successful educational blog or a YouTube channel in your future. Technology has given us the power to reach a larger audience than ever before and to bring our knowledge to anyone who wants to learn more. Sharing what you know can be monetized in many ways and – if you love doing it – you might not feel like you’re working at all!
Do your research and understand any legal or insurance requirements that may apply to the area you want to get into, but don’t let a little legwork bar the way to your next great endeavor – even if it just starts as a side gig.
If you envision a future of prosperity and abundance, congratulations! You’ve already taken your first step towards success.
But if you’re indifferent about what your future will look like, beware. You may be opening the door to subtle self-defeatism and disappointment.
This isn’t mysticism or pseudo-science. It’s (not so) common sense.
A vision for the future enables action. With an end destination, you can map out a course of action that will move you towards your goals. Furthermore, your vision can inspire you to keep pushing when you face obstacles or fears.
Think of your vision as both your compass and food supply for the adventure of a lifetime.
Without a vision, you’re a nomad wandering in an endless wilderness. No direction. No supplies. Just one fight-or-flight reaction after the other.
Soon, self-limiting and self-defeating beliefs crop up.
“This will never end.”
“This is pointless.”
“I can’t do this.”
You look into the future and see nothing but hardship, and so nothing but hardship comes your way.
Make no mistake—what you see is what you will get. If you don’t have a written vision statement, get out a pen and paper and write one out. I’ll wait!
Drawing a blank? You’ve come to the right place. In the next few days, I’ll be sharing a simple process for creating a vision statement. It may be the inspiration you need to build a better future for yourself and your family.
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