Tuesday, October 24, 2017
Want to be richer in 2018? Get started now!
For some reason, the notion that making more money is a bad thing has become prevalent. Society seems to go in waves when it comes to its thoughts on wealth. The 50’s had a sort of middle-class vibe to it. The sixties brought in the capitalist pig mantra where unless you had dirt on your feet you weren’t hip. By the 80’s, the power suit along with the corporate account was the way to be. Fast forward to today and we are in a weird spot when it comes to our thoughts on wealth. All of us seem to want more money, yet we shun those that have it but idolize others who have it. We are really bi-polar when it comes to how we feel about money, well some of us. Not me, I know exactly what I want, more money! Here’s why: I can make my life immensely better if I had more money and that, in turn, would allow me to make the lives of those around me better. Without money, it’s tough to help yourself, let alone anyone else. I think it should be a goal of everyone’s to make more money but the question is: How do we do it? For the last ten weeks of the year, I want you all to find ways you can make more money. Sounds easy enough right? Wrong, it won’t be easy, but nothing worthwhile is! In this post, I will tell you 5 ways you can make more money in the New Year, that you can start now. These aren’t those get rich quick schemes; they are long-term ways to boost your pay for the rest of your life.
1) Read a Book
No actually read many books. In fact, read some books that a teacher forced you to read and then write reports on. Yes, I said it; you need to go to school! I need to go to school! We all need to go to school! There is no better way to advance your salary than becoming more educated. Now you might think you are too old for that. Or you may even be sick of school because you just finished university or college. I personally don’t care because one thing is for sure: The world is changing faster than it has ever done in the past. Things I learned in university less than 10 years ago are already outdated. I had a Motorola Razor flip phone in my senior year! In the world we live in, everyone is out for your spot. You have to get that position and then keep it. Constantly upgrading your skills is the best way to do it. Make it a goal to take one course every year until you retire. You can attend the local community college for one hour a week and you will be far better for it. Make lifelong learning your goal!
11 college courses you must take! – Fast Web
2) Ask for the raise
This one ties into the last one, and I have written on it before. If you can look yourself in the mirror and honestly say that you deserve more money, then you should ask for a raise. There are several reasons for this beyond just having more money. It is every business owner’s goal to be more profitable every year. Logically if they are running a solid business and making more money, that would be at least partly because their employees are helping them do so. You should be able to show your boss your accomplishments and ask/demand a raise annually. There are two outcomes in this situation. The best outcome is getting that raise, everyone’s a winner. The worse outcome is worse than the best, but still not as bad as you think. If you don’t get that raise it lets you know exactly what you are worth, in the eyes of the owner. If you are working hard for someone and they are unwilling/unable to give you a raise that means that you will probably never get one. In that situation, it is incumbent on you to seek other employment. You cannot, and I repeat cannot work for a place that does not give regular raises to deserved employees. Every year your purchasing power is being eroded by inflation. Your dollar in 2007, is now worth only 84 cents. You must have a job that keeps up with inflation and allows you to flourish, not flounder.
Owners give their best ways to ask them for a raise. – Forbes
3) Pick up part-time work or extra shifts
I meet many, many people who say they cannot save any money because they don’t have any money at the end of the month. Let’s just say you are right and by the end of the month you have exactly $0 in your account when all your bills are paid. You must take it upon yourself to pick up some part-time work then. You cannot, and I repeat cannot, be running a $0 balance every month. You definitely can’t be running a negative balance every month either. All the people I know that are doing well have several streams of income. This is for several reasons:
- No one job holds them captive
- Making extra money allows them to save some money every month
- It allows them to spend their time being productive, working, instead of being unproductive, spending money
Using the excuse that you don’t make enough money really should bother you. The answer is simple, make more money. Even something as simple as one extra shift a week can add up to $400-$800 a month. That can keep you out of debt, pay off existing debt, and help you save for the future. Don’t be afraid to work as much as possible. No one ever got rich off working 9-5. #truth
11 side hustles that can make you extra money – Budget Boss
4) Spend less money
They say a penny saved is a penny earned. I disagree! I think a penny saved is worth far more than a penny earned. The reason for this one is simple as well. Yes, by spending less money you will, in turn, have more money. Far more valuable is the ability and willingness to live with less. Being frugal is important. Being a minimalist is important. Being thrifty is also important. Being cheap however is annoying. I spoke yesterday how you could cut your spending over the next ten weeks leading up to 2018. What I mentioned was looking at your variable spending and finding things you can eliminate. Your ultimate goal for 2018 should be to cut spending in every facet of your life. Finds ways where you can save on the fixed expenses too. For instance, my rent is cheaper because I rent out my parking spot. Your hydro can be cheaper if you find ways to conserve energy or upgrade to energy efficient appliances and insulation. You can also cut the cable and tell Rogers/Bell to go kick rocks. If you are really so inclined, rent out a room to a friend. This will help you spend less money on housing. Making extra money coupled with spending less money will mean a huge difference in your cash flow for the year. Make it your goal to do that.
13 wastes of your money. – Budget Boss
5) Pay down debt and invest your money
We all know the interest rate on debt is brutal. Some Credit Cards charge upwards of 23% on your balances. Did you also know that money you save can make you more money? Most of us are aware of the stock market and investing our money. Do you know the real implications of missing out? Here is a quick example for you:
Let’s say you had a $50,000 loan and you are going to pay it off over ten years. This could be school, credit cards, lines of credit or even a car loan. Let’s also say you pay 5% interest on this loan over those 10 years. You would end up paying:
$530.33 monthly for a total of $63,639.31 ($13,639.31 interest paid)
Now if you happened to invest that same amount of money every month and gained the same amount of interest per month in an investment account you would have:
$530.33 invested monthly at 5% interest equals $82,299.61 ($18,699.61 interest earned)
(5% has been the average annual return of the Dow Jones Industrial since 2007, this includes the huge downturn in 2008)
So paying 13K+ in interest or making 18K+ in interest. So having 82K in your investment account or having nothing in your bank account. You have to be out of debt and investing your money. The numbers are glaring and straightforward. Oh, and by the way, 50K in Credit Card debt at 19% interest will cost you $112,003.41 over ten years with $62,003.41 in interest paid, paying $933.36 monthly. Puke!
Compound Interest Investment Calculator – Get Smarter About Money Canada
Compound Interest Loan Calculator – calculator.net
I have tracked my annual earnings going back 7 years. This wasn’t easy to keep track of as I was making a fluctuating income waiting tables. Despite this fact, I kept track of it and knew what I made where. You have to know what you make and what you spend. Knowing this will allow you to address the shortfalls and then in turn focus on making more money. We all should have the goal of being wealthier every year. Make as much money as you can, spend what you make wisely, and you will have a very good year indeed.
Thanks for reading my post today and don’t forget to tune in tomorrow as goal week rolls on at Budget Boss. Send me a message at joe@budgetboss.ca if you want help finding ways to make more money and spend less money. Have a great day!
“Finance is not merely about making money. It’s about achieving our deep goals and protecting the fruits of our labor. It’s about stewardship and, therefore, about achieving the good society.” – Robert J. Shiller
Email – joe@budgetboss.ca
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