Through my experience and that of those I have studied, I have discovered that the key way to building wealth is finding ways to increase your income. Weather it is through our jobs or some other means most everyone has a regular monthly income. If careful planning is done that income covers a budget. It should cover your bills and other expenses. If you’re debt free, hopefully 10% of that income is going to a savings account. Though saving that 10% can add up and can help out it is not going to make you wealthy. You must find other means to increase your net worth.
What is meant by finding other means? Any amount of money that is earned through others means other than your regular income is extra. Grandma giving you birthday money, mowing lawns on the side, finding a dollar on the street, those are all extra income. Some of it is unexpected and a lot of it can be controlled and expected. Investing your money is probably the best and fastest way to become wealthy. You need your money to make money. Once that is possible then the road to being financially independent is almost at its end. Now most of us aren’t quite at the point that we can invest our money just yet. We might still have some debt that needs to be taken care of. Well extra income is a great way to get rid of those nasty credit card debts.
There are hundreds and thousands of ways to make extra money in today’s society. It is something I am trying to do right now as I type this article. I am trying to bring in some extra money doing some freelance writing, and by sharing what I have learned and learning. There are all kinds of other ways to earn extra money, here are a few ideas: hanging Christmas lights, mowing lawns after work, working online (be careful of this one don’t fall into scams), breeding animals, and many others. One other great way is to open a small business on the side such as: car detailing, handyman, graphic design, and many more as well. I myself do handyman jobs after work and on weekends it has been a great way to build my net worth. I usually take 90% of what I make extra and put it into my savings. Let me show you have fast it can add up.
Let’s say some one makes $50,000 a year. If they budget 10% to savings at the end of the year they would save $5000 (excluding any interest earned). Now let’s say that they had a handyman business on the side and made an extra $500-$1000 a month. If they saved 90% of that the whole year they would have on extra $5400-$10800 in their savings. That is more than double what they saved putting 10% of their regular income away. I would also dare say that making an extra 500 a month is not a hard thing to do if one has the ambition and desire.
Remember to get rid of your debt first with that extra money. Often times we take that extra money and spend it places that we don’t even remember where it went. How many have asked themselves, “Where did all my money go?” Make sure to keep track of that money just like your regular income. Cash is also dangerous, because it never seems to make it to the bank, too many places to spend it on the way there.
Once this attitude of making extra money and saving it becomes a habit, then you have truly started down the path of financial independence. Remember it will take work, anything worth anything takes work. You need to earn what you deserve. We as human beings are not entitled to anything. You alone will make yourself wealthy it will not be handed to you.
Don’t get discouraged because on attempt at extra money failed. Try something new try a lot of new ways to earn money. Blessings come to those who don’t give up. If you have the desire, the ambition, and are willing to work hard you will start to see extra money flow in. As a result your debt will disappear and your net worth will build.