I wanted to really just talk about how so many people today are literally not paying enough attention to their source(s) of income. You see income in itself will determine either your financial success and build your wealth or living a life of mediocrity from pay check to pay check. Which life would you choose?
We all remember the children’s fable of the golden goose fable. If you’ve never heard this fable, it goes something like this. A farmer finds a goose and finds that this goose can lay golden eggs! This in itself would make the farmer rich and live a very generous life. Long story short, the farmer gets greedy and instead of waiting for the goose to lay it’s golden eggs, he decides to kill the golden goose and collect all of the golden eggs at once. Big mistake! The farmer actually finds out that once the goose is dead, there are no more golden eggs.
I illustrate this story to make a very valid point, the golden goose above is actually your source of income. When we don’t budget, save, get rid of debt and make money actually start working for us, we’re killing the golden goose! Your income can make you rich and when you deliberately start to take the reigns as a better money manager, awesome things begin to happen with your finances.
It’s a gradual process and they are very few people that actually end up rich overnight (lottery winners, estate heirs e.t.c.). Building wealth and achieving Financial Freedom is a process and takes time and effort. In fact, it can dang right be a marathon, but it’s well worth the wait / persistence.
Imagine when you actually have your income going towards building your net worth rather than consumer debt because you’ve paid it all off. Maybe you pay your house off 7-10 years early and save thousands of dollars in interest? Could you imagine just how fast your wealth building could be if you discipline and tell your money where to go after?
This is the serious point that i’m hoping to drive home with you, every day you need to start journaling where every dime of your hard earned money is going. I talk about it in my ‘Case Study, This Little Tool Helped Me Build Wealth Over $20K’ blog post. You’ve got to start keeping track of your finances and increasing your financial education on how to get money working for you through passive income and other sources.
It does take work and the best place to start is to talk to a Mentor that is already at where you eventually want to be someday. You’ll also find that the advice is usually free and dispensed happily. Another good source is sitting down with a low cost Financial Planner (you may have to shop around) as a formal sit down with them may open your eyes to what you could be using towards your Financial Freedom journey.
You have to become very deliberate with your finances, in fact, a very good place to start is setting up a zero based budget. What this is a budget that accounts for every little dollar of income. No more guessing where you’re money will go. When you have a windfall, you put it towards savings, investments or paying down debt.
How could you improve your finances going forward and making money work for you. I’d love to hear your comments.
Category: Financial freedom