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4 Reasons Why Working For Someone Else Won’t Get You Rich

4 Reasons Why Working For Someone Else Won’t Get You Rich

A lot of people have big dreams of running their own business and being their own boss, especially in this economy where small businesses are flourishing. Do you have an idea for a business, store, or service you’d like to start? I’ve had many ideas, but something always keeps me from acting on them. Usually, it’s initial capital. I always feel like I need to bide my time working at my current job, saving up as much as I can, then try to launch my own business once I have my savings built up.

This seems like a practical approach, right? So why am I still not working for myself? Because I’m not taking risks. To get rich, I have to be my own boss. And to be my own boss, I have to take a risk, put myself out there, and make my money work for me.

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Bill Gates dropped out of Harvard to start a software company. He was in school, learning technology without a definite study or career plan, until his friend wanted to open a business with him. So Bill became a partner in a company; then… well, you know the rest. You know what happened because he became one of the richest, most successful people in the world, all because he took a risk. He left one of the best universities in the world to start a business, and look how that paid off!

Amanda Hocking wrote novels in her free time, and had 17 written by 2010. Instead of just letting these idle on her hard drive, she started self-publishing them as e-books. In just a year, she had sold over one million copies of nine books, and had made over two million dollars. This was unheard of for a self-published author! She sold an average of 9,000 books a day, which caught the attention of a big publishing house, who signed her. All of this happened because she just decided to take a risk and put her writing out there. Pretty inspirational, right? What can you do to make this type of success happen for you?

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1. You become too comfortable to take risks.

My main problem is that I have a job, which means I have income. I can pay my bills. I have a little left at the end of each month to put into savings. It’s comfortable! I don’t need to change anything. Which means I haven’t. You have to push yourself to make a change in a comfortable lifestyle. If I lost my job, I’d have no choice but to kick-start my dream in order to have a job and income! So do something to shake up your life, and see how one change can push you to take charge and change everything.

2. You’re building someone else’s assets.

When you’re working for someone else, you’re helping them. This is well and good if you believe in the cause and just want to get by in life; but if you want to get rich, you’re only hurting yourself. You’re spending at least forty hours a week focusing on someone else. What about you, and what you want to do? Imagine if you have 40 free hours to work on something for yourself. It’s a lot of time, right? Once you get out of your comfortable career rut, you’ll have those forty hours to dedicate to yourself and your own assets. Everything you put into yourself and your business will come right back to you. The money you spend for the business can be deducted from your taxes, and any income is yours alone!

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3. Time is more valuable than money.

Money is something you can save, something you can get more of (if you know how). But time is fleeting. You’ll never be able to make up time you’ve already spent. And, as we just mentioned, when you spend time working for someone else, you’re not able to use that for yourself. Sure, you’re making money while you work, but what if you finish your duties before lunch? You’re wasting the other hours of the day doing nothing, just to get that paycheck. Or, if you’re on salary, you might be working way more than forty hours, and not getting paid what you’re worth. The company you work for is in charge of your time. They dictate your schedule, they tell you when you can leave early or have to stay late, and they tell you if you can take vacation time. When you work for yourself, you might have to work harder, but you’re working for yourself, in charge of your own time.

4. You grow too focused on saving for a rainy day.

Saving is smart. We’ve all learned that, and it makes sense. But saving money isn’t helping you make money. Skipping Starbucks and making coffee at home might save you 5 bucks, but did it earn you 5 bucks? If it did, I want your coffee maker! You’re making a fixed income, and just putting money aside. Invest your money in your business, instead! Or if you’re not ready yet, invest in the stock market to watch your money grow.

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Yes, it’s hard to get something started, but you have to take the chance! And maybe it won’t take off immediately, but that doesn’t mean you’re a failure. Be patient, let your business find its footing and and follow through on things that will help you grow. Don’t expect everything to happen all at once, and don’t get discouraged — you can do it!

Featured photo credit: Nick Ares via flickr.com

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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