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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 January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

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