Advertising
Advertising

5 Tips to Help You Succeed In Making Money with Your Passion

5 Tips to Help You Succeed In Making Money with Your Passion

The biggest criticism that this generation of ours faces is that we are selfish. Many of us are running after money, and we are obsessed with technology. This criticism primarily comes from a generation of people who did any work that was available to them, instead of following their hearts and doing what they loved. This passion for doing what we want to do, to me, is a blessing for our generation.

Every one of us can find a job and start earning money. Any person can find a 9-5 job and follow the same routine all week every week; however, there are others who don’t want to be a part of the rat race. They want to pursue what they are passionate about. Nevertheless, following your passion isn’t that easy in this world, especially if you want to make money from it.

Advertising

The lines below discuss some tips that can help you in making money with your passion by giving taking the example of a person who has a knack for writing.

1. It won’t be overnight.

The first thing to remember pertaining to following your passion for making money is that it wont happen right away; rather, it will take time. For instance, writers who wish to make money by blogging or freelancing will have to make their name known in the highly competitive internet-based world. If a person plans on being a writer, they will have to utilize social media platforms; however, like the conventional market, the online market is also very competitive. Building an online presence in order to make money from writing requires some time. Once you have made your name on a particular platform, then writing jobs will follow and you will monetize your passion.

Advertising

2. You will have to sacrifice.

Like everything related to love, there are certain sacrifices a person has to make. Similarly, pertaining to making money with your passion, you will have to sacrifice a little at the start. In the case of the writer who applies for online jobs, initially, the writer will have to post a bid that is low compared to the others, so that the offer of the writer stands out in front of the employer. For a couple of months and few jobs, the writer would need to sacrifice on the rate of work, no matter how good the writing is, until the reputation of the writer rises to a higher level. Once the reputation rises, the writer will reap the bounties for every sacrifice made and earn money with their passion.

3. Difficulties will be there.

We face difficulties in our daily lives, so it goes without saying that the thing which you love will definitely come with difficulties and challenges. You will face challenges in the form of people not appreciating your passion, judging you, not appreciating you and being biased about your passion. Many successful writers before us tell us that the writers who search for work online face lots of problems and difficulties in the form of people not paying them enough for the worth of work they do, not appreciating the creativity and being biased towards writers because of their demographics. Therefore, if you are following your passion as a writer for moneymaking, then you must be ready for all the difficulties and hardships that await you.

Advertising

4. Take a stand.

Let me be honest, keeping passion and money abreast is a hard thing to do. You will find people who, because of money, will leave their passion. On the other hand, there are people who take a stand and choose passion over money. Once they take the stand and give all they have got to their passion, the ultimate result is passion giving them back much more compared to what they had when they were conscious about the bottom line of their bank account. Therefore, when it comes to opting between the two, take a stand and vouch for your passion.

5. Give as much time as possible.

If you aren’t one who would take stand for your passion, then the least you can do is give it as much time as possible in your daily routine. For instance, if you as a writer think that your writing won’t give you enough money to quit your crappy job, then you should continue with the job and give time to your passion after work. Therefore, give as much time as possible and increase your knowledge about how you can increase the money-making potential of your passion, and then scale up.

Advertising

Now it’s your turn!

Do you have any other example for making money from your passion other than writing? What passion do you have and how have you monetized it? What kind of difficulties did you face and how did you cope up with them? I would love to hear your feedback in the comments section below.

More by this author

Beliefs That Will Free You From Negative Thoughts 20 Lessons You Can Learn About Habits 7 Ways You Can Reach Your Highest Potential 7 Simple Tips On How To Become a Better Person By Increasing Your Self-Esteem 5 Tips to Help You Succeed In Making Money with Your Passion

Trending in Money

1 How to Set Financial Goals and Actually Meet Them 2 25 Killer Sites For Free Online Education 3 10 Recession-Proof Debt Consolidation Tips 4 The Definitive Guide to Get out of Debt Fast (and Forever) 5 25 Easy Tips on How to Save Money Fast

Read Next

Advertising
Advertising
Advertising

Last Updated on September 2, 2020

How to Set Financial Goals and Actually Meet Them

How to Set Financial Goals and Actually Meet Them

Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways to set financial goals and actually meet them with ease.

4 Steps to Setting Financial Goals

Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

1. Be Clear About the Objectives

Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

2. Keep Goals Realistic

It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

Advertising

4. Short Term Vs Long Term

Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

How to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a two-step process:

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

Ensuring Healthy Savings

Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

If you’re not sure where to start when tracking expenses, this article may be able to help.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

Advertising

Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

3. Make a Plan and Vow to Stick With It

Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

Nowadays, several money management apps can help you do this automatically.

At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

  • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
  • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
  • If you go shopping, always look out for coupons and see where can you get the best deal.

The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

Advertising

5. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

6. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

Making Smart Investments

Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

1. Consult a Financial Advisor

Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

2. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

Advertising

3. Compounding Is the Eighth Wonder

Einstein once remarked about compounding:

“Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

Use compound interest when setting financial goals

    Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

    Start saving early so that time is on your side to help you bear the fruits of compounding.

    4. Measure, Measure, Measure

    All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

    If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

    Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

    The Bottom Line

    Managing your extra money to achieve your short and long-term financial goals

    and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

    More Tips on Financial Goals

    Featured photo credit: Micheile Henderson via unsplash.com

    Reference

    Read Next