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Last Updated on January 3, 2018

How to Double (or Triple) Your Income by Investing in Yourself

How to Double (or Triple) Your Income by Investing in Yourself

The Secret They Never Taught You In School

The principle of how to double or triple your current income is pretty simple, yet it takes a shift in mindset to fully understand and implement. The good news is that when you understand this one principle it will lift the limit on your income while you still work the same amount of hours (or even less).

Say your current income is $50,000 and you want to double it. How likely is it that you can go out and find a job paying $100,000? Even if you own your own business that offers services to clients, it’s going to be hard to get the clients and then do the work to double your income.

Why Your Income Is Limited Right Now

If you’re like most people, then you’re probably trading your time for money. That means you work a certain amount of hours and get paid relatively. Whether you’re the janitor or the CEO, your income is based on showing up to work.

Your income is limited by…

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  1. The number of hours you work
  2. The amount of value you provide (and will get paid for)

How To Increase Your Value

Even though the janitor and the CEO work the same amount of hours, we know the CEO will always get paid more. This is because they bring more value to the company. Trying to work more hours is simply going to get you burnt out and stressed… the key is increasing your value.

For some people, this means going back to school to get fancier degrees or doing extra training… and this can help your income. However, unless you’ve dramatically changed your education level and experience, it’s going to be hard to find a job that actually doubles your previous income.

In order to double our income or beyond we must answer an important question…

Why Does The CEO Get Paid The Most?

This brings us back to the key principle that will lift the limit on your income and that key principle is…

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Leverage – The ability to do more with less

Both the CEO and the janitor get paid on their results. However, the CEO produces a more valuable result because of the leverage they have. They control an entire company and the results it produces while the janitor only controls the results of their own hard work.

Leverage comes from both money and people. The CEO can leverage the capital of the business (the money) and the employees (the people) in order to create a much bigger result than they ever could by themselves.

How This Applies To Your Income

If you want to double (or triple) your income then you need to create more leverage. If you look at the structure of a company, you see that employees get paid the least and then middle management gets paid more. This is because they have the leverage of employees to create a greater result than just doing the work themselves.

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And this works all the way up the company structure. The Vice Presidents earn more because they leverage several middle managers and the Presidents earn more because they leverage multiple Vice Presidents. Finally, the CEO gets paid the most because they leverage everyone.

So one way to increase your income is to climb the ranks of the corporate structure, not by becoming better at the tasks you do, but by developing your management and leadership skills while looking for opportunities to advance.

The Danger Of Climbing The Corporate Ladder

Personally, I’m not a fan of the corporate ladder, as someone else can hold you back or lay you off even when you’ve done nothing wrong. So the other way to achieve leverage is to look outside your job and put some time into building a business or growing your investments.

And when you really think about it, there are people that earn more than the CEO. These are the business owners (or shareholders in a publicly traded company). They leverage everyone, including the CEO, without even stepping foot inside the office, and create a passive income for themselves.

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By growing your own business, you are starting out in the CEO and business owner positions. That way, you are building a system that can leverage other people’s money and other people’s time to create bigger results than you ever could alone. You could also take your money and invest it in real estate or the stock market to obtain financial leverage.

How To Really Double (Or Triple) Your Income

If you really want to dramatically increase your income, then you need to increase your leverage. This is not an overnight process, as you need to learn more skills and take action to achieve the results you want. However the sooner you start… the sooner you see results.

Ten years from now, you may have gotten a few salary increases, but I can guarantee you won’t have doubled your income through your job. However, in ten years you could use your spare time to build a business and investment portfolio that doubles your income.

At the end of the day there are two types of people in this world…

Those that are being leveraged and those that are creating leverage

It’s up to you which one you want to be.

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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