No doubt everyone wants to make more money. However, some people are unsure about the ways to increase their income.
This makes thinking about money exhausting as many assume that increasing one’s income is difficult. But it’s not as hard as you think.
Just as it is easy, increasing your income has several advantages, such as saving, investing, and paying off debt quickly.
Although this idea seems far-fetched, it is feasible. Here are five ways to 10X your income.
Change the poverty mindset
The ordinary individual will always choose the cheapest option. The problem with this type of attitude is that going for the cheapest alternative leads to more problems and expenses.
Although the cheaper choice may appear to be the most excellent option for the moment, you wind up spending far more in the long run.
For example, if your laptop breaks and you don’t have the funds to replace it, you might want to buy an inexpensive one to save more.
The fact is you are not saving but wasting money. The chances are the fairly used cheap product will not last, and you will have to repair it and finally buy another one.
Compare your assets and liabilities
Your assets bring you more money while liabilities more expenses. Owning a piece of real estate gives you more money while possessing a car is a liability as it depreciates with time.
If you are spending more and earning little, it is time for you to reconsider what your essentials are.
Thinking about it might seem impossible because they are essential for a reason. It is, nonetheless, feasible. Separate your basic expenses into personal assets and personal liabilities. This will help you balance your finances.
Getting your nails done every week, for example, is a personal liability. In a maximum of four days, the value is lost. On the other hand, your gym membership card might be considered a personal asset. If you aren’t going to utilise it, sell it to some who would.
To stay on target, always ask yourself, “Is this spending enhancing or diminishing my life?”
Always track your spending
What can be increased is what is measured. This also applies to finances.
Analyse your bank account statement and track all your expenditures for a month to figure out what and where your income goes.
For example, out of N200,000, you spend N50,000 on shoes and bags every month, which is 25% of your income.
While having the trendy things makes you look confident, you can tone down the monthly shoes and bags. Saving 10% of the 25% will add up to something at the end of the year.
Create more money stream
To multiply your income, you must be entirely focused on increasing your earnings. While cutting costs is one approach to making more money, you also need to understand how to diversify your revenue streams.
To do so effectively, you must build a more abundant attitude. So, get creative and imaginative.
Pay yourself first
There is no perfect mood or time for saving. Start saving immediately. You don’t need to start with huge money.
You can start by allocating 10% of your salary. The 10% can be your “me salary”.
Transfer the 10% to an account you have no access to when you get paid. It may not appear to be much, but it increases over time. It won’t be enough to put down on a house, but it will provide a valuable financial cushion if you fall sick or need to make impromptu expenses.