Harness Money

Get to work! And grow the gap.

There are so many ways to make money in today’s economy.

You can work from anywhere and do whatever you want.

If you are able to work you need to maximize your working years. Make as much money as you can as long as you can. Within reason. Because there will be a time when you cannot earn as much money as you can today.

Work on increasing your income.

This has always been the hardest step for me. It has always been a struggle to get that paycheck larger. But I believe in you.

The way that you increase your income is through skills and value.

No matter what you do always be trying to increase the skills you have.

3 skills every single person needs: reading, writing, speaking. The better you can do those 3 the more money you will make.

Your first goal should be to increase your income as high as possible. And then you work on growing the gap. The different between how much income you bring in and your expenses.

Reduce expenses

There are plenty of ‘rich’ people that are really broke. Living paycheck to paycheck. Stressed about how they must keep going to make things work out.

Why?

Because of expenses.

Their expenses are higher than their income.

Your goal is to be the opposite of this persons. Increasing your income over time while maintaining or decreasing your expenses.

This is the gap.

The gap between your income and expenses should be growing year over year. Just like your income or your dividends. This is also known as your savings rate.

The money that you have left over after your expenses is the money that you have to invest. In the stock market, or real estate or your future business.

These are also funds that you will put toward your emergency fund and your retirement.

The more you can put into investments the faster you will be able to retire.

There is no limit to how much you can increase your income, but there is a limit to how much you can cut your expenses. More income, less expenses. Invest the difference.

Invest

This is one of the most important lessons.

A.B.I. – Always be investing.

This is also known as dollar cost averaging.

If you are a worker then you likely receive a paycheck or a regular payment of funds. A portion of your paycheck should always go toward investments. Stocks, bonds, real estate or businesses.

The easiest way to invest is through an ETF like the VTI. This is a total stock market fund that invested in the total US stock market.

Have an investment plan.

This is what will allow your money to grow and work for you. Eventually, you will be able to retire and money coming to you automatically.

Make it your goal each year to increase your income, reduce your expenses and increase the amount you invest. This is how your money will compound over time and you will build wealth.

Recommended Tools

– Coursera

– LinkedIn Learning