Rat Race Eviction
There is a great chance that you’ve worked a job that you didn’t like. Pretty much everyone has worked a job they hated. It may have been that you weren’t paid enough, that your manager didn’t appreciate your efforts, or the job was just plain boring. In some cases, it may have been all of the above that made you hate it. Often, you quit or were fired because you just didn’t want to do it anymore. However, there’s something to learn from every job. Turn those bad jobs into an opportunity to create success later on.
Make Bad Jobs Work For You
Have you ever thought about solutions that may have made that job better or what tools your employer could have given you to make it better? Take some time to think about it as this approach to problem-solving could be that diamond in the rough that could be used in your own company to make things better. Wouldn’t it be amazing if that horrible job could become the catalyst for your own money-making idea?
It probably won’t be a good idea to go into your workplace and tell your staff that pay is suspended, but you could find a way to have your business enhanced from this type of thinking. Let them know about how they could earn bonuses, perks, or even a raise if they can give you ideas on how to make the business better.
Understanding Financial Literacy
Next, I want to discuss financial literacy. It’s one of those concepts that unless your parents talked to you about it, you probably don’t know much about it since it’s not taught in schools. Let’s go into more details on this concept.
Many of the traditional teaching on business is all about the role that people need to take as an employee, i.e. how to be the perfect employee. These rarely cover how to be a good employer, and keeping this mindset may stop you from achieving the wealth you want. It’s important to focus on your behavior to become an employer that employees want to work for. In addition, you want to not only look at ways to gain the money you want but keep it for generations to come. This thought process is where financial literacy comes into play.
Assets and Liabilities
Are you ready to evict yourself from the rat race and build a brighter future that offers a bigger checkbook? It’s essential to identify assets and liabilities correctly. In your life, you probably have the following listed in each category:
- Intellectual Property
- Real Estate
- Credit Cards
You may be surprised to learn that some things aren’t actually assets. Items like your car, entertainment system, and even your house shouldn’t be considered as part of your assets. When you think of an asset, you should be thinking of things that continue to put money into your pocket rather than just take it out. If you’re struggling, you’re not able to get to a place where you’re building wealth. Think of it this way, if you are mainly bringing in money from a job that pays you a wage, and every time you make more cash, you’re paying more in taxes. That’s not a wealth-building opportunity either is it?
When to Sell
With this mindset, if you purchasing a home isn’t adding to your assets since you’ll be paying it off for years to come, what is? These assets are some of the best vehicles to begin wealth-building and how long you should hold on to it before selling it for more money:
- Mutual Funds – 1 Year
- Bonds – 1 Year
- Stocks (focusing on small companies and even startups) – 1 Year
- Notes or IOUs – 7 Years
- Real Estate – 7 Years
- Intellectual Property Royalties – 7 Years
- Valuables (items that provide you with an income or gain value over the years) – 7 Years
Your wealth-building roadmap should look like this:
- Correctly identify liabilities and assets
- Find income-earning assets to buy
- Minimize your expenses and liabilities
- Keep an eye on your own business
These steps can start to help you change your mindset from one that focuses on the wrong ways of making money to one that helps you make money. In the next lesson, we’ll focus more on how you should go about keeping an eye on your own business.
Do you need help getting your business going or applying these concepts into your life? Contact us today to discuss how our service can help you and your business.