Some things in life you can just count on.
The four seasons, stock market highs and lows, spring training baseball, weekly Simpson episodes and sadly, people living in survival mode. You’ve no doubt heard some version of the saying, “Most people are one paycheck away from being broke!”
I can’t stand that statement! It sounds so tribal and desperate, like everyone is walking around in survivor mode hoping not to get voted off the island.
But my position is not judgmental – quit the contrary. So if you are financially struggling to make your business profitable or working in a dead end job that doesn’t pay well then I believe it’s time to step away from the norm and reposition yourself.
Consider these three simple but important strategies that could keep you from being one paycheck away:
1. CONSIDER REDUCING YOUR EXPENSES. I know, you’ve heard it a million times but I can’t tell you how this single event will save your bacon. When people tell me they are strapped for cash I tell them that I can still find plenty of waste in their financial lives.
Reducing expenses is always the fastest way to have more money left over at the end of the month. Look at everything you spend money on and start eliminating the waste. It may be seldom-used monthly services, memberships or unnecessary monthly subscriptions.
Maybe you eat out a lot or haven’t reviewed your car expenses lately. Even if it means downsizing from your current living situation, it will pay dividends in the long run.
2. FIND WAYS TO INCREASE YOUR INCOME. Of course the opposite of reducing your expenses is to increase your capital. This is a great option but let’s be honest, if this were an easy alternative then the money would already be rolling in, right?
Okay, maybe it’s not that easy but the truth is, you could do several things to earn extra money. Consider scaling your business for profitability, asking for a raise at your job or even getting a part-time job.
Whatever the case, if you want to see the zero’s increase in your bank account, you have to be creative and committed to reeling in the cash.
3. BEGIN WORKING ON A FINANCIAL CUSHION. If an honest assessment of your financial situation reveals that you could be balancing back and forth on the rope of slim to none, then you must begin right now on making changes in your mind, actions, and expectations.
Commit to saving a portion of every dollar you earn and over time increase that percentage until your account is a healthy amount. A surplus provides both options and opportunities.
At the end of the day, most people are where they are because of how they think and what they do. Almost undoubtedly, there are many people out there with less intelligence and fewer skills than you who are living far from survival mode.
So enough with the getting by kind of living, it’s time to create the life you’ve always wanted. Even if you’re a work in progress that’s cool, just be intentional about creating flow and not being content with status quo.
Sure, it may be tough at first but with discipline, desire, and a few days, it will always come out in the favor of the determined. I look forward to seeing you at the top.
Shawn Dorrough – Money Mentor