Personalfinance tips
Spend money to grow professionally
Spend money to grow in your career by going to conferences, taking courses, reading books, or something else specific to your job. It may feel like you don’t want to spend the money on something like this, but if it pushes you outside your comfort zone and causes you to advance in your career, it’s usually worth the money.
Negotiate your salary
Learn how to negotiate a salary to get paid more. This comes with practice, so the sooner you start the better. Practicing negotiating early in your career will better prepare you for the bigger negotiations you’ll have later in your career. There’s no reason to leave money on the table.
Don’t let your job define who you are
Make sure you don’t let your job define who you are as a person. Your job is your work. It’s what you do. It’s not a reflection of who you are as a person. Never forget this. If you do identify with your job as who you are as a person, you’ll be too attached in an unhealthy way. God forbid you’re let go, you could be devastated beyond measure and even fall into depression. Lots of jobs exist. There are plenty of opportunities for you out there. Don’t be defined by one job. You’re too special for that.
Work in a job that pays you what you’re worth in the market place
Make sure you’re getting paid what you’re worth. It’s relatively easy to search online and find out what someone with your job is likely to make in your area. Take advantage of this. If you find out you’re underpaid, do something about it. Ask for a raise, build your resume, or find another job – just don’t accept how things are. Your career is too long to spend it underpaid. Next step:
- Read How To Make A Career Change
Be aware of the three types of income and how you pay taxes on each differently
There are three types of income, and they’re not treated equally. Knowing this can help you better understand your taxes and which income you to make more of. The three types of income are: 1) earned income (like what you make from your day-job), 2) portfolio income (the income you make from the stock market when your investments go up), and 3) passive income (the income you make from assets you own, while not actively working (e.g.: rental income or business income). Each type of income is taxed differently, too. You pay a higher percentage in taxes from active income than from portfolio income, typically. Knowing the different types of income can help you better understand how your money works and how you can save on taxes, too.
Diversify your income
Diversify your income so you don’t rely on one source entirely. Whether this is through a second job, investing in the stock market, or starting a business, you can find ways to bring in multiple streams of income. The average millionaire has seven streams of income.
Invest in yourself to make more money
If you want to make more money, invest in yourself. This could be in the traditional form of going to college, or it could be in a much more affordable way, like taking on online course. An example would be taking a class to learn how to become a virtual assistant and make money from home. Just don’t ignore the opportunity to make money on your own terms because you’re not there yet. Take a course and get started. You’re worth it.
Start a side hustle
If you want to make extra money, start a “side hustle” (a job on the side of your day-job). There are tons of options for side hustles . Whether it’s because you want to get out of debt, save for a down payment on a house, or just pay your bills, a side hustle can change your finances for the better. Don’t feel stuck making the money you do from your current job – there are always ways to make more money. Next steps:
- Read: 45 Ways To Make Extra Money (blog post)
- Read: How To Be More Efficient Working From Home (blog post)
If you don’t know what to do, start a blog
If you feel stuck and don’t know what to do, I highly recommend starting a blog. A blog can be a great way to write about something you care about and make money. This is what I did – I started my blog while I was practicing law. This led to me quitting my job as an attorney to pursue a career as a financial planner. All this from a little blog I started on a whim. Next steps:
- Read my How To Start A Blog Tutorial
- Sign up for my free blogging course: Online Business Free Course
Make money doing something that fulfills you
Pursue making money doing something that fulfills you. Whether that’s in the career you’re in now or something else, find a way to be aligned with your work and make money doing it. Sometimes, this is easier said than done, but you can start by taking little steps to move you toward the ultimate goals of feeling fulfilled by how you make money. One example would be to spend time figuring out what you want to do with your life by shadowing people in other professions. Whatever it takes, you spend too much time working to do something that doesn’t fulfill you. Next step:
- Join: Grow You (life coaching program)