Are you in a good position financially?
Statistically speaking 90% of the people reading this are not financially healthy, so don’t try to lie to yourself.
To be financially healthy to need to have 6-12 months of living expenses covered by your savings. Does that sounds like a lot? Only because our sense of financial wellness has been perverted by the debt that masses of people have got themselves into.
Most people would say that living debt free is being financially healthy. It’s not, by definition it simply means your net worth is non-negative. We have higher standards for wealth here. If you’re debt free but your net worth looks like the contents of a kids piggy bank you need to get your money right.
Surviving The Next Recession
I want you to be prepared for anything that life can throw at you, and the best insurance in life (other than a stoic attitude) is having money saved. So let’s work together and figure out how to increase your savings. The are two ways to increase your total savings.
- Increase Your Saving Rate
- This is the simplest way to increase your savings. Take your net earnings and simply lower your expenditure by living more frugally. If you are debt this is essential for you to do. Increasing your savings rate is the simplest and most boring way to increase the amount of money you have saved.
- Increase Your Income
- This is the best way to increase your savings. When you increase your income you can maintain the same level of expenditure and still accumulate savings. I know what you may be thinking, “Ok well that’s easier said than done, I can’t just magically increase my income.” Well there is always a way to increase your income, no matter where you are in life.
The Easiest Ways To Increase Your Income
Career Development: If you have a job that is not paying you as much as you are worth you need to negotiate a raise. If you cannot negotiate a raise you need to update your resume and start applying for new jobs. This is a simple way anyone can increase their income.
Online Business: Starting an online business is the best way to increase your income in the medium term. Unless you are a master marketer it will take a few month before you start getting the traffic levels that are required to make money online. I recommend everyone start an online business.
Craigslist Flipping: I love flipping stuff on Craigslist, it’s so easy. You need to do a bit of market research into what people are selling for cheap (or giving away) that you can resell for more money. The best items will depend on where you live, do the research and start making some easy money.
Gig Economy: This is by far the easiest way to increase your income. You can use services such as UpWork, Fiverr, or TaskRabbit to market services you can provide. You could also go for the easiest method of working in the gig economy – driving an Uber or Lyft. Doing this for 10-20 hours per week on top of your ordinary job is guaranteed to increase your income so you can increase your savings.