Reclaim your hidden income
Each and every inefficiency in your life is a potential income opportunity. Everybody has inefficiencies in their life and therefore hidden income they need to capitalize on.
Think about the time you waste in your own life. If you do any of the following you have the potential to increase your income
- Watch Netflix for hours at a time?
- Unconsciously open social media and start scrolling through?
- Play video games as a hobby?
Do you do any of those? Then it’s time to make a change in your life so you can make money instead of waste time.
CREATE THIS PICTURE
The simple math of potential income
Potential Income = Current Income + Hidden Income
Your hidden income is what could be your real income. It is any income you earn that you have not maximized, and any time you waste that could be spent earning income. No one is 100% optimized so everyone has some hidden income they can actualize. Your future income will depend on the amount of hidden income you can actualize, as per the equation below.
Future Income = Current Income + Actualized Hidden Income
Find your hidden income
So how do you find your hidden income? Find the inefficiencies in your life. Each and every inefficiency in your life is hidden income waiting to be actualized.
Hidden Career Income
The first place you should look for hidden income is in your career. Are you underpaid or underemployed (e.g. someone with a degree that is working at Starbucks)? Unless you can say with 100% confidence that you are being paid what you are worth you need to do career development. How you do this will depend on your personal situation. This may involve additional schooling if you have a specific route you want to take. It may involve networking and going to industry events or coffee chats with fellow professionals. It depends on your circumstances.
Inevitably career development will require you to update your resume and practice your interviewing. If you are unsure about your ability to create a high quality resume there are online services that help you build a stronger resume such as Resumes Planet and Resume Writers you can use.
Turn The Energy Behind Technology Addiction Into Online Business
Most people are suffering from some sort of technology addiction. Whether it’s Netflix, video games, social media, or your smartphone it does not matter. It means you’re wasting time using technology that you could use productively. You can turn that energy into an online business and earn thousands per month. Simply spend your down time and the time you waste of technology on your online business. If you don’t know what online business to start take the quiz to find the best online business for your personal situation.
It is all about turning potential into actualization. The easiest way to do that is to take away excuses. If you take the quiz linked above you will find the best business for you to start. All you need is a laptop and an internet connection. The startup costs are minimal and you can work from home and make money without leaving the house. If you are reading this you have no excuses.
Inefficiencies and Down Time
Once you take your income seriously you will naturally waste less time. You realize the only real barrier to increasing your income are the fears and excuses in your own head. People who have less free time manage to be more productive and have a more fulfilling social life. If they can do it you can do it as well, because it’s not all about income. The income simply allows you to do more with your life and make a bigger change in the world. The phenomena of hidden income is translatable to any area of life. It’s all about finding inefficiencies in life and solving them – because unfortunately for most people they accumulate in their life because they live passively in life and view themselves as a person who is acted upon by the world rather than a person that acts upon the world.
The Three Paths People Choose From
Which road will you take?
Not playing the game
Unfortunately some people are not even playing the game of wealth. These people live paycheck to paycheck and have a negative or zero net worth. Their poverty stems from poor decisions or poor life circumstances. Their financial situation causes them pain so they avoid thinking about money and avoid checking their bank account.
If you are in this position the first thing you need to realize is that you can change your life circumstances. The first thing you need to do is accept the life you have, you cannot change it without accepting the circumstances you are in. The next step is to take a pen and paper (writing it out by hand makes it more real, don’t type this on your computer) and write down the barriers that are preventing you from being financially successful. These could be people who belittle you and tell you you will never be successful, a negative mindset for example money in the root of all evil, or geographic limitations such as living in a small town surrounded by loser friends and unambitious people. Write down these barriers to success and make a plan for overcoming them. These barriers are the greatest barrier to your success.
Trying to save their way to millions
People on this path appear at first glance to understand how wealth is built. Unfortunately in some respects these people are more backwards than the people with a zero net worth. You hear stories of entrepreneurs that went from being homeless to being billionaires but when was the last time you heard of a 45 year old go from a comfortable 9-5 existence to becoming a billionaire? Never. People with careers and retirement savings are scared of taking risks and unable to think outside the box like entrepreneurs.
These “savers” have the faulty idea that they can save their way to becoming a multimillionaire when they make $90,000 per year. This is a respectable salary that will allow someone to comfortably raise a family, but it will never make them rich. Savers believe personal finance gurus that tell them that skipping their morning coffee from Starbucks will help them save enough for a happy retirement. These people will make the mistake of driving 4 hours to save $20 on a new treadmill. They are incapable of putting a high value on their time, and instead only value money.
Unfortunately these people do not understand that to become wealthy you need to own your streams of income. If you don’t own your streams of income they can be taken from you in a second. People in this camp are ego invested in the idea that being frugal and passively investing in index funds is the best financial strategy. These people are wrong and will realize it when they are hit by a recession. People that focus on savings instead of increasing income never become ultra high net worth individuals.
Growing Income Into Wealth
People in this camp realize that real wealth is built through real income. They realize that society proportionally reward people who provide value in the world, unfortunately people who are in a bad place financially just do not provide enough value to the world (but if they change their ways they can).
400k per year at 40 years old while working 60 hour weeks working 8am-6pm with an hour long commute each way is not desirable and not “success”. They understand that just because they have not seen someone do it, that does not mean it isn’t possible. Making a million dollars a month is not an unrealistic goal.
Control over income steams
Increasing income is the only way to get wealthy.
The Personal Finance Lie
You have been lied to by your parents, your teachers, and by personal finance gurus. The entire idea of going to school, getting a good job, working for 40 years and then retiring with a nice nest egg will not make you wealthy. This is the big lie of the personal finance industry, that passively investing in an S&P 500 index fund will make you wealthy. I am tempted to say that the widespread belief in this idea is one of the main sources of strength of the American economy. The investments in equity markets ensure that the stock market is increasing and therefore the economy is healthy.
If more individuals took their money out of the markets and built online (and offline) businesses the stock markets would be lower. The individuals building these businesses would be wealthier and more satisfied but the economy would appear weaker because their online businesses successes do not lead to a stronger stock market. This is why the mainstream advice is to get a good job and invest in the stock market. The two groups of people that benefit from the stock market are the people that own and operate the investment funds, and people who have already made their wealthy through a business and are now diversifying.
Wealth is not built in the stock market. Wealth is built through owning a business and controlling your streams of income. Of course there are a million different businesses you can create, just remember the most important thing is to just do it. It takes work but the only alternative is complaining about “the system” and “the 1%” and knowing in the back of your head your lack of success was because you never tried. Take your life more seriously, take your income more seriously, reclaim your hidden income.