The Four Ways We Unlock Disposable Income
Most people play it safe when it comes to making money… so safe that they never actually evolve their habits beyond the basics skills they learn as a child.
Making money is easy, most people can simply show up at a job and get paid some value for their time. The tricky part is having some degree of lifestyle around that income. With that thought in mind, let’s look at the four ways you can create more disposable income.
Work more hours
This is the first thing that most people do, especially if they are young (unlike the old buggers like me). They pick up some extra shifts or maybe another job, and while this works for younger people it can be more difficult as we mature and have more life responsibilites to care for.
Charge more for your time
Charging more per hour, getting a raise or a promotion is something that the more professional workforce can do. This is more difficult for people new to careers or for those sectors that don’t offer increases. Many jobs don’t offer the ability to negotiate salary increases and if they do, they often aren’t enough to make dramatic life changes.
Spend less money
Spending less money is something that we should all focus on. Being more mindful of our limited cash resources is important in life… but it also takes discipline and just isn’t fun. We all want the finer things in life when we work so hard to earn an income, and this can get us into trouble. It’s also impossible to cut your costs to create prosperity if you are living in poverty.
Create a leveraged income stream
Leverage… the secret tool of the entrepreneur. Leverage is the ability to use resources to create greater returns than normally possible. This can be creating secondary income streams such as selling courses, creating content or even affiliate marketing.
The downside is that this takes time to create, and the payoff doesn’t come overnight. We often forget that passive income starts very, very active.
So, what should I be doing?
The answer is we should be doing all four of these, but not necessarily at the same time. As with most things in nature, things operate in season. There is a time to work hard and a time to consolidate your resources.
My recommendation is to work with a long-term goal in mind. Creating a leveraged income stream, especially one that works with a recurring return should be everyone’s major goal.
With this in mind, which season are you needing to be in? Do you need to create income to bolster the next income stream? Or do you need to network to get your community built? Maybe its time to increase your personal self worth by creating content to fashion into something marketable. This is worth taking some time to self-evaluate.
We all have limited resources, but of all the ones that is most crucial, it’s time. Be mindful of it and respect the power it has. And if you need some further proof on this, check out this article on the power of compounding interest.
Thanks for reading! If you want to learn more about how an entrepreneur builds financial freedom, sign up for my newsletter: www.jaonhillman.com/wealth
Enjoy the weekend!
Ja-On Hillman
