We all want to do more with the money we have.
Sometimes we make use of credit to have the things we want that we cannot really afford to buy outright… such as taking out a loan for a car, and having a mortgage.
That’s absolutely fine for big expensive things…
But sometimes we rely on credit to just get us through the month, like buying shopping on a credit card at the end of the month.
That’s where things become an issue.
That’s when we need to look at our financial situation and make changes…
I’ve been there before, struggling… and it’s not a nice place to be!
So, mainstream advice is to cut-back.
We see it everywhere! Debt advice, that guy, Martin, on the TV that gives us so much great cut-back and cost saving resources on his website.
And for years I’ve been striving to cut-back so I can live a little more.
Some cut-backs are great. They have actually improved my life. Sky TV for example. I barely watch TV anymore so Sky was something a didn’t need to pay for, and by watching less TV I’m spending more time reading, learning and getting outside!
Other cut-backs have been crap! I no longer have car finance but now my car is getting on a little bit and having issues, it would be nice to have a decent car to drive around in (cars have mostly been a practical possession for me, it’s about time I had a car that I actually enjoy!)
Cut-backs may help people to some degree, but if you really want to live an extra-ordinary life, you need to increase income, not aim for cut-backs.
Increasing income isn’t easy though. You have to work harder if you have a job to achieve a pay rise, or work smarter to be able to start your own business.
Then you need to invest some of your total income (preferably around 25%) into assets (which can be your business)
I’m at a stage now where I’m near as far as I can, and willing to go on cutting back. So now, if I made no investments I’d be able to live an ok life. I could finance a reasonable car, save for an average holiday and be able to go out to average places a couple of times a month…
Living this average life would mean I am completely reliant upon my income from a job I don’t enjoy. I’d need that wage each and every month. And it would continue year on year… all to be able to live for a couple of days a month and for a holiday a couple of weeks a year.
We are are worth more than average. And as such cut-backs won’t get us where we need to be.
Investments will break this cycle. But to invest in yourself requires either more cut-backs or greater income.
As I said, I’ve already cut back as much as I’m willing to in order to be able to invest in myself.
My investments currently consist of only a small number of things:
- Funds into my trading account each month.
- Monthly subscription to a trading coach/mentor/teacher.
- Investment into a small side business (that’s www.lexiart.uk – go see!)
There’s more I’d like to invest in that may return a greater income, but the calculations don’t allow it right now.
My asset/liability ratio isn’t at the preferred 25%/75% either…
It’s more 14% asset investment to 86% liabilities.
The reason being that my assets are yet to generate a steady and noticeable income.
As they grow they can go straight back into the asset group, increasing the ratio and generating an even bigger income from them…
It’s a slow process. And I’m willing to accept that my life isn’t going to drastically change for a few years yet…
So I’ll continue to maintain and drive the old car for another couple of years. And when that gets upgraded, it won’t be to an average car, it’ll be to an exceptional car!
I’ll continue to work at my job for me as I am reliant upon that income to fund my assets and continue to provide enough to pay for all the bills and live a little.
I’ll continue to grow my side business that I am passionate about as it not only will help provide an extra income for myself, but also to my contributing artists which is where the real pleasure comes from – I’m helping them live from their passion.
And I’ll continue to blog about my trading (and investing) here at EXF Trading, because I’d love others to be inspired by my journey and see that it really is possible!
Becoming financially wealthy is often thought to be impossible unless you already have some wealth… that’s a limited mindset and I could talk about that in some detail (I’ve had to overcome it) but it’s better to show people it’s possible…
I’m here to show you! And you can follow!