Reflecting over the past year, I think we can all agree that it’s been a tough year. We had to pivot our businesses and had to be creative in all areas of our lives.
If we look at 2020 there will always be situations that we can be grateful for. Pain may be part of your past, but it doesn’t have to be part of the story you’re here to tell. It is important that we do have choices. Everyday we can choose new thoughts and learn the lessons from the periods that we did not feel served us in any way.
You have a unique, one-of-a-kind story and it’s up to you: Do you want to tell it from a place of pain…or a place of empowerment? Always look at it from a place of empowerment.
Ask yourself where you want to be next year this time? What are your financial goals for 2021? Do you even have financial goals? Regardless of your current financial situation, there are several strategies you can use that can make you rich. There are no guarantees in life, but you can greatly increase the odds in your favor. Intelligent decisions and consistent behavior are all you need. Here I share some of my strategies:
- Increase your income by creating more than one income stream. I think 2020 was really the year of financial disasters for people. The biggest lesson that 2020 taught us, was to diversify our income streams. For those people that lost their job, it was really challenging to keep their head above the water. The more sources of income you have, the more financial security you’ll enjoy. How can you be more creative and think of new ways to increase your income.
- Understand the different between essential purchases and nice to have options. No one can outspend their income indefinitely. Be careful with your purchases and plan carefully. Regardless of your income, it’s necessary to spend less than you earn.
- Financial Knowledge is critical. Invest in yourself to gain more financial knowledge. An investment in knowledge pays the best interest. What is your intention for 2021? What do you intend to learn or improve? Develop your talents and learn valuable skills and knowledge. Money spent wisely on self-education can provide greater returns than any stock you could ever own.
- Set and pursue financial goals. While some people live on autopilot, other people plan intentionally for the future. Setting monthly and yearly financial goals is a more reliable strategy. Work together as a team to reach your goals on a consistent basis. Measure your results regularly.
- Identify risk areas and accept responsibility for your financial future. Identify the risk areas in your life that can derail you from saving and investing. Be responsible for your own financial well-being or get professional help from a Certified Financial Planner or Financial coach.
- Be patient. Unless you find a way to secure a very large income, wealth requires time and patience. You don’t have to do anything spectacular to amass a spectacular fortune, but it won’t happen overnight. Keep your eye on the long-term outcome and be patient.
- Put a consistent goal for yourself to invest regularly. If you’re not saving a portion of your salary or income each month and investing it as well as you can, you’re limiting your ability to build wealth. Build to the point where you’re saving at least 15% of your take home pay. Learn about investing so you know how to invest those funds wisely.
- Know when to set a Financial Boundary. Nothing lasts forever. There is a time to exit a job, an investment, or a business. Staying too long with any of these things will cost you financially sooner or later.
Financially successful people have left many clues for you to follow. Adopting certain financial behaviors will eventually guarantee financial security. Choose a few of these strategies and begin applying them to your life. Continue this personal transformation and be persistent and consistent.