The basic formula to growing your wealth is very simple: saving and investing. To do so, you have to maximize your income and live beneath your means. Avoid needless waste or excess in your budget. Such cost-cutting decisions are not easy but are essential in the lifelong process of investing and compounding your money. However, you can reduce the pressure to cut costs by maximizing your income.
In today’s knowledge-based economy, your earned income is generally decided by 10 personalized factors:
1. Educational attainment and specialized skills
2. Chosen profession
3. Specialization in profession
4. Years of experience
5. Hours worked
6. Work ethic
7. Social skills
8. Competence and proficiency
9. Ability to cooperate with, inspire and lead your co-workers
10. Ambition to rise in the organization.
If you want to earn more, make yourself indispensable to someone. Attain education or marketable skills, show competence, reliability and integrity at work.
Life is far more enjoyable when you have challenging work that brings out the best in you. Surveys show that high net worth individuals confirm their greatest life satisfaction is a feeling of earned success.
Generating a higher income allows you to save more without having to cut cost that are meaningful to you.
Sven Franssen