Boost your financial standing by setting aside 10% of your net income to automatically go to your 401(k), IRA, health savings account, or other investments straight away. This is not only tax deductible, but also a strategy to build your future wealth. If you invest wisely, your savings could potentially increase by 10% annually in your sleep. Within seven years, your accumulated wealth could outweigh your salary and eventually it could even surpass your yearly income in a matter of 25 years.
Be generous. Allocate 10% of your income to charity. By financially supporting your favorite cause, you not only get a tax write-off but also enjoy the satisfaction of positively contributing to your community and fostering connections with like-minded individuals. The most rewarding jobs I’ve ever had sprung from connections I made through my philanthropic endeavors.
Never stop learning—for you, your family and others. Income and education have a strong correlation. In today’s digital age, getting an online degree is feasible. Surgeons, who are educated both on medical and investment fronts, often have higher earnings compared to those who invest blindly or not at all. Data from the Bureau of Labor Statistics indicate that full-time workers with a high school diploma earn significantly more than those without. Opting for advanced education usually leads to higher income prospects in the long run and allows you to earn double the income for life! In today’s world, you can easily broaden your financial acumen by securing a masters in finance online with flexible programs available.
Prioritize your happiness and health. Your health dictates your ability to make a living, and having fun keeps you vibrant and healthy. You should dedicate 20% of your income towards enjoyment. Convert 10% of it to cash and spend it exhaustively, while using the rest to facilitate bigger, adventurous plans with family and friends every year.
Embrace your home. If you choose to allocate your entertainment budget to improving your home, learn to appreciate it more rather than regretting not going for vacations. Get creative with your home experiences—hold artist salons, porch parties, barbecue races, and even a monthly yoga dinner. If home renovation is causing financial strain, reassess your expenditures on significant items.
Keep basic needs under 50% of your budget, including taxes. It may seem like a tall order, but keep in mind the example of the richest demographic in the US—Asian Americans. A little over a century ago, they were amongst the lowest income earners in the country. They prioritized education and minimized expenditure on basic needs—even to the point of two families sharing a two-bedroom apartment—enabling the next generation to pursue higher education. Such strategic investments culminated in their current standing, where their average weekly income surpasses that of the whites by 7% and blacks and Hispanics by a significant 35-50%.
Rather than viewing others as competitors, think of potential partnerships. Consider the example of how malls bring together numerous retail stores, all of which benefit from the collaborative effort. Coachella, much like its predecessor Woodstock, assembles fantastic music bands in one place for an entire weekend. Look for ways to work with your competitors for mutual gain.
Set audacious goals. When John D. Rockefeller started his oil business in 1863, no one envisioned freeways. When Sergey Brin and Larry Page invented the Google search engine, people were still grappling with dial-up connectivity. Likewise, let yourself dream big, identify steps towards accomplishing it, and seek out those who can assist you in your journey. As quoted by Larry Page, co-founder and CEO of Google, aiming for grand dreams often facilitates progress because relatively few individuals dare to dream on such a scale.
To break free from monotony, consider a 21-day sabbatical. Such an extended break from your routine allows you to broaden your horizons and adopt a fresh perspective. Whether you choose a spiritual retreat, a challenging adventure, a mesmerizing love journey, or a trip to a nostalgic place, commit yourself to add something new and exciting in your life.
Many successful people started from modest beginnings. Steve Jobs, co-founder of Apple, slept in his friend’s dorm room to attend budget calligraphy courses. The founder of an $11 billion company transitioned from a football coach to CEO while residing on his parents’ couch. J.K. Rowling, one of the wealthiest women globally, was a recipient of public assistance while creating the universally loved Harry Potter series.
In conclusion, rejoice in your unique abilities, and cherish the potential to transform your resources into power that propels your dreams. Consider changing your everyday routine with a 21-day sabbatical to places such as Rome, Paris, Machu Picchu, or your long-unvisited hometown. Begin to envision grander dreams because all of us carry a unique gift to contribute to the world. Let your expenditures be split equally between survival and thriving, creating a balanced lifestyle.
About Natalie Pace:
Natalie Pace is the author of “You Vs. Wall Street,” host of the “Pace and Prosperity” radio show on BlogTalkRadio.com/NataliePace, and a regular guest on Fox News, CNBC, ABC-TV. She also contributes to HuffingtonPost.com, Forbes.com, Sohu.com, and BestEverYou.com. Her philanthropic ventures have helped raise over two million for Los Angeles public schools and for promoting financial literacy. Follow her on http://www.facebook.com/pages/NWPace, YouTube.com/NataliePaceDOTCOM, and visit http://www.nataliepace.com for more information.
