Two Options

As a leader and a financial coach/career coach I clearly teach that there are 2 steps to wealth. The first is the income side, how much you make and the 2nd is the expense side. You cannot pay off debt and build wealth if your job is not paying you a wage that fits your experience and education. Using credit and debt is not going to help you and there is not speedy way to do this, it is not real estate, penny stocks, bit coin or any of those, it is simply managing and controlling your income and then how you use your expenses.

Let’s start with expenses, that is the easiest side of this equation. What you actually have dictates what you can afford and what you can spend money on. If you continue to live beyond your means you will always live beyond your means. You see we have this mentality that wow, I’m doing really well, I deserve this… or I just got paid, sweet I want to get this new thing. Marketers are wonderful at getting our attention and if you are spending your days scanning your email for those spam message and scrolling Facebook, Snapchat, Instagram you are being inundated with those ads and cool things. I looked up a Aeropress (single serve coffee brewing technique) a few weeks ago and since then I continue to see all different kinds of coffee cups, brewers… Thankfully, I’m focused on getting family and friends Christmas presents so I am not at all swayed by these, but I will say some are tempting.

Now, let’s move over to the income side of the house. I wrote a post a few weeks back about your worth. You need to know based on your experience, your current position and where you live how much you are worth. Every company has a salary band that is usually pretty large for each grade, so when you interview know your expectations, and do not be afraid to ask for them. Additionally, do not get comfortable where you are just because you have a paycheck coming in. Keep your options open, manage your network, connect with people every 3-6 months. Find the appropriate time and continue to explore options.

There are clear examples where you can move up the chain of command faster (which includes growing your income) by moving around. I’m not suggesting you move too frequently, but give yourself enough time to make an impact and in the meantime manage your network and be prepared to move to the next point in your career. Do not let you hold you back. Many times we get comfortable with our current situation and we think that we are not able to make a move because of the people you will disappoint or whatever it may be. You own your career and you have to do what is best for you. Take the time to plan your steps, manage your network and grow your income in the process.

Now one cautionary piece to this, do NOT chase the income ladder. Follow the career path to achieve your goals. There may be times you have to take a side step or even a step back to get to where you want to go. It’s ok, but control the other side of the equation, manage the expenses, so that you do not go into debt in the process.

With all of this, there is one important piece too. Baby step 3 is a fully funded emergency fund (FFEF). When you have this you have a cushion should you need to make a shift, or more so forced into a shift so that you have time to breath, focus on the next role for you and achieve great results in the end.

As I started, you only have 2 options, to build wealth you either need to cut back on your expenses or grow your income...Or you could do both. But overall it is pretty straight forward. One side is harder than the other but if you are willing to put in the work you can achieve anything.