By Dr Z.

As we enter the millennial age, many more people are aiming to become wealthy.  The fact is, our perception of middle-class comfort has shifted over the last 20 years.  Gone are the glory days of finding that one beloved job, working that job for twenty to thirty years, supporting a family and paying bills comfortably on that one salary, and retiring around your 50th birthday. Heads of working-class and middle-class households now juggle multiple jobs to make ends meet, obtain home equity credit lines to manage life expenses, dip into their retirement savings for emergencies, carry high credit card balances, and are working up to the age of 70.  Inflation is ever-increasing, housing is more expensive, and water is no longer free.  The point is, the simple financial life is long gone.  People are now enslaved by financial obligations and are further enslaved by unsatisfying jobs to meet those obligations.  So, in the spirit of these dilemmas, this article proposes 10 EMPOWERing behaviors that may eventually lead to financial freedom.   These POWERful behaviors include the following:

1. Know that you are worth much more than your salary.
2. Become financially literate.
3. Step up in your current career.
4. Practice Thrift.
5. Do not spend money that you do not have.
6. Save as much as you can.
7. Invest most of what you save.
8. Create Multiple Streams of Income.
9. Turn any skill, hobby, or talent into a business.
10. Believe that you are financially free.

This article does not constitute professional financial planning advice, does not guarantee wealth, and does not grant absolute freedom from your current financial responsibilities.  However, we are certain that the behaviors detailed below will offer a better chance at the kind of financial well-being that will increase financial resources while lifting financial burdens.

1. Know That YOU ARE WORTH MUCH MORE THAN YOUR SALARY!

The first bit of advice is probably the toughest.  Figure out what you are worth.  Give it a dollar value for any given time unit.  And, train yourself to the idea that you are worth much more.  Keep reminding yourself that you are worth more than what you are paid on the job, more than your annual salary, and more than the salary schedule in your employment contract.  This is an age-old psychological secret toward building financial worth and confidence.  Wealthier people, who are paid more in a month than most people make in a year, are very well aware of this secret.

If you do not know what you are worth, here is a very simple a trick.  Multiply your current income by 5 and start there.  That is right!! You are already worth at least 5 times more than what you are currently being paid.  Believe it, and start working toward it.  Your boss knows that you are worth much more than your salary; so, let’s make certain that you are aware of this fact as well.  Consider this example, if you are a teacher who is currently paid 60,000 dollars annually, then it will benefit you to know that your teaching skills are actually worth well over 300,000 dollars.  You just have to believe it and pursue it.  Figure out how to become a nationally recognized teacher of teachers, and your earnings will far exceed your salary.   Here are other factors to consider toward knowing your financial worth:

1. Your age, maturity, and experience
2. Your knowledge, skills, and abilities
3. Your creativity
4. Your level of education
5. Your ability to solve a problem that others have not figured out
6. Your use of a particular talent that others do not have
7. The mastery of your craft
8. Your ability to engage partners

Here is an exercise that will boost your financial worth and confidence.

1. Make a list of all of the great skills that you have.
2. identify your top skill.
3. Write out a brief 30 minute to 1-hour talk or presentation about a topic related to that skill.
4. Price the presentation at 500 to 1000 dollars.
5. Pitch that talk to at least 10 organizations.

You may be surprised to find that people are willing to pay you your price for your presentation.

2. Become Financially Literate.

The initial step toward financial freedom is to learn everything that you can about money.   This can be done at various levels.  On an individual level, you can look at what is currently in your personal financial portfolio.  You would be surprised to know that you have more assets than you think.  Read through your savings or retirement package and simultaneously conduct an internet search for those terms that you do not understand.  Also consider viewing free videos that teach you all there is to know about money, wealth, and creative income streams.  Remember that knowledge is the key to change and improvement. So go out and learn about money, wealth, and the economy.

3. Step Up in Your Current Career.

There is always room for growth in your current career, trade, and workplace.  More than likely, you are working in a setting that has hidden goldmines in the form of promotions, raises, leadership opportunities, continuing education, college tuition assistance, or opportunities to become a shareholding partner.   If you are applying to a position, you want to set the tone by negotiating a competitive salary to start with.  If the salary schedule is fixed by contract, then use your past professional experience to advance to a higher pay scale.  If you have been working satisfactorily for a year or more, be bold and propose a pay raise.  Finally, if there is a career ladder to higher positions, work toward promotion and advancement.

4. Practice Thrift.

Another way to achieve and maintain financial good health is to practice thrift.  This involves cutting unnecessary spending and cutting costs wherever you can.  We have all heard the saying that poor people are poor because they spend like they are rich; and, rich people are rich because they spend like they are poor.  While this is not a universal fact, it does offer some wisdom about living well within your means while building your financial resources.   So, try to refrain from the urge splurge on overpriced name brand items, dine multiple times a week at pricey restaurants,  spend money on friends, overuse your credit for items you do not need, or shop just for the sake of shopping.  Instead, invest in quality inexpensive items that are necessary for your survival, health, and well-being; and,  put away the rest of your earnings.

5. Do Not Spend Money That You Do Not Have.

The debt crisis has risen to exponential proportions in the 21st century.  This phenomenon is mostly due to the overuse and abuse of credit spending.   Almost anyone can obtain a credit card for personal use, including individuals with poor credit or little to no credit.  While credit is useful and necessary in many cases, its overuse will eventually lead to crippling financial stress in the short run and bankruptcy in the long run.     The point here is to control your spending.  The most important way to do this is to never spend money that you do not have and will not be able to obtain in the near future.  Arrange your lifestyle around the money that is currently in your possession.  And, as always, put away the rest.

6. Save As Much as You Can.

Saving is an important step to financial freedom.  It is the one behavior that will ultimately help to reduce financial worry.  Short-term savings will allow you to resolve emergency situations that require immediate access to money.  Longterm savings will allow you to build the kind of nest egg that will allow you to live out a more relaxed retirement, free of financial burdens.  While going through an exhaustive list of savings products and techniques would take us well beyond the scope of this article, readers are encouraged to start saving their money with guidance from a financial planner.

7. Invest Most of What You Save.

Saving is important, but it is not enough to obtain financial freedom.  It is equally important to invest most of what is saved.  Investing involves strategically distributing money with the purpose of expanding profit and resources by buying into shares, real property, business opportunities,  or commercial ventures.  The main purpose here is not to teach how to invest, but to highlight the importance of investing, as it may help earners to outpace inflation by significantly expanding financial resources given the timing and value of the investment opportunity.  Rare strongly encouraged to seek financial planning advice for specific investment strategies.

8. Create Multiple Streams of Income.

There is no reason to rely on only one source of income.  In fact, it is possible to earn additional income that does not involve exchanging time for money.  Most earners are aware that they can work multiple shifts or undertake additional part-time jobs in order to improve their earning potential.  However, this becomes more of a financial problem than a solution when it involves exchanging more hours in the day for income.  Here is the great news.  Most people have the capacity to supplement their current income with additional sources of passive income that does not involve working more hours and more days in the week.  Instead, with hard work up front, additional passive income streams can be earned by leveraging skills and talents that you already possess, and by sharing them with the world at a rate that pays you even while you are sleeping.  Consider the list of passive income ideas below:

1. Write a book that teaches specific skills or solves specific problems.
2. Start and monetize a blog for a specific target audience.
3. Create and monetize a youtube channel that shows valuable skills or ideas.
4. Use the blog or youtube channel to sell products, services,  or Ebooks.
5. Create an Ecommerce business that involves affiliate marketing.
6. Create and market an online course.
7. Purchase and rent out a property for profit.
8. Start a small business and train others to run the business in your absence.
9. Invest portions of your money into other small businesses for a percentage of the profit.
10. Produce content for other blogs and online media sources.

Please note that the ideas above likely require significant effort, which may or may not yield income returns.  Readers are encouraged to seek expert guidance before exploring any of these ideas.

9. Turn Any Skill, Hobby, or Talent Into a Business.

If you have a special skill, hobby, or talent, consider starting a business that utilizes those traits.  For example, if you are good at visual arts, you can become a freelance logo designer for a number of businesses.  An individual who is really good at cooking comfort food can create a business brand that includes a series of cookbooks, an advice column, a monetized blog, and a monetized youtube channel.  An early career attorney can take her skills beyond the courtroom and the law practice to provide organizational consultation or partner with business start-ups.  The point is any skill, hobby, or talent can be turned into lucrative business opportunities.  While this is easier said than done, the effort can be financially worthwhile and emotionally fulfilling.

10. Believe That You are Financially Free.

Financial freedom neither begins in your wallet nor in your account.   It starts in with your willful belief that you will build the kind of wealth that will set you free.    This, of course, can only be realized with positive action toward building wealth, perhaps using the tips above.  Nevertheless, without believing in yourself, your abilities, your ideas, and your effort, financial freedom will elude you.  So, you have to believe it to receive it.

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Photo by Vladimir Solomyani from Unsplash