What Income Looks Like
Most of us go through life working a job to get a regular paycheck. We call that our income. However, income can come in many ways, just ask the IRS (Internal Revenue Service in the USA).
Aside from whether you call it personal or business income, it can come from selling something, renting something, providing a service, construction, mining, growing food to sell, and the list goes on. You are only limited by your imagination.
We all consume or use the works of others. We buy food, furniture, fuel, vehicles, tools, household goods, etc. That is, it was available to buy with your income. Of course, that led to income for others.
Simply put, income can come from many sources. Will you limit your income only to a job? Our income potential is greatly enhanced when we can see what is possible beyond a job income.
Will You Limit Yourself?
Just like when adding knowledge and skills can add to job opportunities, the same effort can prepare you for self-employment opportunities. That can sometimes appear to be another job, only you are the boss and work to make a profit—net income, which is sales less expenses.
And, aside from adding income or cash flow to your financial life, the IRS allows other benefits to encourage self-employment. The IRS knows that small businesses are the backbone of our economy. Therefore, they want you to succeed so you can hire others, that will lead to more tax revenue!
What Benefits?
The IRS understands that your self-employment affects your personal life. You need your home as an office, your vehicle and fuel to transport you, your computer and internet to communicate and grow your business. Some of those things are allowed as business expenses. A tax advisor can tell you how much.
Some training related to your business activity can also be deducted, even if it helps you get a raise or find a better paycheck job (employment). That can be considered as a business expense and become tax deductible, reducing your taxable income.
The IRS allows business deductions because they want you to build a good cash flow to fund your business. You need good cash flow to have success. So, when you make money in your business concept, be sure to save what you can for future needs and other business opportunities!
Time Versus Value
Jim Rohn, noted, “We do not get paid for time. We get paid for the value we bring to the marketplace.” That goes for both employment and self-employment. That is why the boss wants you back at your workstation instead of having conversations around the water cooler! Your value is in the knowledge and skills you apply in your work, not the time you spend at the workplace.
So, make your time valuable to you. Invest in yourself and what you know and what you know how to do. You will be using time to add to your value. That becomes your value in the marketplace. The marketplace is anywhere others are willing to pay for your knowledge or skills and any product or service that comes from that knowledge.
Plan to add value to yourself and your future. Do what you need to do, yes. But what could you do to add value to what you can do tomorrow? Read, on purpose, to answer that question. Study what others do and how they do it. Find out how to learn what you want to know.
Work to Add Value to Work
Any good fortune that comes your way in the future will depend on you. Any good paying job will come from your preparation for that job. Your willingness to learn what you needed to know, your willingness to work to acquire that knowledge.
Most business opportunities take time to prepare for, including learning about what to offer, tools or equipment needed, funding to start, and the time to dedicate for success.
Like working on good health, where knowing what to eat, bad habits to break, and exercise to do for strength and endurance, if you do not discipline yourself to at least make the salad and exercise each day, you will not realize a lot of benefit.
Miracles happen when you add activity to your schedule!
Live Low to Save High
There is a smarter way to fund what you plan to do or buy than using credit. If anyone tells you different you need to check their connection to the bank or the credit card company.
It is simple. Live as though you were poor to accumulate enough to become rich.
For those of you who scoff at that, I am sure it is from the frustration of listening to your poor friends about how to manage your money. So, think on this, your money needs your plan. You must live with the results!
What you save is what you must have to take advantage of opportunities in your future. And those opportunities could lead to financial independence, even wealth. You must make saving a high priority to help secure your future well-being!
Plan to Add Value to Income
Since my goal is to help you build a better mindset for money, I must qualify the following statement:
“Adding more to your income will add more to your savings possibilities and will help you be ready for future opportunities.”
For most people, when they get a raise or a better-paying job, they will buy more stuff, newer stuff, to make their lives seem better, maybe easier. However, I will caution you for two reasons. First, that higher income may not last. When a business has a drop in sales, they must cut costs. And cutting people is the fastest way a manager can cut costs. You could lose your job. What then?
Second, spending limits saving. So, save first, and spend based on what is left. Like it or not, some things can wait to be purchased.
Make the Transition to Action
A plan requires you to reflect. Why is your life going the way it is? Can you do something to help things go better?
Regardless of your situation, you can change. And when you change everything else will change.
When you plan, you give yourself a direction to go each day.
Jim Rohn had some good marketing success and was successful at helping others with their marketing plans. I gathered the following few points he made in a speech to those who were working on their own success stories:
“If you want to get rich, start a rich plan. If you feel bad, start a feel-good plan. If you are not smart, start a smart plan. If you are a do-nothing person, start a doing plan. If you cannot start, start a start myself plan. You will go in the direction you plan to go!”
A Lap of Luxury
Opportunity or wealth may fall into your lap. If so, be thankful! And pray you do not waste this opportunity or blessing while others suffer hardship.
When wealth and opportunity come from hard work, disciplined study, and sacrifice and financial management to save and invest and limit spending to save for opportunities, then, it is appreciated greater and has a sense of stewardship attached to it.
Finding Income Is an Exercise
Finding income is important to your financial health. Finding the right kind of income options will enhance your income potential in the future.
This process is not easy. But it is worth it. (Per Jim Rohn).
Remember to exercise your mind daily. Plan to read the right books. Books that will help you be a better person, help you learn new skills, and open doors of new understanding of how the world works and what will make you valuable in it.
When you lose a job, you question your value in life. I know, I have been there. Regardless of why you find yourself unemployed, you need to resolve to be less dependent on your job and more dependent on yourself.
When you work to be able to make money from a “side hustle”, as some say, a way to be self-employed, never settle with just one option. There are many to choose from. I, personally, have mowed lawns, did landscaping, painted rooms and building exteriors, cleaned bathrooms, hauled trash to the dump, and the list goes on. Your limits are in your mind. Break down that wall!
Do the exercise needed for finding income!