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We all want to make more money. For many entrepreneurs, one of the principal reasons they got into entrepreneurship was to make more money than they could working for someone else, while doing so on their own terms. While that’s the dream, it’s not always the reality — at least not right away.
So, if you’re struggling to navigate inflation or experiencing challenges in your primary source of income, what can you do to protect your wealth and create more? We’ve got some suggestions.
1. Create an Investing Budget
Whether you get paid bi-weekly, monthly, or you have money trickling in from clients all the time, you should have a plan for that money. Before you go and spend it all, make sure you set aside a comfortable percentage for investing — and then invest right away.
Money that’s in the stock market is working for you more than it will in a savings or checking account, so it behooves you to invest what you can before you spend it on something else.
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2. Ask For More
The cost of living increases almost every year in the United States. So does your experience. Combine those two facts with the flexibility of entrepreneurship and the madness of inflation and nobody could blame you for asking for more.
Whether you’re working for someone else or you work for yourself, don’t feel sorry for wanting what you’re worth. No, you shouldn’t constantly pester a boss for raises, but don’t be afraid to ask for your pay to keep up with the cost of living. If they won’t meet you, go find another job — you don’t owe them anything.
As an entrepreneur, you have plenty of flexibility in how you price your goods or services. Don’t go so high that nobody will hire you but you may be surprised how much customers or clients are willing to pay, especially if you do something abstract like consulting. Most decision-makers don’t know what they’re supposed to pay for such services so it’s up to you to tell them.
3. Start a Side Hustle
Today, 45% of Americans are working side hustles. That’s an astounding number that screams, “Why aren’t you doing this, too!?” Hopefully, the reason is because you’re earning enough money from your primary occupation that you don’t need to work more.
If that’s not the case, however, it’s easier than ever to start a side hustle today. Businesses have accepted the gig economy as a great way to find quality labor that’s cheaper than hiring somebody full-time. Regardless of your skills, you can use platforms like Fiverr or Upwork to market yourself, make connections, and earn some extra money on the side.
4. Pay Off High-Interest Debt
While the stock market can grow your wealth, debt can chip away at it. Student loans, car loans, business loans, mortgages — these forms of debt could carry high interest rates that make it exceedingly difficult to save more money.
When you can pay down your debt, you can earmark more of your income for investing and saving. As much as possible, you should prioritize paying down debt quickly to free up your money.
5. Buy Property
One of the most important elements of wealth creation is finding ways to earn passive income. While real estate isn’t the only way to do it, it is one of the best and most proven. Becoming a landlord carries its own challenges and frustrations but if you can charge more for rent than you pay on the property’s mortgage every month, that’s just a smart way to earn more income. Plus, property almost always appreciates in value over time.
Of course, buying property isn’t in the cards for everyone. Today, however, the barriers to property ownership are lower than ever thanks to real estate investment platforms like Roofstock that create real estate investment trusts, allowing you to invest less to be a part-owner of a property and still earn rental incomes.
6. Live Within Your Means
Finally, while this point is obvious, it’s not always easy to live by. We live in a materialistic culture that constantly prompts us to buy, buy, buy. Well, don’t take the bait.
If you want to set yourself up for long-term prosperity, you need to maximize every dollar. That means reducing frivolous spending, maximizing your investment budget, and keeping your mandatory expenses under control.
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