Want more money? It’s all up to you
OPINION: Holidays are a great time to re-evaluate life in general, to set new goals, and to think about what needs to be done differently.
The prospect of returning to the daily grind of the same old job is too much for some to bear and recruiters will tell you that February is a busy month.
Perhaps you are concerned about work-life balance. You may feel stuck in a rut, or you may have a burning desire to set up your own business.
While the start of a new year can be a trigger for a rethink, there are other triggers, such as the end of a relationship, the birth of a child, or a financial catastrophe, that demand a different approach to life.
Whether the trigger is good or bad, a thorough re-evaluation can bring about positive life changes.
LIZ KOH
Inevitably, changing your life has financial implications. As far as possible, it is important to rise above financial constraints, and to think creatively about how you might find the resources to live the life you want.
If you are feeling stuck in the same old patterns, or in a dire situation with seemingly no way out, fundamental change may be required to get onto a different path. Inevitably, that means taking a risk to do things differently without knowing whether you will achieve the outcome you are looking for.
Make a fresh start by asking yourself searching questions.
What opportunities do you have to create more income by changing your job, retraining, setting up a part-time business from home, or simply asking for a pay rise? If you need more income, it’s up to you to find ways to get it.
Always keep an eye out for opportunities and know what you are worth in the job market. Can you use your assets in a different way – by buying a cheaper house, taking in a boarder, or selling unnecessary possessions to provide a lump sum or income?
There are two types of assets: lifestyle assets, such as your house and car, which provide quality of life; and investment assets, which produce a financial return. By shifting the balance from lifestyle assets to investment assets your wealth should grow more quickly.
Can you collaborate with other people to achieve your goals – for example, by setting up a business or purchasing an investment property? Collaboration with others allows you access to more financial resources, knowledge and experience while reducing your financial risk.
Can you use time or money resources of others (friends, family or your bank) to help set you on a different path? If your own resources are limited, use the power of leverage. Leverage is borrowing from others to invest with the expectation that the investment return will be greater than the cost of interest. You can leverage time as well as money, for example by paying others to do work for you or by bartering your time. Before you embark on any significant change, make sure you do your homework.
Understand the financial implications of the changes you are making. If you are thinking of borrowing money to invest or set up a business, do some forward projections of what your income and expenses will be.
Get yourself into a financially stable position before you borrow money or make big changes. That means getting rid of any shortterm debt and having a solid emergency fund in case things don’t go according to plan. Have a support team around you to help guide you and provide knowledge or skills that you don’t have.
You are more likely to succeed if you have a clear vision of how you want your life to be and make lots of small steps towards your goals rather than trying to get there with a bang.
Every minute, hour and day can only be used once, so don’t
Know what you are worth in the job market.
❚ Liz Koh is an authorised financial adviser and author of Your Money Personality: Unlock the Secret to a Rich and Happy Life, Awa Press. The advice here does not constitute specific advice to any person. A disclosure statement can be obtained on 0800 273 847.