Get Back in Financial Form With the Half Your Income Exercise
We all calm down a little with our finances from time to time. Maybe lifestyle-related inflation will start, maybe you’ve lost sight of your goals, or maybe you’re just too lazy to budget. If you are ready to get back into financial form, try this exercise.
If you are on track to meet your financial goals and are satisfied with your spending plan, that’s great. However, most of us get to the point where we just stop trying to reach our financial goals because we feel comfortable, the process is getting old, or we just don’t realize we can do more.
Guest writer for Get Rich Slowly, money writer Adam Baker offers a helpful solution to growing your finances fast: Ask yourself what you would do if you earned half your income. He’s writing:
What would you do if, starting tomorrow, your income was immediately cut in half? In order to benefit from the question, it is important to leave the details aside. It doesn’t matter how or why it happened; instead, focus on what steps you would take if you were to live on half your income starting tomorrow. Most people would have to make drastic changes.
When you ask yourself this question, think of it as both cost and income. First, what would you do to save money?
… your first steps may include selling an extra car, canceling an expensive cable TV package, and cutting your grocery budget in half. In this situation, you have probably thought about areas of your budget that you are not spending as optimally as you would like. You can go ahead and try some of these options, or at least take steps to close the gap between your 100% income life and your 50% income life.
On the other side of the equation, ask yourself what would you do to recoup some of the lost income.
..Realistic options might include enrolling in a course (asking for help if needed), launching additional business, and / or looking for new clients or potential clients. Almost every time I think about options for doubling the income from a business, I find something I haven’t thought of before. Implementing these new ideas helped me a lot in generating new income (even if it doesn’t double right away)!
Your list could be anything from asking for a raise to a roommate . Once you’ve created this list, the goal is to see what options you have to save more or earn more. Are you ready to take action on everything you’ve listed to meet your financial goals? If so, come up with a plan and move forward.
Of course, you may already be doing your best, but this is your situation and you cannot add anything to either side of your list. However, we often assume that there is nothing more we can do when, in fact, there are more options than we think. Those who think they have more opportunities for financial growth should try this exercise. Check out Baker’s full post for more details.
A Simple Question To Raise Your Finances | Get rich slowly