What better time to start debunking myths than the Summertime! I love a good financial success myth but what I love even more is debunking it! It became a myth because enough people believed it to swear by it and use it, mainly as an excuse, as to why they would never become financially successful! Like every belief we have, be it financial or other, if we believe it, our brain is going to show us evidence that we are right. That in itself is a whole new blog post! So, for now, let’s tackle the first one:
“You need a high income to become financially successful.”
While having a higher income can certainly make it easier to build wealth, it’s not the only determinant of financial success. Many people with substantial incomes struggle with financial issues because of poor money management habits or excessive spending. By the way, I have a whole course on getting yourself in the right Mindset to completely crash your financial goals!!! (Just saying ,😉 ! On the other hand, individuals with moderate incomes can achieve financial success through smart financial planning and disciplined money practices. This article is to show you how you too can achieve this if you are not in the higher bracket of the payroll scale.
So, what can you actually do to start moving the needle the right way? Well, let’s see:
- Create a budget: Budgeting is crucial regardless of your income level, budgeting is the foundation of financial success. Knowing where your money goes and creating a plan for saving and investing can lead to positive financial outcomes.
- Control spending habits: It’s not about how much you make; it’s about how much you keep. People with high incomes who spend beyond their means will end up in financial trouble. Prioritizing needs over wants and practicing frugality can help you save and invest wisely. Which brings us to point number
- Invest wisely: Making your money work for you through investments can significantly impact your financial situation. Even if you have a lower income, starting early and consistently investing in assets that align with your risk tolerance and goals can yield significant returns over time.
- Focus on financial education: This is my personal pet peeve! In a world where everything is literally at our fingertips, where we can choose our pronouns, we still say “No one taught me about money… it’s not my fault! I didn’t know!” It is your fault, you can look it up no one needs to tell you! Take responsibility… but I digress! Increasing your financial literacy is crucial, regardless of your income. Learning about personal finance, investing, and money management empowers you to make informed decisions, optimize your finances, and identify opportunities to grow your wealth.
- Multiple streams of income: While a high salary is advantageous, diversifying your income sources can really increase your financial stability and growth. Side hustles, passive income streams, or entrepreneurship can supplement your primary income and help you achieve your financial goals faster.
I just want to touch on this last point, yes, multiple streams of income are important and a great way to increase your income. However, there are a lot of people selling you on making thousands of dollars in your first week of writing a blog, that will not happen. Be mindful that you need to put in the work and you have to be patient. It’s not a get rich quick scheme, there’s no scheme. You do the work and you get compensation for it! Do your research and learn from those that are actually making money with these side hustles, not those that start thier videos or posts with “there are people making six figures…”.
I hope I was clear in this post that a high income is not the only factor, or the most important factor, for financial success. It’s how you manage and apply the money you earn that makes a significant difference. Building good financial habits, controlling spending, investing wisely, and continuously educating yourself about personal finance while leveraging your money making skills are essential steps towards financial security and prosperity.
You got this!
