2 Ways to Have More Money
"It seems like it's going to take so long to have more money."
I heard this from one of my recurring clients a few weeks ago. We had one of our quarterly meetings where we caught up on her progress. She had already eliminated her debt, set up her Roth IRA, increased her 401k contribution, and established savings goals. From an outsider's perspective, she was doing very well and clearly on the path to financial success.
However, she had been at the same job for a few years, had stalled in the amount of money she was able to make, and stated that she was overspending to compensate for her boredom.
She wanted to accelerate her finances but just didn't seem to know how.
I told her that she has two options when it comes to having more:
Make More Money
Spend Less Money
I explained to her that there is not a magical formula when it comes to having more. The easiest way to have more money is to make more money. She was spending money out of boredom but could have actually been spending that time creating a venture of her own, a side hustle, or picking up an extra job. She liked her healthcare, 401k match, and the security of her job. One thing she didn't like is that she had an earning cap.
This is the employee's conundrum.
So, we created a new goal for her. Instead of spending money out of boredom on the weekend, she was going to be earning it. She decided to work in retail and save extra cash she was making towards a fund for buying her first home. She knew that she didn't want to be an entrepreneur, but just wanted to make more money. This was her perfect solution, and she has already saved a few hundred dollars towards her new home!
What is your perfect financial solution?