In Making a Living Without a Job, Barbara J. Winter described the idea of Multiple Profit Centers: “I think of creating profit centers,” she wrote, “as being akin to what a juggler does when spinning plates on top of sticks. The juggler walks out on the stage with ten sticks and ten plates but doesn’t begin spinning them all at once. Methodically, he or she positions the first plate on a stick and gets it into motion. Once done, the juggler moves on to the next, then the next, and so forth. Eventually, all ten of the plates are spinning away, each with its own momentum”

Creating multiple streams of income is key to sustain and secure your message. When one of the streams faces a hard time, others lift you up.

When it comes to creating multiple streams of income (or multiple profit centers as Barbara likes to call), people are divided into two groups:

1. Dominant Passion:

Those are people who have one dominant passion and would like to spend the rest of their lives pursuing that single passion.

Around this dominant passion may revolve several streams of income.

I belong to this category. I’m extremely passionate about the field of success and motivation. Now, I’ve three major streams of income: speaking, life purpose coaching and motivational information products … and I’m always looking out for more.

2. Passion Mix:

When you have several passions, which I call the passion mix, you can turn each one of them into a stand alone stream of income.

Think of Sir Richard Branson!

Beside success & motivation, I have a strong passion for Chess. I’ve not considered creating a profit center around it yet. However, if I do, I will belong to this category of people pursuing different unrelated passions.

The secret to making the idea of “multiple streams of income” successful is to follow the juggler example.

Start with one plate, get it into motion and then move on to another plate.

Don’t start everything all at once.

You’ve to focus all your efforts on starting and building momentum for your first business idea. Then, when it acquires the momentum that makes it stable enough, you move on to build your next business idea or stream of income.

Now, what possible streams of income can you create around your passions? Let’s continue the discussion in the comments section below.

Mohamed Tohami is a bestselling author and the creator of “The P.A.S. Technique: The World’s Easiest Way To Find Your Passion and Purpose In Life”. If you want to set your heart & soul free from the prison of the paycheck and discover how to proudly follow your passion, give a visit to his Transformational Motivation blog now.

When I consider the word wealthy I want to go far beyond the limited definition that relates purely to accumulation and comfort.

Wealth to me has a far much broader meaning that also includes the richness of friends, family, as well as opportunities.

So with that understanding let’s explore 21 of the finest attributes of the wealthy.

1. They Love What They Do

To be able to wake up each morning with a skip in your step. With a mind bursting with new and fresh ideas and clear plans, laid out the day before for the day ahead, is a joy. I have made it my personal pursuit throughout the years to align my work with my passion. Every day I breathe I now do what I love to do, and it has made the journey extremely worthwhile.

2. They Perform With A Touch Of Class

If you’re going to do a job then do it with excellence. Go beyond the call of duty. Do more than you’re asked. Under promise and over deliver. It really doesn’t take much to do better than expected. One real estate agent did it by simply providing some free pizza vouchers with every house purchase. Now the cook in that house, after a long day of heavy moving, never forgot that touch of class.

3. They Apply A Winning Attitude

There are two attitudes in a life – good or bad. To have a good attitude is to have a winning attitude. A good attitude approaches every challenge looking for solutions, not problems. A winning attitude is reflected in our speech. I have been working with a colleague to correct their speech. She would continually ask the question, ‘What’s wrong?’ as though something was always wrong. I’m pleased to report that with a little coaching she now asks, ‘What’s right?’ with a winning attitude.

4. They Go Beyond What Is Expected

What a pleasant surprise to see a job done that outstrips all expectation. I recall the time years ago, when a friend loaned us their car each weekend, because at that time we didn’t own our own. When it was delivered to us on Friday it was usually dirty. When we returned it on Sunday afternoon it was always returned in an immaculate condition and a full tank of petrol. The smiles received were a rich reward to us, and by the way – we weren’t walking for too much longer.

5. They Are Great Time Managers

I have a prioritized list of 6 major things I need to do each day in order to move my life and businesses forward. As I complete each task I cross it off. I do not stop until I complete each task. If I book a meeting with another person and they don’t show up after 15 minutes from the appointed meeting time I leave. I have learnt to say ‘no’ to those things that are not aligned to my personal goals. I rule my phone. It doesn’t rule me. This has everything to do with time and life management.

6. They Take Initiative

I don’t wait to be asked. I do the asking. Good things come to those who don’t wait. I make my own opportunities through positive and consistent action. This is initiative.

7. They Are Enthusiastic

Enthusiasm makes all the difference. At times I’m accused of being ‘over-the-top’ in the expression of my passion, especially when I’m talking about subjects that are dear to my heart. But I don’t care. I’d rather live one day overflowing with exuberance and enthusiasm than live a lifetime of deadly dull doldrums.

8. They Are Diligent

To be diligent is to have, or show care and conscientiousness in one’s works or duties. When I owned a cleaning company it was one of my clients who taught me to be diligent. She wiped her finger over the top of the light switches that we had failed to clean. From that day forward I always cleaned the top of every single light switch. And even to this day, many years later, when I come into a room, I will often find myself wiping my finger across the top of the light switch to do the ‘dust test’.

9. They Are Self-Disciplined

I have been in business for myself now for decades, and one of the key things that you have to develop when you’re in business for yourself is the practice of self-discipline. There is no one telling you what or what not to do. You are fully responsible, and that’s why even as I write this article I’m seated in one of my local coffee shops early in the morning, as is my self-disciplined habit, creating yet another piece of ‘magnificence’.

10. They Are Assertive

Those who are assertive have or show a confident and forceful personality. They will never allow themselves to be a doormat for others to walk on. They speak up for truth. They confront problems head on. They do not hide. They do not run. They show respect, but in return expect the same.

11. They Are Team Players

The wealthy understand that they cannot live a wealthy life by going alone. They recognize their strengths, but at the same time understand that their weaknesses need to be supported by those who are strong in those areas. The great joy of the wealthy is that they take others on their own wealth ride.

12. They Risk Doing Something Great

Risk is one of my middle names. My discovery? Risk won’t kill you. Actually, you are more likely to die not taking a risk than if you do choose to venture forth from the path taken by the ‘status quo’. But don’t simply risk doing something small. If you’re going to risk, then risk doing something great – something that will provide some lasting significance to your life and to the lives of others.

13. They Set The Bar In Competence

To be competent is to have the ability to do something successfully or efficiently. Whenever I have approached a new business opportunity or the acquirement of a new skillset, I have always made it my goal to become the very best in each endeavor. Not to just be a doer of the deed, but rather to become the expert or the leader in that field. Be a ’bar-raiser’  – not just one of the crowd.

14. They Establish & Preserve Organization

This is not about control. This is about order. This is about systems. This is about consistent results. This is about quality control. This is about efficiency and success through the power of organization. I organize my desk. I organize my car.  I organize my house. I organize my clothes. I organize my time and finances. I organize my life. Disorganization has no place in a wealthy life.

15. They Show Respect

Owning a cleaning business for three years taught me a lot about respect. I had some clients who failed to show that to me. We call it status. But the fact was that I was the one who got the money. I still respected them, and three years later sold them at a profit to someone else. Whenever I stay in a five star hotel you may notice me often leaving a thank you note for the cleaners. It’s all about showing respect.

16. They Are Clear Communicators

I tend to over-communicate. Why? Because communication is vital for clarity and accuracy of understanding. Say what you say and make it clear. As my business coach once taught me, ‘You get what you communicate.’ So if you’ve not been getting what you expected from your issued instructions then do a communication check up. It may not even be what you’re saying that needs adjustment. It may be how you’re saying it.

17. They Dress For Success

I’ve recently moved my office to my home. I’ve always wanted to work from home. No commuting except for my morning jaunt to the local cafes in my area to write. But then I return home and continue with my day’s tasks. But as far as my dress is concerned I still dress as if I am going to the office, or about to hold an important meeting. For as you dress so you think. Dress successfully and you will think successful and act successfully.

19. They Model Character

When I come into the company of others I am never moved by what they drive, where they live, or what they make in income. I listen to what they say, and I look for their character. This is the true nature of who they are, what they believe, how they treat others, and how they treat their partner and their children. The truly wealthy model character – good character.

20. They Are Committed To Constant Change

I have surrounded myself with people smarter than myself, and I take notes furiously because I am committed to constant change. Every new piece of technology released I investigate. Not all are adapted unless they add value to my life and businesses. But I investigate. I read. I study. I listen, because I want to be on the cutting edge of change – for there is only one thing in this day and age that is constant – change.

21. They Smile A Lot

Well why wouldn’t you when you’re wealthy? Inner wealth shines forth from your mouth in the shape of a big beaming smile.

So how many of these attributes are operating in your life – and could you add any more to this list?

Motivational Memo: To be healthy, wealthy and wise is to live a rich life.

Peter G. James Sinclair is the author of the Personal Success Blueprint, a free report you can download instantly to learn how you can unlock the secret to your own personal success. You can access the report from here – http://www.selfdevelopmentmastermind.com

If you’re wondering how you are supposed to save for a distant retirement when you’re struggling to pay off debt and make ends meet right now, you’re not alone. I think financial planning has failed a lot of people. The promise that if you work hard, save 10% of your income, invest in your 401(k), have a diversified investment allocation, and have an emergency fund everything will be fine has left a lot of people frustrated, discouraged, and even a little angry.

Early on in my career I did a financial plan for a client. I told him that all he had to do was to cut his cable bill, stop going on vacations, eliminate eating out, and bring a sack lunch to work every day, and that he may have enough to retire in 40 years. I said this with a straight face. He looked at me like I was a moron, and I was. I was basically saying, “Sacrifice your life for the next 40 years and then possibly you’ll have enough money saved that you can retire.” Not my finest moment, but then again, the traditional financial planning strategies didn’t provide me with any real solutions for his situation.

It was at this point I realized that when financial planning works, it works really well, but when it doesn’t, it’s a disaster. Here are five significant problems with traditional financial planning:

1. Sophie’s New Choice. Should I skimp and save for the next 40 years so I can then squeak by in retirement or should I enjoy life a little now and pray I hit the lottery when I retire? These are your options? The choice is as subtle as Vinny asking, “Would you like it in the head or the chest?”
2. Age-related issues. During your prime years — the years when you are the most vibrant and healthy, you’re working. But when you retire your health can begin to deteriorate so you can’t do all of the things you had planned. One retiree said, “Now that I’ve finally got the ability, I don’t have the mobility.”
3. Late start. The traditional approach just doesn’t work effectively if you start too late. If you’re 22 and diligently contributing 10% of your income to a 401(k), time is on your side. But if retirement is nearing and you don’t have anything saved, you’re not going to make it with traditional financial advice.
4. Retirement focused. Instead of looking at ways to improve life today, traditional financial planning focuses almost entirely on retirement, which could be 20, 30, or 40 years in the future. If you’re working overtime just to pay this month’s bills, you need solutions and strategies to live a richer life now, not 40 years from now.
5. Expense-only focus. Traditional financial planning focuses exclusively on just one side of the cash-flow equation — expenses. What can you reduce, eliminate, or postpone? There’s nothing wrong with reducing excess and unnecessary spending, but that’s where most traditional financial planners stop. You want to grow, expand, achieve, and experience, but traditional rules tell you that you need to reduce, contract, and limit your life.

Let’s be clear, I’m a big proponent of the traditional approach. I am a Certified Financial Planner and have a Master’s degree in Financial Services. I am the president of a financial planning firm and wrote a bestselling personal finance book based on the traditional approach. It can and does work. You should cover the basics and implement the traditional strategies to improve your finances, but if you run your own numbers and realize traditional financial planning can’t bridge the gap between where you are and where you want to be, you must do something more.

That “something more” is to increase your income to match your goals and dreams instead of shrinking your goals and dreams to fit your income. The solution is to shift your focus from just cutting expenses and saving money to learning how to make money by capitalizing on your free time. Whether you have two hours or just 20 minutes a night, you can boost your skills to increase your income at work or find clever ways to capitalize on your passion. It’s about leveraging your time to produce a bigger and better future for yourself. It’s about shifting your focus. It’s not just about finishing rich, it’s about living rich. Call it financial planning 2.0.

Are you ready to create more money, time, energy, and passion in your life? Learn how to live your best life now with these free resources:

Get the “Achieving Peak Performance” ebook and video now! (free for a limited time)

You can also join a community of passionate people at Richer Life who want to achieve more in life and at work. With your free membership, you can participate in conversations I have with experts, celebrities, authors, and thought leaders that are laser-focused on practical ways to drive more money, motivation, and meaning into your life. Take the first step toward creating a better life by joining Richer Life for free now!

Experts talk about the pros and cons of cash gifts, earned money, dole outs, and allowances. Parents wonder, which is right for their families. We may be missing the bigger picture. How our children get spending money is irrelevant. It’s what they learn about money that matters.

When we say we want our children to know about money, what do we mean? Do we mean we want them to know how-to make it and how-to spend it? If we teach them the why we make money and why we spend money, they will know how-to.

If money is the end, there will never be enough. If money is a means, there will be plenty.

It is not necessary for children to have their own money to learn to manage money. They are learning by everything we do – how we hide it, how we spend it, if we share it, and if we waste it. The subliminal message is transferred with the money.

When we give with conditions, pay the bills begrudgingly, or spend whimsically; when we harbor, hide, or compromise, we spread the fear.  When we give without conditions and spend from conscious choices, we spread the peace.  Living a fear-less life requires us to be a Peaceful Chief Financial Officer.

We are the CFOs of our money, our homes, and our businesses. There are two types of CFOs – the peaceful CFO and the paranoid CFO. The peaceful CFO manages money with love; the paranoid CFO manages money from fear.

Are you a peaceful CFO or a paranoid CFO? A peaceful CFO creates; a paranoid CFO hordes. This is not to say paranoids don’t have money. They may have lots of money. And, they are attached to it. They are always fearful they may lose it. A peaceful CFO knows there is plenty – enough to share and more to make.

When we are peaceful, it is always from our highest self. The peaceful mindset is “how can I expand the pie.”  When we are paranoid, our highest self can be compromised with fear. Paranoid fear can come in the form of achieving, conforming, and performing. The fear mindset is “there is a limited supply, and I must get my piece of the pie before it is all gone.”

As a Life Entrepreneur, conscious parent, and a business owner, I am teaching my children about money by means of practical life. We talk about money at home. We use real numbers and real life – how much we earn and how we get paid, what we spend it on, and what we save.

When my 4 year old wants a plastic gadget off the dollar isle, and I say no, I always include the why I say no.  It is more than, “No.”  I communicate that it is not about my power or just because. I simply state, “We don’t need that and we are here to only buy useful things.” It has never failed me; my children have never had a temper tantrum in a store over stuff.

Our oldest daughter has outgrown her bicycle. We were talking about getting a new bike and she asked how much one costs. When I told her, she thought for a moment and knew how many hours dad would work for her bike. I thought that was pretty cool. It doesn’t matter who pays for it. Our money is her money. She recognizes the value of life used in exchange to have something. She values time; she will never waste money.

I am training my children to be peaceful CFOs of their own money, lives, and businesses.

• Give and you shall receive.
• Create more; consume less.
• Don’t waste your resources.
• We have a life of plenty.

Michelle is a Life Entrepreneur:  wife, mother of 3, triathlete, and advocate of life, love, and learning.  One the side, she is a business owner, volunteer, and holds a Master of Social Work.  She writes about conscious parenting and simplified living at My Child’s Gardener.

findyourdamnpurpose.com or findyourdamnpurpose.com/short-course)

“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” (Mr. Micawber, in David Copperfield by Charles Dickens – 1850)

You already know this secret, really.

But maybe you don’t like to think about it.

If you’re trying to improve your financial situation, you need to either:

• Spend less
• Earn more

Even in the post-credit-crunch world, it’s all too easy for us to put items on a credit card. It’s all too easy to run up thousands of dollars of debt – with our spending constantly outstripping our earning.

I know how it feels. At times in my life, I’ve carried on spending and spending, hoping, like Mr. Micawber, that something will “turn up”. But eventually, I’ve had to cut back hard on my spending – knowing that the quick, temporary thrill of spending isn’t worth the months or years of misery that debt can lead to.

You can buy dozens of books on financial management (and I’m sure you’ll learn a lot along the way) – but ultimately, nothing can really help you unless you end up spending less than you’re earning.

Almost all of us can cut back a bit on our spending – and this is often easier than earning more.

Step 1: Figure Out Your Current Position

Maybe you try not to think too much about your spending – you just carry on, and hope for the best. Or maybe you’re already trying to cut down on what you spend – perhaps by eating out less often, or buying generic products rather than branded ones.

Either way, you’ll find it really helpful to figure out your current position. How much are you spending every month? And how much of that is essential (e.g. rent, electricity) verses non-essential (e.g. TV, broadband connection, gym membership)?

By keeping track of what you spend over a month or so, you’ll almost certainly find a few surprises. The first time I did this, I was really shocked by how much I could spend in a (quite sedate!) afternoon and evening out. Little costs – coffees, sandwiches, drinks – can really add up fast.

Step #2: Work Out What to Cut Back On

Once you’ve been tracking your spending for a month, start going through this list. Cut out things one by one until your spending is less than your monthly income:

• Anything which you didn’t need to buy and didn’t really want to buy. Can you cut this out altogether?
• Anything which you wanted but which didn’t really bring you all that much pleasure. Was it really worth $39.99 for that new computer game that you’ve barely played?
• Anything expensive which you needed but which you could cut back on. If your rent is really high, could you move? If you spent $200 on clothes, could you get something just as functional for $50?

I wouldn’t recommend trying to cut out everything but the bare essentials – there’s nothing wrong with spending money on things which you enjoy. The trick is to stick to a few purchases which you really want, rather than chucking cash away on stuff which doesn’t matter to you.

Step #3: Create a Budget

I don’t believe that a budget needs to be fiddly or complicated. All you need to do is work out what you should be spending in different categories. Some costs will be fixed (e.g. rent, and some bills) – others will fluctuate.

You might want to use an envelope system: take out cash each week for your variable costs, and divide it into envelopes for:

• Groceries
• Household supplies
• Entertainment / eating out

…and so on.

You can only spend the money in that envelope – leave your cards at home. You can carry money over to the next week (or month) or even transfer it between envelopes – but you can’t go over your total budget limit.

Step #4: Take Care of the Money You Save

If you’re in debt, you can put your savings towards paying it off. It’s also worth considering an emergency fund – sudden, unexpected expenses do crop up from time to time, often at the worst possible moment. If you’ve got $500 or $1,000 tucked away in the bank, you can cope with emergencies without having to rely on credit.

If you’re not in debt and have a healthy emergency fund, make sure you put your savings into a safe place, like a separate bank account. There’s not much point keeping a budget and watching your spending if you end up blowing it all at the end of the month.

Remember – the one true secret of financial happiness is spend less than you earn.

How could you start doing that this week? (And if you’re managing your finances well, we’d love to hear your tips in the comments!)

Don’t Forget To SIGN UP for the PTB Newsletter!

Related Articles:

Time is All We Have: 3 Ways To Increase The  Return On Investment

How To Find Time For New Habits

I’ve been dropping into my favorite coffee shop for years. Then, amid the buzz over the economy and what a waste of money my lattes were, I stopped. Afterward, I found that while passing that coffee shop I missed the smell, the people, the “me time.” This combined with my inferior ability to make a cup of Joe made me realize this experiment was turning into a latte nonsense.

We often hear about what we can’t and shouldn’t do. But modern psychology again and again shows us that it’s not all black and white. A little splurge can be good for you; just sitting somewhere for a moment in thought isn’t a waste of time. Even what we know about caffeine has changed. Here are some reasons skipping that latte actually could be bad for your well being.

The Savoring Truth

Stopping into the coffee shop was a pleasurable way to start my day. Now that the world has dubbed it an ill-advised thing to do, I even stand to gain more pleasure from it, according to Australian researchers. In a study for Weight Watchers reported in the Daily Mail, they found that those who indulge experience bouts of stress relief and feelings of happiness. Watching reality TV, an impulse buy, skipping the gym…all these things can bring on temporary feelings of happiness and stress relief. I don’t recommend you lay at home all day watching The Bachelor and shopping on eBay, but there is something to be said about a brief mood boost from a simple pleasure.

How many work issues could you resolve just by pondering them over coffee? According to experts at Children’s Hospital Boston, a lot. Self-reflection not only helps you, it can help you better communicate with co-workers. “Sharing reflections with other staff members can help develop more effective strategies, with the added benefit of working as a team,” the researchers reported. “These are all-important ingredients for sound decision-making, staff skill development, appropriate service delivery, and effective staff communication.”

So, instead of carrying a grudge for someone who’s grinding on your nerves, skip away for a latte. Imaging the damage that could be spared from an activity the world has shunned as an expensive, fattening waste of time.

Your Friend the Coffee Bean

Being too isolated could make you sick, according to psychologist Martha K. McClintock of the University of Chicago. In her study on rodents, published in Proceedings of the National Academy of Sciences, she found that social isolation affects the longevity of rats. “Isolation led to a higher production of a stress hormone, corticosterone, among rats that were kept
alone and subjected to the disturbances of colony life,” the report indicates. “Additionally, the isolated rats took longer to recover from a stressful situation than rats that lived together in small groups. “This level of stress and its duration made the solo rats “prone to malignancy in late-middle age,” researchers reported.

When you frequent a certain haunt, you have the opportunity to make friends with the staff and the regulars. Not only is this a fantastic networking tool, it just feels good to walk into a place every day and see people you know (cue the Cheers theme).

A Drop of Financial Advice

So how bad is it to spend money on that morning latte? Let’s just say you purchase a $6 latte five days a week on the way to work. That’s $30 a week, on par with treating your friend to lunch. Why is treating your friend to lunch not guilt-inducing, but a morning latte is?

According to Suze Orman, you shouldn’t go too crazy on restricting yourself during a budget makeover or it could lead to sabotage. “Don’t try to give up all your favorite things at once. If you go cold turkey, you will explode,” she said in an article for Yahoo! Shine.

The Coffee Cure

Coffee is the devil? It makes you nervous, causes insomnia and will make your taxes double? Let’s turn this argument on its head and at least show the benefits of our friend Joe. For example, WebMD reports that coffee drinkers are less likely to develop Type 2 diabetes, Parkinson’s disease and dementia. Coffee drinkers also have fewer instances of certain cancers, strokes, and heart arrhythmia. Caffeine makes pain relievers 40% more effective in treating headaches. And let’s not forget the other component to a latte – milk. We all know it builds strong bones, but it also may fend off certain cancers.

Let it Percolate

Sure, we’ve all seen the pitfalls of spending beyond our means or having a caffeine crash. But doesn’t it stand to reason that the more we deny ourselves the more we stand to lose in the long run? We deserve life’s little pleasures, and science says we need it.

Brendan Cruickshank (Vice President of Client Services) – Brendan is a veteran of the online job search and recruiting industry, having spent the past 8 years in senior client services roles with major sites like Juju.com and JobsInTheMoney.com. He is quoted regularly as an expert in employment and jobs trends in major media outlets like the Washington Post, US News & World Report, and Forbes and has spoken at recruiting industry events such as Onrec and Kennedy Information’s Corporate Recruiting Conference.

Let’s face it; many people would love to be rich. Few people wouldn’t want to jet set around the world traveling, attend the most coveted premieres, drive their dream cars, lavish gifts upon their love ones, etc. However, there is limited value in even thinking about riches until you can become and stay financially solvent. Solvency isn’t about income. No matter whether you make $40,000 a year or $400,000 a year, you can still be broke. Solvency is simply your ability to meet your entire financial obligations with some money to spare. It is the degree to which your current assets exceed your current liabilities.

Solvency exists on a continuum. For example, some define their ability to meet obligations as being able to afford their credit cards, student loans, and car payments. Nonetheless, these people are generally a lot less solvent than someone who is debt-free, has a sizable emergency fund, is consistently investing, and can afford some fun. These two extremes differ profoundly but the financial vulnerability of the former scenario may only become evident during a time of financial adversity. While a great starting point, having just enough to pay ones bills today typically doesn’t provide enough of a buffer during financial crisis. As nearly 61% live from paycheck to paycheck, lack of solvency has placed many in a very risky position. If you haven’t structured your finances to decrease your economic exposure, your solvency may be very fleeting! It is imperative to build long-term financial solvency, so let’s discuss why.

1) Job Security is an Illusion

No amount of experience, natural talent, or education can guarantee that you will have a job tomorrow. Thus, your only job security is your ability to get another job. It is critical to recognize the precarious position insolvent wage-earners are in. Any employee is constantly interviewing for his or her job: every single day! Use this as a motivator to make wise but sometimes painful financial decisions. It’s not about fairness, or even initial comfort, as much as it is doing what’s necessary to put your family in the best financial position. This may mean delaying or even foregoing some fun on occasion, especially while becoming solvent. For example, if the only way you can have such fun is by counting on money that you have yet to earn, then perhaps the purchases are beyond your budget at this point. Remember, future paychecks are not promised, and believing otherwise is typically evidence of denial.

2) Life Happens

Regardless of whether it is right or wrong, an uncomfortable reality is that money influences many of life’s decisions. It affects things such as whether we choose to work a job or start a business, where we live, how much we invest, and sometimes even who we marry. Additionally, the one thing that we can count on in life is change. I recall a situation where a seemingly insignificant clerical error caused six consecutive paychecks to be missed over a three month period. Being solvent in that situation made the difference between going into debt and thriving. Also, while I was paying off my debts years ago, my neighborhood HOA decided that it was time to replace the roofs. Although I had no problems with my property, we all had to fork over a sizable chunk of money unexpectedly. Although I was displeased, especially with the timing, I wrote the check and moved on.

Regardless of whether you want to have children, go back to school, or capitalize on unique business opportunities, you don’t necessarily have to derail your finances because of transient nature of life. Having long-term solvency decreases your financial risks because you have more resources available to you. Thus, when life happens, you’ll be ready.

3) Solvency is the First Step Towards Independence

The Rat Race refers to a pattern of behavior where we work for a living but barely make any progress financially. It’s actually a misnomer because even rats have more sense than to stay in this ridiculous model. There’s nothing wrong with having a job, but depending solely on a job for your financial provision is a very risky proposition (see Job Security Is an Illusion above). Do you long to break free from your golden (or copper) handcuffs? Then, consider that long–term solvency lays a necessary foundation to pursue independence. Financial solvency combined with consistent investing and/or running a profitable business places one in an enviable economic position where he is no longer dependant on earned income (from a single employer) for his financial provision. In short, solvency can be an invaluable foundation to your wealth plan. Embrace it!

4) Solvency is Honorable

Financial solvency can be a reflection of your sense of responsibility. True financial responsibility means you can afford to pay all of your bills in timely manner. I mention this not to place those who face hardship under condemnation. However, it is evident that some people never truly take ownership of their finances and how their decisions affect their finances. Some have incomes adequate to meet their financial obligations and invest for the future yet instead choose to spend it irresponsibly. Have you ever met someone who wears brand new tennis shoes but can not afford food or those who take vacations but cannot afford clothes and school supplies for their children? Unfortunately, financial education is often not taught, and sometimes we just prioritize badly. Nonetheless, there is real honor in financial solvency, as it indicates that maintaining your good name by respecting your commitments transcends all the other things that you could be spending your money on. Making strides towards achieving solvency reflects maturity that goes well-beyond the financial sphere.
Thus, the next time you dream a little about your financial future consider dreaming of being solvent. If you have a reasonable income and expenses, not only is solvency totally achievable, but you will likely become solvent before you become rich anyway.

Pursue solvency today, and you’ll be in a better position tomorrow

About the Author: I’m Roshawn Watson, and I write at Watson Inc on eliminating debt, investing money, and building wealth. Get my free eBook Your Foundation to Wealth by signing up for my email updates (no spam I promise). Get my RSS feed and connect with me on Twitter @roshawnwatson too.

Whether you’re deep in debt or just having a few financial hiccups, it’s almost certainly the case that you’re spending more than you’re making.

A lot of personal finance writers will advise you to cut your expenditure. Eat out less often, downgrade your cable package, stop buying pricy coffees, and so on. There’s a strong focus on getting rid of unnecessary, day-to-day spending – sometimes dubbed “the Latte Factor” (a term coined by financial adviser David Bach). Wise Geek explains it like this:

The Latte Factor® is a euphemistic label for all that extra money we spend daily on nonessentials such as candy, bottled water, doughnuts, muffins, soda, cigarettes, magazines, newspapers, and yes, lattes.

It’s good advice, as far as it goes. Daily amounts do add up fast, and by cutting out a regular “nonessential” you could probably save at least $50 each month.

But however much you cut out the fat of your spending, you’re going to pretty quickly hit a wall…

You Can’t Go That Low

All of us have certain fixed expenses. Typically, these will include:

• Rent or mortgage
• Groceries
• Utilities bills (water, gas, electric, broadband…)
• Travel to work/school
• Clothes, personal hygiene products, etc.

It is certainly possible to spend very little by living in a radically different way – moving in with parents, for instance, or becoming a freegan. But you might well feel that you don’t want that sort of lifestyle.

So, however much you cut down on all the little luxuries of life, a big chunk of your paycheck will still be going on costs which you have to meet.

Employed or Self-Employed?

When we’re trying to improve our financial situation, most of us focus first on cutting our spending because that’s more within our control. However, we all have some influence over our income.

If you’re traditionally employed – paid a salary or an hourly rate by your boss – then there are a couple of straightforward ways to increase your income. You could ask for a raise, work overtime, or switch to a different job which pays more.

If you’re self-employed, it gets easier. Increasing your income is often just a matter of working more hours – or increasing your rates. You may well find that, when trying to improve your financial situation, spending less means earning less. For instance, if you’re cooking from scratch rather than eating out (and saving $5 per meal), is that really worth the hour of lost work time?

It’s a very rough rule of thumb, but if you’re employed and you’re spending more than you’re making, look first at cutting your spending. If you’re self-employed, look first at how you can improve your income.

Increasing Your Income Alongside a Day Job

Even though the 9-5 worker may be becoming a thing of the past, most people still have day jobs. So how can you increase your income while working full time?

A few great ways are:

• Take on a Saturday job. You might only do it for a few months, but it could be enough to plug the hole in your budget and get you back on track.
• Freelance. You can use your professional skills as a contractor, not just as an employee. For instance, if you work for a magazine as a graphic designer, you could set up a simple website offering freelance graphic design. This might mean spending an hour each weeknight, or a few hours at the weekend.
• Sell stuff on ebay. Almost anything – clothes, books, DVDs, electronics – can be sold second-hand. Some items will be worth more than others, but if you’re not using it, anything is profit.
• Start an online business. You could sell crafts on Etsy, sell webhosting through a large web host, sell digital products like ebooks and audio books … almost anything!

If you know you’re wasting money on things which you don’t need and which don’t really bring you any pleasure, then by all means cut down your spending. But if you feel there’s no slack left in your budget, start looking at ways to increase your income too.

Got an income-generating idea to add? Share it with us in the comments.

Don’t Forget To SIGN UP for the PTB Newsletter!

Related Articles:

Time is All We Have: 3 Ways To Increase The  Return On Investment

How To Find Time For New Habits

Like most people, my life has been spent balancing my yearning for laziness—tropical islands with fruit-flavored beverages figure heavily in my life goals—with a burning desire to achieve great things, like invent a robotic Bumble Bee. The answer has been finding ways to achieve great things, using as little work as possible. Fortunately, there’s ample room for finding ways to work less and get more done.

Here are nine simple things I’ve learned over the years about how to get results without working too hard. Indeed, there are nine steps because ten steps would be way too much work). If you’re still working towards your own tropical island paradise, I hope these put you speedily—and lazily—on your way.

Step 1. Live on purpose. Stop occasionally and ask, “Why am I doing what I’m doing?” Make sure your tasks align with your higher-level goals. If you’re emailing a friend, ask “Why?” If you’re doing it because you want connection, maybe picking up the phone is a better choice.

Step 2: Stop procrastinating. Easy to say, hard to do. Get a procrastination buddy. Every couple of weeks, declare an “Action day.” Check in hourly for just 2-3 minutes. Make sure you’re each making progress on what you’ve been procrastinating. (I hold free action days, as well. You can sign up at http://www.SteverRobbins.com/actiondays).

Step 3: Conquer your technology. If you’re reading this, you’re probably as addicted to technology as I am. Divorce your technology! Turn off your PDA, and move your computer away from your main workspace. Don’t think of your computer as a place to hang out; use it like a tool, for specific tasks. Get it out when you need it, and put it away when you’re done.

Step 4: Cultivate focus. Declare a part of your day (or a whole day) to be a focus time. Turn off email, unplug your phone, and close your office door. Then defer any non-life-threatening interruptions to a time after your focus time.

Step 5: Stay organized (mentally as well as physically). Organized doesn’t mean neat; it just means that you know where things are when you need them. If you have piles of “this needs a home” stuff in your office, stop and give it a home, even if that home is a pile somewhere. Just make it official, so when you need it something, you know where it is.

Step 6: Don’t waste time. Re-making decisions is a hidden way we waste time. For repeated decisions, pre-decide by creating an “Absolute Yes” list that spells out an automatic “Yes.” For example, “we’ll restock supplies with any pen that has a gel ink and .07mm tip will be suitable.” When it’s time to order supplies, you just grab the first pen that meets the specs.

Step 7: Optimize! Re-examine how you work every now and then. Ask how you can improve your own work habits. If you notice your mind is clearer in the morning, schedule your deep-thought activities before noon. If you notice afternoon is best for you, make that your prime time.

Step 8: Build stronger relationships. Ask for help! When you’re trying to reach a Huge Honkin’ Goal, ask friends and colleagues for help. Build the relationship in advance, however, by being there for them starting today.

Step 9: Leverage. Be on the lookout for ways to get big results from little work. If you can reuse content, create form letters that can be quickly customized, or help large numbers of people by doing work once that can be given to all of them, you’ll be able to reap oversized results from a  single effort.

These nine steps are broad categories. You can implement each one in many different ways. You owe it to yourself to get the most out of the work you put in; notice how you do work, and use these principles—and any others you know!—to rearrange your life so you work less and do more.

Stever Robbins (http://www.SteverRobbins.com) is a serial entrepreneur, the author of Get-it-Done Guy’s 9 Steps to Work Less and Do More (http://www.WorkLessAndDoMore.com), host of the #1 iTunes business podcast The Get-it-Done Guy, and an adjunct lecturer at Babson College. He is currently working on his 10th startup.

Don’t Forget To Follow PickTheBrain on Twitter!

Related Articles:

10 Secrets To Success

The Language of Success

In today’s economy, everyone is looking for ways to stretch their dollar. There are a lot of minimalism strategies out there such as giving up that morning latte, brown bagging it a couple times a week, and even trading in your car for a bike.  Here are three ways that you might not have even thought about, that could put a lot more in your pocket than skipping your coffee break!

Home Refinance
Interest rates are lower today than they have been in a long time.  It might be time to take a look at your mortgage and see if a refinance would make sense.  Even if your rate is already low, in the 5% or 6% range, with rates now in the low fours, you could shave a significant amount off of your monthly payment.  What if your payment is OK where it is?  Why not take a look at dropping your loan from a 30 year loan to a 15 year loan.  Your payment might stay pretty close to the same per month, but you will end up saving a huge amount of money in interest over the life of the loan!

Car Refinance
This is another strategy, but one you don’t hear a whole lot about.  Interest rates are low right now on cars as well.  You might be able to save some money by refinancing a car or two.  This is not typically an item that is thought to be refinanced, but with the rates as low as they are, it couldn’t hurt!

Insurance Checkup
When was the last time you looked at your insurance?  If you are like most people, it was when you bought it.  Maybe it is time to take another look.  You might be able to qualify for some discounts now based on your age, driving record, or home improvements that you didn’t qualify for when you bought the insurance.  You might realize that you have never used that towing or rental rider on your car insurance, and now have money in savings to take car of those if they happen.  While you are at it, you should also review your life insurance to make sure you have adequate coverage there also.
There you have it, three ways you could potentially put hundreds of dollars extra into your pocket each month, and you didn’t even have to look silly riding a bike in a suit to do it!

When he is not flying around the world securing complex computing systems, Sean Mathena runs Find Your Peak where he helps people to achieve peak performance in every area of their life.
Let him help you improve your life by visiting http://www.findyourpeak.com. You can also find him on Twitter @findyourpeak and Facebook by searching for Find Your Peak!

Don’t Forget To Follow PickTheBrain on Twitter!

Related Articles:

Time is All We Have: 3 Ways To Increase The  Return On Investment

How To Find Time For New Habits