For many of us, money is tight at the moment. Perhaps you’ve got a friend in need of support, or you want to contribute to charity … but you just don’t have any cash to spare.
Thankfully, money isn’t the only thing that you can give. In fact, it may not even be the most useful. Just think about these seven possibilities instead:

#1: Time

However rich or poor you are, you’ve got 24 hours in every day and seven days in every week.

Can you give an hour or two of time to someone who really needs it? That might mean:

• Taking care of a friend’s kids so she can have a breather
• Volunteering for a local charity
• Helping out at a community event
• Visiting a friend or neighbor in hospital
• Listening to a relative who needs to talk

#2: Skills

You’ve got a set of useful skills, whether or not you realize it. Instead of giving money, look for ways to give practical help. In some cases, your skills could save someone spending a lot of money on making mistakes or hiring someone to do things for them.

Perhaps you could help with:

• Teaching a young relative how to cook simple meals
• Editing a friend’s résumé
• Designing a logo for a friend’s new business
• Driving an elderly neighbor to the store

#3: Encouragement

Think of a time in your life when someone’s encouragement made all the difference. Perhaps you weren’t sure whether or not to apply for college, but a teacher or relative supported you. Maybe you were feeling frazzled as a new parent, but friends rallied round.

You don’t need any special skills to encourage someone, or even much time. A few kind words, or a simple note, could make a huge difference.

#4: Physical Items

Do you own any tools or equipment that you could give or lend to someone who needs them? For instance, instead of keeping old computers or monitors cluttering up your home, try looking for a local charity or a neighbor who’d be glad of them.

Most areas have a local Freecycle group where you can list any unwanted possessions. When you do that, you not only get to clear some clutter, you also get to do someone a good turn.

#5: Information

Perhaps you know a lot about a particular topic. You might have shelves full of books to lend out, or a bunch of great blog posts bookmarked on your computer. Friends and relatives may be pursuing big goals – but they might not know where to turn for advice and information.

Look out for opportunities to share useful information: that might be in your community, in your workplace, or even within your family.

Can you think of any more items to add to this list? Share them with us in the comments…

Success. It’s something that most of us want in our lives. We might have a hazy picture of what it looks like:

• “Lots” of money
• A jet-setting lifestyle
• A great relationship
• Achieving a particular status within a career

The problem is, none of these things are easy (or even possible) to achieve. How much money is “lots”? What counts as a “great” relationship? If you chase vague definitions of success, you’re never going to be satisfied.

Plus, you might well achieve “success” in the eyes of the world … only to find that it seems hollow and empty to you.

Don’t Follow Someone Else’s Idea of “Success”

We’ve all got different values and motivations. Some people are content to work in a tedious job because it carries a good paycheck. Others would prefer to work at something creative and fulfilling (even though that means living on ramen noodles). Neither path is objectively “right” – they could each be perfect for different individuals.

It’s up to you to decide what success means in your life. Don’t get stuck following someone else’s path. For you, success could be:

• Never having to worry about money (note: this isn’t necessarily the same as “being rich”!)
• Being healthy and fit
• Playing a vital role within your family (whether that’s as a parent, sibling or child)
• Going back to college and getting a degree
• Downsizing to a home in a rural area
• Writing a book and having it published

… or almost anything!

Success doesn’t have to be about money or status.

Be Specific About Your Goals

When you’re deciding on your personal definition of success, make it as concrete as possible. If you simply want to “be rich” then you’ll struggle to ever feel like you’ve managed it. A better goal might be “make $100,000/year”.

Your success should be measurable. You might not be able to put a number to it, but look for some way to record your progress towards your goal. For instance, if your “success” means “being happy and content with my life” then you might want to journal about your thoughts and emotions regularly.

Be clear about what success means, and set specific targets to reach.

See Failure as a Step on the Path

You might be familiar with this Thomas Edison quote:

“I have not failed. I’ve just found 10,000 ways that won’t work.”

Often, failure is just part of the path to success. If you’re starting up your first business, you might fail: that’s nothing to be ashamed of. Your early failures pave the way to later success. Think back to being a child – you failed constantly while learning to walk, to talk, to read, to write… but those failures were necessary in order for you to finally succeed.

Failure is something you do, not something you are. Sure, you might fail – again and again – before you do succeed. But isn’t that better than never even trying?

What’s your personal definition of “success”? Share it with us in the comments below.

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‘Should I go for something I am passionate about or go for the money?’ I hear people ask this question a lot when looking for a new direction in life. The truth is, if they had a passion already they wouldn’t be asking the question.

The good thing is it is never too late to discover your passion. I am passionate about quite a few things and lucky to be able to work in those areas. I found that whilst working in a particular area, say film, I could go for days without eating properly and wouldn’t notice. I could go for days without sleep and not notice because I had that extra supply of adrenalin energy you get from doing what you enjoy. How do you know if you’ve found your passion? If circumstance doesn’t dictate how often you do it or how long you stick to it and if you would do it regardless of pay, there’s a good chance this is what you should be doing!

If you are at a crossroads and have asked yourself the question of passion or money, I humbly recommend going for passion every time. Below are 8 reasons why:

1. The days are longer if you are not passionate about what you are doing.
Ever been out on an enjoyable date and the hours flew by? Imagine getting paid to work for what seems like a few hours a day when in reality it is 8 or 9. That’s what passion does for you.

2. Working for money is tiring and soul destroying in the long run. Working with passion means never having trouble getting out of bed to get to work. Sure you could be physically tired occasionally, but when tired is coupled with a job that is tolerated for all the wrong reasons, everything is that much harder and much more of a drudge.

Now you might question how one can be expected to be fussy about one’s line of work in these tight budgeted times, or if you have responsibilities. The short answer is that these times won’t last. If it is not something you can change tomorrow you can start planning it so you are ready when the tide turns.
Very little that is worthwhile and sturdy was built on a whim in one day. Plan. Research.

3. The money will more than likely come anyway because you are effortlessly putting in the hours without even feeling them. I can vouch for that personally.

4. Should the money fade you will still have passion. This is a very privileged position. There are a lot of people who have not found their passion. With both money and passion together it will be mind blowing…I promise.

5. It is harder to be mis-directed from your path when you have passion. You get a stronger gut feeling with true passion. It comes from having studied an area of interest for a long time. You become more confident about yourself and your subject.

6. Not many people are fulfilled by money. I have spent a lot of time in very monied company. One thing that hung over me like a bad smell was a deep sense of dissatisfaction and disenchantment. If this was merely a few people I had met I would pass it off as coincidence. However this was not the case. On the other hand, my time with folks on the other end of the spectrum in various parts of the world was fairly rich and joyful. The trick is to have both! Financial satisfaction and fulfillment.

7. True passion comes from within and therefore is one of the few things that we have absolute control over. Even if we are careful with our own money, banks, governments or pension fund managers can do things on our behalf that diminishes our hard won cash. Only we can allow our passion to diminish or grow.

8. Passion is magical and intangible. Unlike money it cannot be stolen or taken. For example, the folks who go on talent shows and listen to a judge being negative about them and then emerge tearfully saying that their ‘career’ is all over never had true passion or undaunted desire in the first place.

The judge may even be right about their lack of sufficient natural talent, but that would never stop someone with drive and passion.
We could all probably name a few famous names who have more passionate drive than outstanding talent.

All in all go for passion. If you are not familiar with your passion yet, keep looking. You will know when you find it. You can monetize your passion, you cannot ‘passionize’ or impassion your money. In other words, your passion can earn you money, but your money will never earn you passion.

Pea writes for Simple Humble – a website celebrating simplicity and beautiful, simple things.

Photo credit: Edward Dullard

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

How To Find Time For New Habits

This post is for anyone who is trying to do artistic work (writing, painting, computer programming, sculpting, music composition and recording, whatever) – or trying to make money (entrepreneur, salaried, investor, whatever).

People that desire to create and enterprise do a lot to build the world, but it’s often a lonely and frustrating path.

And due to the nature of that, most creative and enterprising people make a key mistake.

They keep trying to re-invent the wheel.

Please stop doing that.

When you get into a new field, you start by getting a hang of the basics. You dabble, experiment, maybe read or research a little on the topic.

This is all good.

But then, a lot of artistic/enterprising people make a serious mistake – they get all their lessons on how to improve the hard way, by reinventing the wheel and struggling in ways that have already been struggled before.

You can cut a lot of frustration and learning curve time off if you do things more systematically.

Step 1 – Start dabbling and playing in the endeavor, seeing if you like it.

Step 2 – Pick up the basics, start putting a stable amount of time into your endeavor.

Step 3 – Now, before pouring energy in haphazardly, start also learning how the most successful people in the field did it.

Read summaries and biographies of people that have come before you.

It’s amazing how many people don’t do this, because it means you’re going to make serious mistakes and do inopportune things that could have been avoided.

For instance, if you’re a businessman thinking taking investment, you’d do really well to read Ted Turner’s biography, Call Me Ted. He references one of his biggest mistakes as giving veto power to two investors on his board of directors, who abused that power and blocked him from doing good deals sometimes.

By reading Call Me Ted, you learn about how Ted had free reign to produce at Turner Industries until he gave over that veto clause, and you make a mental note not to do that.

If you read the great biography of John Rockefeller, Titan: The Life of John D. Rockefeller, Sr.,  you learn about potentially getting in trouble with the government. Microsoft had similar problems. So if you were building to a large scale, you’d want to start lobbying and putting some expense into building the general good simultaneous with your business in order to have regulators look favorably on you.

If you’re a salesman, you should find biographies of the best salesmen in similar fields.

Likewise, if you’re doing creative work, you should learn about the habits and practice of highly creative people. Napping is a big one that many great creators would use – Thomas Jefferson would half-nap in a chair with ball bearings in his hand. Immediately after he fell totally asleep, the ball bearings would hit the floor and make a racket and he’d get back up.

That way, he’d get short rests and get the semi-awake creativity bursts.

If you’re a musician, read about the great performers. There’s many biographies and stories about The Beatles’ legendary work ethic when they were first getting started.

If you’re into comedy, check out Steve Martin and Jerry Seinfeld’s writings on the topic.

If you’re a writer, check out  On Writing by Stephen King.

The nature of doing meaningful things in the world means it can be lonely and individualistic. The stereotype of creativity feeds into that. But if you wholesale accept that attitude, you wind up making many mistakes you could have avoided.

You’re not alone. Whatever you’re doing, someone has done an excellent job with it in the past. Seek them out, hear their words, learn their lessons, and make lots of great art and lots of money.

Sebastian Marshall writes daily on strategy, philosophy, personal finance, travel, and history. You might enjoy “How to Get a Raise” if you’re salaried and “What Skills Do You Need to be an Entrepreneur? Only Two” if you’re self-employed. His RSS feed is free to join if you like his writing.

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Words That Heal and Empower

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)

Have you ever thought about quitting your job to work for yourself?

Maybe you have – but it seems like an impossible dream, and you know you can’t just walk out of your current job and hope for the best. Or maybe you can’t imagine quitting – you enjoy your work, you like your colleagues, and you want a steady income.

Either way, think about starting a side business: it could have huge benefits for you.

Here’s how.

#1: Boost Your Bank Balance

Few of us want less money. Chances are, you’re either trying to pay off debt, or trying to increase your savings. A side business lets you make extra money without chasing a promotion or asking for a raise at work.

You don’t necessarily have to spend every evening and weekend on your business, either. Just a couple of hours a week, making an extra $50 -$100, might be enough to make a massive difference to your finances.

#2: Diversify Your Income

A side business doesn’t just give you extra cash; it gives you a new source of income. We’ve all seen friends and colleagues laid off during the recession – and it’s clear that traditional employment isn’t as secure as we might have once thought.

Having multiple sources of income means that if one dries up, you’ll still have some money coming in. If your company folds, or if you’re made redundant, you may be able to survive for a few months on the income from your side business.

#3: Learn New Skills

When you’re working for a boss, you’ll probably have a clearly defined role and set of tasks – and your boss often won’t be keen on you seizing the initiative or rocking the boat. But when you start up your own side business, you can learn and explore as much as you want – in fact, you’ll have to learn new skills (like project management, sales, accounting…) in order to be successful.

These skills play into the whole of your life – not just your side business. Perhaps you’ll be able to use them in your regular job, and prove that you’re worth promoting. Or maybe you’ll find that increase self-discipline or financial management makes your personal life easier, too.

#4: Make Your Hobbies Pay

Many hobbies are expensive. If you’re into photography, for instance, you might spend thousands of dollars on cameras, lenses, and other equipment. If you’re a musician, you may want to set up a home recording studio.

Even if your side business doesn’t make a lot of money, it could easily make enough to cover the costs of your hobby. You could pay for that new camera by doing a few photo shoots, or even by selling stock photography online.

#5: Follow Your Dreams

Chances are, you’ve got some dreams which don’t have anything to do with staying in your current job. Maybe you want the freedom of working for yourself. Maybe you want to have enough money in the bank to take a six-month sabbatical from work, so that you can travel.

Whatever your dream, a side business can give you the funds and the freedom to make it come true. And you don’t have to wait for months or years in order to get the benefits, either: working on that side business during your evenings and weekends can be motivating and encouraging in itself. You’ll find that you have a new sense of purpose, and that you feel in control of your life.

Have you ever run your own small business? We’d love to hear your tips and ideas in the comments!

“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!)

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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.

Today we are seeing more self made millionaires than ever before. Today it is easier than you might think to accomplish your goals.

From my studies of successful people, my work with different individuals and my own experiences I have found 3 simple keys to financial independence.

•    Spend less than you earn
This is so obvious but most people live paycheck to paycheck hoping to win the lottery (even if they don’t buy tickets) without a thought of building their way to financial independence.
Start saving a part of your income. I know it can be tough, but start with just a little. 20 dollars per month is a start and as time goes by hopefully you can increase that amount slowly but surely.

•    Invest Your Money – Make it work for you
Now that you are saving money, make it work for you. Spend time learning to invest it. Try to get a good secure interest off the money and let that interest grow your savings into the money machine you deserve.

•    One part of your savings becomes your “financial fortress” you don’t touch it for anything ever.

Your financial fortress is what keeps you safe. It lets you know that you are always safe and it generates a steady income each year.
The money in the fortress you never touch, you can use the interest, but the point is to build that interest into a stream that can take care of you for years to come.

Vow to put some of your saving into the fortress and let it grow steadily.

This methodology is being used by thousands and thousands around the world.
As you can see the techniques are simple, accessible to anyone, but often overlooked.

Most of the self made millionaires today live in areas and with neighbors who have no idea they are millionaires. They have a strong financial fortress that gives them freedom to do what they wish and not have to see money as a problem.

On the other hand they don’t waste their money; they know what they spend it on and make sure to get as much out of each penny as possible.

I do not believe in the minimalistic life many self made millionaires live, I think that you should spend the money you have earned on what you care about, but make sure to make smart decisions with your economy and make sure you keep that financial fortress safe and secure.

Conclusion

Anyone can make themselves financially independent. Depending on how much you are able to save each month and how much you feel you need to be financially independent, it will take different amounts of time.
The good news is that you can start today and work steadily towards your goals gathering more and more momentum as you go because your money machine and fortress start working for you.

If you liked this post and want to read more like it visit http://lookingtobusiness.com Daniel M. Wood writes about Sales Techniques, Motivation and Success .

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