Tag Archives: money

What Can You Do?

Never say “can’t”, especially in the context of, “can’t afford it”. Instead say, “How can I…?” It’s never about the money. It’s about what money can or cannot do for you. Understand why money is an issue in your life, either positively or negatively, and what is really important beyond the dollars and cents.

Why? It’s amazing to me how many times and ways we stop ourselves before we even start.  I spoke with someone the other day who was looking for work in her field. She started off saying she couldn’t live where she was living because the jobs did not give her enough income. We talked and replaced her “couldn’t afford it” reality with “how can she earn the dollars she needs working in her field so she can live where she wants”.

What Are Your Sources of Income?

Within a household, you need to have multiple sources of income as well as multiple assets to build true financial security. If both income earners work for the same company or in the same industry, there is very little security in that.

How can you minimize this risk? Like investing, where one risk minimization strategy is to diversify among industries, type of investment, return, etc., the same is true for income within a family. For planning purposes, it’s best to have income into your home from different industries, different types of income (such as employment, self-employed, business, or investment), different payment frequency, etc. This way you cover your risk of income loss. Ideally you will want to ensure you have income that will continue regardless of whether or not you work to receive it. For example: investment income, royalty income, disability insurance, etc.