When it comes to achieving financial freedom, the golden rules and common threads most people talk about boils down to 3 steps:

1. Increase income
2. Decrease expenses
3. Invest the difference

That’s it. That’s the essence of becoming wealthy. Now there are many intricacies within each of those steps which are covered in different blog posts to maximize the opportunity of each step, but the most influential way to improve your financial wellbeing is the first step; increase your income. We’ll talk about the 1^st two steps in this article with an emphasis on increasing income.

Increase Income:

Focusing on income virtually has limitless and infinite potential. Unlike expenses, which can only be reduced so much and finite potential, your earning potential can grow continuously and exponentially. There are numerous avenues to explore when it comes to increasing your income:

• Advance in Your Current Career: Seek promotions, ask for raises, or take on additional responsibilities that can lead to higher compensation. Continuous learning and skill development can also make you more valuable in your field. Job hopping is another popular method to create meaningful raises.
  
• Pursue Side Hustles: Many people find success in starting side businesses or freelance work. Whether it’s consulting, writing, or creating digital products, side hustles can significantly boost your income. Some companies that allow freelance work are Upwork and Fiverr. Teach an online course through Udemy or Teachable. Sell digital products on Gumroad or Etsy. Side hustles can turn into a business where you become an entrepreneur.
  
• Invest in Education and Skills: Higher qualifications and specialized skills often translate to higher pay. Investing in education or professional certifications can open doors to higher-paying job opportunities or even new higher paying careers.
  
• Explore Passive Income Streams: Real estate investments, stocks, and online businesses can generate income with minimal ongoing effort. While initial setup may be intensive, the long-term financial benefits can be substantial.
  
• Network and Build Relationships: Networking can lead to new job opportunities, business ventures, or partnerships. Building a strong professional network can significantly impact your earning potential. People are a great currency to invest your time into; everything and business is built on and with people.
  
• Other methods to help increase your income include: working with a tax advisor to maximize taxes, affiliate marketing or displaying ads through a content media (Youtube, blog, email) to an audience.

Decrease Expenses:

While this is a crucial part of managing your finances, it’s inherently limited and finite. You can only cut expenses so much before it starts impacting your quality of life. However, effective expense management is still essential for maintaining and growing your wealth:

• Create a Budget: Track your expenses and identify areas where you can cut back.
  
• Reduce Debt: High-interest debt can be a major drain on your finances. Prioritize paying off debts and avoid accumulating new ones.
  
• Avoid Lifestyle Inflation: As your income increases, it’s tempting to spend more. Instead, focus on maintaining your current lifestyle and saving or investing the additional income.

 Increasing income is more effective than decreasing expenses. Each has pros and cons. Most importantly, as one of my internet mentors always says about wanting to expand our means and not live within our means, increasing your income increases your means (said by Rich Dad Advisor Andy Tanner). Having more money will not only cover more expenses, but allows the magic compounding effect of money to expand your expenses and essentially expand your capacity to cover more expenses.

The last step which is a focus on another blog post is investing the difference. Having more positive cashflow than negative cashflow each month allows excess money to invest the difference where buying assets allows your money to start working harder than you working for yourself. This is where the magic of living beyond your means and finding financial freedom begins.

To the New World and the New You, much success in finding your financial freedom.