Finance at Your Fingertips by Moses Ayiku, Jr. MBA OP/ED
In last week’s article we focused on dealing with a financial challenge that affects many people, debt. Debt can be referred to as good or bad debt. For example, student loans are typically referred to as good debt because it has led to an upgrade in qualifications that can increase ones’ income. Bad debt refers to debt that has been incurred indiscriminately and without due analysis.
For example, maxing out one’s credit cards on frivolous expenditure such as clothing, vacations and other luxuries. We are not interested in judging anyone because of the debt they have acquired. Everyone has a different financial profile and different circumstances. Rather, we are interested in guiding people to improve whatever financial situation that they are in. However, each of us need to identify past financial mistakes and ensure that we learn from them so that we do not make the same mistakes again.
We are human and we all will make mistakes in terms of our finances. They key is to learn from our mistakes and improve with time!
This week we are going to look at a much more optimistic area, increasing ones’ income. The simple fact is that many people have financial problems that are as a result of not earning enough. If one is not earning much, the first step is to ensure a regular budget to assist one make the most of the limited income that one is earning. Beyond that there are several options we all have available to us to increase our income.
In the long run, increasing one’s level of education can lead to an increase in income. For example, if one does not have a degree, it is an option to work on obtaining one and as a result opening oneself up to increasing one’s income. Others may also consider short courses or training in specialized areas as a way of increasing one’s skills and in effect one’s income.
These days, information is readily available on how much one can earn with certain certificates or short training programs. It is important that you conduct thorough research and identify the courses that are best for you. One note of caution, there are a number of courses and training programs that can provide with better job prospects as well as a higher level of income. Please select a course that will not only increase your income, but also one that you are prepared to undertake.
For example, these days most of us know that careers in the medical field tend to give strong and increasing income levels. However, if you have a strong dislike for anything to do with blood, this may not be the field for you. Not only must a potential course pay well, but it also mut be a field that you are prepared to enter. Please do your own self-assessment to ensure that you choose the appropriate course to engage in. Take into strong consideration your likes and dislikes. In simple terms, you will do much better in a course that you genuinely like than one which you dislike.
In our current economic environment, it is clear that Covid has had an impact on many sectors. At the moment, there are a number of industries that are having problems hiring. These include the services industry as well as transportation. For some, this is an opportunity to add a second income stream to their finances. Definitely, adding a second income stream will increase your overall income. The extra income can then be used to assist you pay down debt as well as increase your level of savings. It is also more of a job seekers market. This means that one could increase one’s income by simply looking for a firm that is willing and prepared to pay a higher level of income for the same job! That is yet another way to increase one’s income, changing employers. Due to the supply shortage of labor, some employers are improving their terms of employment, providing training options, sign on bonuses as well as higher compensation packages to attract the right people. This is an opportunity for you to explore the market and find a potential employer that will give you a better overall compensation package.
Another way to increase one’s income that we have written quite a bit about is investing. There are diverse and numerous investment options out there. One can invest in financial securities such as stocks and bonds or one could start a new business. In terms of new businesses, there are increasing opportunities to start an online business or a brick-and-mortar business. We all have different circumstances, and these should guide our investment choices.
For example, if time is very limited for you due to a full-time job and intense obligations, an online income source may be your best bet. If you have always dreamt of starting a particular business because you have a passion for it, that may be another way to go. Develop a simple way of determining the positives and negatives for any investment option that you are considering. Then you can compare the various options and select your preferred choice. Regardless of your final selection, making the effort to increase your income could be a great way to improve your finances and have the ability to live the type of lifestyle that you want to live!
Please feel free to share with me your questions and experiences on increasing your income. I will do my best to respond, and, in some cases, I will write on some of these questions.
Please feel free to share with me your questions and experiences on stocks and investments. I will do my best to respond, and, in some cases, I will write on some of these questions.
Your questions and comments can be sent to localtalknews@gmail.com.
