Your income is the most vital thing in your life. Money is not everything. But it is very important. Like the oxygen which is not everything, but we will die without it. Therefore, you have to do your best to increase your income, as much as possible, as long as it doesn’t hurt your life. And, I show you that you can do it even without working more and without hurting the other parts of your life.
Increasing your income helps a lot. It helps you have a better and more comfortable life. It helps you enjoy your life more. The least thing that a good income can do for your and your family, is providing a better education for your kids. So don’t be happy with a low income.
Income to Expense Ratio
There are so many ways to increase your income. However, one of the most important things that you have to know and do, before thinking about increasing your income, is cutting down your expenses. According to Robert Kiyosaki, it is the not matter of the money you make. It is the matter of the money you keep.
It means, you can have a huge income and lots of expenses at the same time, so that you can’t save any money. Although you can look rich and have a luxury life, you are poor in reality, because you will be broke as soon as you lose your job and income.
Therefore, limiting your expenses to have a reasonable income to expense ratio is something that you really have to do. It is something that makes you rich. You can’t become rich by making and spending a lot of money.
– The Minimum Income to Expense Ratio
The minimum income to expense ratio is 30%. It means you have to keep or save 30% of your income. Some smart and rich people keep 50% of their income, specially when they are planning to do some important investments.
Now, the question is how you can improve your income to expense ratio?
The money you save, is what you really need, if you want to be financially secure. It is the real rich people who are financially secure. Not those who only look rich.
You have to make money and save at least 30% of it. This saving is the capital you will invest to increase your wealth. It is the money that you can afford to lose. But you will never lose it if you follow our investment strategy.
Saving money in your bank account and never investing it, is a big mistake. You save money to become able to invest your savings to make more money. Indeed, this is the second phase of our wealth building strategy.
So, how can you improve your income to expense ratio?
There are two ways to do that:
- Increasing your income
- Cutting your expenses down
You can do both at the same time. I mean you can increase your income as well as cutting some of your expenses down.
Believe it or not, but sometimes you can dramatically improve your income to expense ratio just by cutting some of the extra expenses down, and even without increasing your income. Specially if you are a businessman and you have your own business, you always have to work on both. You always have to look for more ways to increase your income, and also more ways to cut your expenses down.
Even the second one (cutting your expenses down) is more important than increasing your income. Indeed, when you cut down your expenses, you increase your net income.
How to Increase Your Income
In this article, I am trying to explain how to increase your income. This is so important to me, because it is a big help to follow our wealth building strategy in the best possible way. As you know, in our wealth building strategy, you have to have a reliable and strong source of income that makes a lot of money, consistently (phase #1). Therefore, it enables you to save some money to become able to invest and increase your wealth (phase #2).
That is the only way to become a real rich, not just someone who looks rich. Therefore, we have to focus on increasing our income.
Increasing your income, improves your income to expense ratio and your financial situation. It enables you to save money and use your savings to invest and make more money. So here is how you can increase your income:
1. Work Harder
If you have a business, but your income is low and limited, you can spend more time and work more. Of course your business has to have the capacity of increasing the income by spending more time and effort.
For example, if you have a hair salon and you have a limited number of clients, spending more time in your hair salon after having all your daily clients you were used to have, doesn’t increase your income, because you are not going to have any more clients.
So, working more, is a good way of increasing your income, if your businesses has such a capacity. For example, you are an accountant and you can take care of more clients if you spend more time. Then you have to do it if you want to increase your income.
If your current income is not enough to save some money, you have to think about increasing it at whatever it takes, because you will be in trouble if you don’t. Read the below articles to understand why:
- A Wealth Building Strategy to Create Wealth from Nothing
- Making Money Online as the First Step of Our Wealth Building Strategy
2. Increase Your Business Income Capacity
This is where you have to find out whether your business income capacity can be increased or not. If yes, is it easy to increase your income capacity, or it is hard and risky and has a low success rate?
If your business has such a capacity, then you have to do your best to increase your business income. For example, you have a restaurant which is doing good. But you want to make more money to become able to save more money. There is no doubt that it is not easy to increase the income of a restaurant that is currently doing good, because it has probably reached the maximum capacity of the customers it can have. Your space is limited and you can’t make it bigger unless you move to a bigger place. But there is a risk of losing many of your customers if you move.
You can add some more services like delivering foods, catering, and…, but if you have already done all of these and still you need to increase your income, then there is no way but establishing a second branch somewhere else. However, there is also a risk here that the new branch doesn’t do very well and you will have to close it after losing some money and wasting some time.
Businesses like restaurants, are very hard to expand and increase their income, because they are hardly scalable. Either you shouldn’t start such kinds of businesses, or you have to know that you will have to work hard while your income will be limited and can hardly be increased.
You can advertise to attract more customers. But you can do it only when you have more room for more customers. If you have been lucky enough to reach the ceiling, then advertising to attract more customers will be wasting of money. But, if your business still has some room for more customers, then you have to advertise to attract more customers to increase your income.
3. Start a New Business
If you have a weak business which is not scalable and you can’t expand it to increase the income, or, if you have a 9-5 job and you live pay check to pay check, or, if you are unemployed and you have no business and income, then you have to think about starting a business or a new business.
You have to have a good income, otherwise you will be in trouble sooner than later. Starting a new business that is easy to start and promote, and has an unlimited income capacity, is what you have to do. If you want to make a change in your life, and if you want to increase your income to become able to follow our wealth building strategy, then you have to take a big step forward which is starting of a new business that meets all the requirements of getting super rich. A business that its income can be increased as much as you want.
– What Is That Business?
There are some good options to start a good business. I have explained this in details in a separate article: Making Money Online as the First Step of Our Wealth Building Strategy
As you can see, starting an online business which is based on the proven and strong online business models, looks like the best option that you have, no matter if you already have a business that its income is not enough, or you have no business and you want to start one.
Starting a new business which is strongly scalable, is the best possible way to increase your income. If your current business doesn’t make enough money and there is no proper way to increase the income, then you have to think about running a new business. If you don’t do it now, you will have to do it in future. But it can be too late. So think about doing it now, seriously.
4. Increase Your New Business Income, Every Month
Now let’s say you have stated a new business which is strongly scalable. Congratulations!
However, you are not done yet. You have to think about increasing your business income all the time. This is a great step if you succeed to make profit every month. But, you should never be happy with making a fixed amount of profit. You should always work toward cutting the expenses down and increasing the profit that results in increasing your income.
It is possible that your business makes a reasonable amount of profit every month. But keep in mind that being happy with a fixed amount of the monthly profit, even if it is a big profit, means that your business is struggling. Your monthly profit can easily go down, if the economy doesn’t do very well, or when some new competitors show up. You always have to be ahead of the economy and your competitors.
Therefore, spend lots of time to increase your income. That is the most important part of your management.
Fortunately, the online business I’ve introduced here, is strongly scalable. You can increase your income with this business as much as you want. There is no limit. And another good news is that it is very easy to increase the income of this online business. I will tell you why.
5. Invest in Your Business to Increase Your Income
When your business is scalable and its income can be increased easily, you can invest in the same business from the money it makes. I mean, when you save a portion of your income for your investments, you can spend another portion of your income to promote the business and take it to a higher level from time to time.
For example, when your business has an unlimited capacity in receiving more clients, you can advertise more to have more clients and customers every month. Many of the businesses don’t have such a feature. But strong online businesses have it. Therefore, you can always increase your income by investing a portion of your income in the same business.
The business we’ve introduced to our followers, to help them create the source of income they need to follow our wealth building strategy, has such a capacity and feature. It means you can increase your income with this business, as much as you want. The most important reason is that, it is an online business that makes money based on the digital products and services. Selling one billion copy of a digital product, is the same same as selling one copy. There is no limit.
So, this is the ideal business that can make lots of money for you and you can increase its income as much as you want. Click Here to learn more if you want to start your online business now.