Many families earn a decent income – enough to pay the bills – but their finances never really improve. They’re always treading water, instead of increasing their net worth. And it’s a tragedy. Life shouldn’t be like that. We should all have the opportunity to earn more than we consume so that we can finally own capital and start making real passive income.
The reality is that most people can actually achieve some passive income before they retire. You shouldn’t always feel like you and your family are on the treadmill, but standing still. Your finances should have a continuous, positive trajectory. Our guest writer feels that every week you should be getting closer to your goals and the lifestyle that you want.
Getting to this point, however, is always a challenge. It means making changes and educating yourself about money. Nobody built a successful family pension pot by going through the motions. They took decisive action.
Here are some of the reasons why your bank balance never improves and what you can do about it.
You’re Stuck In A Debt Trap
Debt can sometimes be useful – for instance, if you have a great business idea and need the capital to finance it. But for most families, debt accumulates because the cost of living is so high and wages are inadequate. Bank balances go negative, and you have no choice but to ask creditors for a loan.
Debt, though, isn’t free. It costs a lot of money, putting more pressure on already-strained finances. And that’s when you can find yourself in severe financial trouble.
Fortunately, there are debt relief programs. These are far better than debt settlements or consolidations because they discharge your debt, instead of just rearranging it.
Remember, most family debt isn’t the result of wanton spending and a lavish lifestyle. It is simply a consequence of unchosen economic circumstances. Getting rid of it then is entirely within your moral rights.
You Live For The Moment
There’s nothing wrong with “living in the moment.” But living for the moment can land you in a lot of trouble, especially when it comes to money matters.
Living for the moment means you choose pleasure today instead of saving it up for tomorrow. It means you can’t delay gratification and must have the stuff you want right now, even if it means going into debt to make it happen.
If you find yourself in this situation, try to take a step back and think about what it is that really makes you happy and satisfied with your life. Is it spending money on all the latest gadgets, or is it your relationships, knowledge, and virtue?
You Don’t Have A Side Income
Very few people become ultra-successful financially by working in their regular jobs from 9 am to 5 pm. Instead, they cultivate a side income to support their money goals hoping that it’ll go big.
Think about where your skills lie and then try to monetize them. Figure out some way of generating a secondary income and experiment with it. See where it goes. You never know. You may go from wondering why your bank balance never improves to watching it grow!