“I Need To Make More Money Today”!
Why are most people talking about making more money?
Most people when starting their working life aspire to aim high for the ‘6 figure income’. A six figure income seems to have the essence of prestige, success and achievement that most school or college graduates aim for.
Though this is a great target to strive for it may not always deliver what you want.
The Reality Is …
Most jobs lie well below the 100,000 dollar mark so having an income at or over $100K seems the goal of many employees or self employed people today. They sacrifice a lot just to get this income each year. They even give up quality family time just to have the perks that a high paying job offers.
But again is it all worth it!
From our last post on the survey done on college graduates we saw that 95% of people did go through university and did find themselves great jobs at probably the 6 figure or $100,000 plus income levels. But somehow all of them found it hard to make ends meet financially at the time of retirement. If you want to read about that article click here.
They did know … How to Make Extra Money!
Yes we know that they did put in the hard work and had never planned to fail, yet somehow they did fail to have the right amount of funds at the time of retirement. What they had done was they had just failed to plan well in advance.
So how did this happen especially when these people did have the right jobs on ‘How to Earn More Money’ today at the top income levels .
Lets find out why these people are today crying “I need to make more money” …
Imagine You Know How to Make Extra Money at Home …
From the picture above we see someone who has a yearly income of $100,000 dollars before tax.
On an average the tax rate can be around 40% for high income earners in most countries. At least in Australia its around that figure.
Income After Taxes!
So after tax this high achiever is left with $60,000 for the year as income after tax. Lets call this his net income.
Break Down Of Income!
Now from the net income we shall break this down over 12 months which now gives him a monthly income of $5000 a month for his expenses and possibly savings.
A Simple Budgeting Exercise on …
So lets do a simple exercise and see how he spends his money, where it goes and how much is left over after he has paid for his bills.
I am going to write down just some bills (expenses) here that he needs to address every day, each week and needs to pay for each month.
Lets see what these monthly necessities are:
- Home – $3500. This will account for a $500K mortgage at 5% interest spread over 30 years. This also takes into account insurances, utilities and the maintenance of the property. Next …
- Car Repayments – $600. This takes into account you buy a car at 5% interest rate for 5 years on a $30,000 car loan. Next…
- Other Car Expenses – $600 . Takes into account insurances, gas and maintenance. Next …
- Clothes – $100 . Though this may seem over the top to spend one hundred dollars a month on clothes it will surprise you that most people will spend much more than that quite easily. Just a pair of shoes costs that amount or more today. What about a hand bag, underwear or toiletries. What about …
- Food – $300 . I feel this amount should be far higher as food can be very expenses when you shop for groceries each week. Next comes …
- Entertainment – $200 . At fifty dollars a week this will give you just enough to have a decent main meal at a restaurant with no alcohol. Most people will spend two or 3 times this amount just in one weekend. The last expense on my list here is …
- Cell Phone – $100 . Now days phone and internet is a necessity and a must. We just cannot do with. Most people will spend close to and sometimes much more on their phone bills.
So lets add all these up and see what it all amounts to. From the figure below you will see that we get a zero balance once we have taken all our expenses away from our income. Can you imagine that!
Zero money left over.
May be this is why you want to earn extra income now. Now I want you to think about something very seriously.
The expenses listed above are classified as survival expenses. We just cannot do without the house, car, food, clothes, phone, etc. These need to be paid for each week, each month.
What About These Missing Expenses?
So what about the expenses that are not accounted here such as:
- Credit Card Debt: Most people have multiple credit cards to cover their huge lifestyle choices. This is probably one reason why their cant live within their means.
- Children’s Expenses: Such as clothing, schooling. If you have a child in private school who then goes on to University in Brisbane this can be close to $250,000 for the life this child is studying. Are you saving up for this expense. Imagine if you have 3 children to put through school.
- What about medical and emergencies: With the way the medical system is going especially in Australia one needs to take out private medical cover. This could very easily be a few hundred dollars a month for a small family of four. Yet another factor to consider.
- What about savings for holidays: Now you may feel holidays are not so important and even if you do have a break from work it should not cost too much. Don’t fool yourself. Holidays are expensive and while you are on holiday you are not earning.
- Retirement Savings: And most importantly what about savings for retirement. Will you be able to enjoy the same level of income at the time of retirement. Have the same holidays you enjoyed during your working life and eat at the same restaurants or would you need to adjust your budget to suit the low pension you may have to live off during your golden years of retirement?
With a zero balance each month it is next to impossible to have enough left over to cover the expenses listed above. We just need to make more money. Now can you see why you must address the fact that “I need to make money now“.
I Need To Make More Money Today!
Now can you see why the 95% of people failed. It was not due to the fact they were lazy or did not work. They just did not have access to spare funds to channel towards credit card debt, children schooling, holiday expenses, medical expenses and most importantly save for the future -retirement.
They had failed to plan for the future.
Today you lie in that situation may be. Possibly you have a few options open to you.
Option -1 on “I need more money now”:
Get yourself a second job. But a second job means putting in an additional 4 to 6 hours over and top of your regular day job 3 to 4 times a week. Just to make an additional $300 to $500 extra a week.
The downside is:
- You will never see your family.
- Your health will deteriorate and
- Your family life will become dysfunctional.
Or Maybe the answer lies in …
Your Partner Goes To Work Too! Asking your partner to go back to work and bring in some extra money for the home. But what about child care expenses if she or he had to do that?
If you had your spouse go to work and leave the children in day care they will miss out on the care your wife would give them. Just imagine having a child care staff member who has no interest in children now taking care of your two year old while you worked all day long just to pay the child care costs.
Is this the answer to this problem?
When Considering That -“I need to make money now” you must address another issue that may arise. Bear in mind that when both parents work long hours to keep the so called lifestyle going it can disrupt family life and quite often tends to make couples seek divorce a few years down the track. Is this the right way or are there other options when you start to ask yourself that you need extra money.
A Better Way!
What we need is a better way. A way that life can be lived at your own terms without disrupting family life and still giving you the quality of life you deserve at the same time helping you to save towards a happy retirement.
If you are looking for a better way why not look for a way that you can make money now and still have quality time freedom.
Click Here if you want to know more about a better way to earn more money today.
I hope you have found this post interesting on “I Need To Make More Money Today“.