Is paying your bills the primary agenda for working your 9-to-5? If so, you must re-imagine the your role as an employee. Re-imagining your role as an employee allows you to see the job as a stepping stone to what’s possible rather than a resting place because of a position. Being employed to simply pay the bills, and not pay yourself illustrates a broke mentality. As a freedom fighter, we must leave behind the habits that exhibit a broke mentality and embrace one of abundance.
Here are 3 steps to take in order to finesse your bank account instead of your brokenness:
Focus on your paystub more than your paycheck:
It is easy to disregard your paystub when you are spoiled by the technology of direct deposit. When receiving direct deposit, you are familiar with the amount that hits your account but unaware of the amount that doesn’t. You are paid a gross amount, and it’s important that you are knowledgeable on what’s going on with your entire paycheck and not simply what’s left over after deductions. There are a few amounts that don’t hit your account such as taxes, insurance deductions, and rare but possible, pension deductions and it’s extremely important to understand those numbers.
When you are familiar with your gross income and deductions, you can save and invest more than you imagined. The percentage of money you save and invest should always be based on your gross amount, not your net amount.
My 9-to-5 is a stepping stone to what\’s possible not a resting place because of my position.
Create ‘secured bags’ that will benefit your present and future:
Do you remember as a child when you parents asked to make a list of things you wanted for your birthday? Simply thinking about all the things you wanted for your special day brought you much joy when you wrote them down. Now that you are decades older, you aspire more things than just materialism. You want peace of mind, happiness, and freedom – which includes doing what you love on your own terms.
It’s time that you create your secured bags. Your bags will encompass those things you want to achieve that bring you long term joy and not a short term fix.
Here are some examples of ways you can secure the bag for your present and your future so you can live the life you desire:
What do you want to learn? Invest in Self Bag
When do you want to retire? Retirement Bag
Where do you want to travel? Travel Bag
Where do you want to live? Housing Bag
What do you want to create? Small Business/Franchise Bag
How will you leave a legacy? Brokerage (Individual Stocks/ETFs) Bag
Your company in which you clock in and out for 5 days a week is not the only company you should have. You should treat yourself as a company. Invest your time and money in you just as much or as more than you do with your 9-to-5. You are not only the Chief Operating Officer and Chief Finance Officer of Company *insert name here,* but you are the Chief Freedom Fighter.
Put yourself first by paying your self first:
“I just got paid, and I have no idea where all of my money went.”
Have you thought or spoken those words less than two weeks after being paid? This may sound foolish to you, but before you focus on how much you spent, you should focus on who you are spending it with. When was the last time you reevaluated the companies you contribute monthly payments to?
“Damn, bills again!”
You are paid by Company A.
You use the money to pay Company T, U V, W, X, Y, and Z.
Now, Company YOU has no money.
You are paid again by Company A.
You continue the cycle for 40 years to pay Company T, U V, W, X, Y, and Z.
Now, at 65 you still have to work because you refuse to put yourself by paying yourself first and create a lifestyle free from unnecessary bills.
*Before money hits your checking*
Company YOU pays Future YOU a percentage of your income via employer sponsored 401(K) before taxes.
Company A pays you again a percentage of the amount you paid Future YOU via 401(K). (Umm, free money!)
Company A pays the remaining amount to your bank.
Company YOU pays a reasonable amount to other Company YOUs that contributes to the life you want to live. (Travel, Small biz, Professional/Personal development, Housing fund, etc.)
Company YOU then pays Company X, Y, Z after realizing Company T, U, V and W did not contribute to your goals.
Company YOU takes the new money found from not paying Company T, U, V, and W and reinvest it in his/her goals.
Now, 10-20 years later you are fully relieved to know there’s a huge possibility you won’t have to work until 65 or later because you put your dreams ahead of your bills.