There is an adage that says, “More money, more problems.” But is that really the case? If you are chasing multiple income streams but haven’t yet learnt how to manage one income stream, you are indeed doing it backward.
More money isn’t always the answer; managing your money is. If you can’t manage $100,000, you won’t know how to manage $1,000,000. That’s just the simple truth.
A lot of people have this belief that if they can just get another 10% more, it will make a world of difference. However, any person can build wealth on ANY income so long as they have a proper system for managing their money. That doesn’t discount the fact that sometimes having a bit more money can be very helpful,so long as you know how to control that which you already make. If you do not know how to manage what you already earn, making more money will not solve your problems and sometimes can worsen things.
Research has shown that most people who make it to the top 1% of income earners usually don’t stay at the top for very long. Economist Jay Zagorsky, a writer for the U.S. News and World Report, shared, “Studies found that instead of getting people out of financial trouble, winning the lottery got people into more trouble, since bankruptcy rates soared for lottery winners three to five years after winning.” Some of the reasons given include depression, suicide, divorce, and saying no to friends and family who hoped to gain from this new fortune.
I suggest that instead of our daily efforts of hustling to make more money, take time to figure out first where the money from your current stream of income is going. Here are some questions you should carefully consider:
- How much did I earn?
- How much did I spend?
- What did I spend the money on?
- Did I make a profit or loss based on my side hustle or my business?
- Does anyone owe me money I need to collect?
- Do I owe any money?
- Is the amount I owe greater than the amount I own?
- Are my investments losing or gaining money?
- Am I financing my lifestyle with debt?
- What do I need to change?
It’s all about money working for you instead of you working harder for money.