This article has nothing to do with being a Nosey Nellie, but keep reading.
A lot of people say they want to get ahead financially. But most people don’t have a clue about what that actually mean, much less the steps to take to get there.
To succeed in life and in business, you have to understand a few things about a “business”—what it means, what it requires, what makes up its parts, and how you can get a bigger piece of the pie.
LESSON #1: Businesses want to make a profit.
LESSON #2: To do that they must have something to sell that the public wants to buy, and
LESSON #3: They must keep their expenses as low as reasonably possible.
If you work for a shoe company, you help your employer make, promote or sell shoes. They, in turn, try to keep their expenses low so they can make a profit, pay their bills (aka your salary), and stay in business.
If you work for a construction company, you bring your building expertise to the job site every day to help your crew construct a terrific bridge, house, or airport. Once again, your employer tries to keep expenses low so they can afford to pay the electric bill, salaries, insurance, materials, etc., and have something left over to return to employees for a job well done, reimburse stock holders who have invested in the company, or build more projects.
If you are self-employed, you provide a product or a service that the public or a company wants to buy. You keep your expenses as low as possible. And, with luck, you make enough money to cover your expenses and stay in business for another day.
Shockingly, though, most people don’t see that these lessons apply to their personal lives as well. So, in case I haven’t been clear enough, let me state:
YOUR LIFE IS A BUSINESS.
When you go to work for someone else, you must have something they are willing to pay money for, whether it is technical knowledge, practical knowledge, physical strength, trustworthiness or any number of other personal attributes.
You sell your services to a business and they pay you money or some benefit in return.
You must then take that money to pay your personal expenses like rent, food, car payment, utilities, clothing, taxes, babysitting, etc.
• If you don’t have anything left over but all your bills are paid, you break even.
• If you don’t have enough income to cover your expenses, you go into debt.
• If you have something left over after all the bills are paid, you have made a profit that you can use to enhance your education, improve your house, buy a new car, save for your children’s education, go on a vacation, start your own business, etc. etc. etc.
Now I know that what I have just stated is almost too obvious for words, right?
But until you think of your life in terms of a business enterprise, you will never become a business success because controlling your personal spending is probably more important than controlling your business expenses.
Getting ahead in business does not just mean showing up every day and putting in your 8, 10 or 12 hours. It means understanding that not only your employer but also you personally must have something that someone else wants to purchase at some predetermined price, reduce costs, and strive to make a profit so that you can improve your lifestyle.
So . . . how well are you minding your own business? Perhaps it’s time to evaluate your current lifestyle and see if you have what it takes to make a profit at home before you try to make a profit at work. If you don’t get your own house in order, you will forever treat your paycheck like an allowance that you blow each month while believing that that that paycheck will keep coming forever. Good luck with that dream.
In the subsequent articles of Wednesday Wealth, I’ll go into more detail about:
a. What makes up a financial statement
b. What constitutes business and personal assets and liabilities
c. What is so dangerous about some expenses
d. Planning for the long term
e. Getting a raise
f. Evaluating your worth in the business world
g. Developing a business mentality
If you have any questions or suggestions for other articles, please contact me at email@example.com.