Virtually every area of commerce, from global supply chains to financial markets, have been majorly disrupted over the past year. Industries have been forced into rapidly evolving to keep up with the pace.We were thrown into digital transformation before truly ready, and now faced without a choice but to move forward. For businesses to be able to thrive, they need to transform, and many have embraced automation and new technologies.
Adaptability itself is a form of intelligence, and each of us has the capacity to become more adaptable,” says Natalie Fratto, a top tech investor who speaks at Ted Talks regularly. “Think of it like a muscle…It’s got to be exercised.” Asking yourself “what if” questions and practicing simulations is a safe testing ground for improving adaptability. Accept new situations. Become an active un-learner. Things change, accept that change. Herein are a few more considerations.
- Reassess your budget: Your budget has likely went through many revisions over the past months. Spending was likely shifted and watched closely. More was spent on groceries and utilities, whereas you are probably saving on fuel and entertainment. For those who may have been hard hot, non-essentials may have been cut. As economies reopen, it’s time to reassess your budget based on your specific circumstances and the new paradigm. Will you work from home permanently? How will you handle childcare? With a new lifestyle, you will need to reallocate spending categories to ensure a balanced budget.
- Expand income: Having extra income will help stress levels and set up strong financials. The more sources of income you have, the more financially diversified you will become. In addition to the usual run of the mill gig work, you may consider a part-time job or turning that hobby into a money making opportunity. Other possibilities include creative services through freelancing sites like Fiverr and Upwork for graphic design or copywriting.
- Rebuild your savings: If you dipped into savings, now is the time to start rebuilding. Putting away a few dollars here and there will establish the habit of saving. When you’ve reached stability, you’ll find it easier to increase your savings until your emergency is right where you want it to be.
A diversification strategy is cornerstone to the wealth triangle. These are: a high income skill, a scalable business, and a high return investment. Each is essential to having strong financials moving forward. If you are looking to go back to school, now could be a good time to look at what future skills will be needed and invest in yourself to learn them. Working for yourself has never been so desirable as you are the one who holds the decision making power and direct access to knowledge about the future. While it is more responsibility, it also provides for more assurance. Assets that make money every month, dividends, income property, vending machines, any investment that provides passive income is the basis to building any real, longstanding wealth. Build and buy assets that allow you freedom and time. The highest level of true wealth is waking up and doing whatever you want.
Building wealth for the freedom it provides and getting the luxurious lifestyle that comes with it after is the stuff dreams are made of – and it is possible. A bit of sacrifice and smart work you will get there. As Gary Vaynerchuk, a media mogul says “You gotta put in the work”. Retirement isn’t an age, it’s when your passive income exceeds your living expenses. Get at it, it is within reach!
