1. Do the job you want, as well as the job you have
No-one is going to offer to double your income unless you can do the job that pays double your salary. So instead of asking for a raise, work out which job or role pays double, and learn how to do it. If you spend 80% of your time doing your current job better than anyone else, and 20% of your time learning how to do your next role, you’ll soon realise your ambition. When you can do the work, you’ll receive the money - and not before.
2. Invest in assets that pay passive income that cover your liabilities
It’s easy to earn £250k a year but spend £300k at the same time. To avoid the spending trap, buy depreciating liabilities with income streams from assets. For example, instead of buying a £50k car, find a lease deal for £400 a month, then build up an asset that creates an equivalent income each month. You can use the income to cover the lease payments. Preserve capital at all costs in investments that hold their value; use the chicken for the eggs and not the one meal.
3. Model the best, learn from the rest
Rather than resenting the person who has the role you want, get an audience with them and learn how they do what they do. The more you learn, the more you earn - and success leaves clues. It’s better to make mistakes vicariously through someone sharing theirs with you, than having to go through them yourself. You can learn something from everyone, so stay open minded about learning from your peers as well as those ahead of you in your career. Avoid all politics and build a good relationship with everyone. People will reveal their secrets to you if you make them feel comfortable and offer them value in return.
4. Learn about money: what it is and how it works
Money is as ubiquitous as health, politics and happiness. So why is it that most people don’t spend as much time seeking to understand it? There are fundamental laws that govern the form and function of money which will help you make, manage and master it better. Some examples:
1. Money tends to flow from those who value it least to those who value it most
2. Money is neither good nor bad, but a universal exchange of value and energy
3. Money will not change you, it will only make you more of who you already are
Commit to reading and learning about money, using podcasts, books, articles and audiobooks. Gain the knowledge and become the person who attracts and retains wealth.
5. Build multiple streams of income
Being reliant on one income stream puts you at risk from outside forces and changes. Save and invest a portion of your income into other avenues, building them up progressively over time. The average millionaire has three income streams, and is therefore de-risked from the possibility of one source of income drying up. Have some liquid, secure assets - like your maximum ISA allowance every year - and well managed funds, and more illiquid, capital based assets like property. Once you’ve gained a lot of experience in your field, teach it to others because it feels good and gives you another income stream.
6. Solve bigger problems, get bigger payslips
People who hide behind problems, bosses and org charts will not increase their income and career much. Companies, bosses and clients value people who solve the biggest challenges. Put your hand up and take responsibility for solving the biggest problems you can. When it gets hard in your role, know that this is where you prove your value. Money hates friction and loves speed; solving problems removes friction. Be like Edison who had almost 10,000 ‘failures’ before he solved the light bulb. He just saw it as a step closer to his goal.
7. Crowdsource your future revenue streams
The hardest way to solve problems, progress and make more money is to come up with all the ideas yourself. The easiest way is to get the ideas from smart people and customers who buy what you sell, test those ideas back on them, and then monetise those ideas through implementation. Microsoft has done this with virtually every version of Windows. Do this and you can proceed knowing that your idea will work. It’s like knowing the answer before you ask someone on a date.
Rob Moore is a struggling artist turned self-made millionaire investor and entrepreneur, he is the author of the book 'Money: Know More, Make More, Give More' is published by John Murray Learning.
This piece was first published in October 2017.