How To Future Proof your Income

What exactly is Future Proofing?

Future-proofing is the process of anticipating the future and developing methods of minimising the effects of shocks and stresses of future events.

People are afraid of the future. Not everyone, but many people live in fear of the unknown, and as the future isn’t here yet, it is another unknown people are afraid of. Fear is not reserved for the weak, everyone is fearful of something.

We live in a Social Media world of presenting the best we are to the masses. But it’s not a bad thing to be vulnerable and to show some of that vulnerability to others. It makes us more human and a good human story has a mix of fear, vulnerability and overcoming adversity.

What has this to do with future proofing your income?

Without some sort of fear, people would never take action. If I could leave my front door unlocked all day long without the fear of being burgled, I probably wouldn’t secure my house. On the other hand, many people wait until they are burgled before they buy a security system.

The motivation (for most) to buy a burglar alarm is to actually be burgled. People tend to take action after the disaster has been and gone.

This is how many people view their income. And let’s be clear here, your income, or your families income is what is keeping your life together. So it’s pretty important.

It has been said in various surveys conducted in the UK and USA that most people are only two pay cheques away from disaster. Imagine if you will, missing two monthly pay cheques, how would this affect you?

Do you have savings?, do you have an emergency fund?. Most people don’t.

Why? because we live in a “live now and pay later” culture. Live now, and if we don’t have enough or if the money runs out we can borrow on the credit cards. This creates a spiral of debt, adding to more money we now have to find to pay the interest of borrowing, etc.

It’s a Hamster Wheel To Nowhere.

After a lifetime of work, many people are broke when entering retirement. Approximately 90% will be living close to the breadline, 4% will have to downsize their house to help finance their retirement and only and 1% end up financially free.

1%. Only one whole percent of the entire population (UK & USA) will end up being financially free.

Is this by accident?

No. Financially astute people know how to future proof their income. These people are not all financial geniuses, in fact most aren’t. They just take steps to create income streams that SERVE them. Not income streams (like a job) that you have to work your butt off till you die and live in fear of being sacked.

So, How Do You Future Proof Your Income?

Answer: By creating other incomes to run alongside your job. It has often been said that many millionaires have several streams of income. They generally do but they don’t start that way.

Often or not, the average potential millionaire will be a person just like you. They will have a family, rent or a mortgage to pay and other responsibilities. It’s just a common misconception that millionaires have to be young and single.

Often or not millionaires don’t get that way until after their mid fifties or even sixties and after several attempts, often ending up in failure, sometimes ending in debt and bankruptcy.

One thing they do all have in common though is that they have an unshakeable belief in themselves and the ability to win their struggles. They are resilient people who don’t give up. EVER.

So how can the average person future proof their income so they will never be broke again?

5 Steps To Future Proof Your Income

Step 1. Create a second source of income to run alongside your job. This could be a part time online business, a side hustle, or even sell some of the stuff in your house that you don’t use – sell it on eBay and reinvest the money into products to resell.

Step 2. Invest some of your job earnings into funds that have a habit of growing year on year. Diversify your portfolio and invest according to your age. For example if you are 60, invest at least 60% of your spare cash in to safer investments such as bonds. (please note, this is not investment advice, consult a financial expert before investing).

Step 3. Save for emergencies. A family emergency can wipe out your capital if you haven’t made preparations in advance. Save a little each month toward any unknown event, for example – Plumbing disasters, new roof, funeral arrangements, anything not covered by insurance.. Pet health, accidents etc.

Step 4. Reduce Costs. Reducing your spending by £20 a week will give you another £1000 a year to invest in future proofing your life. Look at what you spend each week/month/year – add it all up, is it serving you? For instance, if you are spending £3 a day on that Starbucks for 5 days a week, could that £15 a week (£750 a year) be put to better use? Always spend less than you earn.

Step 5. Invest in yourself. This is my favourite. People can steal things from you, people can leave you but they can never take away your education. Investing in yourself is by far the greatest ROI return on investment. Upgrade your skillset and you’ll upgrade your income. Education used wisely can elevate your life as for me by far this was the single best asset I ever invested in.

Elevate Your Education

I’ve said it many times before but it’s worth me saying it again. You income is determined by your perceived value to the marketplace. If you elevate your education to offer value to the marketplace the World is your Oyster. You don’t have to be the smartest person in the World to make a lot of money, but you do have to stop thinking like the majority – that plan is and always has been flawed.

The majority are just spinning their wheels, working to pay bills, sometimes robbing Peter to pay Paul. It doesn’t have to be like that, get creative – start working on future proofing your income today.

I hope you found value in this post. If you did please let me know your thoughts, leave a comment below. Sharing the post would also be Awesome.

All the best

Keith

P.S P.S My latest book “Money Mind Crush ” is available now on Amazon – Click Here

PPS People who liked this post also liked this one – The TRUTH About Being Broke

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