It seems obvious doesn’t it that as you get older you should be able to earn more money per hour than when you were young.
As you learn new skills and have more experience you should be able to charge more for your labour, and get it. Alas, this does not apply to many people, certainly not as many people as it could. It is not rocket science and improving skills and knowledge is open to us all.
Are you improving your skills on a regular basis? Are you making a conscious effort to get better at what you do? How many books do you read each year? How many training courses do you attend each year? How much money do you invest in your own personal development each year?
Your answers to these questions will be a true indicator of just how much value you are placing on your labour. If you want your boss to pay you more money, you need to demonstrate to your boss that you are worth more money. Perhaps it’s not your boss who wants to pay you more money but someone else, a competitor of your bosses. Not to mention that the greater your skill level the more you get to pay YOURSELF!
A couple of weeks ago, I gave you a number of habits and ways for kids to make money. Today, I’d like to continue on from that with habit number 5 – Creating a future income and why it’s important….
As you get older you will inevitably lose your ability to provide your labour as a means to earn an income and you will need to utilise your investments to provide the income you need to maintain your standard of living. If you do not have investments that can provide the income you need you will be reliant on the aged pension which is not designed to provide for many luxuries. It is even less effective if you happen to still be in the property rental cycle. At least if you own your own home you have a decent chance of surviving on the aged pension. So the only real answer to having the money you want in retirement is to have an investment portfolio that provides an income. And the earlier you do this in life, the better off you’ll be.
Now depending on how old you are, this might seem like such a long way away. You might also not know how much income you’ll need in retirement cause you’re still living at home with your parents and not even earning an income! Don’t worry, you may just need to wait a little while until you work it out. This won’t stop you from starting to save though.