When I was in high school, I worked every summer in my uncle’s auto parts warehouse.
My dad would drop me there on his way to work and pick me up at the end of each day. And we’d have great conversations on all kinds of topics during these car trips.
One of the things we talked about was the value of money. Dad would say, “Ed, money won’t solve all your problems. But it will solve about 90% of them.”
That lesson stuck with me. I knew it to be true then… and I know it to be true now.
In today’s podcast episode, I tell the story of my complex relationship with money and the lessons I’ve learned—lessons you can draw from to improve your own financial health.
Because just like my dad, I firmly believe that 90% of the solution to life’s problems is getting the money thing right.
Disclaimer: As always, the content of this podcast and show notes do not constitute financial, legal or tax advice. Always check with your own financial, tax and/or legal advisor.
The notes that follow are a very basic, unedited summary of the show. There’s a lot more detail in the audio version. You can listen to the show using the audio player below. Or you can subscribe in iTunes to get this show delivered straight to the Podcasts app on your smartphone, tablet or iPod.
In spite of my dad’s advice—and being the stubborn person that I am—I was foolish with my money for a large part of my adult life.
I barely earned enough to live during the first two or three years of my career. And it took me eight or nine years to change that.
When I finally started earning a nice income, I squandered much of it.
But several years ago, I came back to my dad’s sage advice.
I dug myself out of a tight spot and turned things around.
And I cannot overstate the difference it’s made in every aspect of my life, including my business.
I’m absolutely convinced that managing your money well is one of life’s most important “lead dominoes.”
It’s a problem that, when solved, automatically solves dozens of other problems.
Solving the “money problem” automatically solves dozens of other problems.
When you’re totally stressed about money, you make poor decisions.
You take on subpar clients and crappy projects.
It also impacts your confidence and sense of self-worth.
Which causes you to keep mismanaging your money, which keeps you stuck in this cycle of poor business decisions.
So how do you get out of this terrible cycle?
I think you can narrow the solution down to four basic pillars. They are:
- Earning more
This is the variable most people tend to focus on to solve their money problems. But it’s only one piece of the puzzle.
Earning more is only one piece of the solution to solving your financial problems.
- Managing well
Systems are 90% of the solution for managing well. Systems make it easy to follow the steps without getting emotionally involved in the process.
- Investing wisely
Investing wisely means more than just picking smart investments. It also means investing a significant portion of your income because you’ve learned to live on less (from pillar #2) AND investing consistently and automatically.
Pillar #3 also feeds into this. As you manage your money better, you find opportunities to cut costs and shift those savings into additional retirement account contributions.
- Protecting prudently
You protect yourself through savings, insurance and knowledge.
For savings, this means having an emergency fund, savings for long-term expenses, etc.
Insurance includes health insurance, homeowners, auto, liability coverage, disability (so important!), and more.
Knowledge means learning all you can and partnering with one or two professionals you trust.
Understand that all this is coming from a place of love. I want you to thrive as a self-employed professional. I want you to have a wonderful, fulfilling life.
And I know in my heart that 90% of the solution is getting the money thing right.
By the way… whenever you’re ready, here are 3 ways I can help you grow your freelance business:
1. Grab a free copy of my book.
It’s called Earn More in Less Time: The Proven Mindset, Strategies and Actions to Prosper as a Freelance Writer. The title says it all. 😉 — Click Here
2. Join my implementation program and be a case study.
I’m putting together a new implementation group this month. If you’re earning $5k+/month (or the part-time equivalent) from your freelance business … and you’d like to grow your income quickly with better clients … just email me at [email protected] and put “Case Study” in the subject line.
3. Work with me privately.
If you’re a 6-figure writer who’s trying to earn more in less time, with less stress, I might be able to help you get there faster than you think. Just email me at [email protected] and put “Breakthrough” in the subject line, and I’ll get back to you with more details.