Why your salary shouldn't be your only source of income

I would like to start by asking you a question, is your salary currently your only source of income? If the answer is yes, it is time to make changes in your personal finances.

While the vast majority of financial advice focuses on saving more and not spending so much, this advice alone will not get you any closer to financial freedom.
With this I am not telling you that it is not important to save money, rather it is an invitation to think about what your sources of income are and understand the importance of diversifying your sources of monetization.

Your salary may be your only source of income:

So, the first thing you should do to stop depending on your salary is to transcend the famous advice: spend less, save more money .

To achieve this, and begin to create new sources of income, we must make an effort to reprogram your brain, moving from a consumer lifestyle to an active investment mindset.

What does this mean? Simply put, developing an entrepreneurial mindset and making friends with risk by creating new sources of monetization.

Everyone needs to awaken their entrepreneurial side.

I will give you an example: One way to have more money available each month is by following a personal budget by spending less, however, you also have the option of asking for that increase in your job for which you have been working (this is your entrepreneurial side).

Beyond being an extra income, it shows your skills to sell yourself, to show that you have the courage and initiative, something that goes beyond your workday.

Another option you have is to offer your services or skills to others during your free time, get a side job or start an online business that generates income every month.

It is important that you keep in mind that the days when a company took care of you until you arrived at retirement are over. This is why you need to create new sources of income .

It's time to start taking risks:

It is important that you learn to take risks. Now that you understand the importance of creating new sources of income, it is time to plan your first investments.

Just as you read, if you don't start investing your money, you will hardly achieve your financial freedom.

How to start? The best way is to take an amount of money, which you are willing to lose, and do it yourself.

While there are countless options that can help you make financial decisions for you, these professional services come with varying levels of cost and a wide range of returns on your investment.

In addition, you would be forgetting the objective of all this, that regardless of how you invest, the important thing is that you learn to generate new sources of income on your own .

One of the biggest obstacles you can face is language, which is very important for you to understand in order to make decisions based on your understanding of the current situation, and not based on what someone else tells you.

It is very important that you understand each of the terms in the world of investments before you give your savings to someone else. For this, I recommend investing in your financial education, either through finance courses or books.

Additionally, ask yourself or your professional adviser how much you are paying in trades and commissions, how well structured your portfolio is compared to the market, and each person who advises you, ask if they are giving you advice or selling you something.

If you are made to feel ignorant by the type of questions you ask, you should consider stopping using their services; there is no unnecessary question, you need to know what happens when the market falls, what is a bond, a stock or derivatives.

For this you need to understand the language, to have arguments and clarity to ask the necessary questions to your advisers.

Plan for the life you want to lead

When you become an active investor, you will start to see life differently; your objectives become investment strategies.

What do you want to do in the future? Do you want to go back to college? Buying a second property? Have time for your family? Retire young and become a writer ?

Whenever they ask you how much money you need to retire, answer: Nobody knows!
Life is not a straight line, and expecting people to know how much money they need to retire, when they are going to retire, and under what conditions are questions that simply make you feel guilty.

If you are smart enough to understand that your salary should not be your only source of income and that you should save, you are also smart enough to invest it and make it grow until it allows you to lead the life you want.

So get started today, read a little about investing, use free tools, and try some of your money.

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