18 Jan Why Haven’t I Been Taught About This?
Why have you not been taught to increase your income?
This is a great question – it is one that I have been grappling with for years.
Has it ever crossed your mind too why you were never taught about income – not in school, society or at home?
Yet, income is arguably one of the most important thing that has the biggest impact on your lifestyle, investments, health, food, assets and many more.
If you have also been wondering why you haven’t been taught about how to increase your incomes, here are 7 key factors that can be linked to it:
1. We think income is a private thing
Unfortunately, one of the reasons we were never taught about income is because we never talk about it. It is one of those taboo topics that is socially unacceptable to discuss at the dinner table.
Dare I say it (as I am not qualified to talk about this topic), it reminds me of how mental health was treated 20 to 30 years ago – just don’t talk about it and keep smiling. As a result, many people unnecessarily suffered as a result.
Thankfully, we are more open to discuss about mental health now. This has led to better treatment, better access to care and a society that is willing to listen and learn.
I wish we have reached this point when it comes to our incomes. I believe we don’t talk about it due to either coming across as boastful because our income is so high (also referred to as “tall poppy syndrome” or the “force of average”) or embarrassment because our income is so low.
In the right environment, we should be talking more about our income. That is when we can learn ways to master it.
2. We think income is our salary only
One of the common misconceptions is that “income” relates to salary only.
This is complete crap!
If your only source of income is your salary, then you need to have a conversation with a financial planner about your options.
There are multiple ways you can earn an income, while you are awake and while you are asleep. If you want to build your wealth, you need multiple sources of income.
3. We think income is linked to education
Many people believe that in order to increase their income (salary) they need more education.
This is partially true, but far from an absolute rule.
There are numerous studies that indicate that those who went through tertiary education have higher salaries than those who are didn’t have it , but you need to be aware that this fact is not valid at all times.
There are many people that I know who have no formal qualifications and have dropped out of school and became multimillionaires before the age of 30. They learned the key skills needed to increase their income, invested wisely and are living the good life.
I also know many people that have tertiary Education who are still stacking shelves at Woolworths and Coles. These people have the book skills, but not the valuable skills to help them lead successful lives in the 21st century.
Education does give you a leg up. Formal education does open more doors than those who don’t have formal education. But, you can significantly increase your income without formal education. Saying otherwise is simply an excuse.
4. We think income means more work
Again, this is partially true but not completely true.
In order to increase your active income (generally your salary), you need to either increase your hourly rate or increase your hours worked (i.e. do more work).
You may need to work more hours in the short term – it may be the quickest short term way to increase your income.
In the long term, we work on ways for you to increase your hourly rate and also make money while you sleep.
5. We think income is out of our control
I think that a lot of people believe that they are unable to control their income.
They believe their income is set from their employer, the government or some other source and there is nothing they can do to increase it.
I do not believe this is the case, because there are so many ways that you can increase your income, you just need to be a bit creative about it.
6. People have not been “incentivised” to talk about your income
As you are probably aware, most people are incentivised to take a particular course of action.
The foundation of this is very sound – the government and/or a company wants us to work so we get a financial incentive to do this.
However, when we look at this closely, you can see that the results you achieve can be altered to increase someone else’s incentive not yours.
What do I mean by this?
For example, how do education providers at any level get paid? They get paid when you enrol in their course.
Therefore they try and convince you to enrol in the course. They tell you how their course can change your life.
Now, think about this: Do they get paid more if you use what you have learnt in the course in order to increase your income, get that promotion or other predetermined objective? The answer, at least directly, is a huge resounding no.
Sadly, this is repeated throughout most industries.
The medical industry gets financially incentivised convincing you are sick.
The fitness industry gets financially incentivised convincing you are unfit.
Do you get the idea?
Unfortunately, this does apply to traditional financial planning as well. Back in the “good old days” (good old days for financial planners, not for you) whenever you rolled into a bank owned super account the financial planner received a payment (better known as a commission) of 3%.
Therefore, the financial planning industry spent most of their time convincing clients WHO ALREADY HAD HIGH BALANCES to rollover their super accounts into a bank owned fund.
If the client had $100,000, the financial planner received $3,000. If the client had $1,000,000, the financial planner received $30,000.
But if the client only had $10,000, the financial planner didn’t really want to waste time on you.
Thank heavens this practice was banned back in July 2013!
My point is, there has not been anyone who has been incentivised for you to increase your income. Except, perhaps the government who usually earns more tax if you increase your income.
7. Income is our sole responsibility – and people in general don’t like to take responsibility
This can sound harsh, but it is very true!
We have a tendency to blame everyone else for our problems.
Overweight? Blame fast food companies.
Stressed out? Blame your employer.
Don’t earn enough income? Blame your boss, parents, teachers, government and kids as well!
I’m not a qualified psychologist, but what I do know is that if you want to master any area of your life, the first step is to accept full responsibility for it.
Your income is your sole responsibility. As the saying goes “If it is to be, it is up to me!”
If you want to learn about ways to increase your income, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30 minute strategy session.
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Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
Chris Carlin is an Authorised Representative (No. 1235031 for financial services and No. 514748 for credit) and Master Your Money Now Pty Ltd ABN 65 627 229 681 is a Corporate Authorised Representative (No. 1265677 for financial services and No. 514747 for credit) of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523