back to top

How To Lead A Profitable Life

In the world of business, making a profit is essential, a company has to find a way to take in more money than it spends. It's a simple business concept, but one that can be difficult to practice in the personal arena. In your personal life, living profitably comes down to two things minimizing expenses and maximizing earnings. To live profitably, household earnings from all sources have to exceed expenditures. Today we have with us Brian Gwinn, a partner of an investment firm Greenview Investment Partners, who’s going to share some of his professional views on minimizing expenditures and maximizing earning.

Posted on

How do you minimize expenditures?

To minimize your expenditures, you first have to identify what you need and avoid buying things you don't. Famed economist John Kenneth Galbraith noted that needs come from within an individual, whereas wants are often created by the advertising industry. With so many advertisers trying to create wants through constant messaging, you must learn to think for yourself. When you buy something, does it fill a genuine need, or have you simply been conditioned to want it?

Second, you need to search for the best possible deals for the things you do buy. You have to make your earnings last by taking advantage of sales, coupons, deals, discounts, and used items. Today, employers routinely bid out work to find the best combination of price and value. You can do the same by seeking the best prices for auto insurance, Internet service, and other goods and services. However, you don't want to buy low-quality products. It's important to research products using information from reliable consumer reporters.

Third, you can offset expenditures buy selling old possessions to make way for new ones. Gwinn says that instead of clinging to a big collection of stuff, you can keep fewer items that are of higher quality and sell the rest at a garage sale or via ebay and Craigslist to bring in money to offset the expense of new stuff. By reducing the sheer volume of your possessions you also reduce the amount of space needed for it all, which can help you save money on housing and storage.

How do you maximize your earnings?

Maximizing earnings is the flip-side of the profitability coin. There are multiple routes to higher earnings. However, there are five fundamental ways to earn more money. work harder, improve yourself, seize opportunities, get recognition, and invest your earnings.

First, working harder usually pays off. In most employment settings, the worker who is more productive earns more in the long ruin. That means longer hours, arriving earlier, leaving later, and most importantly, accomplishing more. You have to be present and contributing as though you personally own your employer's business. Over the span of a career, that will result in better raises and more opportunities for advancement.

Second, improve your skills by getting the education and training you need to succeed. You can be the hardest-working ditch digger on a job site, but you'll always be a ditch digger unless you learn to do something more. The ditch digger who learns to operate a bulldozer, backhoe, and other construction equipment will be able to do more and earn more.

Third, when opportunities come along that offer more money, you have to be willing to study and pursue those that make sense. This applies to jobs, training and investments. If you want to break out and achieve financial security and success, you have to be ready to take risks.

Fourth, when you are working hard, improving your skills, and seizing opportunities, you also have to let people know about your accomplishments. Publicizing your achievements without appearing conceited might require a delicate balancing act. However, if you learn something new, you have to let others know so that your employer can leverage your knowledge. When you provide more value to your employer, more pay follows.

Finally, you have to be save and invest part of your earnings. When your money goes to work through investment! it can make you even make more money. If you do well enough with your investments and savings, you may even get a chance to retire, kick back, and let your money do all the hard work. Your profitable life will pay dividends.

This post was created by a member of BuzzFeed Community, where anyone can post awesome lists and creations. Learn more or post your buzz!