Debt Free

I’m a big a fan of saving money as almost anyone. The news that British Prime Minister Tony Blair’s British Airways jet has overshot a taxiway in Miami came as somewhat of a shock to me however. British Airways?? I know Britain isn’t the economic powerhouse it once was, and they’ve made cutbacks in many areas, such as the elimination of full sized aircraft carriers. But, in all seriousness, how can you have your head of state fly on a common carrier? The Queen has a bloody yacht to cruise around in, for God’s sake. It’s not a little Bayliner, either. Can’t they just charter Blair and his family a private jet? Surely the British military has jet transportation available. One would think the security concerns alone would render the British Airways solution needlessly complex. 

Now, on to more pressing issues, such as your economic situation. The British government can always raise taxes if they need to generate increased revenue. In the short term, that should work nicely. In the long term, the additional money that is not invested in the private sector will reduce the size of the economy and aggregate tax revenues will decline. You can’t tax your way to prosperity after all, although it seems many would have us try.

If you’re trying to get debt free, there are only so many choices you have available to you. One of these is increasing your personal revenue. Seeing as you, the private citizen can’t raise taxes to increase revenue, what can you do to get an income boost? There are several choices available to most of us. These come with varying degrees of added responsibility and yes, added effort. Damn, that last part.

1-     Work more time at your current job. This solution is used by many to increase revenue. In many cases, it works well, especially if you’re paid higher rates for the additional hours. In the end, however, this route can only take you so far. There’s a limit on how many hours one person can work, even if your employer will let you work as many as you want, which most will not.

2-     Get additional compensation per unit of time worked at your current job. Yes, you can take the time honored path of groveling in the boss’s office for a raise. Hey, sometimes it works.

3-     Take on additional responsibilities at your current job. In many organizations, you can take on added responsibilities or jobs that will add to your income. An example of this is teachers taking coaching positions for additional income. Sometimes you can take instructional positions within your organization for added compensation.

4-     Get a new job. Sometimes, your existing employment just isn’t going to cut it anymore. You may have topped out on the salary rung, or it may be one of those jobs where there just isn’t much advancement potential. In such cases, it’s time to say “sayonara!”. Hit the road, after testing the waters of course. You should have secured a new position before leaving your old one. As with other things, leverage is the principle of choice here. You should leverage your current position into a better one.

5-     Start your own business. This is a time honored path to wealth and riches. It’s definitely     not for everyone though. If you strike out on your own, it’s all on you. I mean everything. Unless you’re starting with some solid capital behind you, most likely you’ll be wearing most of the hats in the beginning. Talk about responsibility! You need to be organized, have a business plan that addresses financing, marketing, and resource requirements and allocation. The devil’s in the details, as they say. (Who the heck are they, anyway?)  There’s nothing like your own business for adventure, though. Just make sure all concerned parties are completely bought in to your idea of going it alone. Your own business can be one of the most rewarding experiences you can imagine, however, and not just financially. If you like to build, you’ll love it. You can even pick something that you can start small with on the side, before your leave your existing employment. You can then grow it into something that can support you and your family.
 

The beginning of a new year is a great time to take stock of your financial situation and evaluate its potential. Is it time for a change? Is a personal revenue increase just what the doctor ordered? Now’s the time to take a look. Good luck in your continuing quest to become debt free.