How are YOU your biggest asset? Well, how do you make income? Does it come from a tree, or are you out there working hard each day for a paycheck? Maybe you don’t have a 9-5 job, but are YOU doing a bunch of side hustles, like websites, freelancing, or other gigs to make money?
YOU Are Your Biggest Source of Income
You may think, well, I make most of my money through working. Well, if it wasn’t for you, your employer wouldn’t hire you, and you wouldn’t be making any money.
The bottom line is that you are your biggest source of income until you retire (or maybe win the lottery). You will be the one earning your income and doing side gigs to get more income. And your income will be directly proportional to how hard you work, what skills you have, and what risks you take. The stronger your skills, the higher you are likely to get paid. The bigger risks you are willing to take (such as starting a business), the higher the potential rewards will be.
When YOU Are Not Your Biggest Source of Income
Hopefully, by the time you retire, you will have saved enough to have your investments work for you.
I recently read a study from AARP that highlighted the following:
- By Age 30, you should have 40% of 1 year’s income saved
- By Age 40, you should have 2 year’s income saved
- By Age 50, you should have 4 year’s income saved
- By Age 60, you should have 9 year’s income saved
What I found interesting is that it highlights how the switch from YOU being your primary income earner to your savings and investments becoming your prime income earners. But even at the end of the day, if YOU aren’t saving, YOU won’t ever be able to stop being your number one source of income. You just won’t have a choice…
Readers, what are your thoughts on YOU being your biggest asset?