We face a battle each day.
Are we going to choose to be comfortable or uncomfortable?
If we choose to be comfortable, we will remain in our comfort zone.
The result of staying in our comfort zone is we will continue to get what we’ve always gotten before.
If we are happy with what we have always gotten before, then the choice is clear.
Stay comfortable today.
However, progress will never occur in the comfort zone.
In order to have progress, we have to do things that make us uncomfortable.
If we keep doing things the way we have always done them, we will continue to get the results we’ve always gotten.
Many people dream of making more money.
While this can be a noble goal, many times, the focus on getting more money ignores the reality that happens with most people.
Most people’s level of spending increases to their level of income.
More money coming results in more money going out.
We all have a wish list of items we want to spend money on.
In our personal lives, this may be a new car, a new home, a new vacation, or a new toy.
In the business world, this may be a new employee, a new tool, a new machine, new software or marketing to get new customers.
Many times, we fantasize about what life would be like with that new shiny object.
In our minds, we have already spent the money.
Then when we have more money come in our bank account, it goes right out of the bank account as quickly as it came in on the things that we’ve been fantasizing about.
Consequently, nothing really changes in our financial lives.
We have to interrupt this pattern of money coming in and money going out to get different results.
If we want more money in our bank account, then we have to change the way we spend or earn money.
The equation for having money in the bank is illustrated below:
Money In – Money Out = Money in the Bank
There are only two variables that affect the money we have in the bank
- Money In
- Money Out
Therefore, there are only three ways we can change the balance in our bank account
- Increase the money coming in and keep the money going out the same
- Increase the money coming in and reduce the money going out
- Keep the money coming in the same and reduce the money going out
Here is an illustration of how each of these scenarios plays out.
For this example, let’s assume that a person has $5,000 coming in each month and $5,000 going out each month. For purposes of our example, I will assume there are only a few variables that will change as follows:
- Option 1 Increase money coming in by 10% = $500
- Option 2 Reduce money going out by 10% = $500
Scenario 1 Increase money coming in and keep money going out the same
Money coming in increases by 10% = $5,500
Money going out remains the same = $5,000
Money in the bank = $500
Scenario 2 Increase money coming in and reduce money going
Money coming in increases by 10% = $5,500
Money going out reduced by 10% = $4,500
Money in the bank = $1,000
Scenario 3 Keep money coming in the same and reduce money going
Money coming in remains the same = $5,000
Money going out reduced by 10% = $4,500
Money in the bank = $500
The best result comes when money coming in increases, and money going out is reduced.
The path to increasing the money in our bank is as simple as these three scenarios.
There is no need to complicate things beyond these three scenarios.
Now that we know there three ways to increase the money in our bank, there are four questions to ask yourself.
- How much money do I want to have in my bank account?
- How can I increase the money coming into my bank account?
- How can I reduce the money going out of my bank account?
If we want to make more money, then it means we are going to have to sell something to someone.
If we want to reduce the money going out of our bank account, then it means we will have to go without something.
Both actions will require some level of discomfort.
When we go to sell something to someone, we put ourselves in a position where that person may reject us.
We might fail to sell our wares to that person.
For many people, the thought of being rejected is more than they can bear.
So, they choose to be comfortable, and they don’t sell.
Consequently, they are resigned to the fact that their income will remain the same.
I love the concept of low hanging fruit when it comes to sales.
With the concept of low hanging fruit, we are able to get quick and easy wins.
Many times the low hanging fruit lies with our current best customers.
Our current best customers love buying from us.
They are raving fans.
They recognize that every time they buy from us, they are getting a deal.
Every time they buy from us, they get something that is worth more than the money they exchange for it.
Spend some time pondering what you could sell to your best customers that would make a difference in their lives.
Then go sell to them.
Your chances of success selling to your best customers are significantly higher than selling to new customers.
Now let’s look at the other side of the money in the bank equation – money going out.
Many times, we think that everything we are spending money on in our lives or businesses is a necessity.
Rarely is this the case.
Many times, we are paying for things that we don’t use.
We may have used those things in the past, but we are no longer using those items.
Now let’s apply the concept of low hanging fruit to our spending.
Grab your bank and credit card statements for the last two months.
Now, review those bank and credit card statements.
Highlight items that you could live without.
Now stop spending money on those items.
You’ve just increased the balance in your bank account.
Even a reduction of spending by $1 is a win.
It may not seem like a lot, but it is a move in the right direction.
There is a simple formula for Increasing money in the bank.
Money In – Money Out = Money in the Bank
By changing the money coming and/or money going out of the bank account, we can change the amount of money in our bank account.
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