Earning Money: The Starting Point

To increase income, focus on creating value to become irreplaceable. Money follows value: deliver results that solve problems, save time, or boost revenue, and higher pay follows. This applies to any job, barista, developer, or consultant. Treat your role like a business: spot inefficiencies, propose solutions, and track impact to justify raises or new opportunities.

Step 1: Assess and Act
Observe your workplace and identify inefficiencies, like slow-selling items in retail, and suggest fixes (e.g., inventory tweaks to boost sales). Go beyond your role, volunteer for cross-training or use tools like Google Sheets to analyze data. This shifts you from a cost to a profit driver.

Step 2: Build Skills
Invest 5-10 hours weekly in gaining industry expertise. Choose skills that address workplace needs, e.g. SEO for marketing. Track results, like “Cut project time by 20%, saving CHF 5,000 quarterly,” to strengthen your case for raises.

Step 3: Negotiate or Move
If no raise after 12-24 months of clear value, update your CV with achievements, network on LinkedIn, and apply selectively. In interviews, highlight past wins (e.g., “I optimized X process, boosting efficiency by Y%”). Job switches can yield 10-20% salary jumps.

Step 4: Diversify Income
Explore additional income sources to build financial resilience. For example, freelance your expertise (e.g., graphic design on platforms like Fiverr) or pursue other ventures like tutoring or selling handmade goods. Reinvest earnings to grow these streams. Multiple income sources alongside your salary safeguard against job loss.

Key Takeaway
Earning is a skill: create value, document it, learn continuously, and negotiate or switch. Consistent effort can increase your income over time, ensuring sufficient funds.

Spending Wisely: Controlling Your Outflows

Dealing with money hinges on controlling spending, treating money with purpose to ensure financial health and freedom. The key is simple yet powerful: mindful spending builds wealth, while reckless outflows erode it. This applies to all, students, families, or professionals, by prioritizing needs, curbing wants, and aligning with long-term goals.

Start by tracking expenses for a month using an app or an Excel sheet to spot patterns, e.g., overspending on dining or subscriptions. Categorize: essentials (rent, utilities), variables (groceries, transport), and non-essentials (entertainment), limit the last to 20% of your income.

Refine with strategies: Use the 24-hour rule to pause big purchases (e.g., CHF 800 for a phone), shop sales, and buy bulk non-perishables. These habits compound, easing financial stress that impacts health and relationships.

If overspending continues, redirect to goals like an emergency fund. Seek accountability with a partner or budgeting alerts. This plan suits all by fostering awareness, discipline, and value alignment, turning spending into a wealth-building tool.

Budgeting: The Roadmap for Money

Dealing with money depends on budgeting. A budget directs money intentionally, stopping waste. 

Refine with zero-based or envelope methods, review monthly, cutting non-essentials (e.g., cook at home) during peaks. Involve your family for shared goals.

If overspending occurs, shift to savings or debt. Use app alerts or a partner for accountability.

Saving: Building Security

Dealing with money relies on saving, with a core principle that regular saving creates a safety net. Start by saving 10-20% of income, automatically put it into a high-yield account, building an emergency fund for 6 months' expenses. Once secure, set goals like vacations or a home using separate accounts. And don’t forget to set aside parts of your income to cover taxes, ensuring you’re prepared for annual obligations. Gradually boost savings by cutting expenses and allocating pay raises, avoiding lifestyle inflation. If savings lag, reduce spending or boost income. This plan cultivates discipline and growth, establishing saving as a wealth foundation.