The bottom line is BS. It’s not important. I know, that’s quite the statement. Contrary in fact to everything you’re taught I’m sure. But it’s true. The bottom line on your financial statement is not the important line. Why? Because there is nothing you can do with it. I mean, you can make adjustments to things in the middle so that the number, maybe, gets a little bigger. However, At the end of the day, there will only be so much you can free. It’s a value with a fixed range and to make it bigger requires you limiting or constricting yourself to do it. Therefore the bottom line is BS and instead, your focus should be at the top.
Focus at the top
Where your focus should be is at the top. This is the line with infinite possibilities. This is the line that can make a real difference in your financial freedom. Now, if you’re on salary you may say, “But wait a minute! That line is also fixed!” And indeed if you don’t have any plan or intention to change it then yes, it will be. If you have a plan, if you have the intention to change it, however, then you’re playing a different ball-game. First and foremost you could always ask for a raise, but this would be limiting, if your tying to get out of debt or make a significant increase to your income this is a very unworkable way to approach it. You can only ask for so many raises before your boss is just flatly going to say no. You could go for that promotion but again, it is unlikely you will get them every year. Instead what you need to do is look at what activities you can do that will have a more direct and dependable impact on that top line.
A Dependable Impact
A dependable impact means something you can do that you know will yield a certain result. To give an example of the opposite, if you are a salaried exempt employee, working overtime will not yield additional income. Maybe it will help you earn a bonus for meeting that target or hitting that deadline, but that’s not dependable is it? If you are paid the same whether you work 16 hours or 8 in a day, what’s the point? You love what you do? That’s fine, but shouldn’t you be paid for it?
So then what would be a dependable impact? It would be an activity or action that you know will yield a certain result every time. In the context we are speaking, an action that you know will yield a certain monetary return for it’s performance. For example lets say you can make $100 for building a webpage, so then earning more money in a month becomes a very simple problem right? Simply build more webpages until you’ve covered what you need. Heck, then build more so that you have more than you need. Working more will have a dependable impact on what you make. The problem then becomes one of scaling.
Scaling, specifically how to, completely depends on what your dependable impact is. In most cases though it will be one of two scenarios. You either hire someone to help or you devote yourself to the dependable impact full time (which most likely at some point will still require you to hire someone later.) In the webpage example above, as your experience and reputation grows, you can charge more. Or, it could be getting someone else to help and cutting them in on some of the profit. The point though is to push what is working and to push it hard.
If you are in debt, or looking to earn more. The solution to both is to look up. Put focus on that top line, find something you can do to make a dependable financial impact and then once you have found that, scale it. The reality is the bottom line is BS, it is merely a reflection of what you have done, but don’t make the mistake of believing it is all you can do. Your potential is unlimited and this world has no shortage of money to be earned, so find out who has yours and collect it.
Have a question on getting out of debt? Or Earning more? Send them to me!