Increase your bank balance by not focussing on costs

CLIENT QUESTION:
I want to increase my bank balance (profits). How can I cut down my costs (expenses)?

OUR ANSWER:
There are lots of people out there who think that the only way we can increase profits in a business or bank balances (if you are an individual) is by cutting down the expenses we incur. This whole idea is flawed because it just focusses on expenses. People don't seem to realise that there is only so much you can cut down in expenses. So instead of focussing on the expenses shift your focus to your income. Now income doesn't have any upper limit does it?

If you are making say $50,000, think of ways in which you can earn $75,000 or even $100,000. But if you are making $50,000 and your expenses are say $20,000 then there is just so much you can cut down on.

I see the so called "expenses" we incur as an investment. I invest in food so I can live. I invest in travelling around so I can have a good time. They are not expenses but an investment to a better me.

Remember if you focus on the wrong goals you will "achieve" the wrong goals!!!

ANSWERED BY SURESH RAJANI

To discuss this further you can contact Suresh Rajani.

Suresh Rajani the Business Leader at Tax First - an accounting and business advisory firm located in Wayville, South Australia.